Coffee News Recap, 6 Sep: Robusta futures drop from 16-year high, traders continue to accelerate shipments ahead of EUDR & other stories

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

Editor’s note

It seems like market volatility won’t be calming down anytime soon. After closing at US $5,180/tonne last week – the highest level in 16 years – London robusta futures slumped by 5.5%. Low stocks in key producing countries like Brazil and Vietnam guarantee more price uncertainty, made worse by the impact of unfavourable weather conditions on upcoming harvests.

Traders also continue to rush shipments ahead of the impending EUDR in December, which will likely only contribute further to this perfect storm. Exports from Brazil have surged by 65% in the last seven months compared to 2023 figures, with Ugandan exports at an all-time high in July.

At a time when traders are facing more challenges than ever before, locking down shipments before strict legislation comes into effect seems wise. But ultimately, dealing with the EUDR will become a reality sooner rather than later for everyone in the coffee supply chain. Roasters and traders will have no choice but to adapt.

Top stories of the week

• Mon, 2 Sep –Coffee traders continue to accelerate shipments ahead of EUDR. Bloomberg reports that traders are rushing coffee shipments into EU ports as they plan to stockpile prior to legislation rollout in December. EU lawmakers are still to publicly address concerns about how the regulations could impede market access.

• Mon, 2 Sep – Flash Coffee appoints former CEO of Foodpanda as new Executive Chairman. Jakob Angele has joined Flash Coffee to help restore profitability after a tough year. The chain recently closed its last 11 stores in Singapore and sold its 82-store Thai business to Turn Capital. (Singapore)

• Tue, 3 Sep –Market volatility continues as robusta prices drop after record high. Prices surged to the highest levels since the 1970s last week, exceeding US $5,000 per tonne – driven by supply concerns in Vietnam and Brazil. Following US Labor Day weekend, prices fell by 5.5% – an indicator of ongoing market volatility. (London, UK)

• Tue, 3 Sep – India’s Blue Tokai secures US $35 million in Series C funding. Led by Verlinvest, the funding round will assist the company to strengthen its presence in metro markets and expand into new tier one and two cities across India within the next three years. Blue Tokai has also established partnerships with retail outlets, luxury hotels, restaurants, corporates, and co-working spaces. (New Delhi, India)

• Fri, 6 Sep – Colombia’s trucker strike poses major threat to coffee exports. Rising diesel costs and alleged unfulfilled government commitments are reasons for the strike. Roadblocks and stalled negotiations threaten food supplies, productivity, and heighten social and political tensions. With the coffee harvest nearing, the strike raises serious challenges for the country’s agricultural sector.(Bogotá, Colombia)

Industry news

• Mon, 2 Sep – Fairtrade Foundation announces new Chair of the Board. Dr. Nyagoy Nyong’o, former CEO of Fairtrade Africa and Fairtrade International, has been appointed Chair of the Fairtrade Foundation’s Board of Trustees starting 1 October. Based in Kenya, she will regularly visit the UK to ensure the Foundation’s focus aligns with the needs of farmers. (London, UK)

• Mon, 2 Sep – SCA announces candidates for 2025-27 Board of Directors and appoints second Vice President. The SCA Nominating Committee, led by Board President Pamela Chng, has nominated seven professionals for the upcoming Board of Directors election on 1 January 2025. Nominees include:
  • Jon Allen, Onyx Coffee Lab
  • Federico Gallia, Ryoma MC SpA
  • Hide Izaki, Izaki Coffee Holdings Inc.
  • Sunalini N. Menon, Coffeelab Limited
  • Luiz Roberto Saldanha, Fazenda California, Capricornio Coffees, and Synapses Coffee
  • Jessica Worden, GAIL’s Bakery
  • Yi-Ling Wu, Beverage Research Institute at King Car Food Industrial Company and Taiwan Coffee Association

• Tue, 3 Sep – Astoria to showcase new Plus4You Advantage machine at the 2024 Paris Coffee Show. The machine features ergonomic controls, customisable settings, and a precise Autosteamer wand. It can be paired with the ASI40 Touch grinder, which includes a 3.5-inch touchscreen and USB-C port for easy updates. (Susegana, Italy)

• Tue, 3 Sep – Neodrinks named as exclusive strategic partner of SCA Spain chapter. Neodrinks will organise all SCA-licensed events in Spain, including the national Barista Championship, until 2027. Coffee XP will also serve as the technical partner for these events. (Madrid, Spain)

• Tue, 3 Sep – Neumann Kaffee Gruppe releases 2024 Sustainability Report. Key findings include 30,000 farmers now involved in the NKG Verified Supply Chains, US $10 million distributed to smallholder farmers through the NKG Bloom Smallholder Livelihoods Facility, and the launch of the first NKG Climate Action Plan. (Hamburg, Germany)

• Tue, 3 Sep – Sproud releases its 2024 Impact Report. The pea milk manufacturer reported an 8.8% reduction in its climate footprint, its ISO 26000 verification for sustainable practices, and an 80% lower climate impact compared to cow’s milk. (Malmö, Sweden)

