Global Coffee Report November 2021 by Prime Creative Media

November/December 2021

THE BIG BRAZIL FROST A market in distress

A ROLLERCOASTER RIDE The ICO on just how long rising prices will prevail

AN AUTOMATIC SHIFT

Why automation will future-proof product consistency

EMERGING ECONOMIES

The Eastern European industry eyes off international expansion

A COMPETITIVE

EDGE

Buencafé General Director Cristina Madriñán on the premiumisation of soluble coffee, achieving record sales results in a COVID year, and the importance of creating sustainable value www.gcrmag.com

INNOVATION

TRUE INNOVATION IS NEVER EASY. TO TAKE A SIMPLE IDEA AND TO CONVERT IT INTO A CREDIBLE PRODUCT TAKES IMAGINATION, OBSERVATION, GREAT TEAMWORK AS WELL AS TIME TO LET IT INFUSE. JONATHAN BESSE, Head of R&D

CONTENTS November/December 2021

COVER STORY COMPETITIVE EDGE

Buencafé General Director Cristina Madriñán on the premiumisation of soluble coffee, achieving record sales results in a COVID year, and the importance of creating sustainable value.

IN THIS ISSUE FEATURES

PROFILES

Buencafé General Director Cristina Madriñán on becoming one of the most competitive companies in the soluble coffee industry

GCR honours the legacy one of the co-founding fathers of Eversys

10 A COMPETITIVE EDGE

14 THE GREEN BEAN PRICE ROLLER-COASTER

The ICO looks at green coffee’s wild price ride and the underlying factors responsible

EMERGING ECONOMIES

The Eastern European industry rebounds postpandemic with eyes on international expansion

22 THE BIG BRAZIL FROST

Coffee farm across Brazil were hit with major damage following the most severe frost in 40 to 50 years

26 DECODING SUSTAINABILITY

Global Coffee Platform on the impact of its revised Coffee Sustainability Reference Code

32 CODE RED FOR HUMANITY

What the latest IPCC report means for the coffee industry

28 IN MEMORIAM OF JEAN-PAUL IN-ALBON

36 GRINDING FOR GOLD

Mahlkönig’s newest grinders are changing the market with accessible and advanced grinder technology

AUTOMATION

38 ACCORDING TO PLAN

Cropster links eCommerce right through the business from point of sale to production and operations

40 A COFFEE OPERA

Bean Adapt technology keeps De’Longhi at the forefront of the domestic coffee machine market

42 ROAD TO COFFEE COMPETENCE

Franke Coffee Systems uses automation to achieve high in-cup quality and the perfect customer experience

44 TOP OF THE CLASS

Melitta Professional raises expectations on the quality of milk textures automatic coffee machines can offer

46 DIGITAL CONNECTION

Schaerer’s Prisma API provides the same level of software customisation the Swiss manufacturer offers with its equipment

48 EYE OF THE TIGER

Tiger Coffee leaves its paw prints across Oceania

50 MADE IN GERMANY

WMF discusses the advantages of German engineering, process excellence, and agile justin-time production

LAST WORD

58 FROM GENE TO BEAN

The VTT Technical Research Centre of Finland has brewed the world’s first cup of labgrown coffee

“TRENDS ARE FASTPACED, AND CONSUMER DEMANDS CONTINUE TO EVOLVE. IF YOU DON’T REMAIN AGILE AND ADAPT YOUR BUSINESS MODEL, IT CAN BE FATAL TO THE BUSINESS.” Cristina Madriñán

GENERAL DIRECTOR OF BUENCAFÉ

REGULARS 04 06 52 54 56

EDITOR’S NOTE NEWS DRIP BY DRIP WHAT’S BREWING DIARY DASHBOARD MARKETPLACE

44 N OV E M B E R /D EC E M B E R 2 0 2 1 | GCR

EDITOR’S NOTE Global Coffee Report

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

RISE FROM THE ASHES WHAT IF the world had no coffee supply? What would we do? Would we see a gradual decline and rations handed out per country? Would we turn to science labs to cultivate coffee cell cultures to avoid extinction? Or, God forbid, would we accept fate and turn to tea? I remember listening to a presentation at the 2013 Global Coffee Report Symposium when coffee reporter Maja Wallengren suggested that the world would indeed run out of coffee and that we would end up with a major supply shortage if we continued to rely on Brazil to meet rising demand. “How absurd,” I remember thinking, “surely a world without coffee is a world long after I leave this earth”. But how wrong I was. Fast forward eight years, and one devastating weather event in July saw severe frost decimate the world’s largest producer of coffee, and left us questioning who is our back-up country to stand up and fill the supply gap? As it turns out, it was only a question of when, not if, this scenario would play out, and Wallengren returns to share her encounter of Brazil’s devastation (see page 22). Perhaps Mother Nature should claim some responsibility. Over the past year, she’s fired warning shots about the rising urgency of climate change in the form of severe droughts, rising temperatures, and adverse weather events. What’s even more devastating, is the contribution of humaninduced climate change from carbon emissions and deforestation. With 20 per cent of the Brazilian Amazon destroyed thanks to the continuation of illegal gold mining,

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timber contraband and arson, Brazil’s trees are witnessing another degree of burning. In our report on the impact of the Intergovernmental Panel on Climate Change Working Group report (see page 32), Dr Aaron Davis of the Royal Botanic Gardens in Kew explains that if droughts continue to become more frequent and severe in producing countries, not just Brazil, the rising global coffee price will be impacted beyond the current surge, and so will the supply chain. Already logistics and transportation are feeling the pinch thanks to the global pandemic. World Coffee Research COE Jennifer ‘Vern’ Long says this part of the supply chain, a huge contributor to greenhouse gas emissions (GHG), will need to be considered when adapting to climate change, with rising sea levels affecting port infrastructure and the ability to move products like coffee. Our industry’s sustainable future is the responsibility of the entire value change. We can commit to further reduction of GHG emissions, plant more trees, invest in the development of new hybrids, and not leave our issues for future generations to contend with. It’s our problem, our planet, and time really is, running out.

Sarah Baker Editor, Global Coffee Report

JOURNALIST Shanna Wong shanna.wong@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 Courtney Walker courtney.walker@primecreative.com.au CLIENT SUCCESS Ben Griffiths ben.griffiths@primecreative.com.au PHOTOGRAPHY Julian Madrid, Maja Wallengren CONTRIBUTOR Maja Wallengren, Jaroslaw Adamowski, Denis Seudieu 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.

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NEWS In brief

NEWS DRIPBYDRIP 22

Growers in the key Brazil coffee region of Southern Minas reported frost damage to an average of 20 to 30 per cent of their land as farms across an area covering 65 per cent of the total Brazilian harvest were burned by the frost.

AMERICAS Cristina Madriñán started work at Buencafé as an intern in 1996. Over the past 25 years, she has experienced nearly all facets of the company, working in internal control, customer service, and in the commercial team managing sales in North America and Asia, before taking over as commercial director in 2006. After a rigorous hiring process, Madriñán’s career trajectory peaked in January 2020 when she was appointed General Director, replacing long-serving Director Constanza Mejía. Madriñán’s administration coincided with the start of the global pandemic. What transpired was historic sales of US$162 million in 2020, up 10 per cent from sales in 2019, and a 13 per cent increase in production volume compared to the year prior. A further 8 per cent increase in revenue is expected by the end of 2021 compared to 2020, as is the processing of more than 500,000 bags

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of green coffee, making Buencafé one of the most competitive companies in the soluble coffee industry. See page 10. Coffee producing regions across Brazil were hit with major damage following the most severe frost in 40 to 50 years. The damage is so extensive that Brazil’s official crop forecasting agency Conab has lowered its forecast for the 2021 harvest to drop 25.7 per cent to 46.9 million bags, one of the smallest crops in 10 years from Brazil. Brazil’s 2022 harvest is expected to suffer a loss of at least 10 to 12 million bags due to frost-damaged coffee alone. See page 22.

ASIA PACIFIC Mahlkönig has set new standards for domestic grinders with the X54 Allround Home Grinder and professional grinders in recent years

with the weight-based E65S GbW and high-performance E80 Supreme, both launched in 2019. The models are giving the brand an opportunity to expand in Australia and the Asia Pacific. See page 36. Bean Adapt Technology from De’Longhi is providing consumers with the ultimate at-home coffee solution, whether that’s in the form of the automatic PrimaDonna Soul or manual La Specialista Maestro. See page 40. Since opening Tiger Coffee in the state of New South Wales in 2008, the automatic coffee machine distributor and service company has spread across Australia. Tiger Coffee established its New Zealand business in 2009, and in 2021, took its reach and relationship with Eversys to the next level, becoming the official distributor of the manufacturer to the entire Oceania region. See page 48.

51.3%

The increase in the ICO composite indicator in August 2021 compared to October 2020, the beginning of the current coffee year.

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NEWS In brief

EUROPE Over the past 10 months, coffee prices have shown signs of recovery after experiencing four years of low levels, as shown by the ICO composite indicator price standing at 160.14 US cents per pound in August 2021, which represents an increase of 51.3 per cent over October 2020, the beginning of the current coffee year. The monthly average of the ICO composite indicator in August 2021 is the highest level since 162.17 US cents per pound recorded in November 2014. See page 14. The global pandemic has slowed down the growth rate Eastern Europe’s coffee industry had experienced prior to 2020. This said, with most restrictions on coffee shops lifting from April and May 2021 due to an improved health situation, local chains are hoping to return to a rapid expansion path, with plans to increase their presence across the continent. See page 19.

Despite a growing awareness of the need to build a sustainable coffee industry, the steps required to achieve it are not always as clear, which is why membership association Global Coffee Platform has revised its reference code on the foundations to advance sustainability. See page 26. Jean-Paul In-Albon passed away prematurely on 21 July 2021 at the tender age of 65, leaving behind a business, a body of work, and memories that shall ensure his life leaves an indelible mark in the world of coffee and beyond. See page 28. The Intergovernmental Panel on Climate Change’s Working Group I report, Climate Change 2021: the Physical Science Basis, forecasts that unless there are immediate, rapid, and largescale reductions in greenhouse gas emissions, limiting warming to close to 1.5°C or even 2°C will be beyond reach. This could have a dramatic impact on the global coffee industry. See page 32.

Cropster’s digital solutions, such as Order to Roast and eCommerce, are providing coffee roasters with the ability to integrate their software across the supply chain for greater efficiency, consistency, and operations. See page 38. From iQFlow espresso extraction and FoamMaster barista tools to CleanMaster machine care and Digital Services telemetry, Franke Coffee Systems is using automation to consistently achieve high in-cup quality and the perfect customer experience. See page 42. Over more than a century, Melitta Professional has continued to evolve by following the needs of its customers. Its latest innovations are the Top Foam and Professional Milk System, available with its Cafina XT fully automatic range, to meet the growing demand for milk-based beverages. See page 44. The Schaerer Prisma application programming interface allows an operator to connect the coffee machine to their own apps, software, and systems, reflecting limitless possibilities. See page 46. Since 1927, WMF Professional Coffee Machines’ headquarters in southern Germany has been home to its entire value chain – from the initial concept to the design and production of machines, right through to packaging, delivery, and service. This concentration at the Geislingen site provides a key competitive advantage and is the secret behind its agility and efficiency. See page 50.

Franke’s iQFlow technology creates consistent high in-cup quality and aroma with every beverage.

G C R | N OV E M B E R / D E C E M B E R 2021

The VTT Technical Research Centre of Finland has brewed the world’s first cup of lab-grown coffee that could provide a sustainable and alternate option for coffee drinkers. See page 58.

46.9M

The number of 60-kilogram bags Conab forecasts from Brazil’s 2021 harvest following severe frost, down 25.7 per cent from its initial estimate.

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COVER STORY Buencafé

A competitive

BUENCAFÉ GENERAL DIRECTOR CRISTINA MADRIÑÁN ON THE PREMIUMISATION OF SOLUBLE COFFEE, ACHIEVING RECORD SALES RESULTS IN A COVID YEAR, AND THE IMPORTANCE OF CREATING SUSTAINABLE VALUE.

ome people spend their whole lives searching for a career that gives them fulfillment and purpose, but not Cristina Madriñán. She’s spent the past 25 years nurturing her career development at one of Colombia’s most respected coffee brands, Buencafé. Each Christmas at the end of harvest, Madriñán would visit her grandmother’s farm, a 10-minute drive from the Buencafé factory, and compete with her brothers and cousins to pick the highest volume of cherries. “My grandmother always gave us a reward regardless of the weight of coffee we picked. It was a fun novelty to play amongst the coffee trees,” Madriñán says. “But for many Colombians, like my grandparents, coffee farming is a tradition and an income to support your family.” After completing a degree in industrial engineering, Madriñán started work at Buencafé as an intern in 1996. She broadened her technical and managerial knowledge with a Master of Business Administration, but since walking through the doors of Buencafé 25 years ago, Madriñán has never left. “Historically, Buencafé has been synonymous with spirit, international vision, and growth, and before joining Buencafé I knew it was a great place to learn and grow,” Madriñán tells Global Coffee Report. “Working with Colombian coffee, Buencafé, and the Colombian Coffee Growers Federation (FNC) [which established Buencafé in 1973], means working for our country. It is a job one holds with pride because of the great contribution you can make to the agricultural sector and to many

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coffee-growing families. It is contributing to the development of Colombia.” Madriñán’s career at Buencafé has been marked by perseverance and discipline. She has experienced nearly all facets of the company, working in internal control, customer service, and the commercial team managing sales in North America and Asia, before taking over as commercial director in 2006. After a rigorous hiring process, Madriñán’s career trajectory peaked in January 2020 when she was appointed General Director, replacing long-serving Director Constanza Mejía. “It was acknowledgment that I had the ability and competence to embrace this role – a demanding role, but one that is extremely rewarding when we accomplish our goals and turn challenges into opportunities,” Madriñán says. That ideology was put to the test when Madriñán’s administration coincided with the start of the global pandemic. “I navigated through the year with two resources: optimism, which is Buencafé’s superior purpose, and commitment of the working team, which redoubled its efforts to attend to factory operations,” she says.

Image: Julian Madrid.

GE Buencafé General Director Cristina Madriñán is celebrating 25 years of employment at the Colombian company.

N OV E M B E R /D EC E M B E R 2 0 2 1 | GCR

COVER STORY Buencafé

ADDING SUSTAINABLE VALUE

Buencafé produces 100 per cent Colombian freeze dried coffee.

ACCELERATION UNDER PRESSURE What transpired, was historic sales of US$162 million in 2020, up 10 per cent from sales in 2019, and a 13 per cent increase in production volume compared to the year prior. A further 8 per cent increase in revenue is expected by the end of 2021 compared to 2020, as is the processing of more than 500,000 bags of green coffee, making Buencafé one of the most competitive companies in the soluble coffee industry. Record sales were also achieved in 2020 for Buencafé’s house brand Buendía coffee, present in 41,000 points of sale in Colombia and Ecuador, where it grew by double digits and is consolidated as the fastest growing brand. Sales of packaged retail products also continues to grow, with about 36 million freeze-dried coffee jars to be produced by end of the year. “This growth in sales reflects the global increase in coffee consumption at home. Thanks to premiumisation of soluble coffees, consumers can find options on the market that meet their expectations. But rather than growing demand, we can largely attribute this growth in sales to the transformation and evolution of Buencafé as a company at all levels, managing to increase our efficiency, our quality, and our creativity when responding to our customers’ needs in global markets,” Madriñán says. As such, Buencafé has embraced innovation and diversity in its product line with the launch of a new coffee oil extract for the cosmetics sector, decaffeinated freeze-dried coffee in South Korea, and a range of products made with its Sensoria by Buencafé technology to grow its operational capacity in destinations such as Canada, Europe, Jordan, and China. Thanks to the dedication of the interdisciplinary work of the Buencafé technical teams, this technology is helping obtain flavour profiles it never thought possible in the soluble coffee market. “Our product portfolio is now more premium than ever thanks to the Lineage and Coffage coffee categories developed through this impressive technological set,” Madriñán says. She notes that while the premiumisation of products was expected to stagnate due to the pandemic, it has had quite the opposite effect. “Given the impossibility of consuming coffee in specialised stores and enjoying that characteristic flavour, consumers made the leap to premium and higher quality products in the world of soluble coffee to enjoy at home the coffee experience that they were missing so much. Thus, the desire to have unique moments has led to combining premiumisation and home brewing, allowing consumers to indulge small luxuries with these products,” Madriñán says.

