GCR Nov 2019 by Prime Creative Media

NOVEMBER/DECEMBER 2019

NORDIC BY NATURE

The serious culture behind the top consuming countries

CALL TO ARMS

Leading companies sign the ICO London Declaration on price levels

EL SALVADOR’S FEDERATION FOR THE FUTURE Out of crisis and onto renovation

CAPSULE AFTERLIFE

How Nespresso is reducing its carbon footprint

LESSONS

LEARNT

SOLIDARIDAD HONORARY PRESIDENT NICO ROOZEN ON THE IMBALANCE OF THE SUPPLY CHAIN AND HOW DISRUPTIVE TECHNOLOGIES CAN HELP STABILISE IT www.gcrmag.com

CONTENTS November/December 2019

COVER STORY

A FOUNDING FATHER

Former Solidaridad Executive Director and now Honorary President Nico Roozen talks about the disruptive power of new technologies and why the fair trade certification system has become an exception – not a dominant feature in the market.

IN THIS ISSUE FEATURES

10 A FOUNDING FATHER

Solidaridad Honorary President Nico Roozen on how disruptive technologies can help break monopolies and the structure of the supply chain

14 NORDIC BY NATURE

Exploring the serious coffee culture behind the top consuming countries

19 CALL TO ARMS

The public-private sector unites to sign the International Coffee Organisation London Declaration on prices

34 ALL EYES DOWN UNDER

Why MICE2020 is the ideal platform to start new business with international connections

PROFILE

22 WOULDN’T IT BE NICE?

How Modern Process Equipment Corporation puts its customers at the centre of its operations

24 THE AFTERLIFE

How Nespresso is reducing its carbon footprint and why customers need to put trust in recycling schemes

28 CLOUD ON THE HORIZON

Probat and Cropster partner to launch an independent software company to manage production process data

50 A BILLION-DOLLAR HUB

Coffee pioneer Pascal Schlittler reflects on MyCoffeeWorld’s latest projects and collaborations

42 111 YEARS OF PASSION

Celebrating Melitta’s longevity and experience in filter coffee

44 MIXING TRADITION WITH AUTOMATION

La Cimbali’s awardwinning S20 and S30 prove to be hits

46 CUSTOM MADE

Schaerer emphasises its ability to tailor equipment to fit the needs of its customers

ORIGIN

30 A FEDERATION FOR THE FUTURE El Salvador local actors talk renovation, unification, and the federation

SUPER-AUTOMATIC FEATURE 36 RISE OF THE SUPER TS

There’s a new category of espresso machine in town, and it goes by the name of Super T

38 SAFETY IN NUMBERS

WMF Professional Coffee Machines explains its brand relaunch and focus on reliability and innovation

40 COMPLETE CONFIDENCE

Franke embraces a Coffee Competence Program and Internet of Things technology for central machine management

“WE HAVE TURNED A SYSTEM THAT WAS CONTROLLING TRADE INTO A MECHANISM THAT ONLY CONTROLS FARMS. ” Nico Roozen

Solidaridad Honorary President

48 EGRO’S NEXT EDITION

Blending Android technology with classic espresso style

OPINION

52 THE POWER OF IMAGINATION

Eversys Chief Commercial Officer Kamal Bengougam on how to determine what is fair and at what cost

LAST WORD

58 LAST WORD

Atomo Coffee set to launch bean-free molecular coffee in 2020

REGULARS 04 07 54 56

EDITOR’S NOTE NEWS DRIP BY DRIP DIARY DASHBOARD MARKETPLACE

36 N OV E M B E R /D EC E M B E R 2 0 19 | GCR

EDITOR’S NOTE Global Coffee Report

PUBLISHER Christine Clancy christine.clancy@primecreative.com.au EDITOR Sarah Baker sarah.baker@primecreative.com.au JOURNALISTS Ethan Miller ethan.miller@primecreative.com.au

AGE IS NO BARRIER I WONDER WHAT I’ll be doing when I decide to retire? Maybe I’ll take up bowls like my grandparents did. Perhaps I’ll discover fine arts, join a weekly ukulele class, or take up marathon running as my now-92-year-old friend did, and still does. I’m still a few years off making that fateful decision. In Australia, workers are eligible for the age pension at 65-and-a-half years, and this is expected to rise to 67 by 2023. But for many of our hard-working coffee farmers, there’s no such thing as a retirement plan, with most giving up the labourous slog when their body decides enough is enough. The ancient Chinese sage Confucius is attributed to saying, “choose a job you love, and you will never have to work a day in your life”. While many would agree, others would argue the pay packet is the major drawcard. Our Italian friends are known for working to live, not living to work, something I and this edition’s cover interviewee Nico Roozen are trying to adopt. I say we, because Nico is determined to challenge the idea of retirement. In his interview with GCR from his home base in Amsterdam, Roozen explained how he’d recently celebrated Solidaridad’s 50th birthday and had formally stepped down from the Executive Director role, waving goodbye to management life and responsibilities. Half an hour later, he had to scoot off to a television interview, followed by a meeting with technology developers. Retirement is what you make it. I daresay Roozen won’t be spending his days playing chess anytime soon. As he rightly puts it, at age 66, “if you can make a new contribution to society, then why not?” – especially when Solidaridad has given

G C R | N OV E M B E R / D E C E M B E R 2019

him the position as Honorary President to help initiate new innovations that can offer a fair share and a fair price for coffee farming communities. Fair wage and living income were also the focus of this year’s International Coffee Day and first International Coffee Organisation (ICO) CEO and Global Leaders Forum in September. At the event, members of the ICO agreed to set up a taskforce with the private sector to draw up a roadmap and explore further actions on price levels and volatility, as well as long-term sustainability. It led to leading coffee roasters, traders, and stakeholders signing a historic declaration on the economic sustainability of the world coffee sector. The objective is to implement practical and time-bound actions to address the coffee price crisis that concerns the world’s coffee farming community. With each passing year, ageing farmers assess whether to continue their fifthgeneration profession and the work that forms such a huge part of their country’s cultural identity. Their reasons for socalled retirement don’t come out of want, but the need to find a new avenue to support their families, and it’s our responsiblity to help.

Sarah Baker Editor, Global Coffee Report

Peter Papoulias peter.papoulias@primecreative.com.au DESIGN PRODUCTION MANAGER Michelle Weston michelle.weston@primecreative.com.au ART DIRECTOR Blake Storey blake.storey@primecreative.com.au DESIGN Madeline McCarty, Kerry Pert BUSINESS DEVELOPMENT AND MARKETING ACCOUNT MANAGER Camilo Molina camilo.molina@primecreative.com.au CLIENT SUCCESS MANAGER Janine Clements janine.clements@primecreative.com.au CONTRIBUTORS Lindsay Holloway, Kamal Bengougam PHOTOGRAPHY Jos Kuklewski, World Coffee Research HEAD OFFICE Prime Creative Pty Ltd 11-15 Buckhurst Street South Melbourne VIC 3205 Australia p: +61 3 9690 8766 f: +61 3 9682 0044 enquiries@primecreative.com.au www.gcrmag.com SUBSCRIPTIONS +61 3 9690 8766 subscriptions@primecreative.com.au

Global Coffee Report Magazine is available by subscription from the publisher. The rights of refusal are reserved by the publisher.

ARTICLES

All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

Global Coffee Report is owned and published by Prime Creative Media. All material in Global Coffee Report Magazine is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Global Coffee Report are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

Worldâ&#x20AC;&#x2122;s leading filling & sealing solution.

COFFEE & TEA

NEWS In brief

NEWS DRIPBYDRIP ASIA PACIFIC Since the 1950s, when Italian immigrants first introduced their love of espresso to the Australian population, the country’s coffee culture has continued to evolve with independent coffee shops, passionate baristas, and quality-conscious consumers helping brand the country as a ‘coffee destination’ on the global map. While more than 11,000 visitors saw this for themselves firsthand when they attended the eighth instalment of the Melbourne International Coffee Expo (MICE) in 2019, the 2020 edition is set to show off the nation’s appeal to an even larger international audience. See page 34. In August 2019, Big 7 Travel called Simple Kaffa in Taipei the best coffee shop in the world. What’s impressive, Eversys Chief Commercial Officer Kamal Bengougam says, is the fact that Simple Kaffa – the creation of

2016 World Barista Champion Berg Wu – is using the Eversys Cameo C’2 1.5 step machine. The Cameo and newly released Ghost mark the beginning of Eversys’ Super T range. See page 36.

AMERICAS When Modern Process Equipment (MPE) Corporation set out to establish the core values of the company, it settled on innovation, precision, and support: innovation in how it produces its equipment, precision in how that equipment operates, and support in how it maintains its customer relationships. These values are exemplified by MPE’s latest creation, the In Situ grinder, which is designed to be compact enough to fulfil customers’ wishes for a roller grinder that fits directly above a packaging machine. See page 22.

El Salvador once produced millions of bags of coffee per year, making the 21,000-square-kilometre country the fourth-largest producer globally throughout the 1970s. By the 1990s, El Salvador still averaged about 2.4 million bags per year, but this current harvest is expected below 900,000 60-kilogram bags. A perfect storm of politics, pests, and prices has stunted the country’s coffee industry. Now, a federation of all actors along El Salvador’s coffee supply chain has united to return the nation to its former glory. See page 30. With climate change a significant threat to the future of coffee production, Seattle-based start-up Atomo Coffee has looked into new ways to produce the beverage from scratch. The result is “molecular coffee”, taking coffee’s chemical components and reproducing them in a lab setting. Following a successful fundraising effort in 2019, and current product testing and development, Atomo Coffee’s founders hopes to have a product on the market by 2020. See page 58.

EUROPE

El Salvador has gone from producing millions of 60-kilogram bags of coffee in the 1970s to an estimated 900,000 bags this current harvest.

Nico Roozen, Co-founder of fair trade certification system and corporate social responsibility initiatives including Max Havelaar and Utz Certified, has officially stepped down from his role as Executive Director of development agency Solidaridad. He handed the baton to Jeroen Douglas but will continue as the company’s Honorary President. At present, Roozen says less than 10 per cent of aggregated wealth in the global coffee industry stays in

12KG

The weight of coffee beans Finns consumed per capita in 2018.

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

NEWS In brief

producing countries, with farmer share decreasing to 6.7 per cent. Roozen says the key to fixing this lies in the ability of data-logging technologies to break monopolies and change the structure of the supply chain so that farmers can receive a fair income. See page 10. For the past 10 years, Finland, Sweden, Iceland, Norway, and Denmark have ranked among the top 10 coffee-consuming countries per capita, according to the International Coffee Organization (ICO). Finland consistently holds the number one spot, and in 2010 and 2014, the countries snagged all top five spots. According to the ICO, the Finns drank about 12 kilograms of coffee per capita in 2018, a volume that has remained stable on average for the past decade. Consuming the least among the Nordics, but still ranking ninth globally, the Danes drank 7.7 kilograms per capita. See page 14. Nespresso is aiming to curb the carbon footprint of its coffee by 28 per cent by 2020 through improving the efficiency of its machines, powering its factories and boutiques with green energy, helping consumers recycle their capsules more, and sourcing its coffee through Nespresso’s AAA Sustainable Quality Program. The company currently invests about US$40 million per year in capsule recycling. The issue remains, however, that even with access to collection points, only 28 per cent of capsules are collected around the world. See page 24. To allow large-scale roasters to capitalise on information, German roasting plant manufacturer Probat and Austrian software specialist

G C R | N OV E M B E R/D EC E M B E R 2019

Cropster have partnered to launch fabscale, an independent cloud service that handles and collates the data of the entire roasting production process. See page 28. WMF Professional Coffee Machines has launched a new brand identity with a focus on dependability and innovation based on the needs of its customers. To determine this new direction, the German manufacturer talked to customers and long-term employees on how they view the brand. See page 38. Franke has launched its Coffee Competence Program to share its experience with its network of customers and distributors. Led by Inga Schäper, who among other qualifications helped develop the Specialty Coffee Association Coffee Skills Program, the program offers training, workshops, seminars, insights, and research made available on the Franke iQCircle online platform. See page 40. Melitta has commemorated its 111th year anniversary, highlighting its longevity and experience in filter coffee, best exemplified by Melitta’s latest model to market, the Cafina XT8-F. The super-automatic manufacturer has also consolidated its production operations under one roof, leading to a greater connections and communication across the business. See page 42. La Cimbali has produced traditional espresso machines since 1912 and created its first fully automated model, the Superbar, in 1969. But while

the market wasn’t ready for automation then, it is now. The super-automatic target market has expanded vastly over recent years as demand for reliable, high-quality automated coffee grows. La Cimbali’s answer to this demand is its S20 and S30 models, a fully automated range featuring modern technology and an award-winning design. See page 44. Since 2017, Swiss superautomatic manufacturer Schaerer has doubled the number of machines it sells and produces, and has reorganised its production to accommodate growth. Lately, company CEO Jörg Schwartze says Schaerer has ramped up its ability to tailor equipment to suit the needs of its customers. See page 46. In the rapidly evolving world of super-automation, Swiss manufacturer Egro is using advanced technology to drive intuitiveness, useability, and quality in its product range. Its latest addition is Next. Launched in 2018, Next is built to engage its consumers and create an easy, low-maintenance approach to

coffee production. It is available in three versions and has Android technology integrated into its interface to maximise personalisation and useability. See page 48. Investment platform MyCoffeeWorld allows coffee capsule pioneer Pascal Schlittler and a group of industry professionals to financially support companies, along with experience and connections within the coffee industry. Off the back of several successes in 2019, Schlittler and his group intend to broaden the scope of MyCoffeeWorld, creating an alliance of companies that remain independent but support each other with complementary service. See page 50. The price of coffee is at an all-time low, while global coffee sales are at an all-time high and consumption is growing at an exceptional pace. Eversys Chief Commercial Officer Kamal Bengougam discusses fairness, how an equitable supply chain could be achieved, and a future where imagination overpowers greed. See page 52.

Software platform fabscale collates data that is collected during the coffee roasting process.

WE ARE COMMITED TO PROVIDING OUR CUSTOMERS WITH SUPERIOR

COFFEE GRINDING, CONVEYING & SYSTEM SOLUTIONS VISIT MPE AT HOSTMILANO, OCTOBER 18 - 22, 2019 MILAN, ITALY | HALL 22 STAND F04 G03

COFFEE GRINDERS FOR ALL GRIND TYPES › Ultrafine & Turkish › Espresso / Pods / Capsules › Soluble / Extract › Filter

CHAIN-VEY® CONVEYORS FOR ALL GRIND TYPES

› Conveys green, ground, and whole bean roasted coffee products gently.

COMPLETE SYSTEMS AND PLANTS › Green bean unloading & cleaning › Roasted coffee storage & degassing › Automated weighing & blending

MODERN PROCESS EQUIPMENT CORPORATION mpecoffee.com | +1 773 254 3929 | Chicago, IL USA

Photo credit: Jos Kuklewski

COVER STORY Solidaridad

G C R | N OV E M B E R / D E C E M B E R 2019

A FOUNDING father SOLIDARIDAD’S NICO ROOZEN ON LESSONS LEARNT FROM MORE THAN 30 YEARS AT THE HELM OF CERTIFICATION SYSTEMS, THE DISRUPTIVE POWER OF NEW TECHNOLOGIES, AND WHY THEY’RE NEEDED TO MAKE AN IMPACT ON THE SUPPLY CHAIN.

ico Roozen is determined to break the stereotype of retirement. In June this year, the Co-founder of fair trade certification system and corporate social responsibility initiatives including Max Havelaar and Utz Certified, officially stepped down from his role as Executive Director of development agency Solidaridad. He handed the baton of responsibilities over to Jeroen Douglas to lead the next evolution of the foundation, but far from taking a back seat in the slow lane, Roozen is excited about the changes he can help implement as Solidaridad’s first Honorary President. “If I can make a new contribution to society at the age of 66 rather than playing golf or chess, then why not?” Roozen tells Global Coffee Report. “[Solidaridad has] given me a position in the organisation to initiate new innovations all over the world, so that’s what I’m going to do.” Roozen first joined the ecumenical development agency Solidaridad in 1984 and was made Director in 1989 after the successful launch of fair trade. Back then, the company was relatively small, working from a mandate from the Catholic Church with just six people, and turning over about US$4 million. When it gave back the mandate and reorganised its structure in 2001, the organisation moved into a new direction and built an international network with Regional Expertise Centres all over the world, and a turnover of about US$70 million with 600 staff. “What I think is a characteristic of Solidaridad, for more than 30 years in coffee, is that we have always been an innovative organisation. We initiated fair trade at a time when there was a high level of reluctance from major Dutch retailers to work within the marketplace and offer fair trade goods,” Roozen says. “We had a lot of discussions with those who were roasting and those running so-called third world shops – they didn’t want to work with the main retailers because they were part of the problem, they were part of capitalism. But we broke through in creating a global fair trade initiative; however, we also saw the limitations of it, regarding corporate and social responsibilities.” In the weeks since the announcement of Roozen’s departure from the top role at Solidaridad, he gave interview after interview reflecting on his past achievements and evaluation of the fairt rade certification system he helped create. But the message Roozen really wants to convey in his interview with GCR is the imbalance in the supply chain.

