Coffee News Recap, 17 May: Robusta prices reach record levels in Brazil, De’Longhi reports increase in revenue after La Marzocco acquisition & other stories

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

Here are this week’s stories – the word of the week is celebrities.

Mon, 13 May

De’Longhi reports over 9% revenue increase in 2024 Q1 following La Marzocco acquisition. CEO Fabio De’Longhi attributes growth to the company’s consolidation with La Marzocco and Eversys. De’Longhi acquired a majority stake in the iconic espresso machine brand in December 2023, and fully acquired fully-automatic machine company Eversys in May 2021.

New dates and hosts announced for national 2024 AeroPress Championships. Upcoming events include:
- Bulgarian AeroPress Championship,hosted by Drekka on 15 June 2024
- Costa Rican AeroPress Championship,hosted by Agua y Tiempo Café on 15 & 16 June 2024
- Chinese AeroPress Championship, hosted by Hangzhou Liuzhang Brand Management Co. on 7 July 2024

Nescafé to invest US $196 million in Brazil by 2026 to capitalise on surging demand. The company aims to expand production capacity and increase its out-of-home sales in the country, with a specific focus on attracting younger consumers.

Fairtrade Premium reached a record €222.8 million (US $242 million) in 2022. The organisation’s 15th annual report revealed Fairtrade Premiums totalled €210 million (US $228 million) for its top seven products, including coffee. The report also states that smallholder producer organisations allocated 36% of their Premiums to production improvements and 23% to financial benefits, while plantation workers directed 75% towards social investments and 15% towards financial benefits.

Blue Bottle loses trademark case against Blue Brew. A US District Court judge ruled against Blue Bottle Coffee in its trademark infringement case against coffee equipment brand Blue Brew. Blue Bottle argued that Blue Brew’s name and trade dress infringed on its trademarks. Judge Charles Breyer dismissed Blue Bottle’s motion for a trial, citing no proof of consumer confusion between the two brands.

Tue, 14 May

Melitta Group acquires majority stake in South African roaster Caturra. The partnership will be managed by Melitta Europe Coffee Division in Bremen, Germany, which operates Melitta’s European coffee business. Founded in 1994 in Cape Town, prominent South African roaster Caturra is a direct-to-consumer and wholesale roaster which also sells equipment and offers training services.

NLRB judge states courts must decide Starbucks’ claims of unconstitutional in-house proceedings. The coffee chain has claimed that the NLRB’s in-house enforcement proceedings and protections from removal for administrative judges and board members violates the US Constitution. NLRB Judge Geoffrey Carter stated that such claims, also made by other companies like SpaceX and Amazon, should be decided by federal courts.

Robusta prices in Brazil reach record levels. CEPEA reported soaring prices for both arabica and robusta in the Brazilian domestic market in April, with the latter reaching an all-time high in the country. Arabica prices were influenced by changing exchange rates and concerns about global stocks, while robusta prices rose following high international demand and supply issues in Vietnam.

IFC and Absa partner to offer US $60 million finance facility to Volcafe to support thousands of farmers in East Africa. The financing will facilitate the purchase, processing, and export of cherry from smallholder farmers and traders in the region, addressing challenges exacerbated by climate change.

Brazil’s coffee exports jumped 61% in April. Last month, Brazil’s green coffee exports surged to 3.9 million 60kg bags according to data from Cecafe. Arabica shipments rose by 40.1% to 3.22 million bags, while robusta exports increased over fivefold on the same period in 2023 – totaling 676,691 bags.

Wed, 15 May

Blue Bottle and The Weeknd launch new Buna Tetu blend. As part of the ongoing Samra Origins collaboration, the prominent roaster and musician have released a blend inspired by the Ethiopian Buna Tetu coffee ceremony to reflect the artist’s roots and family traditions. The limited-edition blend has a chocolate-forward flavour profile with fruit notes and includes Ethiopian and African coffees.

International Coffee Organisation and International Trade Centre call for coffee industry to adopt circular economy models. As part of a new joint report, the two organisations are calling for supply chain stakeholders to adopt circular economy approaches to create new economic opportunities and address environmental concerns, particularly reducing the estimated 40 million tonnes of biowaste the industry produces every year.

Bob Austin reprises role as Loring president. Previously serving from 2013-17, Austin has years of manufacturing and technology expertise. He rejoined the roasting company as Chief Technology Officer/Director of Engineering in March 2023. Under his guidance, the company launched new automation and weighing solutions.

Juan Valdez signs agreement with Green Coffee Company to enter North American market. Owner of Juan Valdez Procafecol says it aims to have a 25% share of the Colombian coffee market in the US, which is currently the largest for Colombian coffee exports.