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The other major change brought about by the pandemic is consumers’ concern for their environment, which is why Madriñán says environmental sustainability has become especially relevant. “The value of sustainability is growing stronger and stronger,” she says. “COVID impacted people’s interest in improving their lifestyle and taking care of their health, which is reflected in the search for and acquisition of products that meet these new standards. In addition, the planet’s situation has increased people’s concern for the environment and their desire to be part of change. Consumers understand that their consumption habits also impact the environment, so they are now more careful when choosing their products.” As an example, Madriñán says certified products with seals such as Rainforest Alliance in 2020 doubled compared to 2018. Buencafé is passionate about its own environmental management in the areas of energy efficiency, environmental footprints (CO2 and water), and waste management. For more than 25 years, Buencafé has used spent coffee grounds to fuel biomass boilers and reduce the use of fossil fuels. Today, it reuses 97 per cent of organic waste generated in the production process as fuel. It uses rainwater and recovered processed water for industrial services, and embraces hydrogeneration and solar energy for increased energy efficiency. According to a rigorous study under the National Appropriate Mitigation Action concept, Madriñán says Colombian coffee farming as a whole captures 5.2 times the carbon it emits. “Having a sustainable future in the world of coffee entails working for the prosperity of coffee growers, creating more wealth in the agricultural sector to encourage farming and generational change, and having coffee for future generations. All this means strong commitments to the environment and to stakeholders,” she says. In addition to nurturing Buencafé’s sustainable future is a commitment to connect consumers with the source of Colombian coffee production. One silver lining to the pandemic, Madriñán says, is the rise of conscious consumer who values the process and people behind the product they consume. “For Buencafé, it is of utmost importance that our consumers understand the story behind

our products, that we create sustainable value when producing 24 million cups of coffee a day,” Madriñán says. As part of the FNC, all Buencafé profits go back to coffee growers in ways of technical assistance, research, investments in infrastructure, sustainability, productivity, and other projects which contribute to their wellbeing. “It is essential that consumers know that, by buying Buencafé products, they are supporting coffee-growing families since they are part of the culture of a region. If it were not for the support provided by Buencafé and the FNC, it would be very difficult to preserve this beautiful tradition that characterises us as Colombians and positions us on the international market.”

LONG-TERM VISION Nearly two years into her appointment as General Director, and truthfully, Madriñán says 2021 has been more challenging than 2020. In addition to a global pandemic, Buencafé has navigated logistical delays, and rising coffee, freight, and plastic prices, resulting in further procurement

challenges. As such, Buencafé will build a new fulfillment warehouse to ensure it can sustain ongoing growth and export of its products to more than 60 countries. Madriñán notes a growing presence for Buencafé products in North America, including Canada, Mexico, and the United States, which has proved an important market in terms of sales volume and value, followed by the European market. More specifically, it will also focus its attention on Central America and markets such as China and Southeast Asia due to the popularity of soluble coffee. “The fact that Buencafé coffee is consumed so broadly tells us that we understand what our customers want, and the different cultural preferences of each market. What it also tells us, is that Colombian coffee is welcomed and appreciated around the world,” Madriñán says. “The last year has also taught me that Buencafé is a company that is increasingly agile and adaptable to changes in the environment. Trends are fast-paced and consumer demands continue to evolve. If you don’t remain agile and adapt your business model, it can be fatal to the business. You need to reinvent yourself at all times.” Through it all, Madriñán pushes ahead with motivation to lead a company that generates 1000 jobs and optimism to create sustainable value in the world of coffee. “By creating sustainable value, we all win. Our purpose – to live with optimism as a transforming force that creates sustainable value in the world of coffee – is the transforming engine that invites us to define ourselves as part of a great ecosystem of collaborative networks,” she says. “We want our positive impact to reach all of our stakeholders. Buencafé’s profits benefit about 540,000 coffee-growing families throughout Colombia. For this reason, one of our great contributions to consumers is to give them the opportunity to have a cup of coffee with a shared purpose, full of sustainable value.” G C R For more information, visit www.buencafe.com

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ECONOMICS ICO

The green bean price roller-coaster THE ICO LOOKS AT GREEN COFFEE’S WILD PRICE RIDE, THE UNDERLYING FACTORS RESPONSIBLE FOR THE LOW-PRICE TREND REVERSAL AND JUST HOW LONG RISING PRICES WILL PREVAIL.

he International Coffee Organization (ICO) has collected, processed, and disseminated coffee statistics and prices for nearly 60 years, serving all coffee stakeholders in a neutral and professional manner. We have recorded and predicted ups and downs, significant volatility, and impact on farmers, exporting countries earnings, industry, and consumers. Now, what is happening in 2021 when we are all still fighting the vicious COVID-19 pandemic and growing weather-related shocks due to overall climate change? Over the last 10 months, coffee prices have shown signs of recovery after experiencing four years of low levels, as shown by the ICO composite indicator price standing at 160.14 US cents per pound in August 2021, which represents an increase of 51.3 per cent over October 2020, the beginning of the current coffee year. The monthly average of the ICO composite indicator in August 2021 is the highest level since 162.17 US cents per pound recorded in November 2014.

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The prices of both types of coffee, Arabica, and Robusta have increased, although gains have been less marked in the case of Robusta coffee. The prices of the two washed Arabica groups (Colombian Milds and Other Milds) increased by 46.1 per cent and 42.2 per cent respectively, with respect to their levels recorded in October 2020. For Colombian Milds, the price of 225.40 US cents per pound reached in August 2021 is the highest since the mark of 244.14 US cents per pound registered in February 2012.

ICO Composite Indicator Price since October 2010 260

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The price of Brazilian Naturals (unwashed Arabica) increased by 74.2 per cent from 100.37 US cents per pound in October 2020 to 174.89 US cents per pound in August 2021, representing the highest level since 181.43 US cents per pound registered in November 2014. The Robusta price in August 2021 increased by 39.2 per cent to 95.18 US cents per pound from the monthly average of 68.36 US cents per pound in October 2020, and is also the highest monthly average since 98.39 US cents per pound recorded in October 2017. These upward trends have also been observed in New York futures exchange, which reflects the market for Arabica, and in London futures exchange for Robusta. Price movements since the start of coffee year October 2020 to September 2021 seem to mark an end to the low-price levels that had worsened the dire leaving conditions of millions of coffee growers worldwide over the past four years. But what are the factors underlying this trend reversal? And how long will these rising prices prevail?

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In 2021, the ICO composite indicator reached its highest point since November 2014.

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ECONOMICS ICO

Africa, Ethiopia and Uganda represent 7.7 per cent world production, while Mexico and Honduras for Central America and Mexico region represented 5.9 per cent. Altogether, the two countries selected in each region (eight countries in total) represented 83.7 per cent of the world production in crop year 2020/21.

ICO Group Indicator Prices - Monthly average since October 2010 350

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The sharpest upturn in coffee prices can be observed in Arabica coffees: Brazilian naturals, Colombian Milds, and Other Milds, with Robusta experiencing less significant gains.

SUPPLY/DEMAND DYNAMICS As in the case of most agricultural commodities, the main factors responsible for the movements of coffee prices are related to supply and demand, particularly production and consumption. However, less fundamental factors, such as US dollar exchange rate movements and futures markets affect trading activities and superimpose themselves on the underlying fundamentals to influence coffee price behaviour and volatility. In coffee year 2020/21, total production is projected at 169.6 million 60-kilogram bags while world consumption for the same period is estimated at 167 million bags, resulting to an excess production of 2.6 million bags over consumption. However, this surplus has been considerably reduced compared to its level in coffee year 2019/20. Nevertheless, in statistical terms the dynamics of the supply/demand ratio alone cannot explain price movements over the past 30 years. The factors underlying the recent upward movement of coffee prices are mainly weatherrelated shocks that have increased concerns over supply while consumption is beginning to grow again. The weather-related shocks started with a drought in Brazil from late 2020 to mid-2021. In November 2020, hurricanes Eta and Iota hit Central America, with severe impacts in Honduras and Nicaragua. And more recently, in July 2021, many Arabica-growing areas in Brazil were hit by one of the most intense frosts in living memory, with serious damage expected to affect Brazilian output for several years. Brazilian production for crop year 2021/22, which started last April 2021, had already been expected to fall significantly, since this is the off year in the production cycle of Arabica coffee. Moreover, the concentration of origins has fed a widespread concern over the availability of quality coffee, triggering price volatility. For coffee year 2020/21, out of 56 coffee-producing countries in the world, just three countries – Brazil, Vietnam, and Colombia – account for 63 per cent of the world production. When the next three largest producing countries are considered – Indonesia, Ethiopia, and Honduras – these six countries represent more than 78 per cent of world coffee output. In regional terms, Brazil and Colombia in South America represent 45.9 per cent of world production. Vietnam and Indonesia representing Asia and Oceania produced 24.2 per cent,

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Another important stress factor in the current price trends is the COVID-19 pandemic as supply chains have experienced disruptions due to lockdowns and restriction measures, leading to delays in shipments, lack of containers, and rising freight costs. The spread of the virus in coffee-exporting countries has disrupted local economies, restricted supply of labour for harvesting and affected production by reducing farm maintenance. For instance, recent stricter lockdown measures are expected to slow down Vietnam’s production and export in the next few months. The ICO has launched its second online survey to monitor the impact of COVID-19 in member countries. The objective of the survey is to assist ICO Members and the global coffee community by assessing the short and long-term impacts on the coffee sector and to identify migration measures available and needed resources.

WILL THE CURRENT TREND CONTINUE? Looking ahead, these price swings are likely to continue, particularly since climate factors increase the probability of shortterm supply shocks. There are too many variables in the supply/demand equation to be more specific. However, it should be noted that supply is still on the tight side while demand is returning to the level that prevailed before the pandemic. Moreover, with the easing of pandemic restrictions and subsequent prospects of economic recovery, world consumption is expected to continue growing. If consumption continues to grow at the average rate of 2 per cent per year that has prevailed since 1990, it will exceed 184 million bags in the next five years. World production may not be able to grow at the same rate, since major climatic or environmental disasters can never be ruled out with such a high concentration of origins.

Such an event would force prices up further. Although current price levels are encouraging for coffee growers, escalating costs due to rising prices of inputs, reduction in the availability of labour for farm activities in certain producing countries and decreasing availability of land due to global warming are important limiting factors to production. Coffee is a labour-intensive crop, with little mechanisation in many producing countries, and global urban wages are generally increasing. Moreover, the increased cost of fertilisers is likely to erode the gains from current high price levels. In coffee farming, the nutrients most widely needed to enrich soils and improve yields are nitrogen, potassium, and phosphates. Nitrogen plays a key role in the healthy growth of the coffee tree, and the formation of new branches and leaves. Potassium is necessary for fruit and seed formation, while phosphate fertilisers contribute to the development of roots, flowering, and fructification. The costs of these fertilisers, already at high levels, are expected to increase further in 2022. Finally, there is another important market factor that can also influence markets and complicate forecasting: the significant resources available to non-commercial positions in commodity futures markets. These funds are often managed by operators who may not have inherent attachment to a specific commodity and little experience of it. Often, their positions are not based on the traditional fundamentals of the market but on external considerations or even guided by decision of software packages. The history of coffee is one of price booms and busts, in which the former almost invariably ushers in the latter. The current situation is no exception. With increasing concentration of origins in fewer countries, weather will remain the key driver of the coffee market. Consequently, any concerns over supply from these origins, unless substantial gains in productivity would be achieved quickly and effectively, will intensify price volatility. G C R

ABOUT US

This article was written by Denis Seudieu, Chief Economist of the International Coffee Organization (ICO). In April 1996, Seudieu was appointed Chief Economist at the ICO in London, heading the economic and projects section. He has contributed to the elaboration, monitoring and evaluation of many development projects benefitting coffee sector in producing countries. Over the past 25 years, Seudieu has participated, as speaker to various seminars and conferences. The ICO is the main intergovernmental organisation for coffee, bringing together exporting and importing governments to tackle the challenges facing the world coffee sector through international cooperation. For more information, visit www.ico.org

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MARKET REPORT Eastern Europe

Image: Cafe Frei.

Hungarian coffee shop chain Cafe Frei opened a store in Croatia’s capital Zagreb in July 2021.

Emerging economies THE EASTERN EUROPEAN COFFEE INDUSTRY REBOUNDS POST-PANDEMIC WITH EYES ON INTERNATIONAL EXPANSION AS RESTRICTIONS BEGIN TO LIFT. JAROSLAW ADAMOWSKI EXPLAINS.

he global pandemic has slowed down the growth rate Eastern Europe’s coffee industry had experienced prior to 2020. This said, with most restrictions on coffee shops lifting from April and May 2021 due to an improved health situation, local chains are hoping to return to a rapid expansion path, with plans to increase their presence across the continent. Of the European Union’s 27 member states, 11 countries are located in the Eastern European region. Their aggregate population is about 102 million of the bloc’s roughly 448 million inhabitants. This, paired with their developing economies, makes Eastern Europe an increasingly attractive market for international coffee shop chains. With coffee shops temporarily closed to dine-in customers during various phases of European lockdowns, many sought to increase their sales through focusing on takeout sales. This, however, has proven to be difficult owing to the general preference of Eastern European consumers to consume drinks and food inside coffee shops, pointing to a number of differences in such operations in Western Europe and the continent’s eastern region.

EAST VERSUS WEST Tamas Frei, Co-founder of Hungarian coffee shop chain Cafe Frei, tells Global Coffee Report that the Eastern European coffee market has several distinct traits that make it different from its Western European counterpart. “In the West, coffee shops are often packed full of customers in the mornings, as many

of them buy coffee to go. But in Eastern Europe, coffee shops are above all a place where you spend time with your close ones, friends, and colleagues after work,” Frei says. “Another difference is that coffee shops here must have an offer that resembles that of a patisserie, so mainly sweets, cakes, croissants, and sandwiches.” Cafe Frei opened its first coffee shop in Hungary’s capital Budapest before expanding to other cities across the country. Once the chain became an established player in its domestic market, Cafe Frei embarked on international expansion. This drive allowed the business to secure a foothold in several European countries, including Switzerland, France, Croatia, Slovaki, Romania, and the Middle East, with a number of outlets opened in the United Arab Emirates and Saudi Arabia. These include the chain’s own

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With most social distancing measures lifted, Eastern European coffee shops can accommodate customers.

coffee shops as well as franchises. Frei says Cafe Frei strives to attract consumers with beverages that originate from six global coffee cultures: Italian, French, Arabic, Japanese, United States, and Latin American. “In Central Europe, it’s normal to have a date or a business meeting in a coffee shop, so you have to spend more on design, placing comfortable chairs and sofas for your customers,” he says. “The trick is to make your coffee shop a place where people want to socialise, but not spend an entire day with their laptops as if it were an office.” Madrid-based group AmRest has established itself as a major player in Eastern Europe’s coffee shop landscape by bringing the Starbucks brand to the region back in 2008 when it opened the first franchised coffee shop in Prague, the Czech Republic’s capital. Since then, AmRest has expanded its Starbucks portfolio to more than 300 coffee shops across the region, gaining a foothold in Germany, Poland, Romania, Bulgaria, Slovakia, Hungary, and Serbia.

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Image: Caffeine.

MARKET REPORT Eastern Europe

A PROVEN PRICE POLICY

In Romania, local coffee shop chain 5 to go is also developing its presence through franchising. In a bid to compete for more price-oriented customers with international chains, the Romanian business has adopted a price policy under which all of its hot beverages and pastries carry the same price tag of RON 5 (about US$1.20). Radu Savupol, Founder of 5 to go, tells Global Coffee Report that his chain has witnessed dynamic growth in the past years, increasing its presence from some 100 coffee shops at the end of 2018 to more than 220 outlets at the end of 2020. “Most of the outlets are franchises, less than 10 per cent of the total are our own shops. This fast development is the result of a mix of factors: the concept behind the brand with simplicity and convenience being key factors for consumption nowadays, the people behind the brand with an enthusiastic and passionate team, and dedicated partners, plus the story behind the brand, focusing on positive experiences, and a friendly atmosphere,” Savupol says. The company’s plans for 2021 include opening a further 100 coffee shops in the Romanian market and launching 5 to go’s international expansion. “In the first half of this year, we succeeded to open 40 new local coffee shops and we launched 5 to go in France, with two units opening in partnership with [Romanian donut shop chain] Donuterie. I’m confident that we will reach the goal of 100 new outlets by the end of this year, and that we will add at least one new destination on the international 5 to go map,” Savupol says. For the purpose of its expansion into the French market, the chain modified its price model under a concept called the 5 to go Coffee Corner and is offering beverages and sweets between €1 and €5 (about US$1.20 to $5). “In the second half of the year, we plan to continue our expansion in France through a master franchise deal with a local partner, aiming in particular at small- and medium-size cities, with a goal of opening 10 outlets in the first year of operation,” says Savupol. Meanwhile, in addition to France, the Romanian business is also readying to establish a foothold in neighbouring Bulgaria. “We also have plans to open a coffee shop in the United Kingdom, in London, based on the same model we implemented in France, with Donuterie as our partner and a similar fixed price model approach,” Savupol says. Focusing on international expansion in the next five years, the chain’s founder says the plan is to bring 5 to go’s outlets to a total of 1000 coffee shops in Romania and abroad.

