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Witt] ae pe 2 a ee am Los Suefios Hotel Pacific Coast, Costa Rica Registration now OPEN: save the date!!! SS ee & > ASIC ge NN So aaa) DECAF that loves coffee, because even. popul if is not easy to admir it, we are all gee~ ting older every day and a good part of the population is not willing to stop drinking toffee. So if they ate able w find a good decaf, then they will reduce only the caf feine intake but not the eoflee consump- tion,” said Muguira ‘The third factor, ssid Muguira what he describes as “the huge potential of consumption still coming along in pro ducing countries” such as Mexico, Indonesia, India and Costa Rica where increasing numbers of consumers are leaning to more decaf consumption. ‘The tise ofa population tha has grown Lup with a whole different atticude wo coffee culture is by far regarded one of che main reasons behind the growth in decaf Kast, himself a cupper and green coffee buyer for 13 years, said the most sigoificant change in the decaf industry, without a doube, comes fiom the maturation ofa part of che population who grew up with good eoffee and now doesnt wane to sacrifice drinking coffee. Whether for health or other rea- nsumers are demanding high-quality deca sons, these consumes cannot continue ¢0 ink as much regular coffee as they used 10 do. However, they continue t0 gulp down lots of coffee every day and have no imentions tw slow down, For the lst 15 year consumers have been learning w drink good coffee and Starbucks really helped popularize coffe, and helped eurn decaf into a qualiy-cofce product in North America where peuple today relly enjoy. good cafes.” he sid “This group of consumers is maturing, and a growing part of the population has had to minimize heir coflze intake and drink “half and half” cofce, but thee consumers are people who are used to good quality caffe, 0 imagine going from a good cofée to a realy low grade supermarker decaf blend, thats a hacd sll” suid Kase, adding dha pod decaf coffe today “hast be pat ofthe offering” from any roaster or eof shop. Both Descamex and Swiss Water, wo of the world’s leading decaf companies. are reporting solid sales in the last few While officials atwibute the improved qual son, the tend for growth is extending beyond the success of companics as the number one rea Growing in Most Ethnic Groups Growth in dhe market for decaffeinated coffee has been growing steadily during the las decade, according to figures from the 2012 National Coffee Drinking ‘Trends, which the New York-based Art of Decaffeination =e soonze0 = S demus Do net believe anyone who tells you that decaffeinated cafee is net good! When the blend is good the taste does not change. And with the Demus® Process, chosen by the best coffee roasters, what we do is remove the caffeine while le ele bean ing the properties of every si unaltered, So that you may enjoy the pleasure of an espresso every time you want to, Well then... may your next coffee be a decaffeinated one, 82 Trade Corre Teane Jour | wonaieanolee net National Coffee Association (NCA) has been tracking since 1980. ‘The study found thaein 2012, 11 cent ofthe US. adale population over 18 years of age reported drinking decaf eoffce fom a daily basis, « surge of 37 percent fiom the 8 percent reported in 2011 Prior wo 2012, the Sgure for daily deca? consumption had never surpassed 10 per- cent, according eo the NCA, When they asked how many con- sumers drank decaf coffee on a weekly basis or any time during the last yea INCA found that the figure rose to 14 and 17 percent, respectively, for each category jn the U.S. adule population, up from percentages of 12 and 15 percent, respec tively, for the prior-year period, A separate NCA study (from 2012) revealed that Latinos outperform any ‘other group in the U coffee drinking, with daily decaf con ion in this segment of the popula- tion exploding to 74 percent in 2012 from just 15 percent in 2011, While no other group was found to be drinking as much coffe, the inerease in decaf continued to be significant. Daily decaf consumption among Caueasian-Americans surged t0 63 percent in 2012 fiom 9 percent the year before, and African-Americans daily intake of caffeine-free beans similarly jumped to 57 percent, from 10 percene in 2011, aceording to the NC/ Figures from other markets are diff cele to tack, but according to 2009 data by the International Trade Center (ITO), 4 United Nations organization based in Geneva, the biggest market for decaf in arope was Spain based on 20089 da While 17 percent of the total coffee demand in Spain in 2009, was for decaf, this was followed by 13 percent in the UK, 12 percent in the Netherlands and 10 percent in Belgium. While a major jermany, reported 8 percent OUR DECAFFEIN THE NATURAL CHOICE ATED COFFEE 4 Jen 2013 33 [oEcar of its cotal coffee consumption w be decaffeinated beans, the ITC study said ‘Comparisons for these markets with other years were not available Micro-Roasted Decaf Emerges As the decaf trend has grown, so has the number of micro roasters chat have appeared in the last five years catering especially w consumets looking