Colombian Coffee Farmers Hopeful over H2 Harvest
Whilst there has been some concern as to Columbia’s coffee output due to poor weather conditions and tree renovation, local coffee farmers have anticipated a strong harvest for the second half of the year to boost overall performance for 2010.
Expecting a total output of 10 million 60kg bags for the year, Columbia – the leading producer of high quality washed Arabica coffee, is predicting that it will be able to achieve an ambitious 6 million bags in the latter half of 2010, potentially one of the best harvests in several years.
This view has been backed through interviews with numerous coffee operators in addition to a visit to a coffee plantation in central Columbia, where farmers such as Victor Alvarez proudly showed their ripe fruit-bearing trees, soon be harvested.
Since the country’s output for the first half of 2010 was only 4 million bags, some coffee exporters and industry analysts were fearing that the second half year harvest would at best reach 5.5 million bags, however there is increasing support for the figure of 6 million bags, 9 per cent higher than originally expected.
Coffee growers’ representatives in the provinces of Quindio, Caldas, Antioquia, Risaralda and Valle del Cauca, which together account for almost two thirds of the country’s total production, have expressed their confidence in this target. With growers in these central regions harvesting their main second crop of the year during from October to December and their first between April and June, warmer weather in the more southern of the provinces may allow for an additional collection between now and the end of the year.
Swedish Coffee Filters into the Middle East
Managing Director Mohammed Alnassar of MEFranchising has communicated news of its collaboration with Swedish company Wayne’s Coffee, which will help the chain to build new partnerships and strategies for expansion.
The announcement followed news of the eagerly-awaited opening of Wayne’s Coffee Panorama Mall in the city of Riyadh, the Scandinavian business’s second outlet in the Saudi Arabian market this year.
As a result of its partnership with MEFranchising, Wayne’s Coffee will be able to strengthen its position as the first Swedish beverage and food industry operator to establish in the Middle East. The company also hopes to set up a new enterprise within the region this autumn.
According to MEFranchising’s Alnassar, the Swedish-, Italian- and North American-blended coffee sits well with coffee enthusiasts in the Middle East and, being able to leverage the strategic knowledge and franchising expertise of the local business, launching Wayne’s Coffee in Riyadh, Saudi Arabia was apparently a seamless excercise.
This latest outlet is an important strategic step for Wayne’s Coffee in consolidating its presence in the region. Not only this, but it also provides a strong precedent for other Swedish businesses considering entering the market, particularly given that the geography’s franchise market is predicted to grow 27 per cent annually, far faster than in other parts of the world.
Swedish Ambassador in the country, Jan Thesleff – who hosted the opening ceremony for Wayne’s Coffee’s newly-unveiled premises, commented “Saudi Arabia is the biggest market in the region and a success in Riyadh means a vast increase for success elsewhere in the region.”
Healthy Addition to Advertising Campaign
US-based Healthy Coffee International has unveiled 100 Mercedes Benz cars in a 100 day promotional drive.
Having made the qualifying requirements easier for its distributors, the health coffee company hopes that this will result in its business being promoted in style, further communicating what its enhanced coffee propositions stand for and the additional benefits they profess to bring.
The Californian company’s proprietary formulas cleverly fuse the health benefits of ginseng and reishi mushroom in addition to other quality ingredients with what are purportedly the world’s finest coffee beans.
The resulting products are a health-inspired range of gourmet instant coffees, which position the company at the crossroads between three multi-billion beverage sectors, namely those of coffee, wellness and energy drinks.
Healthy Coffee International (HCI) has offices in 14 countries and is able to distribute to 29 others through its marketing subsidiary, Healthy Coffee USA.
In other HCI news, the company is reportedly in the process of rolling out a new platform that is expected to see its global sales explode, involving multiple meetings and weekly training sessions by its founders.
In other purportedly healthy coffee news, an intriguing blend of ingredients positioned as a cure-all for burnt out students has come to light. Based on two cups of chilled coffee, the recipe for the young adults’ elixir advises combining this with one cup of 100 per cent coconut water, a banana, ice (as desired) and one scoop of whey protein (optional), all blended together and poured into a portable vessel for consumption on the move (to those early lectures).
New Impetus for UK’s Soluble Coffee Sector
Nescafe, whose infamous five year-long advertisements of the 1980s involved a blossoming relationship between Anthony Head and Sharon Maughan over a shared passion coffee, is set to invigorate the category with a 3in1 version of its single serve original formulation.