ACQUISITION BOOSTS INTERNATIONAL EXPANSION In Lithuania, the most populated of the three Baltic States, which also include Estonia and Latvia, the pandemic did little to halt the growth of Caffeine, a local coffee shop chain. The brand’s international expansion was boosted in 2019 when Caffeine was acquired by

Norwegian retail group Reitan. “It is important to note that Caffeine was the first brand that created what we call a culture of takeaway coffee in the [Lithuanian] market in 2007 when it was established,” says Lina Kaminskaite, Head of Marketing at Reitan Convenience Lithuania, the chain’s operator. In 2019, at the time of the takeover, Caffeine operated some 30 coffee shops in Lithuania. Since then, the chain has expanded its presence in its domestic market to 52 cafés in Lithuania. About half of the chain’s outlets are located in Vilnius, the country’s capital, and the surrounding area, pushing Caffeine’s expansion to smaller cities across the country, according to Kaminskaite. “[Caffeine’s] customers mostly enjoy café latte, cappuccino, and flat white coffees. Around 80 per cent of all coffee sales are these particular coffee options,” she says. “Over the past several years, we have also noticed that some trends such as brew coffee have gained in popularity. Our customers enjoy cold brew coffee especially during the summer season.” The chain’s marketing head says that, based on the company’s market research, there is a noticeable trend among Lithuanians to drink black coffee at home. However, when they go out, Lithuanian consumers prefer to discover new tastes, and tend to buy more milk-based coffee drinks. “Once we are out of home, there are plenty more coffee options that we can choose to taste and explore,” says Kaminskaite. These observations confirm the strategy adopted by Hungarian chain Cafe Frei to specialise in serving coffee drinks from six different regions of the world. Meanwhile, with a dominant position established in the Lithuanian market, Caffeine is also increasingly shifting its focus towards foreign expansion. “Caffeine launched first cafés in Latvia and Estonia in 2010. At this moment, we have

some 20 coffee shops in Latvia and about 10 in Estonia,” Kaminskaite says. “In the years 2019 and 2020, Caffeine also launched its coffee shops in Oslo and Copenhagen,” she says, referring to the chain’s expansion to Oslo and Denmark where its parent group maintains a strong presence. Despite the pandemic, Eastern Europe’s industry representatives, such as Frei, Savupol and Kaminskaite, believe in the region’s growth potential. The habit of going out for coffee has already become ingrained into the metropolitan lifestyle in these emerging economies, of which eight, namely the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia, are members of the 38-countrystrong Organisation for Economic Cooperation and Development. While the increase in retail coffee has become a global trend, the pandemic has not halted the expansion plans of Eastern Europe’s café chains. G C R

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FEATURE NEWS Brazil

The Big Brazil

FROST COFFEE PRODUCING REGIONS ACROSS BRAZIL WERE HIT WITH MAJOR DAMAGE FOLLOWING THE MOST SEVERE FROST TO HIT COFFEE FARMS IN 40 TO 50 YEARS. MAJA WALLENGREN EXPLAINS HOW MULTIPLE PROBLEMS ARE CAUSING AN UNPRECEDENTED DEFICIT TO THE SUPPLY-DEMAND BALANCE AND WHY THE WORLD IS RUNNING OUT OF COFFEE FAST.

Growers in the key Brazil coffee region of Southern Minas reported frost damage to an average 20 to 30 per cent of their land as farms across an area covering 65 per cent of the total Brazilian harvest was burned by the frost.

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Image: Maja Wallengren

here bright green and lush fertile fields normally cover the heartland of Brazil’s coffee producing region in Southern Minas, instead a carpet of wilted and dead coffee trees stretch as far as the eye can see. More than 200,000 hectares of land cultivated with coffee were so severely affected by the four rounds of frost that hit Brazil between the end of June and July that only dry and brown leaves are left on the stems, a golden, crisp brown shade normally associated with the turning colour of leaves at the end of autumn. There is no prosperity left for these trees to recover, and in over 27 years of origin travels across the world, there has never been a sadder coffee sight to this reporter. The evidence of damage is overwhelming. From Serra Negra in the state of São Paulo across the world-famous coffee towns of Guaxupe, Nova Resende, Muzambinho, Cabo Verde and Alfenas in Southern Minas, through Franca and Pedregulho in the Alta Mogiana region, and all the way to Patrocinio, the coffee capital of the Cerrado Mineiro region, there is no denying just how bad the frost damage has been, and there is no ignoring the severity of the impact. “In the 54 years I have been growing coffee since taking over the family farm from my father this is the most intense frost I have ever seen, we have always seen sporadic frosts but up until now the impact was always minor,” Guilherme Gerardo Rocha tells Global Coffee Report during a visit to his farm Fazenda Santa Helena in Nova Resende in August. Casting his eyes first to the left, then making a full 360-degree round, he points to row after row of completely burned coffee trees: “This is dead, look at this,” he says and cuts a branch of a tree. “This is all dead. Everything is gone,” says Rocha, who lost between 80 and 90 per cent of his entire cultivated area. In a different part of Nova Resende, small-holder coffee grower Jorge Paulino Silva strikes a heroic pose as he takes in the rapid decline of the dead and wilting trees on his farm. But when his eyes fall on the entire plot of tiny new coffee trees that were planted out in the field earlier this year and are now all dead, his voice cracks ever so slightly. “My whole life has been dedicated to growing coffee. As long as I remember, I have lived off coffee, and we have always had frosts, but not like this, not like this,” says Silva, his voice breaking. Deep into the hilly roads in Nova Resende the story of damage and devastation to the coffee fields has no end in sight. From completely burned producing areas to farms where trees are burned unevenly, either with the upper part completely wilted but part of the lower branches still showing signs of some life, and others where the frost literally cut each row of trees in half with one side still green and the other entirely wilted. Even if most of the farms in Southern Minas have seen the frost cause damage to an average between 20 and 30 per cent of the cultivated area, for the recovery of the farms, between 30 and 50 per cent of the total land will have to be either pruned or replanted to ensure an even harvest cycle. “The level of damage from the frost combined with the drought is the most serious problem we have seen to Brazil’s coffee sector for years and our growers are struggling,” says Evair de Melo, Senator for the second largest growing state of Espírito Santo. He logged more than 15 hours flying over frost-hit areas across 180,000 hectares in 90 municipalities from southern São Paulo to the northern-most point of the Cerrado. “For the frost damage alone, we can expect to see a loss of at least 10 to 12 million bags to the 2022 harvest but this is adding to the continuing damage from the drought,” says de Melo, who is working with a special coffee taskforce at the Agriculture Ministry dealing with the multiple weather problems. Brazil’s 2021 harvest was already forecast to come in significantly smaller this year after excessive stress from producing a record crop last year, which Brazil’s official crop forecasting agency Conab said reached 63 million 60-kilogram bags. The 2021 crop was initially forecast by Conab to reach 48.8 million bags as yields were expected to drop more than the average difference between a cycle with a big crop, known as the “on-cycle” to

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the “off-cycle” where trees are recovering. But following the growing impact of the drought, which hit the flowering last year and at this point, over one year later, continues to damage flowering prospects for the next 2022 crop, Conab has lowered its forecast for the 2021 harvest to drop 25.7 per cent to 46.9 million bags, one of the smallest crops in 10 years from Brazil. “As the situation has now deteriorated due to the lack of rains to the flowering for the next 2022 harvest, at this point we are calculating minimum damage between 10 to 12 million bags each for the next three consecutive years, from 2022 to 2025. We are talking about three crops in a row that will be very small for Brazil and total lost productivity of 30 to 36 million bags,” says de Melo. In the heart of the Alfenas coffee region of Southern Minas, one farm stands out. Driving kilometre after kilometre within the Ipanema coffee estate, the magnitude of the damage sinks in at a different level. With cultivated land of as much as 3700 hectares and production reaching as high as 138,000 bags in some years, Ipanema is one of the world’s largest single coffee estates. Vast areas of the coffee farm are all burned black and brown, and with the potential to produce Brazil’s 2022 harvest is expected to suffer a loss of at least 10 to 12 million bags due to the entire world’s breakfast demand for one frost-damaged coffee alone. day, the obvious supply for that first morning cup is dwindling fast. “At least 30 per cent of the total area cultivated with coffee was damaged, the severity of the frost here was bad and we will need to do a lot of replanting,” says an agronomist working at Ipanema, briefly stopping to speak with GCR before heading to a different part of the farm to survey damage. And from Ipanema in Southern Minas to the Cerrado region in the north-western corner of Minas Gerais state – which accounts for 65 per cent of the total Brazilian Arabica harvest in an average cycle – Jose Carlos Grossi of the Alto Cafezal coffee farm has already decided to switch at least 30 per cent of the total land, which was the most severely damaged from coffee to grains instead. “Over 40 per cent of the coffee area was damaged, and while I can recover a small area of this with pruning, the majority of that is too damaged and it’s too expensive to take the financial risk to replant with coffee, so I am already uprooting trees to be ready to grow soya and corn crops starting in November,” Grossi says. The impact of trouble in Brazil for the market cannot be underestimated. In any average crop cycle Brazil grows between 35 and 40 per cent of the coffee consumed in the world with demand forecast to reach 168 to 170 million bags in 2022, according to figures from the International Coffee Organization (ICO) and the United States Department of Agriculture. Ending stocks for the 2021-22 cycle held in the key importing markets of the US, Japan, and the European Union are seen at 22 million bags while inventories in producing countries are believed to be insignificant. This compares to total world consumption of 79 million bags in the 1991-92 cycle, according to the ICO, and analysts agree global demand shows no signs of slowing down. It was this delicate balance that sent Arabica prices in the New York market rising to sevenyear highs over US$2.20 per pound in late July, following confirmation of frost damage in Brazil. Image: Maja Wallengren

Small-holder producer Jorge Paulino Silva taking in the damage at his farm in Nova Resende in Southern Minas.

Images: Maja Wallengren

FEATURE NEWS Brazil

Silvia Fonte lost her entire 2.2 hectare farm of coffee in the Serra Negra, São Paulo region.

Since the frost damage, producer Jose Carlos Grossi at Alto Cafezal in the Cerrado region has decided to switch at least 30 per cent of his coffee to grains.

G C R | N OV E M B E R / D E C E M B E R 2021

Even if total damage from frost and drought reaches no more than 10 to 15 per cent, this would still be a volume equivalent to the entire coffee harvest from Colombia in an average cycle. But losses could rise further as the new flowering for the 2022 crop already see yield potential down by 30 to 40 per cent from both a rain shortage as well as rains running so late that many regions have lost the first round of flowering. “The problem is very serious because of the large deficit in rainfall between March and September which comes on top of the water deficit in soils and trees in the areas affected by the drought since last year,” says Marco Antonio Jacobs, a Brazilian economist who has worked with coffee trade analysis for more than 40 years. Agronomists and climate experts agree, saying the water deficit is running at less than 10 to 20 per cent of what is considered necessary to ensure a healthy flowering.

“What we are dealing with now is [whether there] will there be enough rain to halt further yield declines beyond what is already pretty much a given,” says meteorologist Mike Palmerino. As fresh supply from Brazil continues to come down, the pace of exports will start to slow, with analysts and Conab agreeing Brazilian exports could be reduced by as much as 50 per cent during the next 12 months to 23.9 million bags from 46.5 million bags in the 2020-21 year. This will ultimately lead to roasters and others in the trade starting buy into the remaining stocks held in port warehouses in importing countries. Adding to this are smaller than expected crops reported from other leading coffee producing nations Vietnam, Colombia, Honduras, and India. “The market will run short of coffee. Where will the world find the 25.5 million bags to sustain the growing demand?” asks Marcelo Fraga Moreira, analyst and broker with Archer Consulting in São Paulo, in an internal research note shared with GCR . The only thing clear, is that Brazil will not come to the rescue for meeting global demand until the Brazilian production cycle starts recovering in 2025. Silvia Fonte, who had 2.2 hectares of coffee in the hilly São Paulo region of Serra Negra until the frost turned the farm into a 100 per cent loss, is determined to get production back, but admits it will not be easy. “Here we were, very unfortunate to see damage from three of the four rounds of frost with temperatures down to between -2°C and -4°C. It was extremely severe,” she says, voicing the sentiment most producers in Brazil are going through. “Now we will have to study the different options available for financing to get back in business, but we will have to start from scratch.” The outlook is bleak, and consumers as well as roasters need to prepare for higher prices. G C R

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FEATURE NEWS GCP

Decoding sustainability GLOBAL COFFEE PLATFORM ON ITS REVISED COFFEE SUSTAINABILITY REFERENCE CODE, WHY THIS CHANGE WAS NECESSARY, AND THE IMPACT IT’S EXPECTED TO HAVE ON THE INDUSTRY.

espite a growing awareness of the need to build a sustainable coffee industry, the steps required to achieve it are not always as clear, which is why membership association Global Coffee Platform (GCP) has revised its reference code on the foundations to advance sustainability. Titled ‘The Coffee Sustainability Reference Code’, the code is designed to create a common language in the coffee industry on how to build the foundations for sustainable coffee production. It is centred on the three dimensions of economic prosperity, social wellbeing, and environmental responsibility and stewardship. Within each dimension, the code outlines several principles, practices, and expected results, listing baseline practices in the sustainable production and processing of coffee. “Through its 12 concrete principles, along with practices and expected results, it serves as a common language and guide for all coffee farmers, their business partners, and supporting

actors to continuously improve and advance their sustainability,” says Annette Pensel, Executive Director of GCP. The code also defines five critical practices: elimination of the worst forms of child labour, elimination of forced labour, no deforestation, no use of prohibited pesticides, and the newest addition, continuous improvement. For all the other practices, the expectation is that over time, through the implementation of time-bound actions plans, this level of sustainability is achieved. In particular, these

Global Coffee Platform hopes the code will be used by coffee farmers to assess their sustainable practices.

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The revision of the Coffee Sustainability Reference Code was led by Gelkha Buitrago, Global Coffee Platform’s Director of Programs and Corporate Partnerships.

plans should be built around the realities of small farmers and local contexts. “While the Coffee Sustainability Reference Code covers the beginning of the supply chain, with farmers on the ground, downstream actors are expected to share the responsibility for sustainability,” Pensel says. “This includes supporting and incentivising the efforts of coffee producers to introduce, maintain, and go beyond these baseline principles across all dimensions, as well as promoting equitable trading and sourcing practices.” Pensel says the revised code, which was built in collaboration with the coffee community, will be used as a reference to align, inspire, and accelerate individual and collective action. Previously known as the Baseline Coffee Code, the revisions resulting in the new code began in October 2020. During the consultation period in March and April 2021, GCP engaged with farmers, industry members, and other actors involved in coffee from around the globe, hearing their views on the code. Gelkha Buitrago, GCP Director Programs and Corporate Partnerships, led the code’s revision. She says since the code is intended to be a framework for the entire industry, it was important to have an extensive and inclusive consultation process that involved all in the coffee sector. “Approximately 800 stakeholders participated via webinars, workshops, one on one interviews, emails, and through the online survey, contributing more than 1100 comments,” Buitrago says.