for the best of the best in decaf quali. “I sated Artisan in 2009 because as 1 was doing research for sarting a coffee business I would talk to roasters and peo- pleand I realized they were relly trying to get and find more quality decaf coffe.” said Ruch Ann Church, president and founder of Artisan Coffee Importers in ‘Ann Arbor, Mich. Church, who is a Qeprader, said one of the visible isues that have emerged in the decaf industry is the “market forces that are moving in the dizeetion of higher quality small batches.” Micro-roasters, find me like her, are seeuggling c00p- eration from the deeaffeination plants to offer micro-samples of lots, “Thee inability of mose decaf procesors to offer samples of something less than 56 bags ata time (7,400 Ibs). IfT decided to buy a ea tiful Ethiopian Harrar to be my Ethiopian [coffee] for the next three months and I wane to figure out how ie will ast if deeat- feinate i, I can only find one eompany thar will offer me a Fve-pouind sample,” she said, refering © Monceakbased Qusse Decaf Inc. in Quebec. “Thete is no doubs that the main ctor bochind the rise in the consumption of decaf is other aspect of coffee, from micro roaster Tike Artisan to major planes like Swiss Wier and Mountain Coffe, che name of coved quality. Like in every the game is quality Ev HI CIE] Cha ure uate 1 + QUALITY RELIABILITY ant 34 Tea ae Corre Trane Journ | wonmseaneoliee net The nome says tall + DEPENDABILITY The incustystansond elertod faucet ot “1 donic think that decat has ever been the villin bur a big problem in the past wes that roxsters used to sll regular and decaf atthe same prices and they were using lower qual- tis in oder wo cover che addin cost of the process. This of cours had a tribe effect on the decaf industry” sid Muguira. “But those dark days are pretty much over because tod the final consumer is more educated.” or us its combination of two things,” said Kase, “The firs being improvement to ‘our own processing to preserve dhe flavor and characteristics of coffee. The best enffe can bee without caffeine and we made this con- scious decision as we realied we have to chink ‘of ourselves not a a decaf company but asa coffee companys” The focus on creating quality coffee is paying off. From single-origin caffe, certi- fied beans and estate coffe, industry stake holders in decaf have been aggressively stepping up competition in the last few yeats, leaving no doubt that the decaf industry has no intention of losing out on the booming growth in consumer markets. “The best decaf cofee you'll ever tate begins with the finest green Arabica coffee beans available,” sid Lee Eckel, roast master a the Lakora Coffee Company, Columbia, Mo, that offers onfine customers seven dif- ferent decaf cofles from origins as varied as Java, Sumatra, Ethiopia and Colombia, Online cnffee shop Mistobox offers no less than 22 different decaf blends berween its long lst of top origins and select beans, with the decaf selection including top-notch origins as Ethiopian Sidamo, to Finca Bourbon from the Guatemalan region of Chimaltenango, while the San Francisco Bay Coffee Company in Oakland, Calif offers 20 different decaf blends of which 1 are labeled as “gourmet” decaf "We hadl a great year in 2012 and 2013 is going wo be a great year too with very sales,” sid Kastle, adding: “Wes very gratifying to see that people who are really passionate ahout coffee and don't want to compromise on quality, is euning out peo- ple are willing to £ Maja Wallengren has been writing abort cof fe for 20 year from over 40 cafe producing ‘counries, She is based in Mexico City and can be reached at: meallengren hora. com: Get more out of your coffee tts the magic in our processing that makes the instant coffee outstanding 1 Project Pople Instant coffee produced by SSP plants have excellent aroma & very good taste SSP has designed, installed & commissioned 2 50 kg/hr continuous freeze drying plant at Its R&D centre. With SSP’s extensive knowledge & experience on processing coffee, it has supplied complete turnkey coffee processing projects to a number of Instant coffee manufacturers in India & abroad which are running successfully e eo 0 customs Epona EFFICIENCY Design ensures Integrated, Energy HIGH YIELD qeee eae wich memtameme’—hvttercon gr comet Stnintriee’ Wun provides Undated extract quality, ‘an be varied as per SSP PVT LIMITED 12 Mile Stone, Mathura Ro, Faridabad - 121003, Haryana (Inia) ‘Phone: #91-129 4185700, Fax: +91-129 4183777 E-mait info @ssp.co.n ; Website: www atpindis.com Jo 2013. 