A LARGER SLICE OF THE CAKE “There are two large elephants in the room: persistent low prices for coffee and a small part of the cake for farmers,” Roozen says. “Markets do not offer a fair share and a fair price for coffee farming communities. [These are] well-known issues, but there’s still no effective action to correct it. All economic, social, and ecological challenges for the sector cannot be solved without offering farmers a return on investment and a living income.” Roozen says farmer share has further decreased to 6.7 per cent, with less than 10 per cent of aggregated wealth staying in coffee producing countries. In real terms, coffee prices have fallen two-thirds since the early 1980s and in that time, the real earnings of coffee farmers have halved in spite of their significant investments in quality and productivity. “When we developed the first fair trade scheme in 1988 by launching the Max Havelaar logo in the Dutch consumer market – the first fair trade label for sustainable coffee to offer some protection to low prices with substantial premiums for producers – we guaranteed the coffee producers a minimum price of 120 US cents per pound,” Roozen says. “Nowadays market prices are at 92 US cents per pound, while the fair trade minimum price

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

COVER STORY Solidaridad

is 140 US cents per pound, or in real terms 84 US cents per pound – an economic drama for farming families.” Back in 1988, the first fair trade certificate was developed with no code of conduct for producers, only traders. Ten years later, Roozen, along with friend and now Solidaridad Executive Director Douglas, developed a code of conduct for fair trade bananas. But this time it was for producers, not traders. Roozen says it was socially and logically ambitious at the time, but a decision that’s made, and is making, a real difference. “There is now an erosion of criteria for traders and brands, and an eruption of criteria for farmers,” Roozen says. “The code of conduct for producers involves dealing with the issues of production so that it is economically and socially sound, and that they are held accountable for spending the premiums.” On reflection, Roozen says certifications have been unable to transform the entire market, with some lessons learnt the hard way, including the choice not to fix market premiums, but one thing is certain: “controlbased systems don’t have a future and incentivebased solutions do.” “We have turned a system that was controlling trade into a mechanism that only controls farms. It is the main lesson I’ve drawn from the evolution of the certification system,” Roozen says. “A farmer in Brazil once said to me: ‘Nico, we don’t need police. We need doctors. We need structures, which support us and innovate. We don’t need structures that audit us and control us’.” The other lesson Roozen learnt was that without scale, nothing is relevant. When he started fair trade, 25 to 30 per cent of consumers said they wanted to pay more for products that were sustainable. But in reality, only a few consumers are making a choice for sustainability. Roozen says there is a difference between what we see as important as citizens and what we buy as consumers. “Unfortunately the consumer didn’t give us the power to transform the market. At just 25 per cent you can change a market. The tipping point for change in the market is much lower than in parliament where 50 per cent of the votes are required,” Roozen says.

G C R | N OV E M B E R / D E C E M B E R 2019

THIS ‘NEXT GENERATION COFFEE’ IS DISTINGUISHING FROM OTHER INITIATIVES IN THE SENSE THAT THE PRIMARY PRODUCERS BECOME OWNERS OR AT LEAST SHAREHOLDERS OF TRADING AND MARKETING COMPANIES. Nico Roozen

Honorary President of Solidaridad

“It was my vision for [fair trade and Utz] to be the dominant perception and dominant feature in the market, but in reality they are still the exception. We have to create incentives for farmers. Controlling is expensive and creates negative energy. Incentives reward good decisions, and good practices create continuous growth and developments.”

BUZZWORD DOMINANCE Roozen says sustainability has become a buzzword in the annual reports of coffee traders and brands, with actual investments related to sustainability extremely low. “Given the industry value of US$200 billion, less than 1 per cent of the total coffee turnover is reinvested in increasing sustainability at the production side of the value chain. Fifty per cent of the industry’s sustainability efforts are paid from consumers through the premiums on certified coffees, and around 20 per cent from donor funding. We have seen the relative share for the farmer and the price of coffee in absolute terms go down,” which is largely attributed to under-consumption, high stock positions, and speculative movement, Roozen says. “I’m a very optimistic person but sometimes I’m a little cynical and disappointed about using the word ‘sustainability’ in companies. The reality is that today in boardrooms, the main considerations of acquisitions and mergers is giving shareholders 12 per cent return and then focusing on sustainability.” Currently in the market, Roozen says the concentration of coffee roasters comes down to Nestlé and Jacobs Douwe Egberts, and likely the Lavazza Group. Roozen says optimists present the consolidation as an opportunity to mainstream sustainability efforts, but there is little evidence this is happening within the newly formed conglomerates.

DISRUPTIVE CHANGE Roozen says the key to a new platform lies in the ability to utilise basic and data-logging technologies to break monopolies and change the structure of the supply chain so that farmers can receive a fair income. “The data revolution of our times will enable us to do the things which were considered impossible for a long time. Across borders, free from the control of large corporations that are just focused on the bottom line, producers can build a self-owned digital platform offering participating farmers an efficient cultivation registration of coffee varieties and a benchmark of different production methods and results,” Roozen says. The key, however, is the ownership of data. Roozen says this requires a low-cost, neutral, decentralised, and green-updated internet, and a valuable digital currency. Such a breakthrough could bring disruptive changes in supply chains. “If we can find out how to bring new technology to farmers without it linked to or stored by Google, it will given [farmers] an opportunity to audit and link their own data to a network, decentralise

data storage, management, and ownership, and move away from the highly centralised, energyconsuming Googles of our world.” Roozen says he is already in discussions with fair trade and Rainforest Alliance producer groups to initiate such data platforms and help build their bargaining position on prices. “If we can strengthen the power of the primary producer and give them a better share of the cake, it could be very powerful, because at just 6 per cent, their share is extremely low,” Roozen says. His most exciting example of how disruptive technologies can change market relations comes in the form of simple cool containers and the “almost disappearance” of banana distributor Chiquita, considered one of three oligopolists banana traders in the European market. That was until 1996 when along came Danish shipping company Mearsk, which introduced cool containers to transport bananas. This not only improved the quality of bananas shipped in a temperature-controlled environment, but “destroyed” Chiquita’s logistic power. While Chiquita took action to break up the initiative, it lost its market dominance and opened up space for AgroFair, the first fairtrade fruit company in Europe, to become a success with more than US$110 million in turnover, co-owned at 45 per cent by banana farmers. “Not only do the farmers get a fair price, but a fair share and a fair say as members of the board,” Roozen says.

RETURN THE POWER For many decades, the coffee market has been dictated by demand, but signs suggest a drastic change will occur in the coming years. Roozen says supply in the coffee market will obtain a more dominant role due to the more general competition for fertile land and water, the urgent transition to climate smart production, and more specific factors such as age of producers, low investments, poor knowledge, and lack of available capital – all this in combination with a still steady growth in demand. These tendencies make producers that remain in business realise that forward integration in the chain is the best way to expand and to get a fair share of profits. Professional producers and cooperatives are

Solidaridad’s Nico Roozen says it’s essential global coffee producers organise themselves in an international corporation.

already investing in their own wet mills and “beneficios” for the export of coffee. More and more they are roasting their coffee on a small scale to meet local demand. Roozen says this “next generation coffee” is distinguished from other initiatives in the sense that the primary producers become owners or at least shareholders of trading and marketing companies. A real breakthrough in the global coffee chain is blocked by the fact that roasters in consuming countries blend coffees from different origins. Individual countries are unable to produce these varied blends, and until now, none of the coffee producing countries can meet these international business requirements. “It is essential that the global coffee producers somehow take away the boundaries and organise themselves in an international corporation. Producers want to look for consolidation of supply,” Roozen says. “Shortening the supply chain will reduce the power and margins of traders and brands. Entering the international market with ready-to-roast green coffee blends or – even better – with finished products for retailers or catering will make the producers the new supply chain directors of next generation coffee.”

RENEWED ENERGY Roozen may not be in management any longer, but he has a renewed passionate to bring the right people together to lead 50-year-old Solidaridad into the next phase of its evolution. “The market is always smarter than we think, which demands attention,” he says. “Under the current situation the farmer is still poor and this cannot be accepted. This is the challenge we have, but there is a lot of new energy around this issue. It always starts with recognition of what’s gone wrong, learn from it, and discover what’s possible. If we can serve the interest of common people and not the interest of capital, then we can change a lot in society.” G C R

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

FEATURE Nordic market

Nordic by nature THE COLD WEATHER ISN’T THE ONLY REASON THE NORDICS DRINK SO MUCH COFFEE. GLOBAL COFFEE REPORT EXPLORES THE SERIOUS COFFEE CULTURE BEHIND THE TOP CONSUMING COUNTRIES.

hen Sonja Björk Grant thinks back to her introduction to coffee, she remembers her grandmother teaching her how to brew coffee as a youth. “Because Iceland has always had a huge culture around coffee, it’s one of the first things you learn to do,” explains Grant, who turned that early coffee lesson into a dynamic career and is somewhat of an icon in the global industry today. That coffee culture she speaks of is actually quite prominent throughout the entire Nordic region, with all five of its countries having long histories with coffee and consumer cultures that evolved along the way. For the past 10 years, Finland, Sweden, Iceland, Norway, and Denmark have ranked among the top 10 coffee consuming countries per capita, according to the International Coffee Organisation (ICO). Finland consistently holds the No. 1 spot, and in 2010 and 2014, the countries snagged all five top spots. According to the ICO, the Finns drank about 12 kilograms of coffee per capita in 2018, a volume that has remained stable on average for the past decade. Consuming the least among the Nordics, but still ranking ninth globally, the Danes drank 7.7 kilograms per capita in 2018. While there are many factors supporting the region’s high coffee consumption – factors that are both consistent with global trends and unique to each country – it is worth noting the relatively small

G C R | N OV E M B E R / D E C E M B E R 2019

populations. Sweden hosts barely 10 million people, while Iceland has only 338,000; the others average about 5.5 million. As such, the Nordic countries aren’t the top consumers of coffee when it comes to volumes consumed across total global production. But broken down by volumes consumed per individual, the Finns drink more coffee each day on average than anyone in the world.

THE SOCIALITE Coffee was introduced to the Nordics in the late 17th century, and became a mainstream staple over the following century. Then in the early 1900s, prohibition followed by high taxes on alcohol boosted coffee as the social beverage of choice. Social settings and activities have since

remained at the centre of coffee drinking there. With zero-tolerance drink-driving laws, partygoers often opt for coffee if they have to drive. Coffee shops are the go-to meeting place for clubs, communities, and social gatherings. And it’s practically obligatory to brew a fresh pot of coffee for any visitors. “It was a mark of a good host and of status if you offered coffee,” says Tiina Jokelainen, President of Specialty Coffee Association Finland. She says that expectation has loosened over time in the bigger cities, but that it’s still strong in suburban and rural communities. Grant confirms this obligation in Iceland, too, as well as the lexicon dedicated to it. “Kaffetår” means a “small cup of coffee”, while “tiú dropar” literally translates to “10 drops” and refers to an even smaller cup of coffee that is generally offered to someone stopping by only briefly. Kaffitár is one of the largest coffee shop chains in Iceland and is where Grant got her start (as did many other award-winning baristas). Launched in 1990 by Adalheidur Hédinsdóttir, Kaffitár was one of the first specialty roasters

and cafés in Iceland; it now has seven Asser Christensen is a licensed Q locations and a thriving B2B business. Grader and instructor from Denmark. In addition to coffee’s prominence in social settings, the workplace is where a lot of coffee is consumed. “People want better coffee at offices,” Hédinsdóttir tells Global Coffee Report, “and in general, salaries are already high, so instead of raises, employers might improve workplaces with premium coffee.” Over the years, both women have actually led trainings at offices, banks in particular. “There’s quite a culture behind it there,” says Grant. “After being focused on money all day, they enjoy meeting in front of the espresso machine and talking about coffee – some with strong opinions.” What’s more, three of the five countries have longstanding labour laws requiring paid coffee breaks. “Even schools have a coffee break,” Grant points out. “Obviously the children aren’t drinking coffee, but the break itself is called a ‘coffee’ break.” Those aforementioned high salaries are also responsible for coffee’s rise to fame across the region over the centuries. When coffee first came to the Nordics, first to Sweden, only nobility could afford it. But during the 19th century, the working class became more affluent and gained access to coffee, explains Asser Christensen, a coffee blogger, instructor, and licensed Q Grader from Denmark.

FEATURE Nordic market

Sonja Björk Grant got her start at Kaffitár in Reykjavik and has been involved with the WBC since its launch.

Today, the five countries are among the top 25 wealthiest countries, according to the International Monetary Fund. So as premium coffee, high-end equipment, and craft coffee beverages permeate coffee-drinking countries around the world, the affluent Nordics have kept up.

ON THE MENU Despite coffee’s third wave moving through the five countries, all local experts point to “batch brew filter coffee”, i.e. standard drip, as the most popular. Again, Jokelainen says the bigger cities have seen the greatest shift away from traditional, with espresso-based drinks and other coffee beverages and brewing methods becoming increasingly popular. After filter coffee, Hédinsdóttir says lattes are the next favourite beverage at her cafés. Christensen

G C R | N OV E M B E R / D E C E M B E R 2019

estimates that about half of Danes prefer filter coffee; the French press is a distant second. They also agree that preferences differ across generations. The older demographics are the heaviest drinkers of filter coffee, while the younger generations have been exploring third wave coffee and brewing methods. The latter have also been more interested in takeaway coffee, a concept that conflicts with the Nordic way of socialising over coffee but also supports consumption of filter coffee for its quick service. Not unlike other bourgeoning coffee consuming nations around the world, “Starbucks has played a big role in our coffee industry,” Jokelainen tells GCR . “It has helped people learn about espresso-based drinks and specialty coffees. Starbucks has also helped change the way people think about takeaway coffee.” But in Iceland, where the population and economy are too small for multinational chains, there is no Starbucks. In fact, Dunkin Donuts, Krispy Kreme, and McDonalds were all unsuccessful in the Icelandic market. So when it came to introducing the country’s coffee drinkers to specialty coffee and espressobased drinks, the learning curve was a bit steeper. Explains Grant, “Customers would come in and order a cup of coffee, but then I’d have to ask them if they wanted filter brew or espresso, and whether they wanted it for here or takeaway. They were like ‘Can I just have my cup of coffee? Why are you asking me so many questions?’ “We were introducing these foreign concepts, essentially trying to represent the environments at various coffee shops abroad, and people weren’t open to it [at first].” In the other Nordic countries, various multinational chains and roasters have moderate representation, but the local behemoths dominate. According to Euromonitor, the three largest Norwegian players in retail coffee sales, Joh. Johannson Kaffe, Friele (owned by JDE), and Nestlé Norge, account for a significant combined share of sales. In Finland, Gustav Paulig and Meira are the leading coffee manufacturers, though Starbucks and Nespresso also serve the market. Paulig is also the second-largest supplier of coffee to the Russian market, according to the Centre for the Promotion of Imports (CBI). JDE and Nestlé subsidiaries also dominate Sweden, and German conglomerate JAB Holdings has an expanding presence throughout the Nordic region through local coffee shop chains Espresso House and Baresso Coffee. Despite an increasing number of smaller players entering the market over the past decade, the Nordic coffee industry is concentrated overall. As such, significant changes in the competitive landscape are unlikely in the coming years, Euromonitor estimates. The global market research firm points to new product launches, strong investment in marketing activities, and private label products as key areas of strategic focus for major players to protect their competitive positions. Consistent with the industry at large, major players are expected to continue expanding their portfolios through acquisitions, specifically to tap into the Nordics’ budding specialty market.

SPECIALTY MOVES IN The Nordic specialty scene had a slower start compared to other parts of Europe, but it is slowly gaining speed in each of the five countries. This is evident in the growing number of specialty roasters and coffee shops, which is then fuelling consumption of higher-quality coffees. In Finland in particular, import values grew at a strong average annual rate of 7.1 per cent from 2013 to 2017, according to CBI, while volumes have been increasing much slower on average. CBI links this comparatively strong growth in value to expansion of the specialty market. Although the region has always trended toward higher-grade arabica coffee, Christensen says the specialty coffee market exists in its “own little bubble outside the general coffee culture”, popular among trendy young people. He says the majority of coffee consumers buy standard grounds at supermarkets to make filter coffee at home. Jokelainen credits SCA Finland for helping the specialty market garner more attention. Among other efforts, the organisation helps produce an annual Coffee Festival in Helsinki that it touts as the “biggest coffee festival in the Nordics”. Meanwhile, Norway is responsible for the global competition scene buzzing today and World

Coffee Events (WCE), which operates under greater SCA. In 1998, Alf Kramer, who was also a founding member and the first president of SCA Europe (before it merged with the United States), curated a global group of passionate coffee individuals to launch a competition that would help “bring awareness to our craft”. Grant and Hédinsdóttir were among those. The first World Barista Championships (WBC) was held in 2000, hosting 17 competitors in Monte Carlo. “The original idea was to [resemble] the Olympics, with different categories and with rules from gymnastics and horse-riding competitions,” Grant tells GCR. As the competition expanded beyond WBC – seven events currently – WCE was formalised in 2011. With WBC’s roots in Norway and strong Nordic representation across the founding team, naturally the majority of competitors, and thus winners, were from the region’s five countries. In the first six years in particular, they consistently placed in the top six, with Norway, Iceland, and Denmark leading the pack. But as both the event and the specialty coffee scene gained greater notoriety on a global scale,

Kaffitár was one of the first specialty roasters and cafés in Iceland, and now has seven locations.