These proposals for the code’s revision were then developed by GCP, through its Technical Committee and Advisory Task Force, made up of members across the coffee supply chain including from the finance sector as well as from non-government organisations. “The changes in the code reflect also the evolution of the sustainability landscape,” says Buitrago. “This code now includes new topics such as climate change adaptation and mitigation, and diversity, equity, and inclusion.” The name change, she explains, is just one example of its stakeholders’ input. “It was requested that we make it clearer what the code is about, after all, it is a reference for the sector on the foundations of sustainability and not a certification standard,” Buitrago says. For Buitrago, this reference code is chiefly important to help guide the coffee farmers, especially the ones who are new to sustainability and are looking for guidance. “We hope coffee farmers and managers of farmer groups will use it to assess their practices using the principles and identify areas for improvement,” she says. When used in combination with GCP’s Equivalence Mechanism, which assesses sustainability programs against the code, Buitrago says the code can also be used to guide sustainability programs and other initiatives, fostering alignment across the different programs. To achieve the best results from the code, GCP believes that it’s important that every supply chain actor promotes and implements the framework, with national coffee bodies playing a key role in each region. “It’s obvious we should be working together in this. What we need the most nowadays – especially for sustainability – is to live by the words ‘shared responsibility, shared benefits’,” says Carlos Brando, Chair of GCP’s Board. This belief underpins GCP’s membership. As an organisation designed to collectively address local sustainability issues and scale up successful initiatives for lasting change, GCP benefits from its broad member base from every segment of the coffee chain combined with its neutrality and technical expertise. “The sector needs a sustainability reference code because despite increasing uptake of sustainability practices, in particular through certification, the percentage of small growers able to access these certification programs is limited,” says Brando. “A sector wide reference code offers an easy way for initiatives to look into the sustainability of small growers, taking into account their context and resources, and determine if they are sustainable.” Besides its impact on the ground, Buitrago predicts that the Coffee Sustainability Reference Code can foster change in every part of the supply chain, including at a government level. She hopes it will be used to inform strategies that underpin national coffee sustainability plans. “For traders, roasters, and retailers, the Code can guide their corporate sustainability strategies, responsible sourcing, and origin programs, as well as their commitment to source responsible and sustainable coffee,” Buitrago says, adding that the reference code is the basis for the GCP Collective Reporting on Sustainable Coffee Purchases. “Financial institutions and investment funds can use this code to inform eligibility criteria for investments in the coffee sector, even non-governmental organisations can use it to inform their programming and investment support.” Buitrago says this code has the power to create a shared understanding of what “baseline” or minimum sustainability principles and practices entail, both within the public and private sectors. “It can also inspire and align measurements and monitoring towards increased sustainable production and consumption of coffee,” says Buitrago. Pensel says that it is this strong relationship with public-private coffee platforms in the coffee producing countries, along with its vision and mission, that uniquely position GCP to be the guardian of the Coffee Sustainability Reference Code. “With its launch, we look forward to further sharing the Coffee Sustainability Reference Code and working with our members, partners, and others to truly unfold its potential,” says Pensel. G C R For more information, visit www.globalcoffeeplatform.org

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INDUSTRY PROFILE Eversys Tribute

In memoriam of Jean-Paul In-Albon GLOBAL COFFEE REPORT FAREWELLS ONE OF THE CO-FOUNDING FATHERS OF MANUFACTURING COMPANY EVERSYS, AND HONOURS HIS LEGACY FOR AUTOMATING AUTHENTIC ESPRESSO.

ean-Paul In-Albon passed away prematurely on 21 July 2021 at the tender age of 65, leaving behind a business, a body of work, and memories that shall ensure his life leaves an indelible mark in the world of coffee and beyond. People often use words like visionary or entrepreneur to describe a person that does things ahead of their time. A visionary is a person who walks on paths that seem so clear, so simple to them and yet fail to be seen by the simple crowd. History is littered with such great people, from inventor Thomas Eddison and businessman Steve Jobs through to physicist Marie Curie, people who were born with a clear purpose and whose life was fully consumed by their true passion. And, for Jean-Paul In-Albon, this was coffee. Jean-Paul was a visionary like no other in the automated world of coffee. His business partner Robert Bircher called him a true “inventor”. Jean-Paul had a passion for building simplicity into the traditional art of coffee making. Automation was his accomplice, transforming age old movements into precise mechanical and electrical impulses. And while he had spent the whole of his life imagining and developing leading edge coffee machines, his true apogee came through his latest brainchild, Eversys. Jean-Paul began his journey in coffee with a company he founded called Sistar where he developed the concept of horizontal mechanical brewing. This was followed by a chance meeting with the owner of a small International Swiss company called Thermoplan, where he eventually became the head of the research and development department as Technical Director, making the B&W brand a global leader. This is where Jean-Paul truly came onto the international stage through developing a bespoke machine for an up-and-coming US company called Starbucks. In due course, and coming to an age when people think more about retirement than starting new projects, Jean-Paul started to feel that the boundaries of coffee making equipment had not yet been fully reached, that he could create something even more compelling. In 2009, over a lunch that lasted several hours. Jean-Paul In-Albon and Robert Bircher founded Eversys. There, began the final chapter of an amazing life, the building of a lasting legacy. What made Jean-Paul so special was his ability to imagine, to see, and to believe in a future where great coffee could be accessed by all people, anytime, anywhere. While there were many challenges along the way of building and developing a new company, fear and doubt were never part of his make-up. Jean-Paul was not only a man of great vision, but a man of great conviction and courage. Adversity was seen as a means to an end, as merely a necessary evil, a step on the way to inevitable success. This attitude, shared by most visionaries, was inspiring to all those that came into contact with him, generating tremendous team engagement and loyalty. Eversys, like Jean-Paul, was birthed into a very humble environment. It all started in a very lowkey office, in a small place next to what used to be a butcher shop in a rustic Swiss village, Ardon, located in a region of Switzerland known as the Valais, a few blocks from where he raised a family.

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It is that humility that attracted people of all segments of life, as Jean-Paul treated everyone with equal respect and attention. Such was his passion for coffee that JeanPaul could be found burning the midnight oil on most days, trying to replicate the flavour

Jean-Paul was a visionary like no other in the automated world of coffee.

profile of the organic bean through the brewing process. He would make people chew freshly roasted coffee beans to establish an idea of what the coffee should taste like and roar with laughter at the expressions of surprise when they were told to swallow. Jean-Paul was never afraid to challenge existing paradigms as, for most inventors, rules were only meant for those who lacked the imagination to ignore them. Jean-Paul was a firm believer that a business, a team should be treated like family. And when the time came to entrust his Eversys to another company, he and Robert chose De’Longhi because they too embraced the concept of a family-driven business, a place where people genuinely mattered. Jean-Paul In-Albon was quoted at the 2014 Swiss Economic Forum as saying: “People tend to focus on products, but it is the people who make the company.” Even his departure seemed ‘planned’, buried in the same church where 45 years prior, to the

day, he had made his wedding vows and said “yes” to his beloved wife, a woman who staunchly believed and stood by him in the course of pursuing his passion for coffee. And, while Jean-Paul has left our mortal realm, his legacy shall be enduring, as his passion continues to live throughout the globe, through the instruments that his imagination saw created and built. He was able to see his beloved company become a global player, build a new factory not far from where he took his first steps as a young boy, in the midst of the mountainous Alps where he often spent his weekends perched on the back of his bicycle. Jean-Paul will be remembered as a person who will truly leave a lasting trail, sowing a seed that made a genuine difference. His legacy will be that of a humble man who chose to walk on the wild side of creativity, leaving behind a warm cup, a memory that with passion, purpose, discipline, and courage, one simple person can have an impact, and make an extraordinary difference to the planet we all call home. To quote the words of Jean-Paul’s favourite author Umberto Eco: “We have a limit, a very discouraging, humiliating limit: death. That’s why we like all the things that we assume have no limits and, therefore, no end. We like them because we do not want to die.” G C R Jean-Paul developed the concept of horizontal mechanical brewing.

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FEATURE IPCC

Code

THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE RELEASED A REPORT IN AUGUST THAT HIGHLIGHTED THE URGENT NEED TO ADDRESS CLIMATE CHANGE. GLOBAL COFFEE REPORT ASKS WHAT THIS REPORT MEANS FOR THE COFFEE INDUSTRY.

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hen the Intergovernmental Panel on Climate Change (IPCC) released its Working Group I report, Climate Change 2021: the Physical Science Basis, in August 2021, it made headlines around the world. The report, the first of three instalments in the IPCC’s Sixth Assessment Report, says scientists are observing changes in every region and across the whole climate system, many of which are unprecedented in thousands, if not hundreds of thousands of years. Some of the changes already set in motion, such as rising sea level, will be irreversible for hundreds to thousands of years. World Coffee Research CEO Jennifer ‘Vern’ Long tells Global Coffee Report this information isn’t new to people, but the IPCC report has brought a new level of urgency to the dilemma. “The IPCC Working Group I has gone from caveating comments as being ‘likely’ [66 per cent or more confidence] or ‘very likely’ [90 per cent or more] in previous reports, to ‘extremely likely’ [95 per cent or more]. The confidence in the data is really high across many domains, so there’s no denying the realities,” Long says. “It is unequivocal. The contribution of human-induced climate change is real, and it is having adverse consequences for coffee production areas and logistics and shipping.” UN Secretary-General António Guterres called the Working Group I report, which addresses the most up-to-date physical understanding of the climate system and climate change, a “code red for humanity”. The Working Group II report will focus on impacts, adaptation, and vulnerability, and is scheduled to be finalised in February 2022. A report from Working Group III on mitigation is intended to be finalised the following month. Dr Aaron Davis, Senior Research Leader of Crops and Global Change at the Royal Botanic Gardens, Kew, says the release of the first instalment coincided with a series of shocking climatic events. “Generally, not a great deal has changed since the Fifth Assessment Report of 2014, or the Special Report on Global Warming of

“IT IS UNEQUIVOCAL. THE CONTRIBUTION OF HUMAN-INDUCED CLIMATE CHANGE IS REAL, AND IT IS HAVING ADVERSE CONSEQUENCES FOR COFFEE PRODUCTION AREAS AND LOGISTICS AND SHIPPING.”

1.5°C of 2018, the big difference is the increased confidence for seriously negative outcomes,” Davis says. “The latest findings from the IPCC came at a time when many parts of the world, including Europe and the Americas, were dealing with forest fires, droughts, and heatwaves, caused by severe weather events. That has certainly put more emphasis on what was in the 2021 IPCC report. “Just look at what’s happening in Brazil with drought and its impact of global coffee prices. If droughts become more frequent and severe, not just in Brazil but many other coffee producing countries, as identified in the IPCC report, the impact on global production and supply will be considerable.” In 2015, almost 200 governments signed the Paris Agreement, with the Jennifer ‘Vern’ Long goal to keep the rise in mean global CEO of World Coffee Research temperature well below 2°C above pre-industrial levels, and preferably limit the increase to 1.5°C. The IPCC report found that unless there are immediate, rapid, and large-scale reductions in greenhouse gas emissions, limiting warming to close to 1.5°C or even 2°C will be beyond reach. “To keep global warming below 1.5°C, we will have to undertake immediate large-scale reductions in greenhouse gas emissions. This needs to be undertaken as a coordinated, global effort, otherwise the world will grind to a halt. It’s feasible but it won’t be easy. Regardless, we have to keep warming to below 1.5°C; although it’s only half a degree more, 2°C warming would be much worse,” Davis says. “At 2°C of global warming, heat extremes would more often reach critical tolerance thresholds for agriculture and health. Global food production systems, including coffee, will find it extremely difficult to continue to produce the volumes they do now.”

PROVIDING A CLEARER PICTURE The IPCC reports projects that with every incremental increase in global warming, different regions will see increased frequency and intensity of hot extremes, heavy rainfall and associated flooding, agricultural and ecological droughts, and proportion of intense natural disasters. One of the elements of the report WCR’s Long considers most pressing for the coffee industry is the limited availability of data on precipitation levels in many regions crucial to coffee growing. “The report features a quick visual mapping of extreme heat, drought, and precipitation projections, and they have plenty of data for the first two, but for precipitation, there’s insufficient data for most of the coffee producing areas on that map,” Long says. “In coffee, precipitation matters to us for everything from projecting yields to enabling producing countries to plan for managing infrastructure repair and maintenance for getting coffee to ports. It’s difficult to do that in regions outside of Brazil and Vietnam, where there’s solid data and reporting, like Central America and East Africa.” Contributing to and advocating for research networks in these regions is one of the ways the global coffee industry can contribute to the discourse around climate change.

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FEATURE IPCC

“I THINK THERE IS CAUSE FOR OPTIMISM, BUT ONLY IF IT’S MATCHED WITH A PROACTIVE RESPONSE. WE CAN’T BE OPTIMISTIC AND DO NOTHING. THAT’S ONE OF THE POWERFUL MESSAGES OF THE IPCC REPORT: TIME IS RUNNING OUT AND WE NEED TO ACT NOW.” Dr Aaron Davis

Senior Research Leader of Crops and Global Change at the Royal Botanic Gardens, Kew.

“Building and participating in these research networks will provide us with more data to predict what farmers and those responsible for basic transportation infrastructure will need in different countries and figure out what we can do to support them,” Long says. Another way she suggests coffee production could make a better impact is through carbon sequestering. Such examples noted in the report, included selecting appropriate varieties and species with greater root mass, or increasing biomass on farmland. Long says coffee farms could sequester more carbon dioxide than they emit. The IPCC report says with high confidence that anthropogenic CO2 removal could compensate for residual emissions or exceed them if implemented at scale. “The next two IPCC reports will focus more on adaption and mitigation, but even in the first instalment, it’s not all doom and gloom,” she says. “There are specific things we can do in coffee, actions that growers can take now, for greater carbon sequestration in the soil. It’s just a question of how much carbon coffee growing systems are able to sequester and the economics of those options. “WCR commissioned a paper by World Food Prize Laureate Dr. Rattan Lal which we released in October, that looks at the sequestration potential of coffee farming systems, and will follow this with a webinar in mid-November. This paper gives us a concrete idea of how sequestration could work.”

RETHINKING OUR FARMING The ability of biodiverse and biomass rich ecosystems to sequester carbon is one of several reasons to prevent deforestation around the world. Dr Davis says that coffee industry, and other food industries, needs to take greater accountability and transparency for the part they play in deforestation, and embrace the protection of the natural world. “Agriculture is a major producer of greenhouse gas emissions and also a major cause of biodiversity loss. We need to stop burying our heads in the sand, and do our upmost to protect and enhance life-preserving natural systems,” Davis says. “A farm can be located in an area that was deforested a decade or two ago, planted with a few shade trees, and then receive a biodiversity or forest stewardship certification. The result for carbon sequestration and biodiversity are profoundly negative. There are many good examples of action being taken by the coffee industry, including the proactive planting of trees at scale, and ensuring meaningful agroforestry production for their products. Other parts of the sector should follow such examples and learn from successes and failures.” Davis says legislation in Europe and the United States will soon force major businesses to ensure

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their value chains are free from deforestation and biodiversity loss. The enforcement of legislation is becoming increasingly powerful with the aid of new technologies, such as satellite monitoring over decadal timescales, stable isotope analysis, and spectral chemical profiling, as now being used to monitor the global trade in timber. Davis and colleagues believe that the coffee crop portfolio will need to be broadened dramatically to include alternative species and inter-species hybrids, as climatic suitability worsens for Arabica and Robusta coffee. “We have already identified and are developing species, other than Arabica and Robusta, that are not only substantially more climate resilient but also have the required attributes for the producer and the consumer,” Davis says. “Production of some of these coffees is already underway”. Higher yielding and more adaptive coffee species and varieties not only help farmers adapt to climate change, but they can also reduce the need to deforest surrounding areas. WCR’s Long says new crop development is crucial for the future of coffee. “When we look historically at what kinds of innovation have helped farmers adapt to weather and environments, new varieties are almost always at the centre of that. But they need to be involved in the process and the development of new varieties depends on partnerships with farmers,” Long says. “WCR is launching a global breeding network, working closely with national coffee institutes around the world to mobilise the breeding community. We’ll be using genomic selection in this project, which allows you to choose multiple traits at once, such as heat tolerance, drought resistance, quality parameters, water use efficiency, or holding onto their flowers well in a downpour. It’s a next generation approach to breeding that all other major food security crops have taken on and while we’ve started a lot of the groundwork, we’re officially starting that program in 2022.”

CONSUMING COUNTRIES When climate change is discussed in the coffee industry, it often is in regard to production, however, consuming countries are still affected and in many ways, are more responsible for the problem. “This isn’t just a coffee issue, it’s a human

huge sources of GHG emissions. “Really, every sector and part of the industry contributes to and is impacted by climate change, and needs to be looked at critically,” Davis says. “The pandemic has been a sort of ‘trial run’ in terms of the impact on global supply chains, people will often say ‘if you think COVID was bad, wait ‘til climate change really kicks in’.” Davis says the entire value chain is responsible for mitigating climate change, from the producer, through to the major buyers, who have a strong position and influence, and the end consumer who decides what kinds of products they will buy. “We all need to think about how we can achieve decarbonisation,” he says. “More recently, there has been positive news that some major coffee producing countries are developing much stronger and more impactful measures to counter biodiversity loss and improve climate change mitigation, which is hugely encouraging. “I think there is cause for optimism, but only if it’s matched with a proactive response. We can’t be optimistic and do nothing. That’s one of the powerful messages of the IPCC report: time is running out and we need to act now. If we can drastically reduce GHG emissions and continue coffee crop development, there is every reason for optimism.” If we don’t, WCR’s Long warns the consequences will go beyond coffee. “The ramifications of not taking immediate action are huge for everyone, on global trade, effectiveness of ports, and especially for producing countries making impossible choices in allocating limited resources. There are huge trade-offs between repairing infrastructure versus health systems versus education – moving coffee will not be a problem most are worried about, it will be saving lives,” Long says. “Having no coffee to drink will be the last of our problems.” G C R

Credit: Frederick Hornung / Shutterstock.com

issue. Consuming and industrialised countries are the primary sources of emissions, and we need to think systemically and mobilise publicprivate investment for emissions reduction,” Long says. “Businesses can individually work to reduce their own emissions and everyone has to play their part, but there are systems in place that facilitate and privilege the use of fossil fuels, from tax and industry structures to how roads are built. We need to rethink how we use things, which we have started to do as a result of COVID and, hopefully, we can take those learnings and change the way we live and travel.” Logistics and transportation are key issues impacted by the coronavirus pandemic, which Long says will also need to be considered when adapting to climate change, with rising sea levels affecting port infrastructure and the ability to move products like coffee. Dr Davis adds that shipping and other transportation are also major contributors to

Urgent action is needed to address the impact of climate change on coffee and the world.

