Coffee News Recap, 23 Jan: Arabica futures at one-month low, Peet’s Coffee to close dozens of locations amid KDP takeover & other stories

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

Editor’s note

Pioneering third wave coffee brand Peet’s Coffee will close up to 30 locations as early as the end of January 2026, according to the San Francisco Chronicle.

The announcement came shortly after Keurig Dr Pepper launched its all-cash US$18bn offer for JDE Peet’s, the former parent company of Peet’s Coffee. The deal is set to close in Q2 2026. Once completed, KDP will split into two listed firms: a North America-focused beverage company and the standalone “Global Coffee Co.” – set to become the world’s largest pure-play coffee business and a direct challenger to Nestlé’s dominance in the retail coffee market.

Peet’s Coffee, which first launched in Berkeley, has been a staple of Californian coffee culture since 1996, particularly in the Bay Area. Although the San Francisco store closures are a symptom of corporate restructuring and efficiency gains, they will leave a lasting emotional impact on a city that cares about its coffee.

Meanwhile, following news of improved weather in Brazil, arabica prices have fallen to their lowest levels in a month. With the country’s 2026/27 harvest season set to begin in late April and early May, it’s unlikely that prices will spike in the meantime.

Top stories of the week

• Mon, 19 Jan – UAE’s Jane Espante is the 2026 Cezve/Ibrik Champion.The competition was held at WoC Dubai. Angel Kotsifakis, representing Greece, and Waël Hachem, representing France, placed second and third, respectively. (Dubai, UAE)

• Tue, 20 Jan – Second Dubai Coffee Auction generates nearly US$70,000; California Gesha receives US$256/kg bid. This marks the first international auction sale of a coffee from the continental US. The highest bid was US$3,075/kg for a natural Panama Gesha from Hacienda La Esmeralda. The Los Rodriguez Natural Gesha/Java Peaberry lot achieved US$386/kg, marking the second-highest price ever recorded for a Bolivian coffee at auction. (Dubai, UAE)

• Tue, 20 Jan – VICOFA says Vietnam posted record US$8.92bn coffee export earnings in 2025. This figure shows a sharp year-on-year increase of over 58%, making coffee the country’s third-highest-value agricultural export item after seafood and timber & wood products. VICOFA estimates that 2025/26 harvest volumes will increase by 5-10% compared to 1.8 million tonnes in the 2024/25 crop. (Ho Chi Minh City, Vietnam)

• Wed, 21 Jan – Peet’s Coffee to close dozens of San Francisco locations as early as the end of Jan 2026. Peet’s currently operates over 465 locations across the US, China, and the Middle East. About 30 of the Bay Area’s 183 stores are expected to close in the coming weeks. (San Francisco, California, US)

• Wed, 21 Jan – Arabica futures drop to a one-month low as Brazil weather improves; robusta prices fall by 1.9%. The weather in Brazil and Vietnam is resulting in a bearish market for both arabica and robusta. Cecafé recently reported that Brazil’s coffee exports reached a record value in 2025, despite a total volume decline of more than 20%. (New York City, New York, US)

• Thu, 22 Jan – Faema names 2025 World Barista Champ Jack Simpson as Global Brand Ambassador. Simpson has been working in specialty coffee for over a decade. The partnership will include a world tour with numerous activations at major industry events, starting in Asia-Pacific. (Binasco, Italy)

• Fri, 23 Jan – WatchHouse secures £7.3m in latest funding round. The funding round, which raised £10.9m in total, was led by global investment firm HighPost Capital, co-founded by Mark Bezos. WatchHouse said funds will accelerate its entry into new markets, with a focus on further expansion in the US. (London, UK)

Industry news

• Mon, 19 Jan – Selecta Group to relocate international headquarters to London. The vending and coffee solutions provider will relocate its global headquarters from Zurich to London, which it says will strengthen access to talent, digital innovation, and strategic markets. (London, UK)

• Mon, 19 Jan – Mercosur-EU deal could boost Brazil’s value-added coffee exports. The trade pact is expected to cut tariffs on roasted and processed coffee, improve the competitiveness of higher-margin coffee products in the EU market and encourage investment in quality upgrading and local processing to capture premium segments. (Brasília, Brazil)

• Mon, 19 Jan – Starbucks pivots into streetwear and lifestyle merch. The Hypebeast-curated capsule, overseen by Sarah Andelman, features apparel and lifestyle items, including dog puffer vests, K-Way jackets, skis, and playing cards. This collection is showcased in a campaign starring Jin Gallagher and is available at the Milan Reserve Roastery during men’s fashion week. (Milan, Italy)

• Tue, 20 Jan – Costa Coffee signs convenience retail expansion deal in UAE. The chain will supply ready-to-drink and fresh coffee formats through 800+ convenience retail outlets, in partnership with Emirates Retail Company, extending its presence beyond cafés into high-traffic fuel stations and travel locations. (Dubai, UAE)