Klatch Coffee to open five new locations inside Sprouts stores. The first outlet is set to open soon, with four more to follow in east Los Angeles. Klatch’s partnership with grocery retailer Sprouts follows its successful pilot programme with Press Coffee Roasters in 2022.

Nashville roaster 8th and Roast acquires Good Citizen Coffee Co. As part of the acquisition, 8th and Roast will manage the Good Citizen team and continue roasting and distributing the company’s Good Citizen and Common Voice coffee ranges.

Thu, 16 May

Arabica futures market rebounds on weak dollar and dry weather in Brazil and Vietnam. The main arabica contract for July delivery surged 480 points to settle above the US $2/lb mark. Technical factors discouraged further selling, leading to a speculative rebound.

Subculture Delta Beverages debuts first-ever shelf-stable THC-infused cold brew coffee. Winner of the 2023 High Spirits Awards Platinum Medal for ‘Best Cannabis Coffee,’ each can of the RTD cold brew includes 5mg of THC. The drinks are available as original Cold Brew and Oat Milk variations, both including Ethiopian coffee.

Lavazza Professional UK launches new self-serve coffee machines. The premium self-serve coffee facilities will be rolled out across high-traffic public areas in the UK, including convenience stores and petrol station forecourts.

Roasting Plant names Derek Stewart as new CFO. Stewart previously served as Head of Finance at Foursquare. With locations in major US cities and London, Roasting Plant is known for its innovative Javabot technology, which roasts beverages to order in every café.

Löfbergs’ latest sustainability report highlights urgent need to address climate change. In its most recent report, the Swedish coffee company emphasised how mitigating and reducing the impacts of climate change and complying with the EUDR are some of the biggest challenges the industry faces.

Rokit launches RTD coffee beverages in the US. The UK company’s lineup features functional oat milk cold brews, as well as a coconut milk matcha drink and a protein coffee beverage.

Former New York City mayor Rudy Giuliani launches coffee brand. Some reports emphasise that Giuliani has created the Rudy.Coffee brand in the wake of facing bankruptcy and debt of US $148 million. The former lawyer’s coffee products are available in “bold”, “morning”, and decaf options, with a focus on the health benefits of coffee.

Fri, 17 May

NFL player Patrick Mahomes launches Throne Sport Coffee. The functional RTD coffee brand was co-founded with beverage industry veteran Michael Fedele. Each can contains caffeine, natural flavourings and sweeteners, B vitamins, electrolytes, and BCAA essential nutrients. Mahomes says he is involved in marketing, sales, meeting with retailers, and product innovation.

Caffè Nero owner launches new Aroma wholesale coffee company. The Aroma brand will be part of the Nero Group, which also includes Caffè Nero, Coffee#1, Harris+Hoole, and the Nero Roasting Company.

South Korea plans to establish Busan as country’s “coffee capital”. With over 5,660 coffee shops and 92% of imported coffee products transported through the city annually, Busan is a key player in South Korea’s coffee scene. The “Coffee City Busan” initiative was launched shortly after the city hosted the first-ever World of Coffee Asia event, which included the 2024 World Barista Championship.

Fairtrade launches global Make Your Mark campaign. The organisation says the goal of the campaign (which will run until 11 June) is to address power imbalances in global supply chains, and will aim to make sure producers’ voices are heard in regards to shaping laws and regulations to protect their interests.

US rock band Green Day launches Punk Bunny Coffee. The new brand builds on the Oakland Coffee company, which the band established a decade ago. Punk Bunny Coffee has also announced a partnership with Keurig Dr Pepper to develop K Cups, with all coffee offerings available for the single-serve brewer.

WatchHouse opens latest location in Hampstead Heath, London. The UK roaster’s most recent coffee shop includes a stainless-steel Rarities brew bar, as well as other standard WatchHouse menu items. The company also recently opened its first international location in New York City.

La Marzocco espresso machine in a coffee shop.

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

Mon, 6 May – Pact Coffee raises minimum payment to farmers. The UK roaster increased its minimum payments to US $2/lb for arabica contracts signed after August 2023. This change aligns with Fairtrade International’s Minimum Price increase from US $1.40 to US $1.80/lb.

Tue, 7 May – Toby’s Estate opens flagship store in Brisbane. The prominent Australian roaster’s latest location includes a centralised coffee bar and a training bar for customers. Toby’s Estate offers limited-edition Flavour Savour blends and Freezus, its ready-to-freeze coffee, for at-home and retail markets.