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PROFILE Hemro

Grinding for

GOLD

Mahlkönig’s X54 Allround Home Grinder is the brand’s first grinder designed for the domestic market.

MAHLKÖNIG’S NEWEST GRINDERS ARE CHANGING THE MARKET WITH ACCESSIBLE AND ADVANCED GRINDER TECHNOLOGY THAT IS SET TO EXPAND ITS PRESENCE IN AUSTRALIA AND SOUTH-EAST ASIA.

hen Hemro Group, a strategic umbrella organisation of four grinder brands first banded together 15 years ago, they did so on the spirit of innovation. It was this principle, combined with nearly 100 years of experience, that has seen grinding manufacturer Mahlkönig’s continued success. This year, Mahlkönig – translating to “the king of grinders” – is rounding out its grinding expertise with the launch of the X54 Allround Home Grinder into the domestic market. Providing commercial grade quality in domestic equipment, the X54 can produce the optimal grind size for all common brewing methods, such as espresso, AeroPress, v60, Chemex, and French Press. According to Mahlkönig, the X54 has a very long lifetime, roughly 25,000 grind cycles, before any

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burr changes are needed. To maintain grinding quality, the X54 relies on its German made, flat burr technology that is a unique selling point of the Mahlkönig brand. “We only produce flat burrs over the more economical conical burrs because [flat burrs] allow greater accuracy of particle size which increases the quality of the coffee extraction,” says Ziya Boro, Hemro Group’s Chief Sales Officer. “We’ve also invested substantially into stateof-the-art robotics at our factories to ensure that our premium burrs fit perfectly into any individual set of parameters.” The geometrics of each individual burr are measured after production to promote quality and reliability. Additionally, all Mahlkönig assembly lines contain a coffee ground particle measuring machine to ensure each batch of grinders produces a specific particle size, adding another level of assurance in grinding consistency and accuracy. The X54 has 54-millimetre sized burrs, formed from alloy and undisclosed “special steel”. “Besides its burr quality, the X54 is defined by its ability to move the dial between preselected grind settings, offering greater control in grind size,” says Ross Quail, Hemro Group Sales Director South Asia. “Even with four pre-grind settings, that fit most brewing methods, it was important for us to give home baristas this freedom. For the first time, they have everything they need without compromise.” As another innovative feature, the area beneath the X54’s grind chute can be swapped between a portafilter support or stainless steel Mahlkönig cup to gather the coffee grounds, adding to the grinder’s flexibility. On top of this, the X54 is made of aluminium to absorb higher frequencies, reducing the overall noise emitted to below 70-weighted decibels. With features like these making the athome coffee grinding process as convenient as possible, Quail expects the domestic segment to continue growing. “Particularly in South Asia and Australia, we see rapidly maturing markets where coffee is as important at home as it is in the café,” he says. In addition to the launch of the X54 home grinder, Mahlkönig has also set new standards for professional grinders in recent years. The

latest highlights include the E65S GbW with weight-based dosing as well as the high-performance espresso grinder E80 Supreme, both launched in 2019. ‘‘Until recent years, grind dosing was mainly based on time and therefore changing parameters caused dose-to-dose inconsistency and uneven extractions,” says Boro. “We saw this pain point and, in the spirit of innovation, designed the E65S GbW espresso grinder to identify a group handle by weight and dispense a pre-determined recipe.” Ultimately, Boro says that this feature saves baristas time because they no longer have to weigh the coffee for the desired volume manually. “Baristas can spend the extra time steaming milk or providing better customer service which is a huge trend in Australia,” says Boro. “For chains, this innovation means decreasing the time needed to prepare a cup of coffee, leading into a high-cost saving opportunity.” The E65S GbW’s advanced user interface also enables this time saving, in addition to the manual grinding function, which allows users to select up to six recipes through an easy-to-use dial knob. “Baristas may have six identical portafilters in front of them, but in reality, they differ by about two to 10 grams. The grinder can weigh those within a couple of seconds, and knows what recipe is required,” Quail says. “Mahlkönig is bringing up new technology that allows accurate measurements, but the brand also provides another facet by allowing customisable recipes which brings so much convenience to people.” The E65S GbW’s menu grants access to critical and time-sensitive Ziya Boro, Chief Sales Officer of Hemro Group. information such as the temperature of the grinder, particle size, and set weight of distribution. The push-and-turn button further allows baristas to fine-tune the dose profiles, check the dose expansion within Australia and its neighbouring counter, and access the service log. The E65S GbW uses 65-millimetre stainless steel burrs, stands markets of South-East Asia and China. at 58 centimetres tall, and holds approximately 1.2 kilograms of espresso beans. “All our grinders are designed to operate in “Mahlkönig’s German quality extends to the hoppers which are made from a special polymer high temperatures and the extreme environments material. They are virtually indestructible,” says Quail. “The grinder performs at a speed of 1700 often found in these markets, thanks to our revolutions per minute, meaning it can produce about 4.7 grams per second, matching any commercial burr quality, aluminium material that diffuses the heat, and advanced motor and ventilation barista’s needs.” systems,” says Ziya Boro. Another new technology is the Disc Distance Detection (DDD), found in Mahlkönig’s E65S “These markets are demanding quality for GbW as well as in the brand’s fastest grinder, the E80 Supreme. their products, and are increasingly willing to “Thanks to its superior motor, large 80-millimetre ‘special steel’ burrs, along with the smart double ventilation system, the E80 Supreme is the fastest grinder in its league, making six double invest in premium equipment, which the Hemro shots per minute,” says Boro. “This allows high volume cafés to perform good grinding quality even Group is ready to meet.” For Ross Quail, he is most excited by the during rush hours.” fast uptake he predicts to occur across the Asia With a successful Australian café consuming anywhere from 80 to 90 kilograms of coffee per Pacific. week, Mahlkönig is aware of the stress put on grinders. “The more coffee you grind, the higher temperatures you get inside the grinding chamber, “Within six to eight months, once these which affects the molecular shape of coffee particles and finally the quality in the cup,” says Boro. new Mahlkönig products have been further In addition to increased volume, the DDD inside the E80 Supreme increases grinding precision, established in our focus regions such as Australia, allowing baristas to set the distance between the burrs to an accuracy within three decimal points. we [expect to] see an influx of uptake in the “It allows companies to say, ‘well, even if I’m in Melbourne and you’re in Sydney, if we both have surrounding countries, such as Asia, that brings the E80 Supreme and the same coffee, go to this setting and use this recipe with this many grams, our brand closer to people on the ground,” he and it will produce the same coffee’,” says Quail. says. “It’s a privilege to work alongside such He says it’s this ability to use data to recreate a coffee that is particularly helpful in maintaining passionate professionals and we love seeing product consistency across chains and businesses. coffee being enjoyed by people everywhere.” G C R This data is easily presented in the E80 Supreme’s large 88.3-millimetre display interface gives the barista simple and easily digestible information that also assists with machine troubleshooting. For more information, visit With these new grinders globally launching in the past three years, Mahlkönig has set its sight on www.mahlkoenig.de or www.hemrogroup.com.

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AUTOMATION FEATURE

Cropster Order to Roast and eCommerce powers effective roastery operations CROPSTER ORDER TO ROAST AND ECOMMERCE SOLUTIONS CREATE CONNECTIONS ACROSS A COFFEE ROASTING BUSINESS, FROM POINT OF SALE RIGHT THROUGH TO PRODUCTION PLANNING AND OPERATIONS.

ccording to industry veteran Marcus Young, most coffee businesses he speaks to look very different to how they did two years ago. “Almost every coffee business – with some exceptions to the rule – fundamentally changed due to COVID. Many roasters focused on selling wholesale coffee – offering coffee in bulk five pound or two-to-three-kilogram bags – distributed to cafés and restaurants, with smaller retail orders worked around those. That changed when almost every café on the planet closed overnight,” Young tells Global Coffee Report. “The roasters that could adapt their sales and directly reach consumers were able to pivot and weather the storm. But it meant that their production processes fundamentally changed. Packaging a 2000-kilogram-roast day in two-to-three-kilogram bulk bags is much easier than packaging 1000 kilograms into 250-gram retail bags. It was important for roasters to have a system that could help them understand where those resources need to be deployed.” Coffee software solutions supplier Cropster’s Order to Roast feature captures information from coffee orders and converts them into flexible production plans. Whether the order is placed online, over the phone, or in person with a sales representative, it just needs to be entered into the system. This calculates what and how much green coffee needs to be roasted to deliver the order. After nearly 20 years in coffee working in roasting, retail cafés, and green coffee in the US and East Africa, Young joined Cropster in July to help Cropster deepen its coffee and market knowledge. He says as part of an integrated roastery solution, with inventory and quality management built in, Order to Roast saves time, improves consistency, and reduces errors and admin tasks across the business. “When I’m talking to coffee roasters about Order to Roast, I ask them how long it usually takes each production day to gather orders, plan production, and put it in a system the roasting and fulfillment departments can use. The answer is usually anywhere from 45 minutes to two

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eCommerce enables roasters to funnel all orders through one channel, which Order to Roast can use to automate production plans.

hours. That manual planning is a huge drain on human resources. The time savings Order to Roast offers, creating a production plan that just needs a quick review, are significant,” Young says. “There can be three or more single origin coffees in a blend, so when manually calculating production, you need to calculate the percentage of each coffee in each blend, how much of each needs to be roasted based on weight loss percentages, and incorporate all of that all into a roast plan. It’s also easy to

make mistakes when manually entering that much information.” Order to Roast also offers businesses flexibility in what they offer and how they plan their production. “You can add orders to your production at the ninth hour, and it makes it possible to offer ‘flexible’ products on your website too, like a ‘Roaster’s Choice’ that rotates every week. As soon as those orders come in, Order to Roast communicates that to the green inventory management so they can stay on top of what it has in stock and when to arrange new orders and samples,” Young says. Order to Roast features direct integration with online shops like Shopify or WooCommerce, as well as Cropster’s own full-feature business-to-business (B2B) wholesale and consumer retail shop solutions. This means orders placed online are directly fed into Order to Roast without the need for manual entry. “The demand when we launched the wholesale shop was tremendous. When I came onboard, we had a significant waiting list of customers to work through. We’ve now caught up, but it’s still keeping us busy fielding calls, providing demos, and assisting with shop setups,” Young says. “Coffee has seen the success of eCommerce in the business-to-consumer (B2C) realm for a long time now. During COVID, selling coffee to customers online was a major boost to companies that were well established there. But there’s been a gap in where to gather your wholesale or B2B orders in one centralised location.” Traditionally, Young says coffee roasters have received orders from a number of sources and it can be a challenge to aggregate them all. eCommerce solves that issue by having orders flow in through one stream and portal, even if the client prefers to stick to traditional ways of ordering. “A roaster can now provide their wholesale customers with a simple online ordering portal. But because change can be difficult for some businesses that are used to ordering their coffee in a certain way, for example, a bakery that’s placed an order vie email every Tuesday morning for the past few years,” Young says.

“If they prefer to still call, email, or text, they can. Customer service at the roastery would enter their order the webshop for them, so it’s still within the ecommerce ecosystem which then means it’s fed through Cropster in a really seamless way for the production team.” Cropster simply needs a list of the roaster’s products to setup the B2B online store, which it can then integrate to many existing accounting, shipping, and fulfillment systems. Coffee roasters can customise the webshop with their own logos, colours, or additional information on the included products. “Time is the greatest resource for most companies, and many just haven’t had enough time to invest in developing their own robust eCommerce system, and those that have usually focused on B2C channels. Wholesale has different challenges, and we’ve made it so quick and simple for roasters to introduce an online store,” Young says. “We’ve seen a lot of folks come on board that feel like it’s freed up their customer service staff to actually spend more time on the customer, instead of just taking incoming calls and manually pushing orders into the system.” Cropster’s eCommerce solutions have attracted customers across a range of sizes and areas of focus, which Young says makes it hard to define a target demographic for the service. However, a trend he notices in customers is a desire to facilitate growth and enter new markets and business channels. “It’s a solution that’s affordable and works well for companies that are just getting started, maturing businesses focused on bringing on more wholesale accounts, and established roasters who see the benefit in an off-the-shelf solution to streamline their complex production planning,” Young says. He adds that eCommerce will continue to become more robust and an even bigger part of the coffee industry, and Cropster will continue to advance its digital services and solutions to match. “We’re just at the beginning of the eCommerce solutions Cropster will offer, with the first version of this product already working for a lot of people,” Young says. “Businesses that roast to order are the ones making the best use out of Cropster eCommerce and Order to Roast for now. So, we are focusing on developing feature-rich systems that also cater to companies that roast against set inventory levels.” Cropster will also develop more robust reporting, tailored to people with different roles in the production room. “From my perspective, the core of eCommerce is the ability to link an online store directly to your production, to synchronise those orders and aggregate them into what the folks working in production actually need,” Young says. G C R For more information, visit www.cropster.com

Cropster’s eCommerce and Order to Roast feature can be integrated with software systems across a coffee roaster’s business.

N OV E M B E R /D EC E M B E R 2 0 2 1 | GCR

AUTOMATION FEATURE

A coffee opera BEAN ADAPT TECHNOLOGY AND OTHER INNOVATIONS ARE KEEPING DE’LONGHI AT THE FOREFRONT OF THE DOMESTIC MARKET FOR SEMIAND FULLY-AUTOMATIC COFFEE MACHINES.

hen developing a machine for the home market, De’Longhi says it needs to be three things: high quality, flexible, and easy to use. Using Bean Adapt technology, the manufacturer ticks all three boxes. “The general consumer is becoming highly educated when it comes to coffee, and with so many people around the world working at home, they want to replicate the experience from their favourite café,” says Cheryl Bosworth, Product Trainer at De’Longhi Group. “Bean Adapt technology simplifies the set-up process, providing customers with an amazing starting point so they get used to their machine faster and aren’t going through kilograms of coffee to find the right recipe.” Bean Adapt technology is available in two of De’Longhi’s flagship machines: the manual La Specialista Maestro and the automatic PrimaDonna Soul. The PrimaDonna Soul automatically adjusts the machine’s grind setting, dose size, and water temperature, based on the coffee used, following optimum settings identified by De’Longhi.

The PrimaDonna Soul is the latest premium fully automatic machine from De’Longhi.