• Wed, 4 Sep – US football coach Deion Sanders joins BLK & Bold as co-owner and social change leader. The company did not reveal Sanders’ ownership stake, but confirmed he will be an active co-owner alongside founders Pernell Cezar and Rod Johnson. (Des Moines, Iowa, US)

• Wed, 4 Sep – Cimbali Group to showcase latest machines at major international events. The company will showcase its new technologies at Fine Food Australia, Paris Coffee Show, and Vienna Coffee Festival this September. Highlights include the M200 espresso machine and G50 grinder in Melbourne, the Faemina and Slayer Espresso Single Group in Paris, and interactive workshops in Vienna. (Binasco, Italy)

• Thu, 5 Sep – Hollywood actors unveil Lavazza’s new AI ambassador. The roaster’s new global campaign features Luigi, an AI coffee-making robot, alongside stars Steve Carell and John Krasinski. The “Pleasure makes us human” campaign highlights the joy of life’s small moments, including enjoying a cup of coffee. (Torino, Italy)

• Thu, 5 Sep – Barista Attitude to showcase Pilot and Faro at 2024 Paris Coffee Show. The Pilot is the company’s first single boiler espresso machine, and the Faro includes an intelligent weighing system and the Double Clump Crusher. (Susegana, Italy)

• Thu, 5 Sep – UK’s Redemption Roasters faces relocation after HMP The Mount axes contract. Located in the Hertfordshire prison, Redemption works with offenders to improve job opportunities. The roaster claims the decision is at odds with new Prisons Minister James Timpson’s vision for a renewed justice system. If a new prison roastery site isn’t established by February 2025, all Redemption’s coffee production will move to commercial premises. (London, UK)

New launch

• Mon, 2 Sep – Versado Cafés to showcase winners of its third annual Barista Signature competition from 2 September to 2 November. The Brazilian specialty coffee chain will serve six signature drinks created by baristas at its five cafés. The competition was held on 13 July, where a jury of coffee influencers, baristas, and bartenders selected the six most innovative drinks. (Recife, Brazil)

• Tue, 3 Sep – CAFFE ASSIST introduces new Legato Plus & Rinse features to enhance coffee services. The Legato Plus is an upgraded version of the brand’s flagship product and offers improved precision, while the Legato Rinse integrates jug rinsing into milk steaming operations for efficiency. The new app provides real-time data and machine management. (Melbourne, Australia)

• Tue, 3 Sep – Kiss the Hippo opens third London location this year. The new café at 30 Golden Square features a modern, minimalist design by EBBA architects, with a focus on its coffee counter and timber-lined walls. (London, UK)

• Tue, 3 Sep – IWCA launches Vital Impact Fund for women in coffee. The International Women’s Coffee Alliance launched the fund to address urgent needs of women in the coffee industry. It aims to tackle challenges such as climate change, market instability, and gender inequity.

• Wed, 4 Sep – Wega to showcase Nova at the Paris Coffee Show.Developed in collaboration with Delineo Design, Nova features a touch screen, ergonomic design, and innovative barista-style steam wands. (Susegana, Italy)

• Wed, 4 Sep – Keurig partners with hip-hop artist’s coffee brand. Ghostface Killah’s coffee company, Killah Koffee, teamed up with Keurig to launch two blends, Supreme Dark Roast and Shaolin Cannoli, as K Cups. (Frisco, Texas, US)

• Thu, 5 Sep – Fairtrade International launches new living income reference price tool. The tool helps companies to find out what prices they need to pay to enable living incomes and wages. Through an interactive map, users can look up Living Income Reference Prices by commodity or country, and can also download a report that shows the factors that go into each price and how they were calculated. (Bonn, Germany)

• Thu, 5 Sep – Costa Coffee launches Podback capsule recycling trial at select UK stores. Customers can now collect free Podback bags at over 130 Costa Coffee stores in Tesco supermarkets. Recycling points are available at more than 140 locations. (London, UK)

• Fri, 6 Sep – De Jong DUKE receivesEuropean Coffee Brewing Centre seal of approval for new machine series. The ECBC has approved several De Jong DUKE bean-to-cup coffee machines, confirming they meet the ‘Golden Cup Standard’ for quality and consistency. Approved models include Virtu, V’eco, Zia, Edge, Blu, Lua, Avy, and the upcoming Rosa. The ECBC certification covers the full CoEx 8.000 series and CoEx XL 18.000 models. (Oslo, Norway)

Milestone

• Tue, 3 Sep – BIGGBY COFFEE marks 50% Farm-Direct sourcing milestone and introduces new blend. The chain has made significant progress towards its 100% Farm-Direct sourcing commitment by 2028 through its One BIGG Island in Space (OBIIS) initiative. As part of this milestone, the company has launched a new blend in partnership with La Fortaleza, which is available in-store by the cup. (East Lansing, Michigan, US)

• Wed, 4 Sep – WMF Professional Coffee Machines wins prestigious Red Dot & iF design awards. The company received the awards for its WMF espresso NEXT semi-automatic portafilter machine, which includes automated extraction and milk foaming systems. (Ulm, Germany)

