Coffee News Recap, 9 Jan: Costa’s losses mount as Coca-Cola continues search for buyer, illycaffè to begin US production in early 2026 & other stories

Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the week. Editor’s note Costa Coffee’s losses have more than doubled over the last two years, as Coca-Cola struggles to secure a buyer. The chain says o...

2026.01.10

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

Editor’s note

Costa Coffee’s losses have more than doubled over the last two years, as Coca-Cola struggles to secure a buyer.

The chain says operating losses widened due to soft footfall and the growth of value-led competitors. Traditional rivals such as Greggs and Pret A Manger have captured market share, but Costa is also being challenged by newer brands like Blank Street and Black Sheep, both with huge appeal to Gen Z. In a bid to compete, Costa has just launched its first-ever matcha range, but whether it will increase sales among younger consumers remains to be seen.

Italian heritage brand illycaffè, meanwhile, is capitalising on double-digit sales growth in the US. The brand is set to begin US production in early 2026, and says it will locally roast 15-20% of the coffee it sells in the domestic market. This, illy says, will allow it to be more flexible, have easier access to the supply chain, and drive innovation across its product portfolio.

Although 2026 promises greater coffee price stability, these strategic differences highlight a broader market divide: scale alone is no longer enough. As competition intensifies, brands that combine operational agility with clear value positioning are likely to sustain growth.

Industry news

Mon, 5 Jan – Hextar to invest US$25mn to expand Luckin in Malaysia. The conglomerate will invest to scale its licensed Luckin Coffee network, which has opened more than 50 stores in Malaysia since January 2025. The funds will support faster store roll-out and operational expansion as Hextar pivots into F&B retail. (Kuala Lumpur, Malaysia)

Mon, 5 Jan – Nespresso appoints Jean-Christophe Jaunin as North America CEO. Jaunin assumed leadership of Nespresso North America on 1 January, succeeding Alfonso Gonzalez Loeschen after a Nestlé leadership reshuffle. The move follows broader executive changes at the parent company. (New York City, New York, US)

Tue, 6 Jan – Dutch Bros drive-thru success tied to sugary coffee and Rebel energy drinks. The chain says growth is driven by high-sugar coffee drinks and its Rebel energy range, which attract younger consumers seeking novelty and bold flavours. Executives note strong same-store sales from these categories despite broader pressure in the beverage market. (Grant Pass, Oregon, US)

Tue, 6 Jan – Samuel Schär appointed CEO of Bühler Group. Schär succeeds the former CEO of Bühler, the Swiss industrial technology firm whose portfolio includes coffee roasting and processing equipment divisions. The leadership change aims to drive strategic growth and innovation. (Uzwil, Switzerland)

Tue, 6 Jan – Deadstock Coffee closes original Portland café; new location planned nearby. Owners closed the original Portland shop and announced a nearby replacement. Roasting and wholesale channels will continue during the transition, with staff and community updates to follow. (Portland, Oregon, US)

Wed, 7 Jan – Dutch Bros appoints Jennifer Somers as Chief Shops Officer. Somers joins to lead shop operations and customer experience, overseeing store standards, training, and the rollout of in-store initiatives as the brand prioritises operational consistency and service improvements. (Grants Pass, Oregon, US)

Wed, 7 Jan – Paris Baguette signs LAFC sponsorship as cornerstone of US sports push. The bakery chain agreed to a US sports sponsorship with LAFC to support brand expansion, stadium activations, merchandising, and local marketing during its US rollout, aligning on in-venue visibility and community programmes to raise its profile ahead of new store openings. (Los Angeles, California, US)

Wed, 7 Jan – Louis Dreyfus appoints Nigel Mamalis interim Chief Financial Officer. Mamalis, an LDC adviser since 2019 and previously holding senior roles in trading, risk, and finance, was named interim CFO following the unexpected death of Patrick Treuer. (Rotterdam, the Netherlands)