WBC and its pool of competitors expanded in size and reach. Simultaneously, Grant and Jokelainen say there was an attitude change among the Nordics when competing required greater effort. “In the past it was easier to win because it was so simple,” says Grant, pointing to the many years of practice and training it now requires. “And because it’s all volunteer, I think [Nordic people] don’t see the value of putting the time and effort into it anymore.” Grant hates to see her home country and the greater region lose its recognition on the global stage, but she sees potential among her Nordic cohorts if they want to reclaim their titles. “With a little bit of help and money and a three-year plan, there are competitors here who I think could do it.” G C R

IDEAS NEVER STOP You sometimes just need to be inspired by a new coffee experience

NESPRESSO MOMENTO DESIGNED FOR MEANINGFUL COFFEE EXPERIENCES

FEATURE ICO report

Call to arms WORLD-LEADING COFFEE ROASTERS AND TRADERS JOINED FORCES WITH STAKEHOLDERS TO IMPROVE THE ECONOMIC SUSTAINABILITY OF THE INDUSTRY AND ENCOURAGE OTHER ORGANISATIONS AND COUNTRIES TO DO THE SAME.

nternational coffee prices have been on a ongoing downward trajectory since 2016, and with coffee year 2018-19 marking the second consecutive year of coffee production surplus, the economic sustainability of the industry has been called into question. To discuss a commitment to shared and individual time-bound actions on the coffee price crisis, industry leaders gathered in the United Kingdom under the guidance of the International Coffee Organization (ICO). The first ICO CEO and Global Leaders Forum, held from 23 to 25 September, resulted in 12 roasters or traders – illycaffè, Jacobs Douwe Egberts, Lavazza, Mercon, Neumann Kaffee Gruppe, Nestlé, Ecom Trading, Olam, Starbucks, Sucafina, Tchibo, and Volcafe – signing the London Declaration on price levels, price volatility, and the long-term sustainability of the coffee sector. The Latin American and Caribbean Network of Fair Trade Producers, Fairtrade International, Global Coffee Platform, Hanns R Neumann Stiftung, Sustainable Trade Initiative, National Coffee Association of USA, Oikocredit, Rainforest Alliance, Rusteacoffee, Specialty Coffee Association, and Sustainable Coffee Challenge have also supported the declaration. More industry leaders and

organisations are considering joining this global effort. Andrea Illy, Chairman of illycaffé, tells Global Coffee Report that the London Declaration has the merit to bring together a broad number of stakeholders to commit to a short-, medium-, and long-term plans on the sustainability of the coffee sector. “We have to recognise that prices remain an issue on which we have to keep working hard. On one side, we are seeing the same dynamics of the past with long-term cycles and high volatility caused by oversupply and exogenous factors, while on the other side, the differentiation

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

FEATURE ICO report

Andrea Illy is the Chairman of illycaffé.

strategy has notably increased differentials,” Illy says. “The best strategy for the future is undoubtably to continue on this same path, which entails investing more in differentiation though agronomical and genetic improvements, as well as new agricultural niches. Traceability and differentiation have also favoured and increased grower-roaster cooperation, giving them the opportunity to surprise and delight consumers, commanding at the same time higher premiums, with benefits – in term of economic, social, and environmental impact – for all the stakeholders involved.” In the long term, Illy says a much higher investment is needed to address the sustainable livelihoods of the most impacted farming families. “One investment in farm renovation and innovation could achieve four objectives at the same time – quality and differentiation, increased productivity, adaptation, and mitigation against climate change,” Illy says. “This investment needs to be done directly by the coffee growers, who are the only ones capable of maximising the return in terms of quality and productivity. So the real challenge is to put them in a condition to invest in their plantations and, in order to do so, access subsidised long-term credit. This can be achieved by insuring the credit default risk through

G C R | N OV E M B E R / D E C E M B E R 2019

collaterals provided by traders or roasters.” To this end, illycaffè has developed a possible financial strategy and is ready to start a pilot model with the United Nations Industrial Development Organization in Ethiopia. In the medium term, Illy says the industry needs to better manage the balance between supply and demand. “To prevent the cyclic oversupply recurrence it would be useful to establish an independent observatory for accurately predicting both coffee production and consumption and better estimate stocks,” Illy says. “Such an endeavour, which was probably nearly impossible in the past, would now be reasonably accessible thanks to the most up-to-date technologies in the field such as satellite images, big data, meteorological models, scan data, [and] online surveys. “As far as the short term is concerned, to support the most impacted coffee families in coffee growing communities, I think that a philanthropic approach is needed through an advocacy and charity campaign, stemming from the pledge that ICO itself just launched on International Coffee Day.” Through the London Declaration, signatories and supporting organisations have committed to “concrete shared and individual time-bound actions… as well as the extension of the coffee sector dialogue on long-term and transformational solutions”. These commitments focus on four key themes: • Promoting competitive and sustainable production – increasing resilience of farmers against shocks, improving access to finance, promoting research and development in new varieties, supporting further improvements in quality and differentiation, and improving production technologies among smallholders • Fostering responsible and equitable growth – contributing to increased market transparency regarding the living income gap, sourcing origins, and cost of production considering the diversity of producers and specific geographies, expanding responsible sourcing of sustainable produce, and trading coffee from a diversity of origins • Promoting responsible consumption – taking measures to stimulate demand for sustainably sourced coffee from diverse origins in traditional and emerging markets, especially in producing countries • Promoting public-private dialogue regarding policy development – exporting and importing to ensure efficient functioning of market institutions and prevent price distortion. Also set out is a further commitment to take immediate action before the next meeting of the CEO and Global Leaders Forum during the fifth World Coffee Conference in Bengaluru, India in September 2020, establish market and supply chain information systems, actively participate in national dialogues, and promote the allocation of resources. The signatory organisations call on all coffee sector stakeholders to sign and support the declaration and contribute to its further development and full realisation, and for development partners to provide technical and financial resources to support the realisation of these commitments. The signatories also called upon governments of both exporting and importing countries to act on: • Committing to and further developing joint solutions to address economic sustainability and diversity of production across the coffee sector • Respecting and promoting human rights through fighting child and other illicit labour practices • Ensuring the environmental sustainability of the sector through preventing coffee productiondriven deforestation and forest degradation • Strengthening the policy environment for sustainable production and consumption, through government policies in exporting and importing countries regarding efficient functioning of market institutions, and responsible sourcing and trade. In a public statement, Olam Coffee CEO Vivek Verma supported the London Declaration, but stressed that industry and governments must work together and quickly to develop a safety net for coffee farmers. Olam Coffee currently supports 56,000 smallholders through sustainability programs with customers and partners across 18 origins, but says this is only a drop in the ocean. “With farmers now in the second year of very low prices, the industry fully recognises the scope of what must be achieved under the London Declaration, but we must act quickly. [It’s] critical to find a way to give farmers a safety net that will also help them be resilient in the

face of climate change,” Verma said. “Without the means to invest in more resilient hybrids and other adaptation methods for the future, farmers cannot be blamed if they give up. In turn, this could affect consumer choice as certain origins no longer support coffee production.” Verma suggested a price stabilisation fund be implemented that subsidises farmers for reducing production capacity over the short term when prices are low, while recouping the subsidy when prices are high. “If coffee were a product of the developed world, there would have been some price stabilisation mechanism put in place or, at the very least, there would have been subsidies at low prices. Unfortunately, coffee is grown in mostly developing and underdeveloped countries, which do not have the means to support farmers in times of low prices,” Verma said. “Despite the different situations of producing countries, I believe this is achievable if the ICO, development organisations, commercial banks, and the industry come together.” The first CEO and Global Leaders Forum was the culmination of the ICO’s structured sectorwide dialogue to implement Resolution 465, which promotes “dialogue among all stakeholders in the coffee value chain to ensure the economic sustainability of the coffee producers”. ICO Executive Director José Sette, says that the declaration mobilised stakeholders in the coffee value chain and international roasting industry. “Using the convening power of the ICO, we will continue our efforts to catalyse stronger political support and resources from all our member countries as well as from multilateral mechanisms, international organisations, and the private sector in order to address the short- and long-term sustainability of the coffee sector,” Sette says. The International Coffee Council, governing body of the ICO, welcomed the efforts of the

private sector companies and organisations that signed the London Declaration on 27 September during its 125th session. “The ICO is now translating the coffee sector’s commitments into a detailed road map with clear targets and concrete actions engaging both private sector and [our] organisations, development partners, and civil societies that adhere to the Declaration and the government’s members of the ICO,” Sette says. “The process is due to produce measurable results and to transform the forum into a yearly event of industry and government leaders committed to making the coffee sector sustainable and economically viable for growers.” The outcome of this taskforce will be considered at the second CEO and Global Leaders Forum. G C R For more information, visit www.ico.org, www.internationalcoffeecouncil.org, or contact patacconi@ico.org

instant coffee

that

TasTes like

f re s h b re w e d the integrated extraction system

Continuous - Automated

flavourtech.com

PROFILE MPE Chicago

Wouldn’t it be nice? MODERN PROCESS EQUIPMENT CORPORATION PUTS ITS CUSTOMERS AT THE CENTRE OF ITS OPERATIONS, ALONG WITH ITS VALUES OF INNOVATION, PRECISION, AND SUPPORT.

Beyers Koffie was one of the first to install the In Situ roller grinder.

G C R | N OV E M B E R / D E C E M B E R 2019

hen Modern Process Equipment (MPE) Corporation set out to establish the core values of the company, it settled on innovation, precision, and support: innovation in how it produces its equipment, precision in how that equipment operates, and support in how it maintains its customer relationships. Though only recently put on paper, President Daniel Ephraim tells Global Coffee Report MPE exhibited these traits since before he and his brother took over the company in 1982. “As a family business, we don’t need to look at short-term return of investments. We can focus on the long-term and really innovate,” Ephraim says. This far-sighted approach has allowed MPE to anticipate trends and react to them with the most precise and effective equipment it can offer. When it comes to support, Ephraim says MPE’s customer relationships can often go both ways. “Our equipment and designs have almost exclusively been the result of collaboration with our customers,” Ephraim says. “Our customers tell us what they want, and we go ahead and develop those things.” However, he adds that it’s rarely that straightforward. “The customers don’t tell you what they want per se. They don’t say they want a new grinder. They say something like, ‘wouldn’t it be nice if we could have an automated grinding system?’” Ephraim says. “Any time someone says, ‘wouldn’t it be nice?’ and it has something to do with our business, I think ‘wouldn’t it be nice if we came up with something?’” In the case of the coffee capsule market, Ephraim noticed that some customers were struggling with a challenge. Roasters could either use a floor-level roller grinder and store the coffee before packaging, or they could use a smaller disc grinder – with a less consistent grind and density – placed directly above the packaging machine and transfer the coffee instantaneously. To combine the best of both worlds, MPE has launched the In Situ roller grinder, designed to be compact enough to fit directly above a packaging machine. While some roasters already use a disc grinder placed in this position, Ephraim says roller grinders offer a superior grind and density. “Previous roller grinders would weigh around two to four tonnes and were too big to put on top of the packaging machine. You can do this with the In Situ for about one-third the cost of one of these bigger grinders, and with that, the customers gets freshness, a consistent grind, and reduction in work-in-process,” Ephraim says. “When coffee is stored, it starts to stale, and the In Situ eliminates the need to do that. Ground coffee also contains different sized particles, and the more you move the coffee, the more those particles gather with those the same size. If that happens, the coffee that ultimately goes in a capsule or device may not be a consistent grind, affecting the taste of the coffee.”

MORE VARIETY with Melitta® TopFoam

The In Situ roller grinder is light enough to be placed on top of a capsule packaging machine.

Melitta® Cafina® XT7 • High-speed performance with fast stainless steel brewing unit: up to 170 cups/hour • Consistently excellent: automatically best quality for every cup with ACS® • Wide variety of frothed milk and Melitta® TopFoam • Multimedia display: 8.4-inch touchscreen • Clean in Place (CIP®): Fully automatic cleaning of the brewing system and milk system “in place”

Melitta Professional Coffee Solutions www.melitta-professional.de Subscribe now to our newsletter!

® Registered trademark of a company in the Melitta Group

The first roaster to implement the In Situ grinder was Beyers Koffie. With sites in Italy and Belgium producing whole bean, ground, and capsule coffee, Beyers Koffie CEO Marco Ciaramelli says manufacturing capsules requires a unique grinding solution. “The need for a more homogenous grinding was the main driver to evaluate the potential of an In Situ roller grinder,” Ciaramelli says. “More even granulometry and higher density are generating a better extraction flow and timing, in particular for lungo coffee, and are also making possible a higher weight of coffee per capsule.” Ciaramelli says the In Situ grinder has added value in both the cup result and production process, and Beyers Koffie is evaluating further investment in this type of technology. “MPE is an excellent partner with very professional and expert people,” Ciaramelli says. “We are particularly proud to be the one with whom MPE has developed this new way of grinding, which we believe will play an important role in the future of grinding coffee for capsules.” More widely, Ephraim says MPE has received a positive response to the In Situ grinder. “Our customers have said the coffee has a better flavour and they’re able to better control the packaging consistency. They’re also able to get more coffee into a capsule on a more consistent basis,” Ephraim says. “Up until now, it has fulfilled everything they wanted.” Looking ahead, Ephraim says MPE has a portfolio of future plans for the coffee industry, not just in grinding but conveying and plant production. “Virtually every salesperson, engineer, and manager is a graduate engineer, almost all in mechanical engineering. We like to think of ourselves as folks that understand the machinery, enjoy working with our customers, and can optimise or utilise that equipment,” Ephraim says. “We consider it part of our core values that we’re innovators. That’s in our DNA and how we started. Ninety-five per cent of the products we have today weren’t invented 30 years ago, and we expect the same to be true in 30 years.” G C R

PROFILE Nespresso

THE AFTERLIFE NESTLÉ HAS ANNOUNCED ITS AMBITION TO ACHIEVE ZERO NET GREENHOUSE GAS EMISSIONS BY 2050 AND CAPSULE ARM NESPRESSO IS JUST AS COMMITTED TO REDUCING ITS CARBON FOOTPRINT. GLOBAL COFFEE REPORT EXPLORES HOW.

hen consumers assess the impact of a coffee capsule, they look at the packaging material, then question the way it’s recycled. But Christophe Boussemart, Nespresso’s Sustainable Development Project Manager, says there’s more to the product’s carbon footprint than meets the eye. “To judge coffee’s environmental impact properly, we need to consider the entire lifecycle from cultivation of the beans to brewing, which requires energy and water, through to disposal. In reality, scientific studies have shown that coffee farming and the processes involved with brewing have the largest environmental impact,” Boussemart tells Global Coffee Report. Ninety-two per cent of Nespresso customers have access to a recycling solution including 100,000+ collection points. However, when it comes to carbon footprint impact, Nespresso’s lifecycle assessment study confirms coffee preparation at home is where the majority comes from at 47 per cent. This stems from the energy efficiency of a Nespresso machine, how long the machine is left on, whether any coffee is wasted, or if the cup is washed in a dishwasher. Farming practices are the next biggest producer of carbon footprint at 19 per cent, followed by production of packaging at 18 per cent, distribution at 8 per cent, end-of-life at 5 per cent, and roasting, grinding and production at 3 per cent. “This is why we have focused on sustainability at farm level, reducing the energy consumption of our machines, on sourcing sustainable aluminium, and recycling the capsules. We introduced the automatic standby mode in our machines, so after a few minutes of non-activity, the machine switches off and saves energy,” Boussemart says. He has been part of Nespresso for the past 18 years, 10 of which have been dedicated to the company’s sustainability strategy, including capsule recycling. A mechanical engineer by trade, Boussemart previously worked as a roller coaster designer before putting his abilities to use in the development of single-serve machines. Now, he specialises in capsule recycling, machine eco-design, and sourcing sustainable aluminium. “When I first joined Nespresso, it was the early stages of the development of the Nespresso AAA Sustainable Quality Program. The goal was to secure access to high-quality coffee and ensure our farmers could sustain that growth for the future in a social, environmental, and performance-based way,” Boussemart says. “It was in 2001 that we started to address our carbon footprint, and in 2005 we

G C R | N OV E M B E R / D E C E M B E R 2019

commissioned a lifecycle study to measure our carbon footprint across the value chain of a Nespresso cup, and use it as a tool to improve our operations and our products.” Such an improvement was made with the implementation of Nespresso’s precise portioned coffee system to reduce waste and resources by using the exact amount of coffee beans, water and energy needed to brew a single cup. It also minimises carbon footprint, unlike brewing filter coffee at home where people tend to use more resources than they need. “They make coffee in excess, using too many grounds and water. Hot plates run continuously to keep coffee warm, and what’s leftover often gets lost down the kitchen sink,” Boussemart says. Compared to other coffee preparation methods, Boussemart says Nespresso

capsules use less coffee for an espresso shot – about six grams – than fully automatic machines which in some instances, use about nine grams, or 50 per cent more than Nespresso capsules. Nespresso’s ambition is to curb the carbon footprint of its coffee by 28 per cent by 2020 through improving the efficiency of its machines, powering its factories and boutiques with green energy, sourcing its coffee through Nespresso’s AAA Sustainable Quality Program, and helping more consumers recycle their capsules. “Our role is to provide our consumers solutions to dispose of their capsules,” Boussemart says. “We want our customers to know that our capsules are recyclable, and where they can take them to be recycled.” Today, 92 per cent of Nespresso customers have access to a recycling solution. Customers can return their used capsules to Nespresso boutiques, drop them off at one of 100,000+ collection points, mail them back to Nespresso through a dedicated postal service, or have them picked up from their doorstep. The capsules are then sent to a recycling plant that separates the aluminium from the coffee grounds in order to be recycled. As for the coffee, it can form compost on farms, and be used for biogas. It may one day become a permanent virtual cycle, but for now, Boussemart

Re:Cycle is an urban bicycle made with 300 discarded Nespresso pods.