Combining coffee, whitener and sugar in a single package, it is hoped that the convenient, sweet and creamy tasting coffee will increase the product’s appeal to a wider, younger audience.
Due to hit the shelves in autumn – from the end of September, the Original 3in1 offering is being introduced at a time where the demand for convenient, no-hassle coffee formats is increasing its momentum. Its packaging will be aligned with the rest of the original instant coffee range that has already become so ingrained in consumers’ consciousness, encouraging brand loyalty amidst the onslaught of competing choices.
So as to cater directly for specific distribution channels, the instant coffee sachet will be sold in two different formats – in ten sachet packs for the retail channel at a recommended retail price (RRP) of £1.99 and in single units for the convenience channel, retailing at £0.25 apiece. This flexibility is designed to reinforce consumers’ brand integrity and repeat purchases as well as growing incremental sales and increasing profits, both for retailers as well as the soluble coffee giant itself.
Already available elsewhere in Europe since 2003, the UK launch of the 3in1 instant coffee proposition will be supported through a significant through-the-line campaign, according to the company.
Success for Starbucks Instant Coffee in the Philippines
Instant coffee brand, Via Ready Brew from Starbucks, is set to become available in the Philippines, the fourth market of distribution for this soluble offering and the second Asian country to become part of the product’s retail network.
As of September 2010, some 160 outlets in the country will carry the instant coffee mix in Columbia, Italian and Decaffeinated Italian Roast variants.
Starbucks is confident that Via Ready Brew will prove a success in the Philippines, since almost 100 per cent of retail coffee sales come from soluble coffee products, according to the business’s chairman, president and CEO.
Focusing on raising awareness and trial of its fast-popularising coffee sachets to broaden its customer base in the US and its international markets, Via was introduced to the Japanese market in April 2009 and has already secured sales of 10 million sachets, with plans underway to expand into grocery and trade channels.
Instant coffee, also known as soluble coffee or coffee powder, is a beverage that is derived from dried coffee beans. It is commercially prepared by one of two methods, either freeze-drying or by spraying, after which point the coffee can be rehydrated.
Advantages over and above speed of preparation for instant coffee formats include lower shipping weight, volume and therefore costs, in addition to possessing a longer shelf life.
Juicy Investment for Coffee Company
With more and more coffee outlets offering juice and an increasing diversity of soft drink options to cater for all palates, US-based Fine Concepts LLC has announced the acquisition of seven local Jamba Juice stores through its The Coffee Bean & Tea Leaf business.
Announced by company CEO Jeffrey Fine, the deal reportedly includes a commitment to further the Jamba Juice brand by establishing eight new outlets in the Las Vegas area.
Fine also revealed intentions to expand the Jamba brand through non-traditional channels, such as Las Vegas Strip’s Fashion Show Mall as well as in the casino environment to keep fashionistas and casino players hydrated and fuelled for longer.
The company has also announced the appointment of a chief operating officer, Philip Patent, who has already been directing operations for the 15 The Coffee Bean & Tea Leaf outlets and will manage the expansion of both aspects of the newly-merged business.
Patent commented on the latest development, “We’ve been looking for a brand leader within this segment to compliment our other enterprises and we are excited that Jamba Juice was refranchising this particular market.”
He asserted his belief that the Jamba brand is a natural and logical compliment to what is viewed as a super premium brand in the segment. Additional mention was given to the opportunity enabling the company “to target some larger footprints in more desirable locations that both concepts can fit into side-by-side.”
In other Jamba Juice news, its outlets were on Thursday this week offering its coffee and tea smoothies for a bargain price of US$1 a piece to customers.
New Coffee Causes a Stir in Capital’s Lingerie Store
An Italian coffee machine manufacturer has created a commotion in London’s upmarket lingerie store, Rigby & Peller, with the launch of what is positioned as the UK’s first aphrodisiac coffee.
Launched in the high-end lingerie outlet by a scantily-clad underwear model just this week, the new coffee got temperatures rising, as the woman seductively sipped on the espresso in the central city store. Shoppers themselves were apparently only allowed a single cup each to keep the atmosphere under control.
Called Amore del Caffe, the new coffee reportedly combines a rare Indian coffee bean with libido-enhancing oyster essence. However the aphrodisiac blend comes at a price – a whopping £39 per 100g bag, but all proceeds are being donated to Macmillan Cancer Support.
