Coffee News Recap, 14 Jun: Specialty coffee consumption reaches 13-year high in the US, Luckin outperforms Starbucks as China’s biggest coffee retailer & 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 partnerships.

Mon, 10 Jun

J.M. Smucker says it anticipates higher costs will drive up coffee prices. The manufacturer of Folgers, Café Bustelo, and Dunkin’ products increased its prices in early June following rising coffee costs. CEO Mark Smucker said reasons are related to surging robusta futures and higher prices for premium arabica. (Orville, Ohio, US)

Luckin Coffee rebounds and outperforms Starbucks as China’s biggest coffee retailer. After its 2020 accounting scandal, Luckin Coffee has made an impressive comeback, and now surpasses Starbucks as China’s top coffee retailer. (Beijing, China)

Darcy Todd wins Starbucks’ inaugural North American Barista Championship. Todd, a barista from Arlington, Texas, was crowned the winner of Starbucks’ first North American Barista Championship, which included over 17,000 participants from the US and Canada. (Seattle, Washington, US)

Brazilian government signs MoU with Luckin Coffee to meet China’s growing demand. The Chinese coffee chain secured a US $500 million two-year deal with ApexBrasil to meet consumer demand for premium coffee. China’s purchases of Brazilian coffee surged in 2023, making it the world’s sixth-largest buyer in just a year. (Brasília, Brazil)

Mirova and Rainforest Alliance collaborate to expand land-focused projects. The non-profit and asset manager have signed an agreement to scale regenerative agriculture projects in coffee and cocoa production in countries across Africa, South America, and Asia.

Trewithen Dairy launches UK’s first dairy barista milk in Tesco stores. The company says its news milk was developed in collaboration with barista champions and coffee industry experts to optimise steaming performance and protein-to-fat ratios. (Cornwall, UK)

Cepea reports that Brazil’s domestic coffee prices have increased. The association’s latest report shows a rebound in prices for both arabica and robusta related to adverse weather conditions in Vietnam – the world’s largest robusta producer. (São Paulo, Brazil)

The Swiss Sustainable Coffee Platform launches in Bern. The new consortium brings together SMEs, roasters, traders, coffee shop owners, and academics to address challenges and opportunities in the coffee value chain. (Bern, Switzerland)

Tue, 11 Jun

Over ten coffees receive 90+ points at 2024 Costa Rica Cup of Excellence. The highest-scoring coffee in the traditional washed category was a Gesha from Finca Santa Teresa with 92.04 points. In the experimental category, a Catuaí from Finca Foo scored 91.19 points, while the highest-scoring coffee in the traditional honey & natural process category (a honey Gesha from Don Cayito) received 93.62 points. The auction will take place on 25 July 2024.

The 2024 European Coffee Symposium to co-host first-ever European Barista Cup with a €10,000 cash prize. Taking place on 13 & 14 November in conjunction with the Coffee & Hospitality Expo, the event will also include the Cupping Exchange and the Roaster Villages. The European Barista Cup will include four categories: Filter, Espresso, Roaster, and Barista of The Year. The top four-highest scoring competitors in the Espresso and Roaster categories will go head-to-head in the semi finals. (Berlin, Germany)

Kelachandra Coffee appoints Tata Coffee veteran Dr. P Kurian Raphael as Head of R&D. With 31 years of expertise, Dr. Raphael holds a PhD in Zoology from Calicut University and a postdoctoral sfellowship from the British Natural History Museum. He also spent 25 years as a senior scientist with the Coffee Board of India, where he published 37 research papers. (Bengaluru, India)

Lost Sheep Coffee and Anno Distillers turn collaboration into permanent offering. Following a successful limited edition run, the cold brew liqueur is now a permanent addition to both companies’ offerings. (Kent, UK)

Industry experts say rewarding farmers for regenerative agriculture is vital to decarbonise the global food sector. The agricultural sector (including coffee production) is a major contributor to climate change, responsible for one-third of greenhouse gas emissions and driving biodiversity loss, while using 70% of freshwater supplies. Industry experts claim implementing more reg ag practices could halve global emissions by 2030.

World Coffee Research study finds unique interaction between genetics and environment on cup quality. As part of the research, WCR members cupped hundreds of samples of ten coffee varieties across seven origins between 2021 and 2023, and found that some varieties are more responsive to specific growing conditions. (Portland, Oregon, US)

First-ever Detroit Coffee Week to take place from 22 to 27 July. With support from the SCA and organised by Dessert Oasis Coffee Roasters in Detroit and So-Flo Coffee in Miami, the event will feature lectures, competitions, cuppings, and parties. (Detroit, Michigan, US)

Sodexo’s InReach acquires Capitol Vending and Coffee. The acquisition will boosts the group’s presence in Texas, following its recent acquisition of K&R Vending Services. The deal adds about 250 clients to InReach’s portfolio. (Texas, US)

Wed, 12 Jun

Trade association claims EU is ill-prepared to implement deforestation regulation. Coceral, which represents EU grain trade, has criticised the EU’s readiness for new deforestation law effective December 2024. Importers of coffee and other commodities must prove deforestation-free supply chains or face fines up to 4% of turnover. (Brussels, Belgium)

Ethiopia exceeds its May coffee export target by 105%. The East African country shipped 43,481 tonnes of coffee last month, which generated over US $209 million in earnings. (Addis Ababa, Ethiopia)

Brazil’s May coffee exports reach record 4.4 million 60kg bags. This figure marks a 77% increase on volumes in May 2023. Earnings also exceeded US $1 billion, driven by a 59.1% increase in arabica exports.