FEATURE Nespresso

says more awareness is needed on the convenience and importance of the recycling solution. Earlier this year, Nespresso even issued an invitation to other portioned coffee manufacturers to join its recycling program, paving the way for a global recycling scheme for aluminium coffee capsules. Nespresso aims to use 100 per cent responsibly sourced Aluminium Stewardship Initiative (ASI) certified aluminium for its capsules to reduce its carbon footprint by 2020, thanks to a Memorandum of Understanding with mining corporation Rio Tinto. Nespresso co-founded the initiative to create a sustainable aluminium standard in 2009 to reduce the impact that the world’s second-most-used base metal has on people and the planet. ASI is the first certified sustainability standard for an industrial metal. “Nespresso continues to use aluminium because it has the dual benefit of being the best material to protect the freshness, quality, and taste of our coffees, and [is] infinitely recyclable. Aluminium does not lose its technical properties when recycled,” Boussemart says. “Consider when you bite an apple. After a few minutes or even half an hour, it becomes brown from the oxygen in the air. That’s why aluminium is such a powerful protective agent.” Once aluminium is melted down, it can be repurposed or recycled into Nespresso capsules or transformed into new things. This includes Nespresso’s Swiss Army knives, potato peeler, fancy pens, and coffee capsules. More recently, after two years in development, Swedish startup Vélosophy in collaboration with Nespresso launched Re:Cycle, a urban bicycle made with 300 discarded Nespresso pods. It’s products such as these that Boussemart says showcases the possibilities for the afterlife of single-use coffee pods around the world. The company currently invests about US$40 million per year in capsule recycling because in most countries, the public recycling infrastructure is unable to process small light items such as coffee capsules, so Nespresso set up dedicated schemes 28 years ago. In addition to its own recycling system, the company also pays for access to public recycling infrastructure that ensures Nespresso capsules are properly sorted and recycled, such as in Germany, Sweden, and Finland. There, coffee capsules can be recycled in household recycling bins and kerbside collection schemes. To date, Nespresso has also successfully supported upgrades to the public recycling systems in a number of cities in Austria, France, and the United States through a combination of funding

G C R | N OV E M B E R / D E C E M B E R 2019

and lobbying. It hopes that higher recycling targets and a growing global movement towards a circular economy will encourage more authorities to follow. The issue remains, however, that even with access to collection points, only 28 per cent of capsules are collected around the world. In the past two years there’s been a huge shift towards consumer conscientiousness around single-use plastic bags and coffee cups, leading to bans and manufacturers changing their product offering in light of sustainable options. However, Boussemart says not all product offerings and their ability to decompose are understood. “Compostable or biodegradable capsules, much like a banana peel or apple core, are not going to break down in your backyard unless it’s in the right environment,” he says. “This includes temperatures of 50°C to 60°C with the right value of humidity and oxygen at industrial competitive facilities.” Today, Boussemart says the majority of organic waste recovery schemes do not accept packaging materials, which means that most consumers have no way to dispose of biodegradable packaging except in their trash bin. According to the International Organisation for Standardisation, in order

Recycled Nespresso capsules separate coffee granules from the aluminium, which is then melted down and repurposed.

to claim packaging is compostable, it must be technically placed in an industrial composter within 12 weeks. However, industrial composters typically work on a cycle of between five and nine weeks, so even where collection schemes do accept compostable packaging, it can’t be properly processed. This results in compostable packaging typically removed from compost at the end of the cycle and incinerated. “Composting facilities are reluctant to take capsules because they end up receiving a mix of compostable and non-compostable materials,” Boussemart says. “Second, the composting industry is reducing its processing time, and third, degrading material takes eight weeks while compostable plastic takes months to break down.” Nespresso will continue to ensure its coffee is produced sustainably and under its Nespresso AAA Sustainable Quality Program. It is also committed to the largest universal challenge of humanity – climate change – and how it can help reduce its footprint to ensure it’s not contributing to the temperature rise in the atmosphere. “We’re reducing the carbon footprint of our business operations, and what we can’t reduce, we compensate by planting trees on the farms where our coffee is grown helping to provide a nature-based solution for adapting to climate change,” Boussemart says. “So far, we have planted 3.5 million trees on coffee farms in Colombia, Guatemala, and Ethiopia, with an ambition to plant five million by 2020. I’m confident we can make a difference now, and in years to come.” G C R

PROFILE fabscale

Cloud on the horizon PROBAT AND CROPSTER HAVE PARTNERED TO LAUNCH FABSCALE, AN INDEPENDENT SOFTWARE COMPANY THAT CAN MANAGE THE DATA OF THE ENTIRE COFFEE PRODUCTION PROCESS.

s with many industries, coffee production is becoming more advanced. Technology is becoming smarter, producing data and insights into the roasting process that weren’t available to past generations of roasters. German roasting plant manufacturer Probat and Austrian software specialist Cropster estimate that there are 1500 data points generated in the typical roasting process, and have discovered that their customers struggle to capitalise on the sudden and heavy flow of information. “There are some isolated software solutions, but not really anything that can handle data from different machines or manufacturers and bring it together,” says Sebastian Fichthorn, Head of Software Engineering and Information Technology at Probat. “[Probat] has knowledge about handling coffee, running the whole plant, and installing the sensors and equipment that collects this information. We set out to aggregate this data, combine it with that from other equipment like packaging machines, and show it in a smarter way. Our software typically operates at more of a local, plant level, so we looked for a partner with experience in cloud-based solutions.” They found this in Cropster, when CEO and Co-Founder Andreas Idl attended Probat’s Connecting Markets Symposium in September 2018. “We started to talk, explore ideas, and discovered that what our engineers thought would be good solutions for the sector overlapped. At the same time, we heard matching requests from our customers,” Idl says. “We had to look at a few different things while developing a platform. First, you have a plant with thousands of sensors, motors, and controls. You need to see how you can bring that data out. Next was finding out how you make and scale up a cloud system that works worldwide and runs on solid infrastructure. Finally, we thought about how to connect that plant to the cloud.” Once the technical logistics were worked out, their attention turned to ensuring the user could get the specific information they need to act. “In all my years of experience, what I’ve learnt is that good software is judged by its user interface and usability,” Idl says. “You may receive 1500 data points, but no person can take in all that information at once

G C R | N OV E M B E R / D E C E M B E R 2019

Christian von Craushaar is the Chief Executive Officer of fabscale.

and act on it. We had to determine how we present and aggregate that data in a form that is informative and supports the user.” The result of this collaboration is fabscale, a software service that handles and collates the data of the entire roasting production process. Idl says there were a few reasons behind the name. “We think a lot about the growth of our customers. They already work at scale, but

they’re also still growing and continuing to scale up,” Idl says. “Fab is obviously short for fabulous, and it’s a fabulous way of growing their business. But it also comes from the Latin word for ‘bean’. The name has many sides that just came together.” Fabscale recruited experienced manager Christian von Craushaar, who brings profound knowledge of the start-up and software industry, as its CEO. Von Craushaar says despite fabscale’s ongoing partnership with Probat and Cropster, it is important it remains an independent company. “This means nothing we do with our customers or of the data we collect will be shared with Probat or Cropster,” von Craushaar says. “On one side, it’s important to have such big trustworthy partners backing us, but on the other, we have to gain the trust of our customers that their information is safe and private. We actually deliver two important things: one is the good technology and the second is security.” Fabscale will begin its rollout with Probat customers at the beginning of 2020. “The first part of it will be incorporating the roasting machine and then we’re going to add the entire plant step by step, manufacturer by manufacturer, in order to be able to combine the data of the entire system,” von Craushaar says. “Then it depends on the age and technology of the plant. The newer it is, the more data we can obtain. “There are a lot of values that can be gleaned from the roasting process, including from a quality perspective, energy consumption, how long a roast takes and if it’s running overtime, and following a profile and reproducing the quality customers expect.” Fabscale is targeted at industrial coffee production, though von Craushaar says any large-scale roaster will benefit from the insights fabscale offers. “If something is wrong with the coffee and you don’t have the data readily available, it will take a long time to figure out what went wrong. It can take a lot of time to go through these different systems to see what

Software platform fabscale collates data that is collected during the coffee roasting process.

happened,” he says. “You have that mistake and need to take counteraction. The faster you can do that, the better for your whole-day production, because otherwise you get into delays or lose money. If you have the data, it’s not likely to happen again.” Probat’s Fichthorn says fabscale is also valuable from a research and development perspective, analysing blends pre-roast as well as optimising them post-roast. “The quality control and research and development people want data to be available for significant quality-related events within a roast profile or lab measurements, so they can better control the process and make better decisions on what machine to use,” Fichthorn says. This information, and it being cloud-based, is also beneficial to people in plant management. “The production manager would like to see directly if production is running out of target or below value. They want to see key performance indicators laid out in a smart, prepared way so they can directly react if performance is not at maximum,” Fichthorn says. “They would also like to monitor production, not only when sitting at the plant, but when they’re travelling or out of the facility. The best solution is to work from the cloud, connect from wherever you are with different devices, and access the data.” He adds that fabscale also offers the possibility of predictive or preventative maintenance. “You can compare the normal state of the plant with the current one,” Fichthorn says. “If a machine is not functioning to its full capacity, repairs can be made before something completely breaks down, saving time and money in the long run.” Ahead of fabscale’s 2020 launch, von Craushaar says the company’s focus is finishing the interface with input from roasters, incorporating feedback from the platform’s announcement, and promoting the benefits and security of cloud technology. “The industry can be reluctant to give away data to someone else, and we need to gain its trust. What helps is that the industry is already moving towards the ideas of smart manufacturing or industry 4.0. This is going to help us translate this message to customers,” von Craushaar says. “After this, there’s multiple avenues we can go down. Ultimately, we will work with customers to determine the right direction and to fulfil their biggest needs.” GCR

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

Credit: World Coffee Research

ORIGIN El Salvador

A federation for THE FUTURE TINY EL SALVADOR WAS ONCE THE FOURTH-LARGEST COFFEE PRODUCER, BUT THEN THE PERFECT STORM SWEPT THROUGH. LOCAL ACTORS TALK RENOVATION, UNIFICATION, AND THE FEDERATION.

ooking at the International Coffee Organisation’s (ICO) historical production figures for El Salvador, one might wonder what happened to the small country whose coffee industry once produced millions of bags of coffee a year, making the 21,000-squarekilometre country the fourth-largest producer globally throughout the 1970s. By the 1990s El Salvador still averaged about 2.4 million bags per year, but this current harvest is expected below 900,000 60-kilogram bags. Talking to experts in the local industry and listening to the stories of local actors paints a history that runs parallel to the highs and lows of production numbers – from boom times to corruption to C market fluctuations to coffee leaf rust, known as “la roya”. While the same can be said for many other coffee-producing countries, El Salvador seems to have been hit the hardest. “At one point coffee was a very lucrative, very important product for the country and at one point we were truly the reference for the international coffee industry,” says Emilio López Díaz, a sixth-generation Salvadoran coffee producer who’s been involved in the domestic and global coffee industries in various capacities for the past 20 years. “Unfortunately, whether we were big or whether

G C R | N OV E M B E R / D E C E M B E R 2019

we had dropped to like the 50th producer, coffee has always been very politicised.” Introduced in the 19th century, coffee quickly became the major export product as the government shifted its attention toward the lucrative bourgeoning industry. In a matter of time, the industry fell under the control of an oligarchy, with the majority of coffee plantations concentrated among a small share of landowners thanks to liberal land reform. By the 1930s, coffee represented more than 90 per cent of the country’s exports. And even after a bumpy period that included two world wars and a global recession, El Salvador

remained at the top. It was after the civil war of the 1980s that land changed hands again. Agrarian reform reversed the previous land reform and broke up many of El Salvador’s large estates. Although that land was redistributed among plantation workers, the government

Credit: World Coffee Research

Farm-level efforts by both local actors and outside parties have helped production inch up slowly during the past five years.

maintained control, with no single farmer permitted to own more than 245 hectares. Today, the reform is still intact, with more than 90 per cent of production supplied by smallholders with fewer than 20 hectares of land. The agrarian reform, followed by a period of nationalisation, disrupted the industry’s preexisting structure and efficiency, and nearly “broke trade of coffee in general,” López Díaz tells Global Coffee Report. “But even then, coffee was still very lucrative through 2000.” In 2001, however, the global price of coffee fell to only US$0.43 per pound. That year El Salvador’s production dropped more than 34 per cent, according to ICO data. “Because the price dropped so aggressively between 1997 and 2001, the entire Salvadoran economy crashed and both producers and miller-exporters defaulted on their debts with the banks,” explains Juan Francisco De Sola, CEO of El Salvador’s largest exporter, Unex, and chair of the local exporter’s union, Abecafé. Although the government refinanced those debts into a 25-year trust with low interest, it meant producers were

inextricably tied to the banks. The crisis caused a domino affect within the industry. “We lost interest among all of the actors,” López Díaz says. “Most producers went bankrupt, so we lost productivity, and we lost support from the government and from the financial sector.” In addition to the political and economic struggles over the decades, López Díaz says El Salvador’s coffee industry also suffers from a lack of unification, something he and De Sola are working hard

Your foamy cappuccino. Enhance your business. Amaze with genuine taste. Revolutionise your coffee-to-go business with 24/7 unrivalled quality. Define your design, configure your machine with special features and equipment tailored around your business needs. Offer the finest coffee specialties, made with fresh coffee beans and milk. Schaerer Premium Coffee Corner stands out with amazing, best-in-cup drinks on the go. schaerer.com

Schaerer Premium Coffee Corner. Loving your way.

to address with a current initiative. So when the 2013 la roya Only 3 per cent of El Salvador’s coffee varietals were rust-resistant when la roya hit.혀 epidemic hit, the industry found its true breaking point. “From the agrarian reform and nationalisation to the price crisis to an unsupportive government and a divided sector, there had never been so many abandoned farms,” López Díaz says. “La roya hit at the pinnacle of the worst time in the coffee industry in our country.” He estimates that only 3 per cent of coffee trees planted at that time were a rust-resistant variety, with the majority being Bourbon and Pacas, so the industry didn’t stand a chance against the epidemic that ravaged Central and South America. In the 2014 harvest season, El Salvador’s production plummeted nearly 60 per cent to only 515,000 60-kilogram bags, according to the ICO. Given everything stacked against it, the industry has struggled to recover, with annual production hovering between 500,000 and 750,000 bags in the years since – a far cry from the multimillions only two decades earlier. Although various private and public efforts launched over recent years have helped boost production about 7.5 per cent per year on average since 2014, none have been effective enough to push production back into the seven digits. In 2016, the Ministry of Agriculture launched a fungicide and giveaway program, with a plan of distributing 20 million rust-resistant plants to smallholder farmers during 2019. And at the end of 2017, the government signed a political pact, proposing $100 million to renovate 70,000 hectares with rust-resistant varieties during the next eight years, according to the latest US Department of Agriculture’s Foreign Agricultural Service (FAS) annual Gain Report. However, the report states “the main problems with the plant giveaways are that most seedlings are not certified and there is no funding made available to provide the necessary upkeep until the plants reach production age”. Local experts quickly confirmed the report’s claim, citing the plants’ weak genetic backgrounds and a lack of supplementary financial and agronomical support. “There were no controls on the nurseries, there were no controls on the handout of the plants, and there were no controls on the

Credit: World Coffee Research

ORIGIN El Salvador

management of those farms,” López laments. “I would [guess] there aren’t 200,000 of those trees standing right now.” Since those efforts, World Coffee Research has established its Central American headquarters in El Salvador where it was already conducting multiple research projects and running a seven-hectare research farm near Santa Ana, El Salvador. Although the headquarters will lead research and projects for the greater region, many will help where the Salvadoran government’s efforts fell short, including a coffee breeding program, nursery

Credit: World Coffee Research

WCR established its Central America headquarters in El Salvador, with a sevenhectare farm and research facility.

G C R | N OV E M B E R / D E C E M B E R 2019

Just this summer, IWCA El Salvador launched a two-part project with the Holland-Salvadoran Chamber of Commerce – its founder is a Salvadoran woman living in the Netherlands who wants to give back to her native country – that will also focus in part on soil conservation and restoration. Another aspect of the industry that needs renovated is the broken supply chain. The lack of unity and collaboration among the local actors across the sector that López mentioned previously is what he sees as the local industry’s biggest problem. El Salvador has seven different associations representing each link of the supply chain, as well as the IWCA, but they each operate in isolation. As such, he says, the sector lacks a unifying voice or one representing body. “If we would have been united with common interests and if we would have had a single voice among the actors in the sector, we would have had leverage and the power to somehow prevent all this from happening,” López Díaz tells GCR . “I would say we as a sector are the most broken, divided sector in this country.” So five years ago, he and De Sola decided to find a solution to the problem by forming an organisation that would bring those seven associations together, be their unifying voice, and act as a counterpart to the government with representation from each link in the supply chain, explains De Sola. “El Salvador needs an organisation that does science, research, development, and technology transfer.” Although it’s early days, they are optimistic about what “The Federación” can do for the industry and that their new government seems to be on board thus far – both with the plan for the new organisation specifically and with improving the Salvadoran coffee sector in general. “El Salvador’s government has to be key in this, [so] the good thing now is that we have a new government,” De Sola points out, “and the messaging that they’ve been giving us has been very positive and indicates that they want to reactivate the coffee sector.” G C R

trainings for plant health and genetic purity, and on-farm varietal trials with field days for local producers. These efforts can help support the more comprehensive farm renovation that El Salvador needs. Most of the country’s coffee trees are not resistant to la roya and have surpassed their productive age, according to the FAS Gain report, and so “approximately 30 million good-quality, rust-resistant plants are needed per year for a period of 10 years to completely renovate the national coffee area”. The local chapter of International Women’s Coffee Association (IWCA) has been working with local female producers, who make up an estimated 34 per cent in El Salvador, to replant farms impacted by rust and improve coffee production, says Maria Botto, President of the local chapter and former member of the IWCA Global Board of Directors. “We plan capacity building from seed to cup, so last year we were doing a lot of our agricultural courses: using biofertiliser, restoring soils, new ways of processing, ensuring quality.”