Wed, 7 Jan – Taiwan’s Louisa Coffee to raise prices by about 5%. The chain says the increase will offset rising labour, rent, and supply costs. It says adjustments will affect selected beverages as management seeks to protect margins while limiting consumer impact. (Taipei, Taiwan)

Fri, 9 Jan – Starbucks partners with MrBeast to power Beast Games season 2. Starbucks will serve as the official beverage partner for Beast Games season 2, supplying drinks and backing event activations and cross-channel promotions with the YouTube creator. (Seattle, Washington, US)

Fri, 9 Jan – Dunkin’ taps Megan Thee Stallion to promote protein-reinforced milk. Protein milk adds 15g protein to any drink for a US$1–$2 upcharge. The chain introduced five new items, including a caramel chocolate iced protein latte and an almond iced protein matcha, supported by an ad campaign and social activations. (Canton, Massachusetts, US)

Businesses for sale

Mon, 5 Jan – Backporch Coffee Roasters and Thump Coffee to merge under TBC Coffee. The Oregon companies announced a planned merger, effective January 2026, creating a combined operation under the new parent, TBC Coffee, while preserving each brand’s identity and sharing back-office functions. (Bend, Oregon, US)

Mon, 5 Jan – River Coffee to acquire Milford’s Harvest Coffee in Indiana. Mission-driven River Coffee will acquire Milford’s Harvest Coffee operations, combining the community focus and wholesale accounts to expand local roasting and café presence while maintaining quality and sustainable sourcing commitments. (Milford, Indiana, US)

Tue, 6 Jan – Krispy Kreme sells its Japanese business to Unison Capital. The coffee and doughnut chain agreed to divest its Japanese operations to private equity firm Unison Capital, shifting local ownership while franchise and supply arrangements remain in place. (Tokyo, Japan)

Wed, 7 Jan – Jollibee to spin off global division and pursue US IPO. The group will separate its international businesses into a standalone public company and pursue a US IPO to raise capital for overseas expansion, streamline regional operations, and unlock shareholder value, while funding store growth and supply chain investment. (Pasig, Philippines)

Fri, 9 Jan – Orchestra PE buys majority stake in Mammoth Coffee. Orchestra PE acquired a controlling interest in Seoul’s Mammoth Coffee and will back management to scale domestic operations and pursue entry into Japan through franchise and wholesale partnerships. Transaction terms were not disclosed. (Seoul, South Korea)

New launch

Mon, 5 Jan – Breville updates the Barista Touch Impress with cold extraction technology. The new feature optimises lower-temperature espresso shots for smoother, less acidic iced drinks, says Breville. The upgrade responds to rising global demand for cold coffee and expands its preset menu for iced beverages. (Los Angeles, California, US)

Tue, 6 Jan – Circular&Co. launches reusable cups made from recycled fabric waste. The UK-made Fabric Cup is the first in the company’s range of reusable cups made entirely from waste, combining recycled textiles and plastics to create fully recyclable cups. (Perranporth, UK)

Wed, 7 Jan – Costa Coffee rolls out its first-ever matcha across the UK. The range includes hot and iced matcha beverages and matcha lattes, broadening Costa’s non-coffee menu and supporting retail growth across company and franchise outlets. (London, UK)

Thu, 8 Jan – Frequent Coffee expands its specialty decaf lineup with experimental processing methods. The new range includes decafs processed by carbonic maceration, guided yeast inoculation, mucilage EA, thermal shock, and Swiss Water and sugarcane EA, sourced from Colombia and Nicaragua. (San Diego, California, US)

Fri, 9 Jan – Onyx Coffee Lab launches multi-tiered caffeine-level Circadian collection. The roaster’s new line-up includes Full Caffeine, Three-Quarter Caffeine, Half Caffeine, One-Quarter Caffeine, and Decaf, decaffeinated through Swiss Water. Onyx says the range was designed using a science-based approach to optimise energy without reducing consumption by aligning caffeine intake with circadian rhythm. (Springdale, Arkansas, US)