Meanwhile another Italian coffee machine producer has agreed to acquire a seven per cent share in US company Green Mountain Coffee Roasters (GMCR) for a reported US$250 million. Set to be approved by US authorities in September, the two companies will work together to build and market espresso machines as well as single-serve capsules, as a statement by the Italian firm revealed.
Representing the largest deal the family-owned, Milan-based company has ever made abroad, the move forms part of its aggressive push into new markets, with other acquisitions made in India, Brazil and Argentina over the past four years.
GMCR sells over 100 speciality coffee brands in its domestic US market as well as in Canada. The company is also positioned amongst the leading espresso machine suppliers in North America.
Coffee Sales Support Clean Water Efforts
A St Louis-based non-profit organisation, Three Avocados – so called after a moving moment during a mission trip to the country earlier this year – has introduced a new blend of coffee to support developing countries such as Uganda gaining access to clean water.
Using coffee beans grown in the African country, the organisation works with a locally-based coffee roasting company to produce a premium offering, 100 per cent of the proceeds are put towards ameliorating clean water access and services in Uganda.
Now available in select Dierbergs outlets across the country, the funds generated by sales of the new coffee blend are much needed and will have had a significant impact. Founder of Three Avocados, Joe Koenig, said, “Children are dying every day in Uganda from a lack of clean drinking water and young girls are forgoing an education to spend four or more hours each day fetching unclean water for their families.” With the full proceeds of the organisation’s coffee going back into the country, it is hoped inhabitants will have both better drinking water and a better education.
On the subject of coffee grown and sourced in/from Uganda, Koenig also said that he has come across a considerable number of people who have never heard of the coffee, but after just one initial taste, they are sold for life. He added, “It’s a premium coffee that tastes great, but best of all, it supports a better quality of life for our friends in Uganda.”
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Opportunity to Tap Evening Economy
A £6,694 report commissioned by Edinburgh county council and conducted by SQW Consulting, has looked at ways of tackling alcohol-fuelled undesirable behaviour in the city. As a result, it was suggested that there’s a lot more that could be done to benefit from the after-hours economy and to overcome the perception that the pub is the only option for those who do not want their evening to end early.
The consulting group found that businesses active in the evening economy employ more than one in ten staff and contribute over £1.5 billion annually, as a result of spending, so adding considerable fuel to Edinburgh’s overall economic situation.
As well as advocating longer shopping hours for those that are not fortunate to finish work on the dot of 5pm and would like to be able to shop over a longer period, the suggestion was that coffee shops should also adopt extended opening hours.
Whilst the council used to have guidelines that cafés and coffee shops should not remain open beyond 8pm in ‘areas of sensitivity’ such as Grassmarket, Nicolson Street, Buccleuch Street and Tollcross, these have now been revised to apply only to fast food outlets.
One of the leading coffee chains is said to have been turned down last year in its attempt to secure one of its coffee houses a 24 hour licence. However, remaining open throughout the night is very different from merely opting for extended hours into the evening to cater for those who might want to enjoy a shop and a coffee after current opening hours.
‘Weasel’ Wheedles Out Best Coffee Beans
Following news of Indonesia’s highly expensive Kopi Luwak coffee, produced from beans that have passed through the digestive system of the civet cat, it seems that Vietnam’s ‘weasel coffee’ could burn an even bigger hole in your pocket.
However, it appears that the two coffees are one in the same thing, with the Vietnamese offering not produced from weasels per se, but again from the civet cat.
Director of the country’s Trung Nguyen café chain, Dang Le Nguyen Vu, says that the coffee company has produced its own ‘weasel coffee’, aptly named ‘Weasel’. Six times more expensive than Indonesia’s Kopi Luwak, a kilogramme of the animal-produced and -inspired coffee will reportedly set you back £2,000.
The reason behind the exorbitantly high price point is the extent of the manual intervention involved, according to Vu. Unlike Indonesian palm civets, which are apparently farmed and intentionally fed ordinary coffee beans, Vietnam’s premium offering is the produce of ‘weasels’ that have been left to roam wild and gravitate naturally towards the finest of beans – or the fleshy fruit surrounding them, which is what they are attracted to.
Although declining in number, these wild civets can be found in Buon Me Thuot, Kon Tum and Dak Nong, all provinces of the Vietnamese Central Highlands.
Buying the beans from farmers or intermediaries, the coffee chain Trung Nguyen then cures the beans in line with a strictly controlled process whereby the beans must be processed within 24 hours of leaving the civet’s digestive system, upon which point it seems that they are buried underground for almost a year before any onward use.