EEWORL

CONNECTING THE COFFEE WORLD

EVENTS MICE

All eyes Down Under THE NINTH INSTALMENT OF THE MELBOURNE INTERNATIONAL COFFEE EXPO IS SET TO HAVE STRONGER INTERNATIONAL REPRESENTATION THAN EVER BEFORE.

hen people think of Australia, they imagine sweeping landscapes, picturesque beaches, quality coffee, and dangerous wildlife. While the latter is highly overdramatised, the rest of the stereotypes are true, particularly its thriving coffee culture. Italian immigrants first introduced their love of espresso to the Australian population in the 1950s. The espresso culture slowly replaced the country’s penchant for English tea and freeze-dried coffee granules, and the coffee scene has continued to evolve since. Independent coffee shops, passionate baristas, and quality-conscious consumers have transformed Australia into a booming coffee destination. More than 11,000 visitors experienced the Australian coffee scene firsthand when they attended the eighth instalment of the Melbourne International Coffee Expo (MICE) in 2019. The 2020 edition is anticipated to draw an even larger audience. MICE will bring top industry decision-makers and leading international organisations to Australia to connect with the coffee community and provide a platform to build business relationships. Much more than just a coffee tradeshow, MICE has developed a reputation as the Southern Hemisphere’s largest dedicated coffee expo. Additionally, Australia has become an important global trade show destination for foreign businesses seeking growth in the Asia-Pacific. “Melbourne has become an appealing destination to host collaborative trade shows that facilitate knowledge-sharing, trade partnerships, education, investment, and valuable networking opportunities,” says Julia Swanson, Acting Chief Executive, Melbourne Convention Bureau (MCB). “Exhibitions and events like MICE attract a quality audience and provide Australian businesses with the opportunity to connect with international audiences and showcase their sourcing, roasting, and brewing capability on the global stage.” MICE has become a haven for baristas to explore trends and for international roasters, manufacturers and traders to showcase their brand to what many argue is a leading coffee market. “MICE is, first and foremost, a place to do business. It was created in 2012 as a platform for the Australian coffee market to connect buyers with sellers, and ever since it’s been the industry’s annual go-to event to do trade under the one roof,” says MICE Show Director Lauren Winterbottom. “MICE2020 is 99 per cent sold out and 50 per cent of our exhibitors are international brands. Of course, having the privilege of hosting the World Barista Championship and World Brewers Cup are huge drawcards for international exhibitors, but more than that we’re seeing brands want to be part of our event because of the strength of our market.”

G C R | N OV E M B E R / D E C E M B E R 2019

Representatives from the Indonesian Pavilion conduct a cupping at MICE2018.

Already locked in for MICE2020 are a range of international brands. Brewing manufacturer Hario; Italian espresso machine manufacturers Carimali, Nuova Simonelli, Victoria Arduino, La Marzocco and Faema; roaster manufacturer Probat; grinder manufacturers Hemro Group and Eureka; and syrup provider Kerry (Da Vinci) are all confirmed. “The growth and sophistication of the Australian coffee market, its willingness to pay more for quality product, and economic attractiveness of home-grown production are some of the factors fuelling the Australian coffee industry and adding to the appeal for international brands,” Swanson tells GCR . “MICE has become an anchor point for international guests to connect with new and existing Australian customers, see the latest in coffee technology and machinery, along with the best roasters and baristas, and of course to do serious business.” In addition to manufacturers, there is a vast range of internationally based bean traders

attending MICE2020 that source produce from all across the globe. Southland Merchants, 3 Brothers and Minas Hill will celebrate the quality of Brazilian coffee. Cafelumbus and Cofinet will shine a light on Colombia. Project Origin will represent several central American nations, while Condesa will honour multiple South American countries, Zedo Smart Trading will display Ethiopian beans, and Cofi-Com will take guests on a tour of the farming belt. Several national associations will also be present at MICE, including Café de El Salvador, the Indonesian Pavilion, Peru’s Ministry of International Commerce and Tourism, and the Brazil Specialty Coffee Association. “We will have nearly 200 brands on display at MICE2020. It’s an exciting time for MICE visitors to connect with international traders, and likewise, it creates a platform for our visitors to showcase their brand and business to some of the most prominent global players in our industry,” Winterbottom says.

“In particular, many Australian coffee roasters are looking to expand their operations offshore, with saturation in the country high, and more opportunities to take their business to under-developed cities. For those ambitious companies, it’s a vital opportunity to connect with the right people to help them achieve that dream. It’s a win-win.” Since its inception in 2012, MICE has always been hosted in Melbourne, but growth has led to organisers upscaling the venue. MICE from 4 to 7 May 2020 will be hosted at the Melbourne Convention and Exhibition Centre (MCEC) for the second year in a row. According to MCB’s Swanson, throughout 2018-19, 1297 events were held at MCEC, which attracted more than one million delegates. This included 30 international conventions involving more than 27,000 representatives. “MCEC is the largest exhibition center in the Southern Hemisphere at 70,000 square meters so it provides the perfect opportunity for MICE exhibitors to showcase themselves on the world stage,” Swanson says. MCEC’s Senior Manager Food & Beverage Neil Mather says the countdown to bring the international coffee community Down Under is truly underway. “Melbourne’s coffee culture is iconic within the international food scene and as a venue we take our coffee seriously. We look forward to welcoming the industry’s global leaders to MICE 2020 and showcasing what Melbourne does best,” Mather says. G C R For more information, visit www.internationalcoffeeexpo.com

IT’S ALL ABOUT THE MOMENT when you can focus on the final detail instead of the coffee machine.

Whatever business you are in, at Franke, we know it’s about more than coffee. It’s about the moment you create an amazing coffee experience for your customers. We have the experience and knowledge to help you achieve moments like this, no matter the scale of your ambitions.

It’s all about the moment. We can help you make it wonderful.

Want to know more? coffee.franke.com

/////////

The rise of Super Ts EVERSYS IS MAKING WAVES WITH A SUPER TRADITIONAL RANGE WHICH IS DESIGNED TO EMPOWER CUSTOMER DECISIONS AND TAKE COFFEE PREPARATION INTO A NEW ERA.

n today’s world, people want the option of choice, from the way they build their burger or check-out at a supermarket, to customising a new Ferrari. In the coffee world, it’s no different. “We need to give people what they want, and empower consumers to create what they want,” says Eversys Commercial Director Kamal Bengougam. To do this, Eversys is confident the evolution of super traditional coffee machines, or Super Ts for short, will deliver this commitment. Eversys’ Cameo C’2 and new Cameo X, a 10th anniversary edition, unveiled at Host Milan in October are two such examples from the Super T category that embrace attractive design resembling a traditional espresso machine, and the ability to create quality products without fuss thanks to its super-automatic functions. The Cameo X, which Bengougam says models the smooth lines of a super car, features two new pieces of technology. These are Eversys’ 1.5-milk, where milk is dispensed through the steam wand already pre-steamed, and a static brewing chamber with an electric current to even out coffee grounds, just like a barista would manually. “The Super Ts are all about the visual, emotional attachment, and technology that enables the barista to improve the cup with greater consistency and better repetition,” Bengougam says. “At Eversys, it’s always been our vision from the start to differentiate ourselves by developing tools and technology that get us closer to providing that traditional experience.” Until recently, Bengougam says super-automatic equipment offered little more than convenience and a product which was “poor competition” to Italian manufacturers of cool and aspirational machines – like a Citroen 2CV competing against an Alfa Romeo. Traditional equipment has been at the forefront of retail, with customers looking for conversation and craftsmanship, but now, Bengougam says the industry is on the verge of a power shift in favour of automation. In order to maintain their superiority, Bengougam says traditional manufacturers have resorted to building automated systems of their own, such as automatic milk frothing equipment, telemetry controls, sophisticated grinder technology, pre-set temperature controls, brewing modes, and electronic stability monitoring with scientific methodology and reliable precision. Super-automatic machines have been developing too, and are far more sophisticated than

G C R | N OV E M B E R / D E C E M B E R 2019

their earlier conceptions, with in-cup quality greatly enhanced, as have design lines, adding a bit of authenticity and removing the stigma of old. As such, Bengougam says superautomatic equipment is proving to be the new competition to the leading traditional brands of machines and providing viable competition for the Mercedes and Aston Martins of the world. “In the absence of clear delineation between automation and tradition, there lies the opportunity of change, the creation of a new market segment, which we at Eversys call the rise of super traditional machines,” he says. A super traditional machine can adapt to its environment and purpose, ranging from specialty coffee shops in Australia run by expert baristas through to a self-service petrol station on the outskirts of Siberia. In August 2019, Big 7 Travel listed Simple Kaffa in Taipei the best coffee shop in the world, with The Barn Roastery in Berlin rated second and Mel Coffee Roasters in Oaska in third. What’s impressive, Bengougam says, is the fact that Simple Kaffa – the creation of 2016 World Barista Champion Berg Wu – is using the Eversys Cameo C’2 1.5 step machine. “I think the fact that the number one

SUPER AUTOMATICS FEATURE ///////// coffee shop in the world is using the Cameo tells us that café owners are looking at what the machine does, not how it does it,” Bengougam says. “The whole culture of coffee is changing because young people are thinking about coffee differently, and businesses need to adapt their trends. If they don’t, they become dinosaurs very quickly.” Far from becoming extinct, Eversys has taken its Super T range one step further with the launch of Ghost at Host Milan. “You can’t see the inner workings of the machine – hence the name Ghost – but it has all the interfaces you need to customise your product while retaining consistency and enhancing productivity,” Bengougam says. He adds the Ghost is more consistent than two baristas working behind a traditional machine using different techniques. In terms of quality production, it links back to the beans, temperature control, and brewing infusion time, among other things, most of which can be programmed and controlled on the Ghost.

The Cameo X, Eversys’ 10th anniversary edition, launched at Host Milan.

“If you want to retain standards, a machine like the Ghost will deliver more consistency than a person can who simply push a button and froth milk. That can be replaced by a machine and I have no sense of guilt in creating that environment,” Bengougam says. “I believe Ghost really will create quite the wave. It’s like a coffee shop in itself in just two square metres, therefore the relative cost of real estate is very small, and you don’t need a barista so labour costs are lower.” With automation heavily integrated into society, Eversys Ambassador Matthew Perger believes now is the time when consumers will start to accept the new method of coffee production and the role it can play in the future of cafés. “Since the unveiling of the Cameo at Host Milan in 2017, I’ve been to about nine countries educating people on the ability of the machine. At first people were curious and maybe a little reluctant, but on second visits, especially to Amsterdam, there was definitely more acceptance,” Perger says. “In many ways, Super Ts are still unexplored territory. We’re seeing them put into places where super-automatics weren’t before, and places where no barista service is needed, such as an office or high-foot-traffic places like hotels, where you want the control of what’s coming out of the machine, but on-the-go. It’ll continue to test the future of customer service, coffee quality, and consumer expectation, but the thing that really transforms this landscape, is that well-made coffee is no longer an exclusively hand-made product. Once you realise that, the business model has to change.” As Perger puts it, “humans cost money”, so there is a need to deliver value from the traditional side of the market otherwise customers will start to question why they’re paying $5 for a latte when they can spend $2 for the same tasting product. “I think there may be a few less coffee shops in the future, but the ones left might be a bit better. If you want to survive in the slightly smaller market of human-made services, what you offer will have to be better,” Perger says. “I think the barista trade will have to become more professional, like a sommelier is, in order to justify its existence. The repetitive labour will be replaced by a machine and I think that’s a great thing. People are worried about losing the barista profession, but personally, I’d love to see the profession improved and customer service better developed.” Bengougam is confident that the cafés of the future will resemble Starbucks’ and McDonalds’ successful integration of both do-it-yourself orders and sit-down café experiences, and that the Super T will be the ideal machine leading this environment. “We’re just giving the consumer choice: the choice to determine what he or she wants to drink and become their own barista, not the way an expert wants to make it,” he says. “There always needs to be someone to set the lead and be the ground breaker, just like Jackie Robinson becoming the first African American baseball player. I’m confident Eversys can be that. We want to do our own thing, and we think we can play in the big league.” G C For more information, visit www.eversys.com/en/

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

/////////

Safety in numbers

WMF PROFESSIONAL COFFEE MACHINES HAS UNDERGONE A BRAND RELAUNCH, FOCUSING ON RELIABILITY, DIVERSIFICATION, AND INNOVATION.

n a field as competitive as superautomatics, Viola Linke, Vice President Global Marketing GBU Professional Coffee Machines at WMF Group, says it is important that machine manufacturers offer a point of difference to the market. With three automatic manufacturer brands under the group’s belt, it is also important that they do not “cannibalise” each other’s business. In the case of WMF Professional Coffee Machines, the group has chosen to launch a new brand identity, with a focus on dependability and innovation based on the needs of its customers. “Each of our brands are positioned with an exclusive offer to the market. In WMF Group we put this brand positioning on paper to help guide the decisions of the wider company,” Linke says. Viola Linke is the Vice President “What we can offer with WMF is an Global Marketing GBU Professional Coffee Machines at WMF Group. outstanding reliability in terms of machine quality, service offer, and digital solutions to strengthen the coffee business of our customers, which results in a seamless premium experience and an offer of consistent high coffee quality.” When the decision was made to rebrand, Linke says the manufacturer consulted with different WMF stakeholders to determine the best brand positioning as a base to successfully steer the business. “We talked to customers and the people who’ve worked a long time within the company to find out how they view the brands – what came to mind when they thought of WMF?” Linke asks. “We also looked at the competition, how they’re positioned, and what they offer, to find an exclusive area in the market to build the brand position. “We determined that WMF is the best choice for customers who’d like a safe investment, whose key criteria is dependability, so that is what we’ve decided to focus on with the brand.” This value proposition has guided WMF since early 2019, influencing its global tradeshow booth’s concept, commercials and marketing, and strategic decisions regarding its product and innovation portfolio. Linke says involving WMF customers in the new brand identity meant it was well accepted once launched due to its authenticity. “It’s been easy for people to absorb the new look and feel because it was built on what they already had in mind,” she says. “The new brand language is emphasising premiumness, engineering quality, and attention to detail, which has also been very well received.” First founded as a tableware manufacturer in 1853, WMF started production of commercial coffee

G C R | N OV E M B E R / D E C E M B E R 2019

machines in the 1950s. For more than 60 years, the company has built on its models, continuing to introduce new technologies to meet the needs of the market. “WMF has developed a strong reputation. The brand carries a high-quality promise we know we can give and deliver. To keep it this way, all of our research and development is done inhouse, which is very important to us,” Linke says. “Our machines are also made in Germany, right on our premises.” WMF’s recent research and development projects have resulted in upgrades to the WMF Espresso automatic portafilter machine, and introduction of the Fresh Filtered Coffee (FFC) technology to its WMF 1500 S+ and WMF 5000 S+ models. “The FFC feature enables customers to offer regular coffee specialties and fresh filtered coffee from one machine. It’s a solution for customers who need to offer a big variety of drinks with a small footprint or in limited space,” Linke says. “Meanwhile, we’ve also developed new features for the WMF Espresso, mainly for the benefit of larger customers. From an optional second automatic steam wand to larger bean hoppers and the implementation of our revolutionary Dynamic Coffee Assist technology, everything is targeted at producing coffee for a larger amount of customers, so that more coffee can go over the counter in consistent good quality. At the moment, what we’re focusing on is helping our customers offer a full coffee menu to theirs.” WMF has also refined its CoffeeConnect telemetry solution and Dynamic Coffee and Milk Assists, as well as introducing these features to new models. “In this way, WMF customers can exploit the full potential of digital change – the digitally empowered Dynamic Coffee and Milk Assist

SUPER AUTOMATICS FEATURE /////////

WE DETERMINED THAT WMF IS THE BEST CHOICE FOR CUSTOMERS WHO’D LIKE A SAFE INVESTMENT, WHOSE KEY CRITERIA IS DEPENDABILITY, SO THAT IS WHAT WE’VE DECIDED TO FOCUS ON WITH THE BRAND. Viola Linke

Vice President Global Marketing GBU Professional Coffee Machines at WMF

WMF has introduced fresh filtered and chilled coffee options to its WMF 5000 S+ model.

technologies ensure process reliability, and thus product quality, via self-regulating quality control loops,” Linke says. “On the other hand, WMF CoffeeConnect enables customers to consistently optimise their day-to-day coffee business, identify developments in good time, and thus implement new business models and opportunities.” Linke says digitalisation is playing an increasingly large role in the global coffee industry and is part of what sets automatics apart from traditional machines. “For any new features we develop, it’s important we can blend them into the digital world,” she says. “Sensors, for example, can be used to monitor and regulate the process, send data into the digital platform, and ensure quality is on a consistently high level.” Linke says this increased and accessible flow of information is then primed for the customer. WMF Professional Coffee Machines “We offer some standard solutions which has focused on reliability and innovation. are helpful to make each and every coffee business more profitable and are able to tailor others to our customers that suit their individual needs and systems,” Linke says. “Regulating coffee quality, optimising maintenance, and reducing wastage avoids downtime and service issues. Operators will be able to update recipes and prices on multiple machines from a central office, or they can single out a machine in one shop in a certain city, and push it with advertising at a certain time if needed. In the end, the point of this digitalisation is to help our customers earn more money.” These benefits are endearing automatics to a diverse clientele. Linke says WMF WMF’s customers 9000 F largely consist of restaurants and coffee bars, quick service businesses, service stations, bakeries, EXTERNAL STORAGE hotels, catering firms, and the fastest growing segment – office spaces. “One of the big advantages [of our fully automatics] is that they offer consistent, high-quality coffee. You can be sure, whether you are the one operating the machine or not, of what your customer is going to get when they order a coffee,” Linke says. “It’s also easy to handle and perfect for self-service.” With a strong presence in Germany and surrounding European countries, WMF is looking to increase its foothold in newer markets. “Europe is still important for us, but we see a big potential for coffee drinking habits to evolve – and demand for fully automatic coffee machines to grow – in the United States and China,” Linke says. “Peoples’ tastes in these countries are becoming more diverse and convenience stores are popping up increasingly. China is seeing a trend of people turning from tea to coffee, and the US is from traditional drip coffee to more diverse options, causing these countries to embrace fully automatics.” With WMF predicting continued growth in these markets, Linke says the company intends to continue innovating and maintaining its reputation as a safe investment. “In coffee, automation will have a growing importance, and it’s something we will continue to work on,” Linke says. “We see several emerging trends in the market, that we are working to address. One such trend is cold coffee, which we have addressed with the Chilled Coffee system in the WMF 5000 S+. “As always, any future features or machines will be guided by listening to what our customers have to say.” G C R

FULL-FLAVOURED FILTER COFFEE, ON A GRAND SCALE.