Fri, 9 Jan – International Women’s Coffee Alliance announces new partnerships with Cup of Excellence and Alliance for Coffee Excellence. The MoU focuses on increasing the number of women producers entering Cup of Excellence competitions and serving on national and international juries. The organisations will also work together on cupping education, technical training, and quality development programmes to strengthen chapter skills. (Springfield, Illinois, US)

Milestone

Mon, 5 Jan – Ten Percent Coffee reaches 1,000-store milestone. The specialty coffee chain has expanded rapidly across South Korea and nearby markets through a franchising model, driven by compact formats, digital ordering, and loyalty programmes. The brand plans to strengthen its supply chain and pursue additional regional openings. (Busan, South Korea)

Tue, 6 Jan – Subko Coffee Roasters makes international debut in Dubai. The Indian specialty roaster opened its first overseas outlet in Dubai, showcasing single origin Indian beans. It has signalled plans to expand its wholesale and retail presence across Middle Eastern markets. (Dubai, UAE)

Wed, 7 Jan – Blue Tokai prepares second international market entry as sales accelerate. Strong domestic sales growth is driving further overseas expansion, with the Indian specialty roaster scaling production, strengthening exports of single origin coffees, and expanding direct-to-consumer and foodservice channels to meet international demand. (New Delhi, India)

Trade & production

Mon, 5 Jan – Indian coffee export value set to reach US$2bn despite lower volumes. This is supported by stronger global prices and higher-value specialty sales that offset the decline in volume. (Bengaluru, India)

Mon, 5 Jan – Port of Barcelona breaks ground on €30mn coffee terminal. Construction began on a new flagship terminal to boost handling capacity, storage, and efficiency for containerised coffee imports and exports. The project aims to attract more global roasters and expedite Mediterranean trade flows. (Barcelona, Spain)

Tue, 6 Jan – Citi sees coffee market entering new phase after volatility. Citi expects coffee prices to stabilise after sharp swings, citing tighter supply, weather risks in key origins, and slower demand growth, with fundamentals rather than speculative flows likely to drive movements in the coming period. (New York City, New York, US)

Tue, 6 Jan – Vietnam coffee exports projected to grow by 17.5% in 2025. Traders expect shipment volumes to rise year-on-year as robust global demand and competitive pricing support stronger flows, while logistics improvements and harvest timing also aid export growth. (Ho Chi Minh City, Vietnam)

Wed, 7 Jan – Robusta prices fall as dry weather aids Vietnam harvest. Drier conditions are expected to accelerate picking and shipments, easing near-term supply concerns and putting downward pressure on robusta futures as traders factor in improved crop timing and reduced logistical disruption. (Ho Chi Minh City, Vietnam)

Thu, 8 Jan – Brazil projects a larger 2026 trade surplus, with coffee among export gainers. The government projects a R$70–90bn surplus for 2026, following a R$68.3bn result in 2025. Higher commodity shipments, including coffee, supported export value, with implications for currency and market flows that warrant monitoring. (Brasilia, Brazil)

Thu, 8 Jan – Ethiopia opens specialty coffee trading centre in China to boost exports. The new centre in Guangzhou will facilitate direct sales of Ethiopian specialty coffee, strengthen bilateral trade ties, and enable producers to access Chinese buyers by supporting origin traceability and quality grading. (Guangzhou, China)

Thu, 8 Jan – Global coffee shipments declined 18% in 2025. The Brazilian Ministry of Development, Industry, Trade and Services (MDIC) informs that global coffee exports reached 39.3 million 60kg bags. The drop is motivated by supply tightness from key origins and logistical hurdles, signalling potential price pressure and tighter availability for roasters and traders. (Brasília, Brazil)

Fri, 9 Jan – Colombia’s coffee production is expected to fall by about 2% in 2025. Crop forecasts point to a roughly 2% decline in output next year as growers contend with uneven weather and elevated costs, with output pauses likely in marginal areas and quality focus informing buyer expectations. (Bogotá, Colombia)