• Tue, 20 Jan – Tim Hortons strengthens position in UK branded coffee market. The chain reported 10% sales growth over the 2025 festive period. Tim Hortons UK & Ireland operates 70 outlets across the region, but is seeking to scale in the coming years. (London, UK)

• Wed, 21 Jan – Jollibee explores Compose Coffee’s global growth potential. Group executives are assessing the expansion of the Compose Coffee brand through strategic franchising and market roll-out, leveraging broader networks to elevate visibility and drive café traffic across key regions. (Quezon City, Philippines)

• Wed, 21 Jan – UK independent coffee shops urge MPs to act on rates and VAT. The joint open letter calls for business rate reform and VAT cuts to ease cost pressures, protect jobs, and sustain high street communities. The letter argues that independents lack a unified voice despite the sector’s £4.6bn value. (London, UK)

• Thu, 22 Jan – EL&N to enter the US market. Founder Alexandra Miller outlined a strategy focused on lifestyle hospitality cafés, experiential formats, and a partner-led roll-out, seeking franchise and institutional partners to scale its presence internationally. (London, UK)

• Fri, 23 Jan – Buddy Brew will double footprint via Sprouts Markets partnership. Supermarket concessions will accelerate network growth, reduce capex, expand grocery footfall, and enable market testing. Offerings will include espresso, cold brew, and food, with initial Florida rollouts due later in 2026. (Tampa Bay, Florida, US)

• Fri, 23 Jan – USDA figures suggest China has overtaken Italy in coffee consumption. The report estimates that China’s consumption exceeded 240,000 tonnes in 2024, an increase of nearly 150% over the past decade. Annual growth is expected to remain strong at approximately 15%, positioning China among the fastest-growing coffee markets globally. (Washington DC, US)

Businesses for sale

• Mon, 19 Jan – Serbia’s Kafeterija buys Loft in its first acquisition. The deal adds a food-focused concept to the buyer’s portfolio, thereby broadening menus, strengthening city-centre presence, and accelerating growth through integrated operations and shared supply chains. (Belgrade, Serbia)

• Wed, 21 Jan – Explorer Cold Brew acquires Savorista to expand caffeine-conscious coffee line. The deal broadens Explorer’s portfolio with functional RTD brews and organic formulations, enhancing distribution in health-focused retail segments and reinforcing its position in RTD cold brew innovation. (Chicago, Illinois, US)

• Fri, 23 Jan – Highlands Coffee reportedly considering US$400m IPO. The Vietnamese chain, in which Jollibee owns a 60% stake, is working with a financial advisor to explore a potential IPO to raise between US$300-400m, according to Bloomberg. (Hanoi, Vietnam)

New launch

• Tue, 20 Jan – Coffee agroforestry e-library centralises shade-grown research.Coffee Watch and CATIE launched a free, searchable e-library aggregating peer-reviewed studies, technical reports, and manuals on shade-grown coffee to support climate resilience, biodiversity, farmer livelihoods and policy design. (Turrialba, Costa Rica)

• Wed, 21 Jan – Klatch releases Centennial espresso. The new coffee, roasted for espresso, celebrates 100 years of the iconic Route 66. (Rancho Cucamonga, California, US)

• Wed, 21 Jan – UAE Coffee Champ Mariam Erin launches Binocular dripper. Launched at WoC Dubai, the dual-cone brewer allows users to brew two different coffees simultaneously, which Erin has coined “wet blending”. Each cone holds 6-12g and fits V60-02 filters. (Dubai, UAE)

• Thu, 22 Jan – Hario launches new 72-rib V60 Dripper NEO. The new brewer introduces revised internal geometry, which Hario says stabilises flow rate and improves extraction consistency. The NEO fits standard V60 paper filters and is available in multiple sizes and colours. (Tokyo, Japan)

• Fri, 23 Jan – Chick-Fil-A tests new café-style coffee drinks. Two new beverages are being trialled in select US markets: an iced coffee made with a cold brew blend and 2% milk, and a richer cream cold brew inspired by the chain’s shake base. (Atlanta, Georgia, US)

• Fri, 23 Jan – Califia Farms launches first soy milk for Simple & Organic line. The addition broadens the brand’s plant-based portfolio, which also includes almond, oat, and coconut-based milks and creamers. (Los Angeles, California, US)

Milestone

• Tue, 20 Jan – Bitty & Beau’s Coffee marks decade in advancing disability inclusion. The coffee brand celebrated ten years of hiring and training people with intellectual and developmental disabilities, expanding cafés, and reinforcing inclusive workplace practices to influence industry norms. (Wilmington, North Carolina, US)

• Fri, 23 Jan – Kluang TV Coffee marks its 60th anniversary with ASEAN Heritage Award. The Malaysian brand received “Most Visited State-Certified Heritage Coffee Factory” recognition for drawing more than 91,000 visitors last year. It is expanding its factory site, plans to triple output, and will launch a sugar-free product called Kopi Tulen. (Kluang, Malaysia)