For more information, visit www.wmf-coffeemachines.com

EXCELLENT COFFEE INDULGENCE, FFORTLESS IN ANY ENVIRONMENT.

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

/////////

Complete confidence FRANKE’S COFFEE COMPETENCE PROGRAM PROVIDES TRAINING TO ITS STAFF, DISTRIBUTION PARTNERS, AND CUSTOMERS WHILE IOT TECHNOLOGY ALLOWS CENTRAL MANAGEMENT OF COFFEE MACHINES.

o Franke Coffee Systems, offering consistently excellent coffee quality requires not only the right coffee machine, but also a great deal of knowledge and expertise. In order to share its own experience with customers and distributors, the Swiss coffee machine manufacturer launched its Coffee Competence Program in mid-2018. Led by Inga Schäper, who among other qualifications helped develop the Specialty Coffee Association Coffee Skills Program, Franke’s Coffee Competence offers training, workshops, seminars, insights, and research made available on the Franke iQCircle online domain. “iQCircle is a platform for exchange and exploration, where we want to bring together key opinion leaders in the coffee business to discuss new trends, ideas, and insights,” Schäper says. “Coffee culture is evolving around the world and so are the ever-growing expectations of coffee lovers worldwide. To meet these demands and stay ahead in their respective competitive environment, our partners and customers must secure best in-cup quality day after day, cup by cup.” Schäper says the Coffee Competence Program offers benefits to a range of customers, from single coffee shop owners to convenience store chain operators. “What is necessary to satisfy your customers as a coffee beverage provider is the quality you deliver,” she says. “In the Franke Coffee Competence training seminars, emphasis is placed on practical relevance, participants’ own participation, and the application of what they have learnt in coffee preparation. For example, the iQFlow Taste Profiling Workshop offers the opportunity to get to know the latest

G C R | N OV E M B E R / D E C E M B E R 2019

Inga Schäper leads a training session as part of the Franke Coffee Competence Program.

technology in practice, apply it yourself, and evaluate the results in a joint tasting session.” Franke runs similar trainings internally, ensuring its staff and technicians are well equipped to handle any issues that may arise. “Our service technicians can do the installation and repair of machines, but they also need to know about coffee to do the sensory evaluation of what they just implemented. This is why it’s important to give them handson information to be able to deal with the situation,” Schäper says. “This program content goes further into our product development team. Coffee Competence is not just something we offer externally but feed into our research and development to create new products, coffee machines, and services.” One such feature is the iQFlow intelligent coffee extraction, which Franke says extracts

SUPER AUTOMATICS FEATURE ///////// more flavour from coffee due to a uniform pressure distribution on all coffee grounds. iQFlow extracts more flavour from “Within the traditional espresso extraction concept, the maximum brewing coffee due to a uniform pressure distribution on all coffee grounds. pressure is only placed on top of the coffee cake. This is followed by an unavoidable and continuous pressure drop [as the water passes through] the whole coffee cake. As a consequence, the taste and aroma potential cannot fully develop,” Schäper says. “Usually once water flows into the ground coffee, whether in a traditional or automatic machine, it looks for the path of least resistance. iQFlow provides a monitored and adjusted water flow, so the water comes into contact with more coffee grounds. What makes coffee quality repeatable is an equal extraction and extraction time, so we need a consistent amount of contact between water and coffee grounds.” This monitored extraction also allows Franke’s units to closely follow pre-set recipes and profiles. In a test conducted in 2017, with more than 3000 products dispensed from one coffee machine, the target extraction times of 15 seconds per cup was reached with a variance of one second on either end with 96 per cent consistent in-cup quality. “Multiple taste profiles from the same roasted coffee beans can be set during installation, whether for different intensities in certain taste components or even different recipes from the same roasted coffee beans for individual usage in a single espresso or milk beverages,” Schäper says. “In a chain, the quality and desired beverage can be worked out once, and with the help of Franke Digital Services, spread across an entire fleet of machines.” Franke Digital Services uses cloud and Internet of Things (IoT) technologies to simplify monitoring and management of a singular or multiple coffee machines. The service provides remote access to information on many factors relating to the performance of a coffee machine or suite, including resources used, revenue generated, cleaning, extraction times, sales stats, and maintenance figures. checks without being on-site for faster problem Nils Weber, Program Director of Digital Innovation at Franke, says the manufacturer has taken solving.” a cloud-first approach to developing its machines. With automation being embraced more and “The operator has full visibility across their entire fleet. This allows them to optimise their more across the coffee industry, Schäper says beverage line-up from a commercial point of view and ensure quality standards. As an example, super-automatics will play an increased role, they can monitor cleaning across points of sale, and through that, improve in-cup quality as well and Franke will stand apart due to its focus on as reduce service outages,” Weber says. training, education, and information. “Franke Digital Services are an integral part of the Franke solution. The tight integration of “Even when you look at traditional setups, the Franke coffee machine and cloud services allows users to not only monitor but fully manage you see more automation within espresso a coffee machine fleet.” machines. There’s software you can program Weber says coffee machine manufacturers are moving away from one-way telemetry, where and profiles you can pre-set. Some coffee information is only extracted from a machine, to a two-way system where data and commands machines can connect to the grinder, and can be sent to a device as well. Doing this through a cloud-based system like Franke’s provides changes in extraction times can alter grind chain operators with a greater degree of flexibility. adjustment. There are even devices to automate “If someone wanted to run a promotion, they had to send service technicians to each and every the tamping process, something typically done coffee machine to update the pictures and drinks menu. It’s not commercially viable to do that, manually by the barista. When you add this all but if you can centrally manage your coffee machine configuration, it can be done at virtually no together, it’s almost like the barista is operating cost,” Weber says. a fully automatic setup,” Schäper says. “In order to be able to react to trends and leverage seasonal offerings for a coffee concept, “Making coffee is not that easy. There’s the ability to centrally monitor and manage a coffee machine fleet becomes an indispensable always better or worse ways of doing things, and through Coffee Competence and Digital requirement.” Weber says the degree of control Franke Digital Services offers is particularly beneficial to Services, Franke enables its customers to achieve large-scale chain and operators, but all customers of Franke can benefit from the information IoT best and consistent in-cup quality all to the and cloud systems provide. benefit of the end consumer.” G C R “When you operate hundreds of points of sale, you want a consistent beverage line-up across the entire fleet, and the more you benefit from an IoT system,” Weber says. “But even for single For more information, visit iqcircle.franke.com locations, it’s quite interesting from a service perspective. Technicians can run remote health and digitalservices.franke.com

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

/////////

111 years of passion

The Melitta Cafina XT8-F filter machine looks right at home next to its espresso counterpart, the XT8.

MELITTA CELEBRATES AN UNUSUAL MILESTONE THAT HIGHLIGHTS ITS LONGEVITY AND EXPERIENCE IN FILTER COFFEE.

any great inventions began as simple ideas that people just hadn’t thought of before. In 1908, Melitta Bentz was tired of getting a bitter taste and coffee grounds stuck in her teeth from drinking Turkish coffee, so she took a piece of her son’s blotting paper and used it to filter them out of her morning brew. Bentz patented this concept of coffee filter paper and the company Melitta was born. Melitta Professional now offers a complete coffee solution, including not only filter paper but roasted coffee, ancillary beverages, porcelain cups, and automatic machines. While perhaps best known for the latter, Oliver Welschar, Head of Global Key Account Management, says filter coffee is still at the heart of the company. This is most prominent in its latest model, the Cafina XT8-F. “Our bedrock is a long experience with filter coffee. We see a huge demand from many countries where filter coffee is the go-to for an automatic machine that can produce it in large volumes,” Welschar says. “The XT8-F offers this, being capable of producing 500 cups of freshly brewed coffee per

G C R | N OV E M B E R / D E C E M B E R 2019

hour coming from a small, nicely designed machine.” First unveiled in late 2018, the XT8-F has seen a limited release in filter coffee-focused countries, particularly in the Nordic region. “The further away from the equator you go, the higher consumption of filter coffee tends to be, so those are really our target markets for the XT8-F,” Welschar says. “However, we are becoming an increasingly globalised society. People are travelling for business or pleasure all around the world, and whether you’re passing through India or are an expat in Shanghai, there is still a market

SUPER AUTOMATICS FEATURE ///////// for specific drinks that aren’t necessarily common in an area.” fully automatic, Melitta in particular, it’s The Melitta Cafina XT8-F shares its build with the XT8 bean-to-cup model, featuring possible to check how many grams of coffee go an aluminium casing and slim 35-centimetre width. A 10.4-inch touchscreen display is used in every cup, telemetry is used to monitor all of the processes, and above all, the customer to operate the machine, while a height-adjustable zinc outlet dispenses coffee. The hopper accommodates three kilograms of ground filter coffee, an amount Welschar says is convenient on other side of counter can enjoy their drink, while ensuring coffee remains fresh. come back, and have the same product again.” “The response so far to the XT8-F has been great. There has been a particularly strong demand While Welschar says some consumers from hotels, as well as canteen or catering businesses. Then further north, in countries like Finland, believe that automatic machines aren’t as it’s being put into service stations and convenience stores. But we’re also seeing interest from other “romantic” as traditional espresso or filter niche industries which want to serve filter – cruise ships and ferries, for example,” Welschar says. models, this perception is changing as the “But we’ll only launch something once we have full trust it can work on large scale without machines become more advanced. causing issues, and people in the industry appreciate our approach. First we lay the egg, then “When general consumers see an we make the noise.” automatic machine, sometimes there’s a The XT8-F was the crown jewel of Melitta’s presentation at Host Milano in October, where presumption the coffee won’t taste as good, the company also celebrated its 111 year anniversary. While not an anniversary usually celebrated, and that comes from a heritage of plastic Welschar says it highlights the experience of the brand. vending machines using stale coffee and “After 111 years, we can proudly wave the flag and say, ‘we’re still here, larger than ever before, powdered milk. That’s not the case anymore,” and still family-owned and run’,” he says. “At the same time, we’re not stuck in our ways and have Welschar says. used that knowledge to continue to innovate. “Our blind testings, with people who “Not many companies have as long and varied experience in coffee as Melitta. Through filter don’t know which coffee comes from a super paper, household coffee machines, and roasteries, all of our business revolves around coffee and automatic, rate it as superior. Quality in the that knowledge is shared throughout the company.” cup is ultimately what we aim for in Melitta, Melitta’s continued growth is best represented by the 2018 opening of a new production and and it can only be achieved with a huge, logistics facility in Minden, Germany. Spread over three floors totalling 17,000 square metres, century-long understanding of coffee.” G C R the site houses 230 employees, and assembly lines for each product line as well as one for addons, and 40 partially automated test stations. For more infor mation, visit Welschar says consolidating Melitta’s production operations, which were previously spread across www.melitta-professional.de Germany and Switzerland, has increased connections and communication across the business. “For the first time, all of our production lines are under one roof, only a stone’s throw away from our corporate headquarters,” Welschar says. “The team feeling is completely different – it’s like we’ve reconnected to the family. As a global sales guy, I can now walk our customers through the site every time we meet. In the past, we’d have to travel back and forth from Switzerland. A lot of our salespeople had never actually seen the production before, and the people on the production line didn’t meet customers. The move has set us up for the future growth of the company.” Bringing the production lines together has also improved design consistency across Melitta’s product portfolio. “The longest distance between two divisions is now 500 metres. One of the downsides of having our operations spread out in the past was it meant our models didn’t follow a unified design,” Welschar says. “Now, they carry a unified corporate identity. You could put each of our machines in a line and they will all look like they belong.” This level of consistency extends past Melitta’s designs to the performance of its machines. Welschar says automation is beneficial to maintaining a level of quality across multiple venues and locations. “The moment you have to rely on changing variables, you need to bring consistency to processes. For example, staff members can use different amounts of coffee, or follow different recipes, and you can’t guarantee the same result,” he says. In May 2019, Melitta celebrated the “As a business owner, you need to know what is in the cup and on the other production of its 11,111th machine. end, the customer needs to know they will experience a great drink. With a

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

/////////

Mixing tradition with automation THE MARKET WASN’T READY WHEN LA CIMBALI RELEASED ITS FIRST SUPERAUTOMATIC MACHINE IN 1969. HALF A CENTURY LATER, THE GAME HAS CHANGED AND THE AWARD-WINNING S20 AND S30 ARE PROVING TO BE HITS.

a Cimbali has produced traditional espresso machines since 1912 and created its first fully automated model, the Superbar, in 1969. “There is a long, proud barista tradition in Italy and the Italian market was not ready for automation. Here in Italy there is so much passion about coffee,” says Rupert Resch, La Cimbali Director of Fully Automatic Coffee Machines. The S20 and S30 models are the first machines in La Cimbali’s new fully automated range, featuring modern technology and an award-winning design. The S30 was launched in 2016 and the more compact S20 model released in 2018. The machines are named to represent their capability. The S20 is recommended to produce 200 cups per day and the S30, 300 cups per day. Balancing reliability and efficiency with coffee quality is a challenge in producing super-automated coffee machines, and La Cimbali has utilised a unique tool to perfect its formula. “We have a barista academy with subsidiaries all over the world which are connected to some of the largest roasting companies. We had baristas trying out their coffee with our machines when building super-automatic coffee machines to ensure

G C R | N OV E M B E R / D E C E M B E R 2019

the quality was right,” Resch says. “Different academies provided feedback on drinks that are relevant in their countries. For example, the Austrian academy gave us feedback on milk quality and the Italian academy on the coffee’s taste. This was our approach to working together and satisfying baristas around the world.” The S20 and S30’s target market has expanded vastly over recent years as demand for reliable, high-quality automated coffee grows. The superautomation industry has evolved past being limited to hotels, bars, and coffee shops, and expanded rapidly into self-service La Cimbali used feedback and offices. from their academies during production to ensure the perfect espresso shot. “We are having incredible success, as is the rest of the industry with supermarkets, gas stations, and offices – places where maybe two or three years ago there was no coffee at all. These segments are becoming very important,” Resch says. Technically, the S20 and S30 are more innovative and unique compared to La Cimbali’s previous designs. The preheated, completely metal group head is created for quality and consistency and the milk system incorporated feedback from La Cimbali’s academy to provide barista-quality hot foam. Both models include the TurboSteam Cold Touch, an insulating, nonstick material steam wand that resists milk residue, making it easier to clean. Additionally, the S30 is capable of creating cold foam milk, which La Cimbali calls ‘Snowmilk’, with its sophisticated pump system. This can be used to expand a menu of cold drinks. Long-life grinder blades are made of titanium and designed for reliability and longevity. “It’s important that we use quality equipment for long life because the change of blades is an issue which we want to reduce to a minimum, as well as the adjustment of the grinder,” says Resch.

SUPER AUTOMATICS FEATURE /////////

“CUSTOMERS OFTEN CHOOSE A MACHINE FOR LOOKS. MANY PEOPLE LINK COFFEE TO ITALY SO WE WANTED TO CREATE SOMETHING THAT HAD AN ITALIAN FEEL. THAT IS AN INTERESTING INTANGIBLE DIFFERENCE BETWEEN THE S20 AND S30 COMPARED TO COMPETITORS.”

“The display is intuitive and can be customised with images and videos, but this is not only important for the end user. The screen creates easiness of service for the technician and setting up the machine is simple and quick,” says Resch. Telemetry is another key feature modernizing the coffee machine industry. The S20 and S30 come with an integrated bidirectional Wi-Fi system. Owners can upgrade software, adjust recipes, and personalise the interface remotely. This system can also be used to easily program multiple machines at once and make changes at the touch of a button. “You can roll out 100 machines as an owner and set the same recipe or modify the beverages. It’s an incredible advantage of fully automatic machines. They can all be connected together which makes it much easier for a large operator,” says Resch. Consumption data, performance, and technical issues are all tracked by the machines, giving owners valuable insight into consumer habits and maintenance. It also allows technicians to tend to a machine preventatively, and analyse the performance of the machine simply and effectively. For the design of the S30, La Cimbali aimed to create something modern that also maintained a classic Italian flair. Milan-based design firm Valerio Commetti+V12 Design created the aesthetic and won the 2016 Red Dot Award for Product Design for the S30 model. “Customers often choose a machine for looks. Many people link coffee to Italy so we wanted to create something that had an Italian feel. That is an interesting intangible difference between the S20 and S30 compared to competitors,” Resch says. As the super-automatic industry continues to grow, Resch says consistency, telemetry, and reliability are becoming increasingly important and La Cimbali intends to evolve with it. “Technology plays an integral role in catering for the target market, particularly as product reach has expanded into more remote areas. This means that reliability is essential as technicians are harder to find,” Resch says. G C R For more information, visit www.cimbali.com

Rupert Resch

La Cimbali Director of Fully Automatic Coffee Machines

The S30’s pump system produces ‘Snowmilk’, a cold foam milk used for a range of drinks.

The S30 model also contains La Cimbali’s Perfect Grinding System. This is designed to automatically adjust as soon as the beans get old and temperature changes. This ensures consistency even if external factors affect the grind. To optimise performance in compact spaces, the S20 has a Power Station mode. This allows two machines to utilise milk from a single fridge, increasing the production volume and reducing space required. Cleaning is completely automated for both models, using La Cimbali’s Automatic Washing System for daily wash cycles at the push of a button. The touchscreen interface is a key feature which separates the S20 and S30 from previous La Cimbali machines. The S20’s seven-inch and S30’s 10.4-inch screens are the first in the company’s history with video capability. The screens provide an easy-to-use, visually friendly interface for customers and operators.

