Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the week. 

Editor’s note

There have been some major leadership changes for some of the industry’s biggest players this week. Following continuous struggles with declining sales, in an abrupt but unsurprising move, Starbucks replaced Laxman Narasimhan with Chipotle CEO Brian Niccol. Similarly, JDE Peet’s interim CEO Luc Vandevelde stepped down from his role due to “unforeseen matters”, notably after the company’s stock has lost a third of its value since listing in 2020.

In other news, isolated incidents of frost in some of Brazil’s growing regions pushed coffee futures by up 6% on the ICE exchange. Although the cold snaps are so far less severe than those that took place in 2021, many producers are understandably concerned about how frost could impact harvests.

Lastly, at this year’s Best of Panama auction, a natural Gesha received a record-breaking bid of US $10,013/kg. Although this is only a US $8 increase on the previous world record from the 2023 auction, it’s a clear sign that high-end roasters are still willing to pay incredible prices for the variety. However, what’s nonetheless interesting is that Chiroso – an “up and coming” arabica variety – also set a high price, selling for US $1,630/kg.

Given that interest in this coffee has been growing for some time, coupled with the fact that BoP has come to influence the industry’s buying habits over the years, it seems likely that more interest in Chiroso from roasters and competitors will soon emerge.

Top stories of the week

• Mon, 12 Aug – JDE Peet’s interim CEO departs after five months. CFO Scott Gray is now the interim CEO after Luc Vandevelde’s departure. This is the latest in a series of management changes at JDE Peet’s, controlled by investment firm JAB Holding, after the company’s stock has lost a third of its value since listing in 2020. (Amsterdam, the Netherlands)

• Mon, 12 Aug – Isolated frost incidents in Brazil lead to surge in coffee futures. Farmers reported isolated frost incidents, according to Executive Director at the Cerrado Coffee Producers Federation Juliano Tarabal, which represents a key arabica-growing region. Producers are preparing for another cold snap in the coming days. (São Paulo, Brazil)

• Tue, 13 Aug – Starbucks appoints Chipotle CEO as new leader. Brian Niccol will assume the role on 9 September, with the company’s current CFO leading until then. Following the announcement, Starbucks shares rose by 15% in premarket trading, while Chipotle shares dropped by 8.3%. Starbucks’ shares had plunged by 20% earlier this year as the chain posted two straight quarters of comparable sales declines. (Seattle, Washington, US)

• Wed, 14 Aug – Best of Panama 2024 auction sets new record of US $10,013/kg. A natural Gesha from Lamastus Family Estates received the highest bid, Adaura Coffee’s Kaizen washed Gesha followed with US $10,002/kg, and a Chiroso variety sold for US $1,630/kg. The auction, hosted by M-Cultivo, generated over US $1.38 million in total – another new BoP record. (Panama City, Panama)

• Thu, 15 Aug – Califia Farms acquires self-serve plant milk dispenser Uproot Inc.. Uproot operates over 150 dispensers at college and university campuses across the US, as well as other dining locations. The Uproot team, including its founders, will join Califia. (Los Angeles, California, US)

Industry news

• Mon, 12 Aug – Café Domino in talks to acquire unnamed New England coffee roaster. The roaster, which sells eight million tonnes of coffee annually, distributes across Connecticut, Massachusetts, New York, New Jersey, and Pennsylvania. This deal is expected to significantly expand Café Domino’s operations. (Miami, Florida, US)

• Tue, 13 Aug – UK Costa Coffee franchisee warns high costs and growing competition present “significant risks” to business. Optimum Group reported record revenues of £10.4 million (US $13.4 million) in 2023, with 9% year-on-year sales growth. However, profits fell sharply, with operating profit dropping by 46% due to rising competition and costs in the UK coffee market. (Liverpool, UK)

• Wed, 14 Aug – Olam Group reports 8.3% growth in EBIT driven by strong subsidiary performance. Food ingredients and coffee supplier ofi helped drive EBIT growth by 71.5% YoY to US $475.5 million. (Singapore)

• Wed, 14 Aug – Starbucks opens first store in Ecuador. The new location is part of a plan to open store locations in Ecuador this year, with two more set for Centro Comercial Iñaquito in 2025. Delonorte S.A., a subsidiary of Delosi, will operate the new stores. (Quito, Ecuador)

• Thu, 15 Aug – Certification body 4C secures Iseal Innovations Fund grant to boost social auditing and human rights protections. The organisation will spend the next 24 months developing a socially sensitive auditing methodology to better detect human rights violations during audits, in partnership with Meo Carbon Solutions, ISCC, and 4C Certification Bodies. (Köln, Germany)

• Thu, 15 Aug – Purity Coffee launches partnership campaign. The health-focused coffee brand is inviting investors to support and fund its mission. Purity partners with organic and regenerative farms, and has been recognised as a fast-growing coffee brand with a strong customer base. (Greenvile, South Carolina, US)

• Fri, 16 Aug – ABICS certifies 40 professionals in sensory evaluation of instant coffee. The certification is based on global sensory evaluation protocol developed in partnership with ITAL. The protocol gained international attention at the NCA Annual Convention in March. (São Paulo, Brazil)

New launch

• Tue, 13 Aug – DREO launches World Barista Champion-endorsed BaristaMaker Milk Frother on Kickstarter. The automated milk foamer uses patented impeller blades and specially designed micro-level screens to produce microfoam for latte art, and can be used with a variety of milks. (Clifton, New Jersey, US)

• Tue, 13 Aug – Califia Farms launches new seasonal flavours. The fall and winter lineups feature fan-favourite Pumpkin Spice, an expanded Caramel Apple range, new Creamers, and a Holiday Blend Black Iced Coffee. (Los Angeles, California, US)

• Wed, 14 Aug – The initiative for coffee&climate to release all-new climate smart coffee cultivation app. Accessible on smartphones, tablets, and laptops, the c&c toolbox will be released in an online event on 5 September. Developed with input from farmers, agronomists, and researchers, it offers evolving, science-backed guidance and fosters global knowledge exchange among coffee farming communities. (Hamburg, Germany)

• Wed, 14 Aug – OGI Coffee launches single-serve functional canned concentrates. Invented by beverage industry veteran Brian Direen, each can is topped with nitrogen to preserve flavours and aromas. The first in the new product line up is a Kona coffee concentrate infused with chaga mushrooms.