Research

Wed, 7 Jan – World Coffee Research reports progress on resilient coffee varieties. WCR CEO Vern Long highlighted advances in breeding and field validation of coffee varieties with improved resistance to climate stress and diseases, as well as expanded global partnerships to accelerate adoption among producers. (Santa Cruz, California, US)

Thu, 8 Jan – Italy’s coffee roasting sector posted €5.7bn turnover in 2024. The report, which will be presented at SIGEP World 2026 from 16 to 20 January 2026, highlights the sector’s economic scale, attributing value to domestic consumption, artisan roasters, and equipment exports, and frames roasting as a key growth area ahead of the trade fair. (Rimini, Italy)

Events & competitions

Mon, 5 Jan – Wacaco to showcase Pixapresso at CES 2026. The portable coffee equipment manufacturer will exhibit at the event until 9 January, demonstrating the portable electric espresso machine’s 20-bar pump, 180-second brew cycle, and 120ml water tank. (Las Vegas, Nevada, US)

Mon, 5 Jan – SCA updates 2026 World Brewers Cup rules and regulations. This will be the first year that standardised sponsor-provided grinders will be mandatory in both the Compulsory and Open Service rounds. Additional changes include a longer stage setup time for Open Service and a fixed six-competitor Final Round. (Irvine, California, US)

Tue, 6 Jan – India International Coffee Festival returns for second edition in February. The festival will showcase coffee from Indian and global origins, host brewing competitions, seminars and workshops, and bring roasters, baristas, and buyers together to explore trends and business opportunities. (Mumbai, India)

Wed, 7 Jan – Hawai‘i Coffee Competition rebrands as The Best of Hawai‘i; will take place at Roastronix in March. This year’s competition will feature five distinct divisions: Innovative Division – Pulped and Unpulped, Hawai‘i Heritage Washed (new for 2026), and Micro-Lot Division – Pulped and Unpulped. In 2027, the competition will culminate in the first-ever statewide coffee auction, connecting Hawaiian producers directly with international buyers and roasters. (Missouri City, Texas, US)

Thu, 8 Jan – UK Coffee Leaders Summit to manage over 18,000 outlets. The event has already confirmed 48 buyers, with a combined annual purchasing power of over £547mn, offering suppliers targeted meetings, product discovery, and sourcing opportunities. The event will run on 26 March 2026. (London, UK)

Fri, 9 Jan – The 2026 US Coffee in Good Spirits and Latte Art Championships will head to Seattle in February. Both competitions will run from 5 to 8 February at Olympia Coffee’s downtown Seattle Cedar Hall location. (Seattle, Washington, US)

Fri, 9 Jan – Dalla Corte hosts technical warm-up day for 2026 Italian Latte Art Championship finalists. The training session is being held at the company’s Officina showroom and training lab. Finalists can practice using the Zero Plus, the official machine of the Italian Latte Art Championship, with support from coffee professionals including Chiara Bergonzi, Andrea Lattuada, Antonella Cutrona, and Alessandro Zengiaro. (Milan, Italy)

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

Mon, 29 Dec – IDH landscape approach supports EUDR compliance in Vietnam. IDH-backed landscape projects in Vietnam bolster traceability, farmer group capacity, and jurisdictional monitoring, and pilot finance and technical support aligned with EUDR rules to reduce deforestation risk and ease due diligence for exporters. (Hanoi, Vietnam)

Tue, 30 Dec – Mexico enacts sustainable coffee development law to strengthen sector. Mexico’s Sustainable Development of Coffee Farming Law establishes the country’s first comprehensive framework for coffee, promoting production, marketing, quality, and transparency, while supporting agroecological practices and establishing a national commission and data system for the value chain. (Mexico City, Mexico)

Fri, 2 Jan – Starbucks to simplify menu and refocus stores on coffee experience. CEO Brian Niccol says the chain will simplify offerings, refurbish 1,000 stores with open espresso bars, reintroduce ceramic mugs and seating, and target faster service. (Seattle, Washington, US)

Photo credits: Breville