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

/////////

Custom made

SCHAERER IS EMPHASISING ITS FLEXIBILITY AND ABILITY TO CUSTOMISE EQUIPMENT TO FIT THE NEEDS OF ITS CUSTOMERS ACROSS THE GLOBE.

n a market as diverse as coffee, consumers in countries around the world have developed different tastes, preferences, and expectations of the coffee they order from a particular venue. Understanding that two outlets won’t share the same requirements of a coffee machine, Swiss professional coffee machine manufacturer Schaerer has ramped up its ability to customise equipment to suit the needs of its customers. Schaerer CEO Jörg Schwartze tells Global Coffee Report the new focus highlights a service the company has always offered and knows it can do well. “Customer focus and customisation have always been in the DNA of Schaerer, so we are banking on something deeply ingrained in the company. But we want to professionalise that flexibility,” Schwartze says. “This starts at the point of sale with customer-focused global account or regional sales managers and goes through product management, research and development, and operations, where we’ve made huge steps ahead.” Since 2017, Schwartze says Schaerer has doubled the number of machines it sells and produces, and has reorganised its production to accommodate the growth. “Once a customer makes the decision to roll out a machine, they don’t want to wait too long to receive it. If you’re talking about producing 10,000 machines in a short period of time, then you need to ramp up very quickly,” he says.

Schaerer Soul Select allows customers to customise the Schaerer Coffee Soul to fit their unique requirements.

G C R | N OV E M B E R / D E C E M B E R 2019

“We’ve changed whole workstations to make the system more flexible in terms of setup, volume, and the models we can produce.” A large part of Schaerer’s growth is due to partnerships and projects in the United States and Asia spreading its presence in markets outside of Europe. “Our business is now quite evenly distributed around the globe. In 2018, we worked with an American coffee chain with the refurbishments of its shops, but the largest growth driver in the US has certainly been the convenience store market,” Schwartze says. “We had our biggest project ever in this arena with an American convenience store chain in 2019. One reason for this success was our ability to customise our espressobased machines to instead serve pressure brew, resembling the taste of a typical American long black coffee, catering to American consumer tastes. This not only involved fitting in a larger brewer, but adapting the whole hydraulics system.” In Asia, Schaerer’s projects include partnerships with 7/11 in Taiwan where it delivered more than 90 per cent of the convenience chain’s coffee machines, and ongoing work with Luckin Coffee in China. Schwartze says these types of customercentric projects have helped Schaerer expand its product portfolio for the betterment of other customers. “When we customise a machine, it’s not always visible from the outside. For example, the first time we introduced the Hot & Cold system to our machines, it was for a customer in Asia,” he says. “It began as a country- and customerspecific solution that was further developed and optimised to fit our general customer requirements. Then we took it into our portfolio and made it widely available for the

SUPER AUTOMATICS FEATURE /////////

Jörg Schwartze is the Chief Executive Officer of Schaerer.

first time. Now Hot & Cold is implemented in nearly every machine we’ve set up in the US and Asia, and we see this trend becoming more popular in Europe.” Schaerer’s revita lised focus on customisation was in full force at Host Milano in October, where the manufacturer unveiled its Soul Select range, which will launch in 2020. “With Soul Select, customers can pick what they need and get the machine that they want. If you are a chain operator, you need the highest performance you can get. But if an employee is operating the machine, it doesn’t need a huge screen or stainless steel casing,” Schwartze says. “On the other hand, a hotel chain might use super-automatics in the breakfast area, with a high demand for quality but a small output. In this case, you’d want to present a high-end, nice-looking machine with a big screen, because it’s self-operated by the consumer or hotel guest.” Soul Select builds on the technology and features of the Schaerer Coffee Soul machine, with recently added new features such as parallel dispensing of water and coffee, electric grinder adjustment, twin milk dispensing, and pre-configured user interfaces for staff-operated, self-service, or office use. Even so, Schwartze says the best and still-expanding feature of the Schaerer

Coffee Soul is how it embraces the digital arena. “We’ve offered a mono-directional connection for a while, where data from the machine can be extracted and either be assessed in our or the customer’s platform,” Schwartze says. “Now, we’ve introduced bidirectional features, so people can add information to the unit, such as uploading pictures or the remote locking of the machine. “Digital payment is also key, especially in China. If you want to sell self-service machines, you need to offer WeChatPay or AliPay, because that’s the only way the consumer wants to pay for it.” While looking into new ways customers can pay and order coffee, Schaerer identified the underserved premium vending market as another avenue for growth. To fill this niche, Schaerer has launched the Premium Coffee Corner, a freestanding coffee unit with a 32-inch display screen and many of the features found in the manufacturer’s other models. “From our perspective, tabletop manufacturers are already in the vending arena, but only offer a tabletop payment solution. The question is: ‘why shouldn’t it be offered in freestanding format?’” Schwartze asks. “The consumer trend is towards high-quality coffee, and people would be grateful for a premium quality from a freestanding machine. You can see this in the success of Costa Express in the United Kingdom.” Keeping with the theme of customisation, Schaerer offers the Premium Coffee Corner as a full unit or just the interior, so customers can construct their own casing for the model. Schwartze says the machine has piqued the interest of coffee brands which want to expand their sales channels. “Our traditional customers are looking to enter the vending market without sacrificing their usual quality,” he says, “while users of classic vending machines want to meet the increasing quality demands of their customers.” With Schaerer’s new emphasis on tailored solutions and professionalism, Schwartze says the manufacturer has made its relationships with its customers even stronger. “The best feedback we receive is that they continue to order. But I’ve also heard positive things about the quality of the machines and our new approach,” Schwartze says. “Just last week, we were sitting with one of our major accounts, who commented that Schaerer felt like a different company. Not that we’d lost our DNA or who we are, but that we were more structured, with an improved approach to the customer. It’s a compliment we’re proud to take.” G C R For more infor m ation , www.schaerer.com

v i sit

The Schaerer Premium Coffee Corner is a freestanding coffee unit with a 32-inch display screen.

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

/////////

Egro’s Next edition THE EGRO NEXT IS BLENDING ANDROID TECHNOLOGY WITH CLASSIC ESPRESSO MACHINE STYLE TO PROVIDE OPERATORS AND CUSTOMERS A TRULY UNIQUE EXPERIENCE.

n the rapidly evolving world of super-automation, Swiss manufacturer Egro is using advanced technology to drive intuitiveness, useability, and quality in its product range. Its latest addition is Next. Launched in 2018, Next is built to engage its consumers and create an easy, low-maintenance approach to coffee production. It is available in three versions and has Android technology integrated into the interface to maximise personalisation and ease of operation. “The key feature of the Egro Next is usability, which comes from the intuitive Android system, which everyone knows from the mobile world,” says Christian Muheim, Research and Development Manager at Egro. The 10-inch touchscreen is app-controlled and can be programmed to display detailed information, such the calorie count of each beverage and the origin of the beans. Android technology allows easy programming for owners and the ability to customise settings. This includes the option to program the machine’s operating mode by remote, meaning it is able to switch between manual and self-service at chosen times. “This special switch mode can prepare the machine to switch between different operation modes at different occasions. For example, it can be set to change from manual operation during the day to automatic, self-service at night,” Muheim says. The option to adjust the machine quickly and easily means cheaper running costs and less maintenance. “Before a service technician would need to come down and reprogram the machine so this is far easier to switch between modes, which is a huge benefit,” Muheim says. Technology is what separates Next from Egro’s previous designs. In addition to the Android interface, Egro has vastly improved pre-existing features and added new technology to enhance the overall experience. “You have the automated spout, which is much faster than previously. Then the Connect

G C R | N OV E M B E R / D E C E M B E R 2019

telemetry system, which allows the operator to connect to the device with a remote control. With the received data, you can create great benefits for the operator, marketing managers, and service managers. We also have a really fast combined milk and coffee cleaning process. It takes eight minutes, so we are one of the fastest in the market,” Muheim says. Egro Next is fitted with a unique algorithmbased self-adjusting grinder that acts as if it was barista-controlled. As beans get older and temperature changes, extraction time can vary on what is required for a perfect espresso shot. The self-adjusting grinder reads the most important

SUPER AUTOMATICS FEATURE /////////

Next is designed to look stylish and futuristic but maintain a classic espresso machine feel.

factors and delivers a smaller or coarser grind to maintain consistency in every cup. “This is just another automated feature that a person is usually required to do,” Muheim says. Milk is automatically heated and frothed by the iSteam, a device which can adjust the foam and the temperature of each coffee by using the touchscreen interface. Coffee, milk, and powder products can also be adjusted for personal preference. “The temperature and the foaming level can be programmed so it does everything automatically over time. You can adjust different levels so that you can change the smoothness of the foam, depending what you prefer,” Muheim says. The three versions of the Next each have their own benefits. The Pure Coffee acts as more of a traditional machine which makes espresso and other black coffee varieties. It doesn’t come with a milk frothing device, but there is the option to purchase and use the iSteam. The Quick-Milk is the most economical option for operators. The machine is almost entirely automated via its texturing ability functionality. Cleaning is an exception as the

machine requires daily manual replenishment of water and cleaning agent. Top-Milk is Next’s fully automated premium model. It can be used with iSteam as an option and a milk line rinsing feature. It is the highest performing model and is low maintenance, capable of self-cleaning once the operator provides a cleaning tablet. Next is predominately designed for use in hotels, restaurants, service stations, cafés, convenience stores, and self-service facilities. All versions of Next are designed to balance style and performance in a model that is flexible and compact. “What we were looking for in the Egro Next is compactness. Finding the balance of footprint versus performance was really important and we have found the perfect ratio,” Muheim says. According to Muheim, the machine was designed to capture a super-automated feel without losing a classic, personal touch. “The machine must be a little bit emotional, but not too much because it’s automatic. There is an attraction to that,” he says. “There is a theatre to a traditional coffee machine with a barista. On the Egro Next, the theatre is on the user interface and how the coffee looks at the spout and tastes, because the customer can see that, not only the final product.” Muheim believes telemetry, robotics, integrated systems, and low-cost ownership are factors shaping the future of super-automation. The market demand is trending towards products that are intuitive and low maintenance, with more self-adjusting systems and less manual work required. “The future is the Internet of Things, machines controlling a machine. This is becoming possible with our machines, as you can use the telemetry or serial connection to operate some of the functions remotely. I think this will continue to increase and Egro Next will be an important piece of the puzzle,” Muheim says. G C R For more information, visit www.ranciliogroupna.com/egro-next

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

ADVERTISING FEATURE mycoffeeworld.com

BUILDING A BILLIONDOLLAR COFFEE HUB THROUGH MYCOFFEEWORLD, COFFEE PIONEER PASCAL SCHLITTLER AND A GROUP OF INVESTORS PROVIDE ENTREPRENEURIAL EQUITY, HANDS-ON SUPPORT, AND BUSINESS EXPERTISE TO INNOVATIVE COFFEE START-UPS.

ven before falling for the coffee industry, Pascal Schlittler had a mind for building businesses. He started his first company at 22 years of age while still in university, and from there, built a successful career, leading him to the position of CEO of Lenovo Switzerland. When the opportunity came up to work with Eric Favre, creator of the Nespresso capsule system, on coffee capsule startup Mocoffee, Schlittler jumped at the chance to apply all he had learnt about business and build this new company from the ground up. “To be an entrepreneur and building things is in my DNA,” Schlittler says. “We started Mocoffee in a little shop here in Zurich and really embraced that start-up feeling. If you told me back then that five years from now, I’d be selling it to a large Brazilian group, I would have said, ‘yeah, we’ll keep dreaming’. But it happened.” After selling Mocoffee in 2017, Schlittler wanted to share his talent for growing businesses, and after consulting for several companies, created investment platform MyCoffeeWorld. But MyCoffeeWorld does more than invest. The platform offers handson support and research and development, currently taking on the form of cuppings and blend development for coffee capsule technologies. “For me, it was very clear that I really enjoyed the coffee industry. It took me from Hong Kong to Rio de Janeiro and I saw the entire world. It was so fascinating. On one side, we have interesting technology, and on the other side, there is passion and a natural product,” Schlittler says. “I was working for and with people and very often had to do things the way they wanted. I decided I want to shape an organisation or develop a structure the way I want, to create my own coffee world.” MyCoffeeWorld allows Schlittler and a group of industry professionals to contribute to companies with not only money, but experience and connections within the coffee industry.

G C R | N OV E M B E R / D E C E M B E R 2019

Others involved in the platform include strategic adviser Hans Gattlen, former CEO of Franke Coffee Systems and former Chairman/Coowner of Egro Coffee Systems, and Harold Hunziker, former CEO of McDonald’s Switzerland, who brings experience in gastronomy and scaling businesses. “Hans is also shareholder and Member of the Board of Roasting Plant, supporting the company since the very beginning” Schlittler says. “He is our Chairman at Stoppani, where we build, among other things, modules and machines for the coffee machine and food and beverage industries.” Hunziker also owns the Swiss licence of the premium Italian panini brand Panino Giusto, and was responsible for its successful launch in Geneva. Schlittler says this demonstrates the active work of the entrepreneurs in the group. “I started analysing the entire scene of venture capital and start-ups in Switzerland and its surrounding countries, and found that very often, investors jump from one topic to another. I thought if I really focus on coffee, with my experience and know-how, I could offer something these ‘business angels’ weren’t,” Schlittler says. “The coffee world is not well organised to support start-ups, especially in Europe. It’s getting better, but is nowhere near the United States, where you see these extremely successful fundraisers gather millions. Sometimes we have these great ideas here [in Europe], but they struggle to find the right people to help move them forward.” Schlittler says he is not the only one to express

this sentiment. Through MyCoffeeWorld, he works closely with Professor Chahan Yeretzian of the Zurich University of Applied Sciences Coffee Excellence Center, who sees many innovative ideas go to waste. “Very often I meet these young entrepreneurs who have beautiful ideas, but they really don’t know how to handle the fundraising and the financing of the company,” Yeretzian says. “I’m not a businessman in the classic sense, so I can contribute from a technical point of view, but MyCoffeeWorld has the potential to act as a hub where people can receive help establishing a network within the industry and building their business.” MyCoffeeWorld has already aided several start-ups and small businesses to reach new levels of development and investment. Schlittler says his great success has been with Algrano, the online green bean trading platform that provides producers with greater autonomy and buyers with full traceability.

EEWORL

CONNECTING THE COFFEE WORLD

“Algrano has seen three-digit growth rates in the past 15 months. This is absolutely amazing. Our focus was on supporting the sales and marketing department. We helped the founders to establish a business message and structure the sales team. Great work by the founders sped things up,” Schlittler says. “A few big companies discovered they were buying coffee that was wrongly declared, putting their brand reputations at risk. Algrano operates as a wonderful compliance platform providing full traceability. We can’t take full credit for this massive success, but we helped Algrano prepare for this growth.” Also seeing a positive growth in 2019 was American coffee chain Roasting Plant, which opened its first store in the United Kingdom in January, and has a second store in London opening soon. Schlittler says the Droops dissolvable coffee capsule concept has also had “fantastic momentum”. Schlittler presented the concept at the AMI Capsules 2019 event in Berlin in September, where it received a great deal of interest from the many industry figures in attendance. “The capsule industry is creating a huge amount of waste. We’re talking about 60 billion capsules that have to be disposed of every year. [The industry] has to look at solutions that produce less waste,” Schlittler says. “Droops offers this with a degree of flair and creativity this is going to prove popular. Under my guidance, with consultation and generating huge momentum, a multimillion deal was signed for the further development of the solution in October.” Another MyCoffeeWorld project that has piqued inudstry interest is Mastercoldbrewer. “We’re currently in discussion with several major companies from Europe, Asia, and North America about leveraging our unique manufacturing method ‘spin cold brew‘ and our brand and product

concept RE-Coffee on an international scale,” Owner Roland Laux says. “The options range from licensing for production, co-packing, collaboration in distribution to acquisition.” Currently, Schlittler’s attention is focused on MyCoffeeWorld’s latest project with F&P Robotics, adapting its Barney robotic bar system for the coffee industry. “We’ve made a deal with a prominent manufacturer to use their machines in the barista Barney, using their digital intelligence so the robot can communicate directly with the machine,” Schlittler says. “We’ve also developed the sales message, marketing, and communications. Now, we need to bring it to market.” Despite the individual successes of the companies, Schlittler sees the real value in how these companies can complement each other’s offerings. “Very often I see entrepreneurs with an excellent idea, but one product alone is often not enough to run a business. But if you look at MyCoffeeWorld’s projects, you’ll see a lot of complementary services. For instance, Algrano could be used to purchase green coffee for the other companies. A focused network can really develop the synergies between these organisations, helping them all grow and flourish,” Schlittler says. “The next stage of MyCoffeeWorld is to develop an alliance of industrial companies, similar to those you find in the airline industry. All these companies remain independent but work together and complement each other.” Schlittler says with the right guidance and support, this type of investment hub or think tank could provide a focus that’s missing in the coffee industry. “Many of the coffee industry professionals in my circles are investing in start-ups, sometimes in the same projects and others not. If we could pool our resources, it would provide us with a safety net, and these innovative ideas with greater funding,” Schlittler says. “I hate the idea that to start a business, you have to bet everything and risk your entire life to move forward. If someone has a good idea, they deserve a setup that can give them the lift they need to make it a success.” G C R Fo r m o re i n fo r m a ti o n , pascal@mycoffeeworld.com

contact

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

OPINION Kamal Bengougam

The freedom of imagination EVERSYS’ CHIEF COMMERCIAL OFFICER KAMAL BENGOUGAM ON HOW TO DETERMINE WHAT IS FAIR AND AT WHAT COST.

