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May 2017 | Vol. XXX No. 5 www.coffeetalk.com

S N O I T P O G N I G A PACK

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sibilities

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ROASTERS ROCK

100 Year Old Coffee

ICE CREwing Interest in an Italian Tradit

Gro America's

CONNECT. GROW. PROSPER!

12 FINDING THE BEST PACKAGING SOLUTION How a Coffee Roaster Increased Production Efficiency 14

Want to Patronize 16

Electronic Service Requested

Being the Business Consumers

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GETTING PROFITABLE

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O? T A L E G AM OR ion

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ing Pos g a k c a P xploring


Contents

6

The View

6

Calendar

8

Ice Cream or Gelato?

Know Your Materials

10

Hitting the Trifecta

Roaster's Rock

12

14

100 year old coffee

Finding the Best Packaging Solution How a Coffee Roaster Increased Production Efficiency

15

A Taxing Proposal for Coffee Need to update your subscription or address? Visit http://coffeetalk.com/forms

Getting Profitable

16

Being The Business Consumers Want to Patronize

WHO WE ARE

Phone: 206.686.7378, see extensions below

Coffee Service Corner

18

An Evolving Industry

20

Newsbites

22

Advertiser Index

Publisher / Advertising Inquiries Kerri Goodman, ext 1 kerri@coffeetalk.com

Managing Editor Libby Smith, ext 8 libby@coffeetalk.com

Ad Art & Accounting Laurie Veatch, ext 4 laurie@coffeetalk.com

Copy Editor Mark Moser, ext 9 mark@coffeetalk.com

Print Design Marcus Fellbaum, ext 5 marcus@coffeetalk.com

Web Design Justin Goodman, ext 6 justin@coffeetalk.com

Mailing Info Mail: HNCT, LLC, 25525 77th Ave SW Vashon, WA 98070 Phone: 206.686.7378 Fax: 866.373.0392 Web: www.coffeetalk.com Disclaimer

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Know Your Materials

CoffeeTalk does not assume the responsibility for validity of claims made for advertised products and services. We reserve the right to reject any advertising. Although we support copyrights and trademarks, we generally do not include copyright and trademark symbols in our news stories and columns. CoffeeTalk considers its sources reliable and verifies as much data as possible. However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk. Postmaster: Send address changes to HNCT, LLC, 25525 77th Ave SW, Vashon, WA 98070 Subscription: The cost of a subscription in the U.S. is $47.50 per year; in Canada, the cost is $72.00. Free to qualified industry professionals. Non-qualified requests may be rejected. Publisher reserves the right to limit the number of free subscriptions. For subscription inquiries, please call 206.686.7378 x1 or subscribe online at www.CoffeeTalk.com. Copyright Š 2017, HNCT, LLC, All Rights Reserved

4 May 2017


THE VIEW Kerri Goodman

There has been a lot of team meetings, brainstorming, emails, phone calls, graphic design, tradeshow marketing, website design, list development, technology implementation, and subject matter expert input all focused on the launch of this new series.

I

t’s Christmas in May here at the CoffeeTalk Media offices!

No, it’s not snowing. But this month we formally launch our new JavaU Training Webinar Series with four outstanding topics and four outstanding presenters! I just returned from two tradeshows where we previewed our launch to end-users and vendors alike. The feedback we received was motivating to say the least. And now...we get to share all of it with you!