38, SINGLE SERVE Single Serve Breaks Through Overall coffee pod sales are may still be limited to a fairly select group of high-income markets, but the category’s impact on these markets has been profound and its influence likely to increase in coming years. By Michael Schaefer ‘ong a fixeure in Western Europe, sing coffee machines have nally begun to make heir long- awaited breakthrough elsewhere, as well with sales of coffee pods exploding over the last two co three years in the United States and Canada, while also showing signs of growing adoption in markets like Japan and even Brazil. As the market has grown and marured, what began asa rela- tively high-end subse of home coffee consumption has continued co expand. accounting for an ever-greater number of coffee-drinking occasions, particularly in those European markets hardesthit by the global recession, where a decent home coffee-drinking experience has increasing- ly substicuted for daily visits to the café At the same time, competition has grown exponentially, particularly as the patents protecting marker leaders such as Nestlé’s Nespresso system or Green Mountain Coffee Roasters Keurig line withering fire fiom rivals looking co sell compatible pods. While overall pod sales remain confined co a relatively select group of high-income markers, the category's impact on these markers has been pro found, with its influ- ence likely co grow further incoming Although the lase five years have been relatively kind to the entire global coffe industry in cerms of growth, the ance of caffee pods ison anathe er level altogether On a global basis the category has averaged nearly 30 percent annual sales expansion since 2007, growing, from $2.2 billion USD, to mote than $8 billion USD in annual cof fee-pod retail sales daring this time. This is in addition co the 21 million coffee-pod machines sold in 2012, up from just over 7 million in 2007, worth neatly $3 billion USD in global reail sales. What's more none of these figures include business-to- business or foodservice sales, with the for- mer sill accounting for significant per age of pod sales in markets lke the US. while the latter remains a key rowel market for dhe farure Geographical distribution remains re atively limited, with more than 90 percent of global pod retail sles coming from either North America or Western Eutope. Indeed, more chan half of total sales ean be found in just dhe markew—the US, France and Germany, all of which boast retail cofee-pod markets worth more than $1 billion USD annually. While all ehree markets are home wo strong tradicional cof fee-drinking culeues, che evolution of the Single-serve catagory in these markets dif fers markedly. While soft pods such as DE Master Blenders 1753's Senseo system kicked off the pod coffee boon in Europe, taking serious share around the turn of che millennium, it was noc uncl the emer- Keurig. hard pod system that pod coffee sales truly took coffin the U.S,, with hon gence of Green Mountai demand boost- ced by a strong presence in many offices. Perhaps not surprisingly, standard product usage also varies quite signifi cantly between the very largest single-serve mar- kets. Americans still prefer hard pod machines offering conven ent takes standard de rer coffee, while European con: sumers look to ines offering homemade versions of cxpreno and cappuccino-style drinks. This in part explains the extraordinary growth of Nestlé’ Nespresso system in ‘Western Europe. With its high-end pods now the runaway leader in the region, 38 Tea ae Covers Teane Journ | wonmseaneoliee net THE EXQUISITE FACTORY. “Serving you the perfect blend...” www.ima-industries.com SINGLE SERVE the Nespresso system accounted for around one-third of retail sales in 2012. Offering a consistent espresso shor for consumers familiar with the format, Nespresso has long traded on an image of exclusivity, with pods sold online or through a limited number of Nespresso- branded boutiques, which combine retail sales with an ambience comparable to & high-end cofige shop. Although Nespres in the U.S. it remains very much a s not unknown sniche playes, with a retail market share in the single digits, while Green Mountain's Keurig K-cup absolutely dominates, accounting for around two- thirds of total value sales in 2012. In contrast to Nespresso's prominent branding, K-cups tend co feacure a licensed brand, such as Starbucks, Dunkin’ Donuts or Caribou Coffee. As mote coffee shop chains look to leverage their existing brands to grow retail peod- uct sales, K-cups will likely continue co (5 AYSHIGER JOIN THE TREND IN COFFEE & TEA PORTION PACKS. More than 40 ye: in capsule fill f experience ee Go for the world’s leading filling and sealing solution. 38 Tea fe Corre Tea ours, sworasezandofee net license brand names, Interestingly, while explosive growth in coffee shops has turned millions of Americans on to the joys of lattes, cappuccinos, and espresso, the desire to recteate these beverages at hhome remains limited. This may slowly be changing however, with both Green Mouncain and Starbucks investing heav- ily in new model machines—the Vue and Verismo, tespectively—designed co allow easier, higher-quality preparation ‘of milk-based coffee drinks. “This kind of steady innovation rypi- fies the trajectory of the single-serve cate gory over the last five yeas, and itis set co continue going forward, with global eof: fee pod sales set to reach $13.5 billion USD by 2017 in constant dollar terms, ‘While much of the growth in recent yeas thas come from “closed” systems such as Keutig or Nespresso—which only allow licensed manufacturers to produce com- patible pods—this could change over the next decade as more competitors have challenged the validity ofthe patents