oday, we live in a world in which people seek a greater sense of freedom, identity, and meaning. When we observe the way things seem to operate, it appears that, behind the scenes, there lies an intriguing reality, a clearly defined and organised system of gears which enable society to happen with apparent order. There is a clear food chain. People and companies are controlled by governments through laws and taxes, we need passports and visas to travel beyond our own borders, bigger nations control smaller ones with weapons, money, and food and financial institutions manipulate us through debt and interest rates. In order to keep the voices of dissent to a minimum, those in power dish out ‘treats’, compromises designed to appease the masses and maintain the status quo. So it is in our coffee world. We have things like ‘fair trade, rainforest alliance, and sustainable practices’ to protect the environment and those people and places who produce the base products that generate profits in the West. However, these ‘treats’ do not seem to be working anymore. The price of coffee is at an all-time low, way below the US$1 per pound mark, significantly less than what it costs to produce, taking into account low labour costs, a time when global coffee sales are at an alltime high, and consumption is growing at an exceptional pace. We seem more interested on the sustainable agenda, in compostable coffee cups, and packaging than we are in those who provide

G C R | N OV E M B E R / D E C E M B E R 2019

the content of the cup. How could that be, when the basic law of economics dictates that increase in demand should warrant higher prices at times when supply is constrained? The core issue lies in the fact that pricing is not dictated by the seller in this case, but by the buyer. In the world of global commodities, pricing is more often dictated by buyers rather than producers. There are a few exceptions of course like oil, where the price is dictated by the producers/ sellers who formed an alliance called the Organization of the Petroleum Exporting Countries. In bygone times, people could buy a wife for between five to 10 cocoa beans in Mexico, depending on her beauty. African kings used to

exchange people for weapons. I do not know what the going value of human life was at the time, but American Indians sold their land for weapons and alcohol, and are now confined on isolated ‘reservations’ with gambling licences. A fair trade? So why don’t governments protect their farmers better and ensure that inherent profit benefits all as opposed to the privileged few? We have global institutions that police unfairness and promote the wellbeing of all, like the United Nations, and in our coffee world, Rainforest Alliance and other ‘ethical’ coffee organisations do this with varying degrees of success. But how does one determine what fair is? Green coffee buyers at large companies receive conflicting messages: buy fair but optimise profit at the same time, which sounds like an oxymoron. And corporate social responsibility is also a misnomer in that responsibility can only be linked to individuals or our conscience risks being dumped onto an unsuspecting neighbour. This leads to people deserting their farms in search of better lives. Far from being an exodus driven by greed, this is a quest for survival as selling products for less than they cost to make results in abject poverty and despair. The truth is that we live in a broken society, a world governed by greed. This desire for more leads to only one destination - the oblivion of those who cannot fend for themselves. Today, those people are leaving what they know for the unknown of distant shores, having given up on their way of life, in search of survival. The reason why this is happening is that the West has spent centuries pillaging the wealth of developing nations, keeping them down while their economies flourish. This has created a chasm between the haves and have nots, with the blessing of local leaders who were more intent on filling their own pockets than defending those they had a mandate to protect. In my opinion, fairness is the wrong objective. How can one determine what fair is in any situation? How can fairness be defined as a word when everyone involved has an obvious conflict of interest, which is to optimise personal outcome? We should be

talking about justice, social justice, that no man/woman can be exploited by others under the realm of economic or political capitalism. Justice dictates that sellers/growers should control their own destiny and determine their worth, value of their work. If bankers can accumulate exorbitant amounts of wealth for taking risks with other people’s money, farmers should at least be able to make a small profit, benefit from the sweat of their brows. Well-meaning global organisations should not only protect but also empower those who suffer, giving them a chance to rise above and find their place in the sun too. Why not create local, regional alliances, teach them the power of brand, elevate the value of their goods, and become a player rather than a victim, sit at the top table and negotiate their worth with those who call themselves fair? In the French wine world, why are certain wines worth more than others? Is Chateau Petrus really worth five to 10 times more than its neighbours? Reality often reflects what we believe and what we believe is influenced by what we are told. Petrus is worth this much because we have been led to believe that it is that much better by those who control the levers of value. At ‘origin’, of course, we must rewrite the story we find ourselves in. Make people believe in their own worth, create a new identity, an empowered one. Help farmers believe for more, be prepared to defend their cause, play ‘hard ball’. Imagine a world where transactions are conducted through block chains, driven by accountability and transparency and away from the grasp of those who seek control. Imagine a world in which people can believe in their self-worth and no longer aspire to become the lead in a film that does not matter or even exist. Imagine a world where people realise the true purpose of creation, the communion between the before, the now, and the hereafter. Imagine a time when leaders realise that they are meant to serve those they represent and act accordingly. A time when we really believe that things can and must change. How do we trigger this paradigm shift in thinking? Greed is a powerful force and power a great aphrodisiac so those in control will not relinquish the current state of things with a whimper. Philosophers and artists today, the former conscience of our society, no longer occupy seats of influence as they focus more on form than substance. In my opinion, change begins with a picture, a vision. This, of course, requires power, the mere and peaceful power of imagination. “Everything is determined, the beginning as well as the end, by forces over which we have no control. It is determined for the insect, as well as for the star. Human beings, vegetables, or cosmic dust, we all dance to a mysterious tune, intoned in the distance by an invisible piper.” ― Albert Einstein G C R

Eversys’ Kamal Bengougam says well-meaning global organisations should protect and empower those who suffer.

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

DIARY Dashboard COFFEE COFFEE AROUND AROUND THE THE GLOBE GLOBE

GLOBAL COFFEE EVENTS

CAFÉ SHOW SEOUL

SEOUL, KOREA 7 – 10 NOVEMBER Café Show Seoul will return for its 18th year in November 2019, with exhibitors highlighting everything from coffee, machines, equipment, franchises, and café interior design to teas, bakeries, raw materials, ice-cream, beverages, and desserts. The show will include 617 exhibitors and 2009 booths from 40 countries, and expects 160,000 visitors from 80 countries. www.cafeshow.com

SIGEP RIMINI

RIMINI, ITALY 18 – 22 JANUARY, 2020 Sigep is a 129-square-kilometre showcase of the best and latest in the global market for coffee, gelato, pastry, chocolate, and baked goods. It includes five thematic routes, one for each business sector, interconnecting and integrating in a single, unifying vision of excellence. www.sigep.it

G C R | NOVEMBER/DECEMBER 2019

INTERNATIONAL COFFEE WEEK

BELO HORIZONTE, BRAZIL

20 – 22 NOVEMBER International Coffee Week is a gathering of all players in the coffee value chain, from producers to passionate coffee consumers. The event takes place in Belo Horizonte, the capital of the largest coffee-producing state in Brazil. It offers countless activities to different professional profiles: B2B, consumer market, or education. www.semanainternacionaldocafe.com.br

SPECIALTY COFFEE EXPO

PORTLAND, UNITED STATES

23 – 26 APRIL, 2020 The Specialty Coffee Expo was designed to be the coffee professional’s one-stop-shop for everything they need to succeed. The Specialty Coffee Association (SCA) has built a solid reputation over the past 30 years of providing its members with the most up-to-date, qualified information. Roasters and retailers have the opportunity to exhibit their products on the show floor, network with decision makers, and participate in the SCA’s numerous lectures, labs, or certificate programs. www.coffeeexpo.org

WORLD TEA & COFFEE EXPO

MUMBAI, INDIA 21 – 23 NOVEMBER At the Bombay Exhibition Centre, the seventh edition of the World Tea & Coffee Expo will provide networking opportunities for serious industry players to meet and undertake business, as well as understand and determine future trends. The trade show is accompanied by a two-day high-level conference, and workshops on the last day. www.worldteacoffeeexpo.com

MELBOURNE INTERNATIONAL COFFEE EXPO 2020

MELBOURNE, AUSTRALIA

4 – 7 MAY, 2020

Now in its ninth year, the Melbourne International Coffee Expo (MICE) is known throughout the Asia Pacific as the largest and most exciting dedicated coffee event. Each year, café owners, roasters, baristas, equipment manufacturers, service providers, and more gather at this trade-oriented event to network and do business. MICE2020 will take place at the Melbourne Convention and Exhibition Centre. It will host the 2020 World Barista Championship and World Brewers Cup. www.internationalcoffeeexpo.com

INTERNATIONAL COFFEE & TEA FESTIVAL

DUBAI, UNITED ARAB EMIRATES

4 – 6 DECEMBER The International Coffee & Tea Festival showcases all facets of coffee, tea, bar, and café products, and equipment services. The Middle East’s flourishing food and beverage industry is growing exponentially and continues to show an upward trend. The Dubai event is a one-stop event presenting a focused, industry-recognised platform in the region. It is also home to the world’s richest coffee championship, with a prize pool of US$50,000. www.coffeeteafest.com

WORLD OF COFFEE WARSAW

WARSAW, POLAND 18 – 20 JUNE, 2020 Travelling to a different European city each June, World of Coffee is an essential event for coffee professionals – drawing a loyal audience from the global specialty coffee community. Organised by the Specialty Coffee Association, next year’s event will host hundreds of exhibitors and feature Best New Product and Design Lab awards, and the World Latte Art, Coffee in Good Spirits, and Cup Tasters Championships. www.worldofcoffee.org

NOVEMBER/DECEMBER 2019 | GCR

PRODUCTS Marketplace

BUENCAFÉ SENSORIA Sensoria is a technological development created exclusively for Colombia’s Buencafé. It is applied to different process steps and allows the roaster to recover and preserve the flavour and aroma of freshly roasted coffee, and take it to cups of soluble coffee around the world. This technology provides the best of both worlds – maximum quality, taste, and aroma of fresh coffee, with the agility and convenience of soluble. Sensoria has been used to develop new cup profiles Lineage and Coffage. Lineage is a luxurious freeze-dried coffee with elegant flavour, vibrant aroma, perfect natural acidity, pronounced body, and deep and pleasant character that endures. Coffage is a magnificent freeze-dried coffee with intense aroma, subtle refreshing citrus notes, mild sweetness, and a touch of spices. It leaves the genuine experience of fresh coffee in the mouth. For more information, visit www.buencafe.com

FLAVOURTECH INTEGRATED EXTRACTION SYSTEM Flavourtech’s Integrated Extraction System (IES) is a continuous, automated processing line that allows manufacturers to produce premium aromas, extracts, and concentrates for instant coffee and ready-to-drink tea and coffee markets. Built as a modular system, the IES can be inserted into existing process lines as required to make gradual improvements or installed in its entirety to form a continuous process line, allowing aroma recovery, extraction, and concentration in one simple-to-operate system. The IES has been designed to minimise flavour loss during processing by capturing the flavour of the raw material prior to it being subjected to high temperatures. The fresh roasted aroma of ground coffee or light varietal tea flavour notes are captured at their peak, early in the process, and added to the concentrated extract at the end. The result is a premium product that satisfies today’s discerning customers, thereby increasing sales and profits. For more information, visit www.flavourtech.com

DITTING 807 LINE The 807 shop grinder, 807 Lab Sweet, and 807 Filter demonstrate Ditting’s leadership within professional precision grinding. They combine individualised functionalities with modern design for optimal grinding results and user-friendliness. All 807 grinders produce highly precise grinding results on a comprehensive scale that ranges from Turkish mocca to cold brew. The powerful motor masters a average output of up to 450 grams per minute while its active temperature management ensures grinding at low, aroma-saving temperatures. The 807 Lab Sweet is equipped with premium cast steel burrs, featuring a special grinding teeth geometry. These burrs ensure optimal particle size spread within the grounds in order to achieve a consistent extraction and more sweetness in the cup. The 807 Filter comes with an adjustable spout and a height- and width-adjustable support to enable clean grinding directly into the centre of the coffee filter. For more information, visit www.dittingswiss.ch

G C R | N OV E M B E R / D E C E M B E R 2019

NESPRESSO MOMENTO Today’s working environments are more connected, flexible, conversational, and diverse – a living place designed around wellbeing and seamless interactions. Nespresso Professional has launched the first two coffee machines of the Nespresso Momento range, a new addition to its professional offering that has been developed for the evolving office sector. The Nespresso Momento ecosystem is designed to deliver authentic, high-quality coffee experiences that bring people together in office environments, encouraging the creation of meaningful relationships within teams. Nespresso Momento offers four different coffee cup sizes for each craving: Ristretto, Espresso, Lungo, and the new Americano. The machines are designed to support varying consumptions that can happen in an office environment, with two extraction heads working at the same time to brew up to 140 coffees per hour. They have a modular design, which allows technicians to easily access and replace critical machine components to minimise customer downtime. For more information, visit www.nespresso.com/pro

PROBAT PX 120 DRUM ROASTER The Px 120 is a unique fusion between sophisticated technology and classic design. It is the perfect choice for roasteries that want a flexible and consistent drum roaster while at the same time showing their customers what they do and how they do it. Almost every component of the Probat Px 120 drum roaster is completely redesigned and available as 3D data for the creation of a full virtual plant. The roasting system has been optimised by means of computational fluid dynamics analytics to increase coffee quality and energy efficiency. A forward-thinking partial recirculation system allows for 30 per cent less energy consumption while meeting highest operational safety standards. A high-efficiency cyclone ensures effective chaff separation and fast and clean disposal. With roasting times ranging from six to 20 minutes, a batch size between 60 and 120 kilograms, and a maximum output of 480 kilograms per hour, the Px 120 guarantees consistently high coffee quality and is ideal for midsize capacity requirements. For more information, visit www.probat.com

UCC COFFEE UK & IRELAND’S THERMOPLAN BLACK&WHITE4 Engineered by Swiss espresso experts Thermoplan, the super-automatic Black&White4 coffee machine delivers precision, performance, and power through a series of patented features – raising the bar for high street coffee quality. With intelligent design and engineering, the Black&White4 was developed specifically for high-volume operators who want to deliver consistent quality coffee at scale. Using advanced technology, it produces extraction consistency, perfect milk temperature, texture and taste, temperature stability, and allows easier maintenance with instantly exchangeable modules. It is also capable of preparing some of the United Kingdom’s best-selling coffees up to 20 per cent faster than the Black&White3. The Black&White4 is distributed in the UK and Ireland through UCC Coffee. For more information, visit www.ucc-coffee.co.uk

N OV E M B E R /D EC E M B E R 2 0 19 | GCR

LAST WORD Molecular coffee

Coffee without the bean ATOMO COFFEE HAS REVERSE-ENGINEERED THE COFFEE BEAN AND AIMS TO LAUNCH BEAN-FREE MOLECULAR COFFEE IN 2020.

ith climate change a significant threat to the future of coffee production, Seattle-based startup Atomo Coffee has looked into new ways to produce the beverage. The result is “molecular coffee”, taking coffee’s chemical components and reproducing them in a lab setting. “I’m an avid coffee drinker and have experienced a lot of bad coffee. I thought to myself, ‘there’s got to be a way to break down coffee and build it to be consistently great’,” Atomo Coffee Co-founder Jarret Stopforth says. “I started playing around with the idea in my garage. Andy [Kleitsch], a good friend of mine and an entrepreneur in the tech space, was looking for his next start up. He wanted to do something good for the environment and asked if there was something I wished I was doing full time. I told him ‘coffee without the bean’. We talked more about the product, making something better for the environment, and teamed up to bring this idea to life.” To produce the molecular coffee, Stopforth and Kleitsch analysed “the big five” elements that contribute to the coffee experience – aroma, flavour, mouthfeel, colour, and bioactives (caffeine and antioxidants). Atomo Coffee intends to launch its “For us, coffee is the big five. This molecular coffee to market in 2020. is how you experience coffee, create the ritual, and the effect it has on you,” Stopforth says. “We looked at these components, and the oils and acids that make up coffee, then looked at ways to find upcycled plant-based materials with high-sustainability indices to bring in those compounds.” Once they had a suitable product, Stopforth and Kleitsch tried the molecular coffee out against an established brand at the University of Washington. Kleitsch says seven out of 10 people preferred Atomo Coffee. A Kickstarter campaign was launched in February 2019, which hit its funding target within a week. “Atomo Coffee raised money faster than any other start-up I’ve been involved in. We’ve really been blazing ever since, hiring people, building a lab, getting bigger and better every day,” Kleitsch says.

G C R | N OV E M B E R / D E C E M B E R 2019

Atomo Coffee received a further funding boost of US$2.6 million in May 2019 from investment firm Horizons Ventures. The company has also added Dr Chahan Yeretzian of the Zurich University of Applied Sciences (ZHAW) to its advisory board. “Chahan directs the best Coffee Excellence Center in the world at ZHAW. We contacted him a while back to serve as an adviser and have had a number of discussions, visited him, and discussed our approach to making [molecular coffee]. He was interested to be a part of it,” Kleitsch says. “We thought we’d see more of a backlash from the industry, but so far it has been overwhelmingly positive. Chahan’s stance was, as has happened in milk and meat with alternative solutions, so to should the coffee industry be open to alternatives.” Kleitsch says Atomo is making new iterations of its molecular coffee every day, developing different formulas for ready-todrink, espresso, and pour over coffee, and hopes to have a product on the market by 2020. He adds that Atomo Coffee has the potential to boost coffee’s quality as well as its sustainable merits. “Most people in the coffee industry know that coffee farming regions and environments are being heavily affected by climate change. In some cases, this is causing coffee to warm and ripen too quickly and lose flavour compounds, leading to problems with quality,” he says, adding that this can lead to deforestation as producers look for new ground. “What we’d like is for coffee drinkers to get their coffee and not worry about the environmental impact. Atomo Coffee can provide that.” G C R

TICKETS NOW ON SALE

MELBOURNE INTERNATIONAL COFFEE EXPO

MAY 4 - 7 / 2020 MELBOURNE CONVENTION AND EXHIBITION CENTRE WWW.INTERNATIONALCOFFEEEXPO.COM

PLATINUM SPONSORS

SUPPORTING SPONSORS

PROUD PARTNERS

THE FINEST FILTERED COFFEE, FRESHLY BREWED CUP BY CUP. Fresh Filtered Coffee It lets you serve fine coffee specialties and fresh filtered coffee from a single machine. Individual cups are freshly brewed from aromatic coffee beans and then smoothly filtered to remove sediment and oils. Offering maximum variety from a minimal footprint for your customers. WMF 5000 S+

WMF 1500 S+

DE SIGNED TO PERF ORM

wmf.com