Philadelphia’s OCF Coffee House closes after unionisation effort. Following workers’ requests to unionise on 3 June, OCF Coffee House has closed all three locations. (Philadelphia, Pennsylvania, US)

Lavazza announces new collaboration with Lamborghini. Lavazza’s products will be served at the Automobili Lamborghini Museum in Bologna and at all global Lamborghini events. The collaboration aims to highlight both brands’ commitment to excellence. (Bologna, Italy)

REPA becomes official alternative spare parts distributor for Mahlkönig in eight countries. Hemro Group – which also operates the Anfim, Ditting, and HeyCafé brands – says the new partnership will optimise logistics and increase accessibility of spare parts. (Bayern, Germany)

Thu, 13 Jun

Chicago’s Foxtrot to reopen 15 locations following acquisition. The assets for the 15 locations were sold to venture capital firm Further Point Enterprises, with Foxtrot founder Mike LaVitola appointed as Executive Chairman. (Chicago, Illinois, US)

This year’s Grounds for Health auction to be held on 19 & 20 June. This marks the auction’s 16th year, which has raised over US $1 million for cervical cancer screening services in coffee-growing communities. (Vermont, US)

Nominations open for 2024-26 SCA South Africa board of directors. All SCASA members are encouraged to participate in the nomination process, which will close on 30 June 2024.

Swiss dairy firm Emmi Group to acquire Hochstrasser. Hochstrasser has supplied coffee to Emmi for its RTD Caffè Latte products since 2004, which is sold in seven European markets. Emmi Group says the acquisition will help to strengthen its position in the coffee market and enable Hochstrasser to expand into the foodservice industry. (Lucerne, Switzerland)

SCA announces new elected committees for Swedish and Greek chapters. The new Greek committee includes National Coordinator Stavros Labrinidis, Events Coordinator Dionisis Moustis, Education Coordinator George Makropoulos, Marketing & Community Coordinator Panos Vrettos, and Judges Coordinator Sotos Michael. The new Swedish chapter includes National Coordinator Andreas Johansson, Events Coordinator Joel Wredlert, Judges Coordinator Linnea Vannesjo, Marketing & Community Coordinator Oscar Villars, and Education Coordinator Matte Carlsson Wahlberg.

The 46th SIGEP to take place from 18 to 22 January 2025. The event – which attracts tens of thousands of visitors every year – will be held in Rimini, Italy. The 2025 SIGEP will include a bigger exhibition area for coffee and food service businesses, with next year’s event to have a particular focus on automatic coffee machine technology.

New NCDT report finds US past-day specialty coffee consumption is at 13-year high. In the most recent study, 66% of 25 to 39-year-olds reported drinking specialty coffee every week, which is more than any other age group. Specialty coffee drinkers also drink an average 2.8 cups daily, compared to 1.8 cups for traditional coffee drinkers. (New York City, New York, US)

Fri, 14 Jun

Japan’s % Arabica to debut in Turkey with franchise partner Bean Alive. The specialty coffee chain will open its first store in Turkey on Istanbul’s Bağdat Avenue. Partnering with local franchisee Bean Alive, % Arabica plans to open 10 outlets across Turkey’s Anatolia and Balkan regions by the end of 2025. (Istanbul, Turkey)

Wacaco launches Minipresso GR2 portable espresso maker. The manual GR2 is 30% smaller than the previous model and can accommodate for a dose between 8g and 12g. The new espresso maker has received both IF and Reddot 2024 design awards.

Winners of 2024 CoE Guatemala competition announced. The highest-scoring coffee in the exotic washed category was a 91.27-point Gesha from La Reforma y Anexos. A natural Gesha from Bella Vista received the highest score of 90.20 points in the exotic natural & honey category, while a washed blend of Bourbon, Pache, and Caturra received 89.59 points in the One of a Kind category. The auction will take place on 30 July.

Texas A&M University launches US’ first academic coffee certificate. The new standalone Coffee Processing and Quality certification is designed to provide students with the skills and knowledge to become coffee professionals. (College Station, Texas, US)

Caye Technology launches Smart X fully automatic espresso machines. The new machines include a Bionic Barista System, closed loop extraction technology, and an integrated ceramic burr grinder.

International Labour Organisation to screen new documentary about coffee producers at WoC Copenhagen. From Beans to Brew: A journey into the lives of coffee workers spotlights the challenges that farmers in Brazil, Uganda, and Vietnam face, as well as how the industry can work to address these issues. The documentary will be screened on 28 June at the event.

This year’s Expo Ejecafé to take place from 5 to 7 September. The event will be held at Parque del Café in Montenegro, Quindío, Colombia, and will include a trade show, talks series, and the 2024 Colombian Coffee Championships.

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

Tue, 4 Jun – Chicago coffee shop offers dining in subscription service. Owner of Pedestrian Coffee Belmont Tim Taylor said he experienced financial losses after customers stayed for extensive periods with minimal spending. (Chicago, Illinois, US)

Thu, 6 Jun – Zamp to acquire Starbucks brand rights and stores in Brazil. The deal, worth 120 million reals (US $22.7 million), boosted Zamp’s shares in Starbucks by nearly 10.2%. The exact number of Starbucks outlets involved in the agreement remains undisclosed. (São Paulo, Brazil)

Thu, 6 Jun – Starbucks and Grubhub launch delivery partnership. Initially available in select markets in Pennsylvania, Colorado, and Illinois from later this month, the service is expected to be nationwide by August 2024. (Seattle, Washington, US)

Fri, 7 Jun – Tim Hortons China scales back outlet expansion amid “intense price competition”. While opening 19 new Tim Hortons stores, the company closed 15 underperforming ones. Sluggish expansion contrasts with previous financial quarters, and will hinder Tims China’s goal of reaching 2,750 stores by 2026. (Shanghai, China)