Trade & production

• Tue, 20 Jan – Indonesia plans to become “global coffee hub”. Speaking at the Asian Trade, Tourism, and Economics Council in Jakarta, Trade Minister Budi Santoso suggested Indonesia could play a bigger role in global coffee pricing. (Jakarta, Indonesia)

• Wed, 21 Jan – CelsiusPro and Ecom offer parametric insurance for Indonesian coffee farmers. The programme uses satellite and weather data to trigger automated payouts for drought and excess rainfall, which the companies say helps improve smallholder resilience, support credit access, and de-risk supply chains. (Jakarta, Indonesia)

• Wed, 21 Jan – Brazil reports early January coffee shipments. The Brazilian Secretariat of Foreign Trade (Secex) recorded 1.07 million bags shipped in the first working days of January, offering an initial gauge of export momentum as traders and ports resume activity after the holiday period. (Brasília, Brazil)

• Thu, 22 Jan – Ethiopian government meets with Starbucks to discuss coffee industry cooperation. Officials and Starbucks executives discussed expanding sourcing, farmer support, quality programmes, and transparent trading terms to boost Ethiopia’s export potential and strengthen commercial ties in key global markets. (Addis Ababa, Ethiopia)

• Fri, 23 Jan – India’s coffee export earnings surge 22.5% in 2025 despite shipment decline. Higher global prices and stronger demand lifted export revenues, even as shipment volume eased year-on-year. (Mumbai, India)

Research

• Mon, 19 Jan – Study links civet coffee’s unique flavour to changes in bean chemistry. Research found kopi luwak beans excreted by Asian palm civets have higher total fat and elevated levels of specific fatty acid methyl esters from gut fermentation, which likely influence aroma and taste compared with traditional coffee. (Kerala, India)

• Tue, 20 Jan – Research finds coffee grounds improve cucumber yields. The study showed that adding spent coffee grounds to soil increased cucumber growth and yield, likely enhancing nutrient content and soil structure. (Ithaca, New York, US)

• Wed, 21 Jan – Study warns disposable coffee cups release microplastics into hot drinks. Researchers found that hot beverages consumed from many single-use paper cups can introduce microplastic particulates from the lining into the liquid, raising concerns about exposure and prompting calls for alternative materials and better recycling systems. (Boston, Massachusetts, US)

Events & competitions

• Mon, 19 Jan – Dalla Corte showcased Zero Plus and Icon Steam Maestro at World of Coffee Dubai 2026. The company presented the two machines, alongside its wider professional portfolio, focusing on thermal stability, Digital Flow Regulation technology, and automated milk texturing systems. (Dubai, UAE)

• Tue, 20 Jan – CoffeeFest Madrid 2026 set for 14-16 February. The upcoming event will feature a Roasters Village, several competitions, the Tea Fest, the Cacao Fest, a green coffee auction, the Top 100 Best Coffee Shops awards ceremony, and the Coffee Summit. (Madrid, Spain)

• Wed, 21 Jan – Dualit to showcase appliances and hot beverage range at Ambiente 2026. The appliance manufacturer will present updated Classic and Lite ranges at the event, running from 6 to 10 February, alongside tastings of single-serve hot chocolate. (Frankfurt, Germany)

• Thu, 22 Jan – SIGEP World draws operators from 160 countries, marking 33% increase in international exhibitors. The trade show hosted the Innovation Bar, the Micro Roaster Village, the Coffee Arena, and the 2026 Italian Coffee Championships. The winners are:
  • Barista Championship: Federico Pinna
  • Brewers Cup: Lisa Zancanella
  • Cup Tasters Championship: Luigi Paternoster
  • Roasting Championship: Francesco Masciullo
  • Latte Art: Stefano Ceverini

• Fri, 23 Jan – World of Coffee Dubai 2026 announces new UAE Coffee Champions. Adam Ruben of Benchmark Coffee is the UAE Barista Champion. Benchmark also secured another win, with Jhomar Morales placing first in the Latte Art Championship. Nizam Pasha Lolowang of Espressi won the Roasting Championship. (Dubai, UAE)

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

• Tue, 13 Jan – Biggby Coffee launches signature drinks with Cincinnati Cyclones. Biggby introduced four team-inspired beverages and co-branded promotions to engage fans, drive in-store traffic, and deepen local market connection through sports-themed offerings and events. (Cincinnati, Ohio, US)

• Thu, 15 Jan – Kopi Kenangan’s growth faces profitability test in 2026. Kopi Kenangan needs to balance rapid expansion and high marketing costs with better unit economics. Profitability in 2026 depends on slowing growth, increasing same-store sales, controlling costs, enhancing franchise margins, and monetising digital services to manage capital intensity. (Jakarta, Indonesia)

Photo credits: Specialty Coffee Association, DXB Live, Hario, Dalla Corte

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