• Wed, 4 Sep – German Coffee Association honoured as Association of the Year 2024 for sustainability efforts. The organisation received the recognition from the German Association for Association Management for its sustainability resources, including EUDR Coffee tools, EAR4U, and joint risk assessments. (Hamburg, Germany)

• Thu, 5 Sep – Hawaii’s Bad Ass Coffee signs three-store agreement in New Jersey. The company will open its first New Jersey store in Hackensack this month, with plans for two more locations in the state throughout the year. (New Brunswick, New Jersey, US)

• Thu, 5 Sep – Iconic Boyd’s Coffee unveils brand refresh. The 124-year-old brand, owned by Farmer Bros, announced its new tagline: “Fuel. Not Fashion.” New offerings include a variety of light, medium, and dark roast blends, along with single-origin and flavoured coffees. (Portland, Oregon, US)

• Fri, 6 Sep – IMF Roasters to celebrate 30th anniversary on 19 & 20 September. The Italian company will host a private dinner at the Hotel Internazionale Bologna on 19 Sep, as well as a guided tour around its headquarters in Occhiobello.

Trade & production

• Wed, 4 Sep – Colombia’s Green Coffee Company signs deal with Juan Valdez to target 25% of North American market share by 2034. The two companies will work together to expand Colombian coffee distribution channels in US and Canadian supermarkets. (Ciudad Bolívar, Colombia)

Events

• Mon, 2 Sep – The 2024 Austin Coffee Festival to take place on 28 & 29 September. The third annual Austin Coffee Festival will be held at the Palmer Events Center. Attendees can network with the city’s roasters and coffee companies, and take part in a latte art competition with a US $500 prize. (Austin, Texas, US)

• Tue, 3 Sep – Tickets now live for 2024 Manchester Coffee Festival. Now under Husky Events, MCF will return for its tenth anniversary on 16 & 17 November 2024 at Bowlers Exhibition Centre. The festival will continue to highlight Manchester’s specialty coffee scene and feature international brands, as well as coffee tastings and competitions. (Manchester, UK)

• Tue, 3 Sep – Klatch Coffee’s the Empire Experience to take place on 29 September. Guests can sample three beverages made with Klatch’s newest exclusive offerings, and will have a chance to win a Breville Barista Express machine. (San Bernardino, California, US)

• Tue, 3 Sep – Brasília to host the second Coffee Week in late September. Around 50 cafés across the Brazilian capital will serve a specially tailored coffee-focused menu at a reduced price of R$ 30 from 13 to 29 September. The event, part of the national “Brazil Coffee Week” which hosts events in different locations during the year, aims to celebrate and promote the region’s growing specialty coffee scene. (Brasília, Brazil)

• Wed, 4 Sep – Excelsa Coffee Company to host exclusive tasting on 13 September. The event will include an Excelsa cold brew and a blind taste test. Attendance is free but registration is required. (San Diego, California, US)

• Thu, 5 Sep – Café Imports to host September ed+u classes. This month’s free courses, designed for students and trainers, are part of the “Coffee is:” series. Registration is open now. (Minneapolis, Minnesota, US)

• Fri, 6 Sep – Expo Café Uruguay 2024 to start 7 Sep. Organised by Buen Café Company, the event will take place at the LATU events centre. It will feature a trade show, workshops, lectures, tastings, and competitions, including the 2024 Uruguayan AeroPress Championship and Latte Art Championship. (Montevideo, Uruguay)

• Fri, 6 Sep – Forest Coffee to host hands-on workshop at El Vergel in January 2025. The exporter is inviting roasters from around the world to pick, process, and dry their own cherries at its farm in Fresno, Tolima, Colombia. Black and White Coffee Roaster’s Kat Melheim will co-host the event. Registration is open now.

Competitions

• Mon, 2 Sep – The Barista League to return to Bristol on 14 September.The multidisciplinary barista competition will take place at Extract Coffee Roasters, coinciding with Bristol Coffee Festival. Guest judges include Stephen Houston of Lucid Coffee Roasters, Maxwell Colonna-Dashwood from Colonna Coffee, and Cat O’Shea from Radical Roasters. (Bristol, UK)

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

• Wed, 28 Aug – J.M. Smucker plans to increase coffee prices after reporting flat Q1 2024 revenue. The company’s net sales hit US $2.1 billion, but US retail coffee revenue was down US $1.7 million to US $623 million. Coffee sales made up 29% of total revenue. Further price hikes are planned to combat inflation. (Orrville, Ohio, US)

• Thu, 29 Aug – Tims China closes underperforming stores as part of ongoing cost-cutting efforts. Tims China reported its first positive adjusted EBITDA of RMB 4.1 million (US $575,729) for Q2 2024, reducing its net loss to RMB 46.4 million (US $6.4 million). The company closed 34 underperforming stores to improve profitability. (Beijing, China)

Photo credits: The Barista League

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Want to keep up with current affairs in the coffee industry? Check out last week’s coffee news stories and make sure to read the latest Coffee Intelligence News & Opinion piece on why Breville’s record sales are part of ongoing market consolidation.

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