• Thu, 15 Aug – Artisan releases iV3 software with enhanced support for roastery scheduling. The latest update supports roastery operators to create schedules based on yield or batch size, factoring in coffee weight loss from past roasts and blending. (Munich, Germany)

• Thu, 15 Aug – FigBrew launches beanless coffee in US. The company’s products are manufactured using roasted figs to produce a similar flavour profile to coffee. (Huntsville, Alabama, US)

• Fri, 16 Aug – Get The Pong releases coffee precision scale VAAKA. Inspired by steelyard balances and sundials, VAAKA combines a scoop, scale, and contemplative tool to ensure precision and consistency when dosing. (Hong Kong)

Trade & production

• Wed, 14 Aug – Vietnamese producer set to receive up to US $25 million in ESG loan. Coffee and pepper producer Phuc Sinh Corp. will receive the loan from SAIL Investments’ & Green Fund. It will be the first loan of its kind from the foundation for a Vietnamese company, and will support Phuc Sinh’s efforts to maintain deforestation-free coffee supply chains. (Ho Chi Minh City, Vietnam)

• Thu, 15 Aug – Brazil’s coffee exports surged by more than 25% in July according to Cecafé. Exports increased by 46.3% from January to July, reaching over 28.1 million 60kgs bags during the period. Arabica volumes rose by 13% to 2.5 million bags, while robusta jumped by 82.2% to 900,818 bags and processed coffee sales grew by 26.3% to 382,076 bags. (São Paulo, Brazil)

Research

• Mon, 12 Aug – World Coffee Research announces private partners for a six-year F1 hybrid variety trial. Participants include major US roasters like Starbucks, Blue Bottle, and Counter Culture, along with various green coffee companies. The project began in 2015 to address challenges such as pest susceptibility and climate change by developing more resilient coffee varieties. (Portland, Oregon, US)

Events

• Mon, 12 Aug – En Taza Café to start on 29 August. The event brings together industry leaders, professionals, and coffee enthusiasts for two days of coffee tastings from various origins, paired with artisanal pastries, expert talks, art, and live music. (Córdoba, Argentina)

• Tue, 13 Aug – British Coffee Association to host a webinar on the electrification of coffee roasting. Gert Linthout of Ray & Jules and Ben Ireland of Bellwether Coffee will join BCA’s Paul Rooke to discuss electric-powered roasting on 22 August from 14:00 to 15:00 local time, with a Q&A session afterwards. (Charlbury, UK)

• Tue, 13 Aug – Forest Coffee to host a collaborative event with Swiss Water Decaffeinated Coffee Inc., Counter Culture Coffee, and Slayer Espresso. US Sales Director Santiago Carvajal will lead a talk and cupping session featuring Guava Banana coffee and Swiss Water Guava Banana as both batch brew and espresso, plus Counter Culture’s Swiss Water coffee offerings. The event will be held on 24 August at the Counter Culture Training Centre. (Durham, North Carolina, US)

• Wed, 14 Aug – Husky Events to host Manchester and Dublin Coffee Festivals. The Sussex-based company, which organises the Brighton Coffee Festival, now owns the brands and rights to the Manchester and Dublin Coffee Festivals after the liquidation of Cup North. More information will be announced in the near future. (Sussex, UK)

• Wed, 14 Aug – Highest-scoring coffee at 2024 CoE Mexico receives top bid of US $75.10/lb. Over 200lbs of Las Nieves, which received 91.13 points in the traditional honey and natural process category, was purchased by Angelino’s Coffee for a total of US $15,066.56.

Competitions

• Thu, 15 Aug – The Barista League confirms venues for three events. The Brooklyn event will now take place at the Music Hall of Williamsburg on 24 August, while Sewon Garage will host the Seoul event. The Dubai event will be held on 11 December at The Earth Roastery.

• Fri, 16 Aug – Dates announced for 2024 US, Australian, Northern Irish, Austrian & French AeroPress Championships.
  • Onyx Coffee Lab will host the US competition on 22 & 23 August, with over 30 participants set to compete
  • The Australian competition will be held on 24 August at Fieldwork Coffee in Melbourne
  • Oh Yeah Music Centre will host the Northern Irish championship on 21 August in Belfast
  • The Austrian competition is set to take place on 27 August in Vienna, hosted by Oatly
  • The French event will take place on 31 August at Claque Café in Strasbourg

Here are a few coffee news stories from previous weeks that you might find interesting. Take a look:

• Mon, 5 Aug – Starbucks Korea raises prices in response to steadily rising costs. The company stated that while it has tried to absorb costs, price increases are inevitable – also affecting beverage customisations and retail coffee products. (Seoul, South Korea)

• Fri, 9 Aug – Bones Coffee Company teams up with Paramount to release SpongeBob SquarePants coffee collection. The 25th anniversary celebration collection features three new flavours along with themed mugs. (Cape Coral, Florida, US)

Photo credits: Ádám Csordás

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