If you want to check out our topics for May, please visit the back-inside cover of this May edition. You’ll see some fantastic topics in the areas of operations and trends. Our Webinars run weekly, on Tuesdays from 1:00pm – 2:00pm ET. Our May 9th topic is presented by Anna Gutierrez from Barista Twenty Two. The topic, “Molding Your Staff Into All-Star Baristas” discusses how a proper training program is the foundation for consistency, one of the most important factors attributing to the success of a specialty coffee establishment. Our may 16th event features Mark Ramano from illycaffé North America who presents on the topic, “Why Quality is a Key Driver for Coffee Sustainability,” and shares his perspective on why quality matters in creating sustainable practices along the entire supply chain. Ed Arvidson from E&C Consulting presents “Coffee Business; the Art & Finance” on May 23rd. On May 30th, Rick Peyser from Lutheran World Relief, will share his insights

Java U Training Webinar Series

from his recent trip to Nepal and will give us an overview of the current state of production and well-being. For our end-users, I couldn’t be more proud to help share and promote the insights and best-practices of these gifted industry leaders. While CoffeeTalk has shared their words from the past twenty years, we are excited to share their expertise in a new way that goes beyond anything on the written page. And while we’ve had tradeshows forever, this format allows us to present that great content and interaction in a personalized and convenient setting. Presenters will be set up to share videos, online sample pages, pictures and spreadsheets. Views can help shape the direction of the presentation via participation in polls and Q&A sessions. For our sponsors, we are excited to offer them the chance to build legitimacy and relationships through the process of sharing best-practices. Sponsors get the opportunity to interact with their audiences and to gather feedback on their topics. Our Webinar series creates a highly-qualified lead generation opportunity that matches the endusers content interests to our vendor’s content knowledge. We at CoffeeTalk Media look forward to sharing our JavaU Training Webinar series with you. With our dedication to publishing four topics each month, you’ll have over 48 new topics each year archived for your consumption, when and where you need it. We hope you enjoy this new series as much as we enjoy publishing it for you. We are committed to helping our audience be as knowledgeable, efficient and profitable as possible. Contact me directly if you would like to be part of this new project. We are looking for sponsors and subject matter experts for our ongoing monthly Webinar series! kerri@coffeetalk.com (206) 796-4471.

Calendar May 4-6

May 4-6

6

For complete and updated show information visit our online calendar: http://coffeetalk.com/industry-calendar/

1st Café Cambodia 2017, Koh Pich (Diamond Island) Convention and Exhibition Centre, Phnom Penh, Cambodia

June 4-6

Green Coffee Association Convention, Miami FL USA

June 7-11

Let's Talk Coffee, Kigali Rwanda

1st Franchise & Licensing Cambodia 2017, Koh Pich (Diamond Island) Convention and Exhibition Centre, Phnom Penh, Cambodia

June 9-11

Coffee Fest Chicago, Chicago IL USA

June 12-15

Re;co Specialty Coffee Symposium, Budapest, Hungary

June 13-15

World of Coffee Europe, Hungexpo Budapest

June 16-18

China International Coffee Industry Expo, Guangzhou, China

May 12-14

Ubud Food Festival, Ubud Bali Indonesia

May 31-June 2

World Coffee Science Summit, San Salvador El Savador

May 2017


Ice Cream or Gelato? by John Babila, President North & Central America & Mexico, Carpigiani USA, An Ali Group Company

I

taly’s longstanding tradition of gelato and coffee has been steadily gaining interest among Americans over the years.

As a coffee shop owner, why should you care about ice cream and gelato? Also, how is gelato different from ice cream and supermarket gelato... are they all not simply frozen desserts? While the terms ice cream and gelato are commonly used interchangeably, it is actually illegal to refer to gelato as ice cream in the United States... Okay, not really. However, the FDA defines ice cream as a frozen product with no less than 10% fat. Unlike ice cream & supermarket gelato, which contains 10-26% fat, artisan gelato is made from milk rather than cream meaning it contains just 0-8% fat. Gelato is not simply “fancy low-fat ice cream” you can charge a little extra for, it is a healthier alternative to ice cream made from fresh ingredients that provides a more intense flavor profile and a denser, creamier, smoother texture. Supermarket gelato is really high fat premium ice cream using the name gelato, because there are currently no restrictions on what you can call gelato. For years, Americans have been searching for the secret to Italian health and beauty, and as it turns out that secret might just be gelato! Gelato is a healthy and natural dessert made from fresh, all natural ingredients. The fresh fruits commonly used in gelato make even the smallest servings high in vitamins and even high in protein when the gelato is made with milk and nuts. Aside from the lower fat content and fresh ingredients, gelato actually provides a more enjoyable palette experience than ice cream. Gelato is