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As a manual machine, the La Specialista Maestro provides these settings as a reference point the barista can alter to achieve their desired result. Coffee drinkers can then access those parameters via the De’Longhi app and are guided in how to adjust them to create their own personalised coffee experience. “De’Longhi conducted extensive research and surveys that found grind, dose, and temperature as the three most challenging elements of coffee making for home consumers. They will often change all three of these things at once without understanding how each is impacting the coffee,” Bosworth says. “With Bean Adapt Technology, it’s easy for them to gather information on their favourite coffee, like the roast level or type of bean, then pop that in the app and have the machine adapt its settings to suit. These parameters aren’t just pulled out of thin air. They’re based on numerous taste and sensorial tests carried out by coffee scientists to ensure we could identify the best starting points for most coffee blends, beans, and roast levels.” For people who want to be more involved in the coffee making process, the La Specialista Maestro allows them to experiment with these settings to understand how they impact the end cup. In the PrimaDonna Soul, operators benefit from the automatic increase in simplicity and quality. In both machines, De’Longhi’s LatteCrema milk texturing system complements Bean Adapt, providing the same automatic quality control over milk that it does for coffee. The La Specialista Maestro also offers manual milk texturing as well for a more artisanal approach. “Some people just want to get to a good cup of coffee fast, while others want more

The La Specialista Maestro uses Bean Adapt to create a reference point the barista can alter to achieve their desired result.

control. The beauty of the Maestro is that it caters to both. Not everyone knows how to froth coffee, and you don’t want to keep having to ask ‘the barista of the house’ to do it for you,” Bosworth says. “There will always be people who love the manual coffee making process and will want to change settings and explore what’s possible. With the technology in the Maestro, it’s easy to explore how different settings will change the coffee, like altering the temperature or finetuning the grind.” The fully automatic PrimaDonna Soul offers much of the same functionality but is geared more towards people that just want to get a good cup of coffee quickly. “I have been in coffee for 25 years, and some mornings when I’m in a hurry I just want to press a button and get my coffee quickly. Or if you have a friend over, you want to be able to talk to them and not have your head down thinking hard about the coffee you’re making,” Bosworth says. “That’s what De’Longhi is all about – making beautiful coffee moments for people, whether that’s enjoying coffee at home with

friends, roommates, or family.” Since early 2020, De’Longhi has seen a massive surge in interest for domestic coffee machines, and with more people making coffee at home, Bosworth says it’s even more important they be intuitive and easy to use. “I hear stories from customers all the time about how their kids will make them a coffee, as well as a hot chocolate for themselves. The coffee machine is becoming a family product, that everyone in the household needs to be able to use to justify the purchase,” she says. Thanks to technology like Bean Adapt and LatteCrema, Bosworth adds that the conversations she has with customers have evolved from being about basic techniques to the finer points of coffee making. “Most of the questions have traditionally been like ‘how hard should I tamp?’ or ‘what settings should I put the machine on?’, which limits the conversations that can occur,” she explains. “Automation has already answered many of those questions for them, so we can discuss more about the coffee itself, what they like and why, and how to bring the best out of it or find similar coffees.” Consumer education will continue to be a key part of De’Longhi’s offering. In September, the manufacturer launched Coffee Lounge, a virtual platform where coffee lovers can seek information and advice on their machine or connect with local roasters. “As a barista making hundreds of coffees per day, it becomes quite a fast process. At home, it is more of a hobby and can be done much slower, and the more we can teach people to make use of that time, the better,” Bosworth says. In Australia, the De’Longhi Coffee Lounge has partnered with several esteemed local specialty coffee roasters – including Industry Beans, Criteria Coffee, and Seven Miles Coffee Roasters – to host educational classes and provide access to their coffee. Similar Coffee Lounges and partnerships with roasters have been set up in key markets across Europe, with more countries and continents to come. “As a company that is always striving to innovate and make coffee more accessible for the consumer and enjoyable at home, it’s important we work with and be engaged with coffee roasters around the world,” Bosworth says. “The feedback we receive from these roasters and our customers goes right back to HQ to help develop new machines and technology that caters to consumers’ wants and needs.” Other key innovations to recently join Bean Adapt and LatteCrema include sensor grinding technology, active temperature control, dynamic pre-infusion, a smart tamping station in the Maestro, and Wi-Fi connectivity to the De’Longhi Coffee Link app. “As a Product Trainer for De’Longhi Australia, it’s really exciting to first hear these ideas and innovations then watch our design team bring them to life in new machines,” Bosworth says. “Many of these innovations are present in both the semi-automatic Maestro and fully automatic PrimaDonna Soul, but they work differently on both machines to help you create an enjoyable specialty coffee experience and excellent cup of coffee.” G C R For more information, visit www.delonghi.com

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AUTOMATION FEATURE

The road to integrated coffee competence FRANKE COFFEE SYSTEMS DISCUSSES HOW IT USES AUTOMATION TO CREATE INNOVATIVE BARISTA TOOLS THAT CONSISTENTLY ACHIEVE HIGH IN-CUP QUALITY AND THE PERFECT CUSTOMER EXPERIENCE.

or Mirza Bilalic, Product Marketing Manager of Franke Coffee Systems, the term coffee competence refers to the ability to consistently create an excellent cup of coffee. Having the right machine is intrinsic yet building coffee know-how is the crucial ingredient. To accomplish this, Franke has a Research & Development team dedicated to designing algorithms and technologies that can reproduce exact parameters for coffee flavour, profile, and aroma. Once developed, these Franke Coffee Technologies are programmed in Franke’s fully automatic professional coffee machines to ensure the same high standard of coffee is consistently achieved.

INTELLIGENT ESPRESSO EXTRACTION Franke’s iQFlow is one such technology to evolve from the R&D team. The fully automatic espresso extraction technology is unique to the industry and proven to produce consistent espresso shots and flavour profiles. In real time, iQFlow monitors and manages brewing times, correcting fluctuations by adjusting the interaction between control valve, software, and flow meter. The technology is available on Franke’s A600, A800, A1000, Specialty Beverage Station SB1200, and S700 coffee machines. “Through the automatic adjustment of the needle valve, a consistent, high pressure is maintained across the extraction process, which guarantees that water is distributed evenly over the coffee puck, creating an even extraction,” says Bilalic. This automatic function means each extraction is less influenced by the natural tolerances of the coffee blend on the system. “This improves the end-cup quality because it is able to take into account process variables, or changes in pressure, recorrecting them so every cup of coffee meets the exact, pre-determined extraction time, creating that perfect cup of

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Franke’s iQFlow technology creates consistent high in-cup quality and aroma with every beverage.

coffee — and moment — every single time,” says Bilalic.

ONE COFFEE BLEND, A VARIETY OF AROMA PROFILE VARIATIONS “Franke machines can re-create several aroma profiles from just one coffee blend, using the iQFlow process to alter the extraction time and amount of coffee added,” Bilalic says. “This is pretty amazing as other manufacturers often mix two coffee blends to create the same variety of

Valve to react on different milk foam varieties, from full fat dairy to vegan. The Air Pulse Valve tailors the milk foam to match the espresso-based beverage profile by controlling the air during the foaming process. The more the valve pulses, the more air is integrated into the milk, increasing the volume, and changing the desired foam texture. “By learning how to control the variables of air volume independently of milk type, yet in keeping with the espresso profile, we can offer Franke customers a range of unique coffees, all perfectly extracted and foamed, which to me, reflects true coffee competence,” says Bilalic.

AUTOMATED MACHINE CARE

Franke’s FoamMaster technology can create hot or cold milk and milk foam.

coffee profiles that one Franke machine offers.” With Franke coffee machines able to hold up to three coffee blends in one machine, Bilalic says the variety of specialty coffees and customisable orders are endless. To create an iQFlow profile for a particular coffee, customers first identify the desired aroma and taste they envision for their business. Franke’s advanced development team then conducts a series of trials to determine which aroma variation will achieve this flavour profile, testing the different blends with varied extraction times. “Once the perfect profile has been created, we simply program the configuration in combination with iQFlow, and all the customer has to do now is approach the machine, be guided by the easy-to-use, touch-screen display interface, touch the button, and re-create this particular coffee,” says Bilalic. “It’s always a fantastic feeling to experience a coffee roaster’s response when they realise how much aroma a Franke coffee machine is able to extract from just one blend, every time.” He adds that iQFlow can increase business profit per cup through calculating the exact resources needed to consistently produce a quality cup of coffee. Costs are saved when coffee resources are optimised.

INNOVATIVE BARISTA TOOLS Completing the high in-cup quality coffee profile is Franke’s advanced milk system the FoamMaster, which Bilalic says was born from the desire to replicate “café” quality coffee styles. Available on Franke’s Specialty Beverage Station (SB1200) and across its entire A-Line, the system uses the brand’s patented Air Pulse

Bilalic says creating coffee competence also relies on machine maintenance. As such, Franke’s professional coffee machines can be integrated with the fully automatic CleanMaster hygiene system that includes a cleaning cartridge designed to pre-dose detergent and hot water through the system. “A clean machine is crucial for the best in-cup quality, because there is no build-up of oils or coffee residue to influence the taste of the end product,” Bilalic says. He adds that Franke continually invests in automating innovative barista tools like these to better meet client demands for quality with customisation. “Baristas need to focus on their customers. Rather than manually performing each step, our Franke Coffee Technologies provide reliable support for the barista. Consistency is ensured, tailored to the exact same brew time, and foam parameters that are met every time, thus reducing and removing external factors that impact end high in-cup quality,” says Bilalic.

GREATER REMOTE CONTROL WITH FRANKE TELEMETRY For businesses which function as a self-service venue or have few or no staff, Franke has developed its own Digital Services telemetry system that supports them in their goals for success through consistent high level in-cup quality. “Each Franke machine has its own dashboard, which can be accessed through the brand’s platform or phone app. [The operating staff] receives instant notifications if any resources are low, if the milk is outside the temperature range they have set, or if any internal change or ‘event’ is impacting productivity,” says Bilalic. “These dashboard solutions are all stored in the cloud and provide businesses with assurance that the machine is delivering quality in every cup.” Bilalic adds that Franke Digital Services enables more than just allowing businesses to stay on top of machine performance. The telemetry system also gives them control to alter the programming on any machine from any remote location. “With our bi-directional system, business owners can run campaigns, change their menus and beverage offerings, and update their machine to the latest software, all remotely from their phones without any technical support,” says Bilalic.

TEAMWORK “Our technicians are an essential part of how we can bring support to partners and customers,” says Bilalic. “They provide training, helping to create recipe or operator menus that support the customer’s business and staff where they need it.” He adds that Franke Digital Services capabilities, intuitive user-friendly interface, and targeted technical support provides an easy pathway for businesses looking to introduce and manage unmanned coffee bars in a post-COVID era. Together, these services allow greater, faster control of machine function while providing engaging customer service. “Through continuing to evolve as a business and advance our automation with innovation, we will continue to help our partners stand out from the crowd,” says Bilalic. “Even in the most competitive of environments with to-go coffee increasing in popularity, Franke partners can be sure their customers are receiving the best service and highest in-cup coffee quality possible. And we’re proud of that.”G C R For more information, visit coffee.franke.com

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AUTOMATION FEATURE

Top of the class MELITTA PROFESSIONAL IS RAISING CONSUMER EXPECTATIONS ON THE QUALITY AND VARIETY OF MILK TEXTURES THAT AUTOMATIC COFFEE MACHINES CAN OFFER WITH ITS XT-RANGE AND THE TOP FOAM MILK SYSTEM.

ith age brings wisdom, and total solutions provider Melitta Professional carries more than a century of global coffee knowledge. Melitta was created in 1908 when founder Melitta Bentz invented the modern filter paper to remove coffee grinds from the beverage. In the out-of-home sector, Melitta Professional has expanded its portfolio to offer fully integrated solutions that meet new consumer demands and desires. Its successful innovation, the Top Foam system, with the ability to customise milk options, is one such example. Sven Eikelmann, Product Manager at Melitta Professional, says the popularity of milk-based coffee beverages has skyrocketed over the past 20 years. “Consumers don’t just want more coffee types, be it a flat white or a chai, they want options in the type of milk they can use, dairy or plant-based, in the textures this milk creates, and whether it has hot or cold foam,” says Eikelmann. To create its Top Foam milk system, Melitta has built upon its Cafina XT fully automatic coffee machine range. Entry models Cafina XT4 and XT5 use Melitta’s standard milk system which relies on its foaming technology using a milk pump and steam to produce hot and creamy milk foam. Users of these models are also given the option to froth milk manually using a separate barista-style steam wand, and can dispense warm or cold fresh milk. “Above the standard milk system, used by XT4 and XT5, our XT6 model sets a higher level, using the Professional Milk System. This automated the process of steaming milk to produce fine, pourable microfoam that is barista quality,” says Eikelmann. “We also introduced a homogeniser Melitta’s milk systems help baristas to create beautiful latte art.

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that helps to stabilise different milk types, even at high temperatures.” Another advancement in this system is its ability to produce cold milk foam through the same valve technology used to add air into the milk. “This opened the door to a new range of cold beverages that, especially in Asia and countries with hotter climate, is very popular,” says Eikelmann. While these models successfully meet the B2B segment’s demand for a high volume, quality-driven, and customisable machine, Melitta drove onwards, creating the Cafina XT7 and its “bigger sister”, the Cafina XT8. It was here that Melitta’s newest and most innovative milk frothing system, the Top Foam system, was created. Eikelmann says with this system, the brand has found a way to create its most stable, solid foam that holds its shape long after it has been created. “We developed a technology using a combination of milk pumps and advanced valves which indirectly heat the milk without steam. With no steam and water to dilute the milk, it creates a texture which is more superior, creamy, and stable,” Eikelmann says. “With traditional milk foaming, the barista will steam the milk and by the time they have delivered the coffee to the customer, the foam has already collapsed because of this injected water.” In addition to its texture, Stefanie Heidemann, Manager of Training and Market Intelligence of Melitta, says Melitta’s Top Foam system creates foam with a more intense flavour thanks to its indirect and steamless heating, which results in a stronger taste caused by the natural sugar in the milk foam.

This, combined with the pre-set moderate temperature used to warm the foam, results in a sweet tasting foam that is versatile in use. “It can be used as a topping or decoration for a drink because of its structure that allows it to sit like a bonnet on top, and it interacts well with the other milk textures, meaning there is no limit for the creation of flavourful drinks,” she says. Beyond taste and texture, Heidemann says one of the most recognisable characteristics of the Top Foam is the unique tactical sensation that results from the foam’s intense creaminess. This system can be added to the existing Professional Milk System which is available in the XT7 and XT8 models. With the dual milk system, which allows two types of fresh milk, consumers can choose between 12 different textures for any type of coffee. “These textures are the result of combining different foam consistencies and temperatures, produced by the two systems. We offer three different temperatures ranging from warm to very hot, two different foam consistencies, and two different milk textures,” says Eikelmann. “It can also store up to two different milk types, so customers have access to maximum beverage options from the touch of a button.” With demand for plant-based milk continuing to rise, the Top Foam Milk system is suitable for any dairy alternatives. The indirect heating method prevents fats in plantbased milk from splitting, which commonly occurs when exposed to high heat. The XT7 and XT8 also come with Melitta’s most advanced steam wand to date, the Steam Control Plus. Used as a manual or semi-automatic steam wand, this function saves consumers and baristas time through the ability to both prepare the espresso shot and froth the milk simultaneously. “By allowing baristas to manually froth and texture their milk, we are allowing greater levels of quality and customisation because these baristas can control the air they want to inject and the temperature of the milk,” says Heidemann. A sensor in the wand can detect when the milk has reached the perfect consistency and temperature. With this technology, users can create endless customised milk textures on top

Melitta’s Top Foam milk system produces milk that is creamy and stable with an intense flavour.

of coffee options offered by the dual milk systems. Instead of frothing manually, users of the automatic Top Foam System are able to create up to four different milk and milk foam types in a single recipe, with customers able to recreate this high-quality coffee at the touch of a button. “This means businesses can create high volumes of coffee that are consistent in milk quality and texture, every time,” Eikelmann says. Heidemann adds that whether one uses the Steam Control Plus or Professional Milk System, they are left with perfectly textured milk which helps baristas at any level produce beautiful latte art. “These milk systems help baristas and customers who don’t necessarily have latte art training to produce a high-quality cup of coffee, saving businesses training costs and time,” she says. To match Melitta’s technologically advanced milk systems, the XT7 and XT8 have an automatic Clean in Place system for cleaning the machine without any disassembly, and an automatic coffee quality system to ensure each coffee meets a consistent pre-set recipe. With data driven decisions another trend on the rise, these models are attached with the option to use digital solutions, offered by the web-based online portal Melitta Insights. Through its ability to check the functionality of coffee machines, monitor operating times, analyse usage, compile comprehensive reports, call up prepared serviceably statistics, and more, Melitta Insights can optimise business operations. “The quality of our machines is really there, and these systems make a world of difference with influencing the consumers choice of machines,” says Oliver Welschar, Head of Melitta’s Global Key Account Management and Exports. “Everything for us is about coffee, and as one of the only manufacturers with more than 100 years of experience, we have the knowledge, the understanding, and the empathy for the coffee lover, which to me, is something you can’t compare to others. It is what defines and drives our systems.” Welschar predicts milk foam quality will only become more important, especially from automatic machines with hygiene concerns and self-service on the rise. “And at Melitta Professional, we plan to be here, once again, to meet this industry demand,” says Welschar. G C R For more information, visit www.melitta-professional.com

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AUTOMATION FEATURE

Digital connection SCHAERER’S PRISMA API PROVIDES THE SAME LEVEL OF SOFTWARE CUSTOMISATION THE SWISS MANUFACTURER OFFERS WITH ITS AUTOMATIC EQUIPMENT.

ustomisation is crucial to coffee automation, whether it’s when the customer orders their drink or how the owner operates the machine. Swiss manufacturer Schaerer embraces flexibility when it comes to manufacturing its automatic coffee machines, and that extends beyond the hardware to the software it provides. Schaerer Prisma is an application programming interface (API), which allows a coffee business or operator to connect the coffee machine to their own apps, software, and systems, reflecting limitless possibilities. “Digitalisation follows the same story in every industry. The customer wants more information and to be able to monitor data, then once they have it, a way to action on it. This can range from creating entirely new business models based on data to supporting existing daily businesses, optimising areas like downtime by monitoring the reasons for it,” says Sandro Bianchi, Product Manager at Schaerer. “Schaerer has responded to this trend with several products and solutions, such as integrated payment solutions and a platform with about 90,000 connected machines online. This platform has a front end with analytics which a customer can use to monitor their business and we can use to create tailormade reports for them. Most importantly, we have built interfaces where customers can work with their own data, or like with Prisma, start controlling the coffee machine.” While many manufacturers and automatic coffee machines offer cloud-based API solutions – including Schaerer – Bianchi says part of what makes Prisma unique is that it is a local connection, providing a faster communication of data. “With a local connection you don’t need to worry about the latency you see with a cloud API, where it takes extra time for data to be sent to and from the coffee machine,” he says. “Faster communication with the coffee machine means, for instance, you can The Schaerer Prisma API allows a register and confirm payment at the coffee business to integrate their coffee machine machine in an unmanned store even before with their own apps and systems. the customer has left.”