prox tecting these machines. In exely May, for instance, a Bridish courc ruled that Dualit, sll local player, could legally produce pods for Nespresso-branded machines. ‘While his eould potentially mean lower profits for both Green Mountain and Neste, the flip side isa potential accelera- tion in growth, as lower prices make pods 21 convenicnt option for an ever-growing array of coffee-drinking occasions. “To understand the potential durability of pod coffee demand, we need look no further than recesion-ravaged economies like Spain and Portugal, where eoflee pod sales have surged since 2009, even as visits to cafes have plunged. Going forward, single-serve machines are expected co become increasingly synonymous with coffee machines in general in both North America and Western Europe, where elee where they are expected to become a ly profitable niche among coffce-drinking elites the world over. = Michael Schaefer manages global bever sages and foodervice for Euromonitor Incernational. He is located in the company’ Chicago office. He may be reached at michel schacfer@euromonitarincom. The best materials, The best value,from Here at Yamanaka Industry Co., Ltd., we combine years of Cen actuate eae cay Japanese craftsmanship to bring you the best tea bags, eRe mea auc aca cele Pee R Ue CRUE Reed Ce at ace Rie ct ieee aa Ee) Somer ny Pm dea) oro Lo Creer Pee nee DILON®” Tea i ee enna Cink filer, made of woven polyactice fibers Eee ty teen ted Perit ees) ee eee ee ee en ST UTPUT CAM toro Rr ET pte ieee peur a SL ‘SPECIAL REPORT— RUST CRISIS. Central America Fighting Against Time in Rust Battle Central America is facing the worst outbreak in history of the coffee leaf rust pest. The onslaught has caused losses of between 2.5 million and 3 million 60-kilogram bags to Central America’s 2012-13 harvest. Even with the current action it’s a fight against time to bring the situation under control before the 2013-14 crop cycle. With flowering already underway, industry officials are reporting severe impact to trees left stripped of foliage. The harvest for the Central American region including Mexico, which in an average crop cycle reaches between 17 and 18 million bags, is expected to end at about 15 million bags this year. Analysts agreed that next year, volume could drop to between 10 and 12 million bags. By Maja Wallengren ‘of being overwhelmed,” she sad, mode for coffee producers across | Rust disease has been one of the main {Central America, From the first signs thac an ourbreak of coffee lea rust started 0 iF was ike a horror movie in fixtforward and most damaging crop pests in the worlds Arabica coffee-praducing regions appear in farms across the cegion around smid-2012 to just a couple of months lt the attack spread to affect up eo 50 percent of firms, “Te went from bad to worse to disaster in just a month, and most [of us] producers were so overwhelmed by the magnitude of the ouubreak that we simply did not even now where to start” said Teresa Batres, a coffee producer in El Sahador. “From small and large producer, the leaders of the industry, che fing stl is very much one for mos ofthe last century. Ichas aided the nea-collapse of Arabica cultivation in a number of countries across the world, including Sri Lanka where most of the country’s growers gave up on growing cof fee and switched to tea production instead But coffee rust or roya, as the past is commonly known, first appeared in ental America in 1976, Since then, ruse outbreaks have been common, on average affecting about 5 pereene of farms in any given crop eye, butat infestation rates that have been considered “controllable” by sei- cntists and agronomists, Rust is caused by a fungus that fre attacks the leaf and stems of cues trees. Ic quickly reals in the wee losing its foliage and becoming too weak co sustain any flowering or fruit a all. The sic tution today, however, is nothing ike what thas been seen before. The current ourbreak ts hit fiom southern Mexico to nosthern Peru as well as large parts of the Caribbean “The first thing that came to mind shen T saw the pictures of farms was that this ruse attack we are seeing now is Central Amerieds what the fost in 1994 vas to Brazil” Albert Scalla, senior vice president, of Miami-based INTL Heneorp Futures LC, told a conference in Cental America earlier this year. (Hencorp was bought by INTL FCStone, New York. in late 2011.) the crop in the worlds largest coffee pro- ducer in half cha year. Bven the most con- servative analysts in the coffee industry, and the most hearsh traders inthe market, agreed that Central Amesica is more than Tikely to repeat that undesirable series of events. The damage is regarded s0 severe that industry officials sy it could resul in coffee disappearing all together from some of the mote marginal regions where pro- ducers have no funds available to creat it and receive lite oF no official support. “This could be the end of coffee pro- duction hete” sid Maria Isabel Balbucna fof the Fedecares cooperative in the Dominican Republic, which shares the Hispaniola Iland with Haiti. The coffee

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