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Schaerer’s APIs have been in use for several years, and Bianchi says Schaerer’s customers are growing creative in how they interact with their coffee machines. “Prisma came out of the need for the specific requirements of customers. Changing the base software to match a customer’s specific requirements takes a significant investment of time and resources,” he says. “Creating an API interface allows for that kind of interaction with the machine that is secure without any

impact on performance.” One of the most innovative uses of Schaerer Prisma has been a collaboration between Schaerer, a renowned Swiss customer, and two other collaboration partners. Their vision is of a modular store concept for food, drinks, and coffee, which could be setup in offices and run 24/7 without staff. The concept uses facial recognition to identify the customer and automatically process payment of their food and coffee. Schaerer’s coffee machine had to be connected to the facial recognition technology, as well to their own software, to facilitate this exchange. “The pandemic has changed society and the type of business models that are needed. It has pushed the need to embrace digitalisation and made automatic or unmanned transaction more appealing to people.” “It has also completely changed the way we work. People are heading back into the office, but it’s much more flexible than it used to be. They are starting earlier, later, or coming in after hours. For example, an IT person may need to come in at 10pm or 11pm to fix a problem and in the past, their only option for food or coffee was to bring it with them. This concept means their needs are met. Personally, it’s a solution I’d like access to some mornings and evenings.” Bianchi says. “We had a call on Monday where they asked if we could make this vision possible, and later that week we delivered the machines. Within two weeks, we had integrated their interface through Prisma and the machine was pouring coffee using their controls,” Bianchi says. “Every partner had their own task to accomplish, which could impact the others. The design affected the IT infrastructure, which influenced what was possible with Schaerer Prisma, and so on. Throughout the project, we also had to keep the customer involved. Despite this, it was quite an agile project with not a lot of meetings. After kickoff, we only required two alignments through the entire project, which wouldn’t have been possible without the huge amount of trust we all had in each other.” The unmanned store concept is set to be rolled out in 2022, after which Schaerer will continue to provide ongoing support and

Sandro Bianchi is the Product Manager at Schaerer.

collaboration. Bianchi says the support will go beyond traditional maintenance and servicing and will include new ways to improve the user experience. “We and our customer are already discussing how we can greater utilise the coffee machine’s screen to improve customer interactions and meet any other needs they might have,” he says. “Because the Prisma interface exists to integrate their own systems, the possibilities it enables are endless.” Another example Bianchi gives of how coffee businesses have integrated with the API is the use of loyalty programs, tracking customer orders and information, and providing incentives like a free coffee at a certain number of orders. Others allow customers to customise their coffee through an app before even arriving at the store, which produces a QR code the machine can scan to produce the beverage. “We are working with another customer to integrate their digital signage and media files into the display on the coffee machine’s screen. While producing a coffee, the machine holds the full attention of the customer for about 20 seconds, which creates a perfect opportunity for promotion or advertising,” Bianchi says. With the use of digitalisation only growing in the future, Bianchi says building on Prisma will be the key to Schaerer’s continued customisation. “We have several projects in the works that could be interesting for the market, but often, our developments are driven by customer requests. The ability to integrate their systems through our API will only be beneficial for their business,” Bianchi says. “Rather than generating static platforms, our focus is on developing not only Prisma but our cloud-based API to guarantee those interfaces will grow with those customers’ needs.” However, he adds best-in-cup coffee quality will always be Schaerer’s first priority. “More and more we need to handle the customers’ specific demands, and that is now possible with the Prisma API,” Bianchi says. “But this digitalisation is useless if our machines aren’t producing a coffee quality people don’t want to drink. Quality is the core of what we do and everything else rests on that offering.” G C R For more information, visit schaerer.com

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AUTOMATION FEATURE

Eye of the tiger TIGER COFFEE HAS LED THE ADOPTION OF COFFEE AUTOMATION IN AUSTRALIA, AND AS THE OFFICIAL DISTRIBUTOR OF EVERSYS IN OCEANIA, WILL NOW LEAVE ITS PAWPRINTS ACROSS THE PACIFIC REGION.

iger Coffee has been an Australian distributor of Swiss manufacturer Eversys since 2012, but the relationships between the people behind both companies extend much further. “[Eversys founder] Jean-Paul In-Albon and I first met 25 years ago in mid-1996. We worked very well together and his passing at the end of July [2021], was a true loss. He was exceptional when it came to technology and innovation in coffee machines,” says George Miller, CEO of Tiger Coffee. “When we sold our first Eversys machines in Western Australia, Jean-Paul came down to oversee the installation. Being so instrumental in the advent of automation in action, it was so beneficial to have him observe the market and we spent a good week together.” Before moving to Australia in 2008, Miller made a name for himself in the United Kingdom, founding First Choice Coffee in 1987. He says the coffee machine distributor was off to a slow but steady start, with a drastic rise in the late 1990s and early 2000s as large chains began to see the benefit of automatic coffee machines. “I started the business with nothing and ended up with one of the UK’s largest coffee businesses. We were handling all the installation, servicing, and sales for McDonald’s, Starbucks, and Greggs in the UK, and sold them thousands of machines between 1996 and 2006,” Miller says. “We had tremendous success in the noughties because we could clearly see that automation was about to boom in the UK. Across the region, the market really shifted from a traditional, manual environment to a high percentage of automatics in all sorts of channels – like convenience, petrol, cafés, hospitals, resorts, even schools. I could see something similar was going to happen in Australia. It wasn’t a question of ‘if?’ but ‘when?’” This journey was documented in the book Life in the Espresso Lane: The Entrepreneurial Story of George Miller and First Choice Coffee by Shirley Redpath. Miller sold the business in 2007 to focus on a new market and challenge in Australia. “I’ve had a long love affair with Australia, since first coming here in 1969. On the last page of the book, I ask the rhetorical question: ‘Is it possible to repeat a dream?’ Standing here now, with a substantial-size, well-respected, and nationwide business, I can say that yes, it is.” Since opening Tiger Coffee in the state of New South Wales in 2008, the automatic coffee machine distributor and service company has spread across Australia. “What really helped us grow was that first of all, we were committed to providing a responsive and excellent service across the Australian capital cities – Sydney, Melbourne, and Brisbane to begin with, then expanding the network into Adelaide and Perth,” Miller says. “Automation isn’t about replacing a barista. Features like two-way telemetry are unique

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George Miller is the CEO of Tiger Coffee.

online data analysis tools that allow for remote software integration, coffee profiling, and accommodating payment systems and contactless solutions. Tiger Coffee brings the sophisticated expertise needed to utilise the deeper technology behind these machines.” One of Tiger Coffee’s customers is the Coles Supermarket Group. The relationship began in 2012, when 200 self-serve machines were installed in Coles Express convenience stores and petrol stations. There are now over 1000 Eversys models in the supermarket chain’s grocery and petrol/convenience stores across Australia. “Just last week, for example, Coles wanted to add iced coffees to the menu as well as use the coffee machine’s screen to update on screen adverts while the customer selects their coffee. We carried out a software update across the whole fleet overnight without moving away from the laptop,” Miller says. “The ability to get 1000 machines across one region and fleet working precisely with

consistency and quality is an incredible feat. We’re solving a growing number of service calls just using telemetry live on a laptop, making a massive difference to overall costs and response times, which means reduced downtime, improved customer satisfaction, and the ability to extend our reach further than ever before.” Tiger Coffee established the New Zealand business in 2009. Now, in 2021, Tiger Coffee took its reach and relationship with Eversys to the next level, becoming the official distributor of the manufacturer to the entire Oceania region. This will include the launch of a new digital and social platform to support educational awareness of automation in action. Home to more than 14 countries throughout the Pacific Ocean, Miller says Oceania is primed to benefit from the products Eversys has to offer and support that Tiger Coffee can provide. “Countries like Tonga, Samoa, and Fiji have been underserved when it comes to coffee in the past, but they are also home to major resorts and hotel chains. People will look to get away from urban centres and take more remote holidays once they can travel, so we’re already seeing enquiries from hotel chains refurbishing, expanding, and constructing new four- and five-star resorts across the Pacific Islands,” Miller says. But it is not just hotels and resorts that need to consider their profitability. Miller says Tiger Coffee is seeing unprecedented demand from cafés in Australia, which have struggled through numerous lockdowns and closures and now require a more efficient way of doing business. With the quality and consistency Eversys can provide, he adds its equipment is perfect for this increasingly discerning and demanding market. “No one size fits all, and Eversys represents a range of machines and accessories, from the Cameo to the Enigma series, which meet so many requirements and market channels,” Miller says. “High volume cafés like Savour Café in New Farm Brisbane, which now average more than 80 kilograms of coffee every week were attracted to an Enigma Super Traditional model for several reasons including, consistency, speed, reliability as well as the

look and space saving abilities of the equipment.” The benefits of automation go beyond consistency and efficiency. Dairy alternatives are a booming trend in the coffee market, and Miller says an automatic machine can handle several milk varieties much more effectively than a single barista at volume, thanks to the undercounter 30-litre-capacity milk bladder fridge Tiger Coffee can offer. “Another recent trend we are seeing is clients focussing on commercial outcomes, and to that point, how to reset their coffee business model to reduce cost, improve productivity and consistency, and put less stress on weekly cash flow. They’re doing this by renting, utilising periodic repayment offerings and taking advantage of government initiatives including instant asset write-offs,” Miller says. From a sustainability perspective, Miller says automatic machines can use less electricity and water than say a manual machine which fluctuates throughout the day and wastage is reduced through greater control of the output. “When we installed the Eversys Cameo machines in Coles, they did the maths and told us that through the improved cleaning cycle alone, we were saving them one million litres of water per year, which is critical in a drought-prone country like Australia,” he says. While Miller predicts appreciation and understating of automation will grow in the coffee market, very few developments are required of the machines themselves, with the quality Eversys offers already matching or exceeding that of a trained barista, and a design aesthetic that suits the coffee bar. “Eversys is the most elite of manufacturers in coffee automation, that also include semiautomatic and manual functions which is an attractive point of difference to the old-style automatics. But it’s no use buying this advanced technology without elite service and maintenance to support it, and that’s what we at Tiger Coffee bring to the table,” Miller says. “People in coffee usually talk about automation in future tense, that it’s something that ‘will’ soon revolutionise the industry. What they don’t realise is that automation is not ‘coming’, it’s already here.” G C R For more information, visit www.eversysoceania.com Savour Café will have paid off its Eversys Enigma Super Traditional within 12 months, even with COVID-19 restrictions, due to the consistency, efficiency, and cost savings it provides.

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AUTOMATION FEATURE

Made in Germany WMF DISCUSSES THE ADVANTAGES OF GERMAN ENGINEERING, PROCESS EXCELLENCE, AND AGILE JUST-IN-TIME PRODUCTION.

espite strong international presence across the world, Geislingen-based manufacturer WMF Professional Coffee Machines has not lost sight of its German roots. Since 1927, its headquarters in southern Germany has been home to WMF’s entire value chain – from the initial concept to the design and production of machines, right through to packaging, delivery, and service. Alexander Schlee, Vice President Production Coffee Machines, says WMF embraces a proud and customer-centric “Made in Germany” philosophy. “Alongside our engineering expertise, the geographical concentration of the entire value chain at the Geislingen site provides a key competitive advantage and is the secret behind our agility and efficiency,” Schlee says. “Thanks to the close interdisciplinary collaboration between colleagues, we are able to implement solutions quickly, even in the case of complex requirements. Furthermore, we discuss changes to existing solutions as well as new developments and trends almost every day. As our production and assembly departments are literally on our doorstep and because we collaborate with many local partners, we are able to incorporate this constant flow of ideas into our work within a very short time.” WMF’s process begins with the customer defining their specific coffee machine configuration from a broad range of standard modules, which is then manufactured via a make-to-order production process. For every machine configuration, a production order is created automatically, and assembly is carried out in single batches. All of the key components required for the coffee machines are preproduced, preassembled, and delivered to the final assembly line on a “just-in-time basis” to ensure that WMF’s production process is agile and efficient. In many cases, this is even done onsite, as preassembly and final assembly are located very close to each other. “In other words, final assembly takes the relevant assemblies from small buffers. If these buffers run low, preproduction reacts by producing and filling the buffers. This ensures that the right quantity is always produced while keeping delivery times short and stocks low,” Schlee says. WMF’s preproduction focuses on turned parts such as grinder disks, plus around 3000 different sheet-metal parts for various functional and design elements. At the end of the value chain, intensive quality assurance is carried out before the housing is added to the coffee machine and it is packaged ready for delivery. “To ensure that our products deliver on the promise ‘Designed to Perform’ in real life and on a sustained basis, WMF coffee machines must be able to adapt to any customer situation,” Schlee says. “If we used make-to-stock production instead of just-in-time, it would tie up huge operational and infrastructural resources for one thing. For another thing, we would always have to have products available in huge quantities to ensure that we had the right assemblies in stock for every customer configuration. We are able to avoid these disadvantages by using a fully demand-based workflow control process based on the Kanban principle.” Kanban is a method of production process control oriented to the actual consumption

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Alexander Schlee is the Vice President Production Coffee Machines at WMF.

of materials at the supply point and place of consumption. This makes it possible to reduce local stocks of preliminary products in and near production, which are then used in products of the next integration stage. “For us, the key question is: ‘what is the best decision for the product?’ Quality and rapid availability of parts are undoubtedly the top priorities, but it is also important to consider the total cost of ownership. In practice, this is manifested in a stable network of largely European, German, and regional suppliers,” Schlee says. “Many of our regional partners deliver to our just-in-time production process

several times a week, or even daily in some cases. These tightly scheduled delivery times allow us to plan on a short-term basis and enable dynamic development processes. We are fast, agile, and efficient, with no large stock volumes or lengthy response times. Particularly in the current situation, where international supply chains are grinding to a halt due to the pandemic and materials such as plastic, stainless steel, and electronics are running low, we have a clear market advantage and can continue to pursue our strategy of customer proximity without any major stumbling blocks.” The greatest challenge Schlee identifies of WMF’s customer centricity is supply chain management. “At the end of the day, it is only worth running a site if it is operating at high capacity and producing products efficiently – including with the minimum acceptable stock levels. In the case of make-to-order production, this benchmark can develop into a planning tour de force,” he says. “Process excellence with regard to planning and logistics is without doubt just as important as the actual technological expertise when it comes to long-term market leadership. What’s the point of developing the most innovative machine in the world if

you can’t deliver it due to a lack of parts? And with 600 to 800 individual parts per machine, this can be a real challenge.” Another core component of WMF’s in-house production is its software development, from machine control, telemetry, and analytics to modern payment and IoT concepts. “Meanwhile, other components, such as those in the fields of electronics or injection moulding, are procured from the relevant specialists… on both a national and an international scale. This ensures the perfect mix of in-house production and external procurement for the products and for our customers,” Schlee says. Despite WMF’s localised production, Schlee adds the manufacturer is not hindered by growing globalisation and digitalisation. In contrary, he calls it an advantage. “In order to realise our strategy of customer proximity on a global scale, we need to be networked with our customers and suppliers around the world. Digitalisation and market integration help us enormously,” he says. “This does not conflict with the ‘Made in Germany’ philosophy. [Our] central innovation and production processes are concentrated at the Geislingen site, and country-specific adaptations in terms of design, models, functionality, serviceability, or delivery times are what allow us to achieve international success.” Back on the shop floor, Schlee says digitalisation is providing WMF with greater data availability and automation than was possible before. “We have already applied the principles of automation to large parts of our preproduction. Further concrete planning regarding partial automation will focus on the machine start-up and inspection processes. In preassembly and final assembly, the potential for automation is fairly low as we are not a mass producer and also have many variants,” Schlee says. “We intend to step up our efforts to leverage the benefits of data availability with regard to all aspects of paperless production including transparent, end-to-end quality data, and real-time key figures. Furthermore, an interdisciplinary project team is working to establish transparent data flows with no media disruption between all supply chain participants – with the aim of using digitalisation to make the world of logistics a simpler place.” G C R For more information, visit www.wmf-coffeemachines.com

WMF has been based in Geislingen in southern Germany since 1927.

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WHAT’S BREWING? Industry appointments COFFEE PEOPLE AROUND ON THE MOVE THE GLOBE

WHAT’S BREWING? A WRAP UP OF THE LATEST APPOINTMENTS IN THE GLOBAL COFFEE INDUSTRY.

Cory Bush – Chief Executive Officer, Beyers Koffie After 25 years, Marco Ciaramelli will be handing over his duties as Chief Executive Officer of Beyers Koffie and its subsidiary companies to Cory Bush, effective from the end of December 2021. Bush joins Beyers as its CEO after serving as Managing Director of Sucafina in Belgium and Complete Coffee Limited in the United Kingdom and is expected to bring a focus on sustainability and innovation to his new role. “I would like to thank Marco for turning Beyers Koffie into the world-class coffee company it is today. Together with the team, I will continue taking coffee further by adding premiumisation options and new approaches to the private label coffee world via its efficient and flexible manufacturing plants in Belgium and Italy,” says Bush.

Leo Tsoi – Chief Executive Officer, Starbucks China Starbucks has announced the promotion of Leo Tsoi to Chief Executive Officer of Starbucks China. Serving as Starbucks China’s Chief Operating Officer and President of Starbucks Retail for the past five years, Tsoi has led efforts to grow Starbucks footprint across the Chinese mainland to 5200 stores across more than 200 cities today. “Leo has relentlessly pushed the envelope on innovation in China where customer loyalty and love for the Starbucks brand is unmatched,” says Kevin Johnson, President and CEO of Starbucks. “I have great confidence in Leo’s ability to continue building the relationships we have with our Chinese customers through our rapidly growing store footprint, market-leading digital ecosystem and customer engagement, and robust innovation pipeline.”

Martin Zouhar –Executive Vice President SEB Professional PCM and Hotel, WMF On 1 September, Martin Zouhar was appointed WMF’s new Executive Vice President SEB Professional PCM and Hotel and is now responsible for WMF’s coffee machines and hotel businesses. Zouhar will manage brands within the professional business, including WMF, Schaerer, Curtis, and HEPP. As a member of the WMF Executive Leadership Team, Zouhar will report directly to Oliver Kastalio, CEO of WMF. “I am delighted that we have gained Martin Zouhar, a proven strategist with a great deal of experience in the international arena, whom I know well and hold in very high esteem from my work on the Executive Committee of Groupe SEB,” says WMF CEO Oliver Kastalio.

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Shelley Broader – Board of Directors, Dutch Bros Coffee Serving in a range of executive-level roles with more than 13 years’ experience as a public board member, Shelley Broader has been appointed to the Board of Directors for drive-thru coffee chain Dutch Bros Coffee. Broader has led a variety of multinational brands across the sectors of mass retail, apparel, grocery, banking, and wealth management, at companies such as Chico’s FAS and Walmart International. “Dutch Bros is an exciting, fresh brand that truly resonates with its customers and strives to exceed their expectations,” says Broader. “I have a passion for fast growing companies with an energetic, inclusive culture built on customer excellence, product innovation, and digital transformation. I look forward to continuing that work with Dutch Bros.”

Brad Pitt – Global Brand Ambassador, De’Longhi De’Longhi has launched its first international campaign directed by Oscar-winning Director Damien Chazelle and featuring new global brand ambassador, Brad Pitt. The domestic coffee machine and appliance manufacturer says the acclaimed actor’s passion for coffee combined with a love for architecture, design and art, positions him as the perfect ambassador and somebody who truly mirrors the De’Longhi brand itself. “To me, coffee is not just a drink. It creates connections, it allows you to carve a moment for yourself; to pause and enjoy the moment. I find this ability to stop, appreciate the moment and life in general – to be typically European and to me – truly inspiring,” Pitt says.

Waheed Zaman – Board of Directors, Farmers Brothers Waheed Zaman, CEO of W&A Consulting, has joined the Board of Directors of American coffee roaster Farmers Brothers. Previously Zaman served as Senior Vice President, Chief Corporate Strategy and Administrative Officer at the Hershey Company where he updated the brand’s corporate strategy and leveraged technology to improve decision making and operational perception. “Waheed brings operational expertise and deep knowledge of technology and cyber security to the Farmer Brothers Board of Directors team,” says Deverl Maserang, CEO of Farmers Brothers. “We’re excited to work with him and leverage his leadership and technical expertise as we continue to drive integration and organisational efficiencies across our nationwide operations.”

DO YOU HAVE CAREER NEWS TO SHARE? EMAIL ETHAN MILLER AT ETHAN.MILLER@PRIMECREATIVE.COM.AU

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DIARY Dashboard COFFEE COFFEE AROUND AROUND THE THE GLOBE GLOBE

GLOBAL COFFEE EVENTS

CAFÉ SHOW SEOUL

SEOUL, KOREA

10 – 13 N OVE M B E R Café Show Seoul is Asia’s largest business platform held annually in November, stimulating and supporting the global coffee and food and beverage industries and culture. Café Show Seoul presents unique values and opportunities by providing integrated and dynamic experiences in business, knowledge and culture. Cafe Show Seoul is a “must-attend event” of the industry. www.cafeshow.com

THAIFEX-ANUGA ASIA

BANGKOK, THAILAND

24 – 2 8 MAY Thaifex – Anuga Asia boasts 11 trade shows under one roof, connecting the food and beverage ecosystem within one show. The Coffee & Tea trade show is a one-stop trade show from beans to equipment, and leaves to cup, underscoring the robust business opportunities in this segment. This segment covers coffee beans, pads/ capsules, instant hot beverages and syrups, tea, cocoa, and coffee machines, brewing systems, table tops, grinders, tea-brewing appliances, and roaster. www.thaifex-anuga.com 54

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SCAJ WORLD SPECIALITY COFFEE CONFERENCE AND EXHIBITION

TOKYO JAPAN

17-19 N OVE M B E R SCAJ2021 is one of the largest specialty coffee exhibitions in Asia and is a worldwide event which attracts buyers from the specialty coffee industry from over 40 countries and regions to come for sales discussions and to attend exhibits of high quality coffee beans, advanced coffee making equipment, and various products related to specialty coffee. scajconference.jp

WORLD OF COFFEE WARSAW, POLAND 23 – 25 JUNE 2022 Travelling to a different European city each year, World of Coffee is the essential event for coffee professionals – drawing a loyal audience from the global specialty coffee community. Organised by the Specialty Coffee Association, this year’s event features Exhibitor Halls, the World Coffee Championships and so much more. www.worldofcoffee.org

SIGEP 2022

RIMINI, ITALY

22 – 2 6 JAN UARY Sigep is a world leading B2B show dedicated to the dessert-andcoffee foodservice Industry. Returning to its physical form, SIGEP 2022 will be a unique opportunity to discover the new scenarios related to the momentous change of the Out-of-Home sector and how this transformation will revolutionise the way we do business, both for companies and all professionals working in the sector. sigep.it

MELBOURNE INTERNATIONAL

COFFEE EXPO 2022 MELBOURNE, AUSTRALIA

27-3 0 S E PTE M B E R 2 022 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 tradeoriented event to network and do business. MICE2022 will host the 2022 World Barista Championship. www.internationalcoffeeexpo.com

SPECIALTY COFFEE EXPO BOSTON, UNITED STATES

7 – 10 APR I L The Specialty Coffee Expo was designed to be the coffee professional’s one stop shop for everything they need to succeed in the coffee industry. As the industry’s standard setter, the SCA has built a solid reputation over the last 30 years of providing the most up to date, qualified information and providing members the tools to succeed. coffeeexpo.org

TRIESTESPRESSO EXPO

TRIESTE, ITALY

27 – 2 9 O CTO B E R Triestespresso Expo is an exhibition designed for international coffee industry professionals. The biennial trade fair devoted to espresso is held in Trieste, Italy, a city with a long tradition and a rich expertise in the coffee sector, since coffee has been a fundamental part of its trade exchanges and its artisanal and industrial expertise for more than 300 years. triestespresso.it

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PRODUCTS Marketplace

CAMEO ST GOLDIRIS At Eversys, machines can be custom designed upon request to reflect a customer’s brand in look and feel. The Cameo/ST GoldIris is an illustration of what can be achieved – the perfect blend of luxury, high tech, and craftmanship. The Cameo/ST has the same functionality as the Cameo/Classic with the addition of Eversys’ Super Traditional design, creating an authenticity that is on par with age old traditions. The Cameo/ST GlodIris’ side panels are enhanced by a multi-layer surface treatment that allows its faceted shape to sparkle like gemstones. The base’s golden hue is strengthened by the presence of special pigments that create a subtle ‘iris-like’ effect, ranging from emerald to topaz. These sculptural sides are contrasted by carbon fibre, used on the face, drip tray, and back panel. Just like the Cameo/Classic, the Cameo/ST GoldIris can produce up to 175 espresso and 170 hot water products per hour. Like the Cameo C’2m/ST, it also comes with an integrated milk system, which create up to 175 cappuccino per hour. For more information, visit www.eversys.com

FRANKE INDIVIDUALMILK TECHNOLOGY Create vegan and dairy milk coffee beverages for your customers on the go, both from just one professional, fully automatic coffee machine footprint. IndividualMilk Technology from Franke Coffee Systems guarantees that each mindful milk choice, dairy or non-dairy, is prepared free of any and all cross-contamination and residues, from storage through to cup. Capture your share of the specialty coffee market and double the menu variety you can offer with this two-in-one solution from Franke Coffee Technologies. Available on both the standard and compact versions of the Franke Specialty Beverage Station (SB1200), IndividualMilk Technology prepares vegan and dairy beverages in one machine. Two separate FoamMaster systems prepare hot or cold milk for traditional coffee beverages, through to cold brew, iced coffee, or flavoured lattes. More variations are possible with iQFlow and the Iced Coffee Module. For more information, visit coffee.franke.com

MAHLKÖNIG E65S GBW Mahlkönig has revolutionised the process of espresso grinding with its new Grind-by-Weight (GbW) technology. With coffee shop owners always striving for consistent first-class product quality, Mahlkönig aims to meet this need by serving the customer an outstanding taste experience in every single cup. The E65S GbW makes this possible – and hence becomes the first choice for quality-aware professional baristas around the world. When you dose by volume or a preset timer, the chosen degree of fineness or the condition of the coffee can create fluctuations, resulting in unreliable extractions and taste experiences. Mahlkönig’s Grind-by-Weight technology always produces the perfect quantity required – ground exactly according to your settings. This is how the E65S GbW sets itself apart from other grind-by-weight models on the market. For more information, visit www.mahlkoenig.de

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MELITTA REMOTE COFFEE Even before 2020, hygiene was an important part of the catering trade. Thanks to Melitta Professional’s fully automatic cleaning system, the Clean in Place and its contactless selfservice called Melitta Remote Coffee, the brand can offer the best conditions for hygiene safety. Melitta Remote Coffee is easy to use. The screen on the coffee machine displays a custom QR code, which a customer then scans using their smartphone camera or QR code scanner. The drinks on offer are shown on their phone and customers can select their specialty coffee of choice. They then place the corresponding cup under the spout and start the brewing process on their own phone – without downloading or installing an app, and without touching the coffee machine screen. Melitta Remote Coffee is compatible with any up-to-date operating system and is available as a software update for fully automatic coffee machines from Melitta Professional with a telemetry module. For more information, visit www.melitta-professional.com

SCHAERER VIRTUAL SHOWROOM Swiss coffee machine manufacturer Schaerer is introducing a new Virtual Showroom. The browser-based, three-dimensional showroom allows visitors to view all machines and optional accessories in the Schaerer product range online. In addition to info texts, visitors will find detailed 3D models of the devices, which can be freely placed in real rooms using an augmented reality (AR) application. There’s more than just coffee machines on display in the Virtual Showroom. The unique coffee expertise of the Schaerer team also plays a central role in the innovative concept and is presented in an appealing manner. All visitors have the chance to experience and discover the comprehensive information on machine technology and coffee expertise, as the inviting presentation space can be explored with complete freedom, either with a mouse and keyboard or by touch control. For more information, visit virtual-showroom.schaerer.com/?region=en

WMF AUTO CLEAN WMF Professional Coffee Machines has launched WMF AutoClean – the industry’s first fully automatic solution for cleaning. Both the coffee system and milk system are cleaned in accordance with HACCP requirements without any external assistance. All of the time-consuming, error-prone cleaning tasks previously performed by the user are eliminated completely, and the input required from them is reduced to an absolute minimum. An integrated timer can be used to specify exactly when and at what intervals the AutoClean system should start work – everything else is taken care of by the machine. State-of-the-art components guarantee automatic feeding, dispensing and monitoring of the cleaning agent. By the time the first staff member arrives at work, the machine will already have started up, cleaned itself and be ready to go. AutoClean deals with all the necessary tasks after work as well. The system is available for the WMF 5000 S+. For more information, visit www.wmf-coffeemachines.com or contact PCM@wmf.com

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LAST WORD Lab-grown coffee

FROM GENE TO BEAN THE VTT TECHNICAL RESEARCH CENTRE OF FINLAND HAS BREWED THE WORLD’S FIRST CUP OF LAB-GROWN COFFEE THAT COULD PROVIDE A SUSTAINABLE AND ALTERNATE OPTION FOR COFFEE DRINKERS.

sing cell cultures to grow agriculture products is fast gaining momentum in the food industry. Already, cultured meat has been developed, protein has been produced by microbes, and now, a cup of coffee has been brewed from lab-grown coffee cultures. In a series of ongoing biotechnological experiments at the VTT Technical Research Centre of Finland, researchers took coffee cell cultures and cultivated them in labs. “In the past, researchers had extracted individual compounds for certain purposes, but before our study, no one had really looked into the overall composition of coffee cell cultures,” says Research Team Leader Dr Heiko Rischer. To create the coffee-like drink, Rischer says the coffee cultures had to first be “initiated”, with time spent propagating the material and allowing them to establish their cell lines. “This stage is typically the most work-intensive part, taking half a year to one year minimum to complete,” he says. At this stage, Rischer was surprised to find that the cultures contained roughly 20 per cent protein content — much higher compared to other respective plant cells — with most plants storing protein in their seeds rather than the flesh. “Once we had the culture, we transferred it to a bioreactor where we placed it in a liquid nutrient medium consisting of minerals and sugar. This stage only took a few weeks to complete, after which we harvested and processed the material,” Rischer says. “You can imagine it like a big pot of broth in a steel container. When we ‘harvest’ the coffee, the broth is taken out and filtered, and the grainy substance left is the end-coffee product. For us, it is the equivalent of a coffee bean.” The material is then dried to create a fine powder, roasted, and evaluated by VTT’s panel of sensory experts. “When the powder is freeze-dried after it has been harvested, it has a white to beige colour. And after we roasted it, it became different shades of brown, like ground coffee,” he says. “We were also able to achieve different roasting grades similar to traditional coffee products.” Rischer says the team at VTT used a simple filter brewing method to extract flavour from the powder and were pleased to find a profile that tasted and smelled very similar to coffee. “To answer the million-dollar question, we also found that there was caffeine in the lab-grown coffee, and due to the processes ability to be altered, we predict these caffeine levels can be altered depending on the desired end-product.” While the process takes a year or so to complete from cell to liquid, reaching this stage of development has taken even longer. “Despite plant cells being used in pharmaceuticals and cosmetics for a long time, it has had a slow uptake within the food sector,” Rischer says. “Increasing concerns for sustainability issues such as climate change have forced people to look for alternative solutions, which is where lab-grown coffee has a role to play.” Rischer believes lab-grown coffee could help take pressure of coffee farmers who are struggling to keep up with global demand, exacerbated by extreme weather conditions, decreasing coffeeproducing land, and coffee diseases. “We want to help the farmer [meet coffee production levels] so they can concentrate on quality over quantity, improving the coffee industry as a whole,” he says.

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Dr Heiko Rischer, Research Team Leader and Elviira Kärkkäinen, Research Scientist at the VTT Technical Research Centre of Finland’s laboratory.

Using drastically less resources and space to grow, Rischer says this new coffee material could prove a solution to decreasing viable coffee growing areas while circumnavigating the effects of changing climate. One of the next steps required to bring this coffee product to the market is regulatory approval. The VTT Technical Research Centre of Finland is also looking for industry collaborators to help support the project. “Collaboration is key. When creating this coffee prototype, we realised disciplines can be isolated from each other, but through teaming up with food scientists, chemists, and processing experts, we were able to make this breakthrough,” Rischer says. “This is why we need visionaries and front runner partners within the coffee industry to help move it to a commercial product. Regardless, we are now one step closer to making lab-grown coffee a reality.” G C R For more information, visit www.vttresearch.com

RELIABLE COFFEE QUALITY, BLENDING ROBUSTNESS AND EASY SERVICE. WMF 1300 S It delivers a quality coffee experience in a robust and reliable way. Offering a rich menu of professional coffee and chocolate specialities, the WMF 1300 S boasts a range of new features to ensure outstanding dependability and serviceability.

DE SIGNED TO PERF ORM

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remove up to 99.9% of caffeine

Global Coffee Report November 2021

Articles inside

FROM GENE TO BEAN

MARKETPLACE

WHAT’S BREWING

EYE OF THE TIGER

DIGITAL CONNECTION

MADE IN GERMANY

TOP OF THE CLASS

A COFFEE OPERA

ROAD TO COFFEE COMPETENCE

ACCORDING TO PLAN

GRINDING FOR GOLD

CODE RED FOR HUMANITY

EMERGING ECONOMIES

IN MEMORIAM OF JEAN-PAUL IN-ALBON

THE GREEN BEAN PRICE ROLLER-COASTER

DECODING SUSTAINABILITY

EDITOR’S NOTE

THE BIG BRAZIL FROST

A COMPETITIVE EDGE