prepared by churning the mixture at lower speeds, incorporating less air into the final product. In fact, gelato averages 50% less air than ice cream. The lower air content results in a very dense product that boasts an enjoyable smooth and creamy texture. This product density and smooth, creamy texture produces a more intense flavor profile than can be achieved with ice cream. The robust flavor profile of gelato provides ample opportunities for artisans to experiment with unique flavor combinations and natural ingredients. Gelato is served at a 5-10ºF higher temperature than American ice cream, adding to a more enjoyable palette experience. The slightly warmer temperature combined with lower fat and air content produces a paletteflooding, more intense flavor profile that is irresistible to many foodies and coffee experts. Expect the tasty combination of coffee and gelato to grow at an accelerated pace now that large coffee chains have recently added premium artisan ice cream to some locations. Stay tuned for part two, where we will outline how artisan gelato can increase all-day menu sales. We will simplify the numbers, calculate the return on investment, and outline exactly how you can make more money by adding artisan gelato to your menu. So grab a scoop and stay tuned... About Carpigiani: Carpigiani Corporation began in 1947 and has been serving the foodservice market for 67 years. Carpigiani is dedicated to providing the highest quality, most reliable and most durable frozen dessert equipment in the industry. Carpigiani also hosts the Gelato World Tour, the world's largest gelato competition, and Carpigiani Gelato University, providing unparalleled professional education on frozen desserts for gelato artisans. For more information, visit our website at www. carpigiani.com/usa.

8 May 2017


Ahlstrom compostable filter solutions combine the best results in cup with a great processability of the media. Whether capsule, pods or pouches, Ahlstrom has the solution.

GREAT TASTE with LESS WASTE


Know Your Materials Hitting the Trifecta

by Pan Demetrakakes

I

t’s hard for foodservice packaging to fulfill the demands of performance, recyclability and price. But a new liner material puts all three goals within reach.

compost because it must be collected in segregated loads and taken to a dedicated industrial composting facility, of which few exist. The plant based linings are just as difficult to recycle as PE-coated packaging, so for most communities, PLA lined packaging is also destined for landfill.

The first duty of foodservice packaging is to protect the product—keep it hot or cold, fresh and appealing.

But there's a relatively new alternative that hits all three legs of the trifecta.

But protection is not the be-all and end-all. If it were, Big Macs would still come in EPS foam clamshells. Packaging made from expanded polystyrene (EPS), popularly known as Styrofoam, once was ubiquitous in foodservice, for trays, boxes, bowls and, especially, beverage cups. It’s still in wide use, because its sturdiness and insulation ability, combined with its relatively low price, make it hard to beat. But EPS packaging has suffered significant setbacks in the U.S. McDonald’s and other major fast food chains reduced or eliminated it years ago, and some 146 U.S. municipalities (97 of them in California) have ordinances restricting it in some way, according to a study in Plastics Recycling Update. In 2016, California listed styrene as a chemical known to cause cancer. Another problem is that EPS has become virtually the poster child for ecologically unfriendly packaging. It’s friable over time and buoyant, which makes for highly visible litter, and its post-consumer recycling rate is among the lowest of all major plastics. When EPS foodservice packaging is phased out, the replacement is almost always fiber-based packaging with some sort of polymer protective lining. But if restaurants don’t want to use EPS on ecological grounds, they need to be sure that the replacement passes muster too—while still protecting the product. Performance and environmental friendliness are two parts of what Todd Gasparik, director of business development for Smart Planet Technologies, calls the "trifecta” of packaging. The third is price; few restaurants are willing to pay a premium for packaging solely on ecological grounds.

EarthCoating, developed by Smart Planet Technologies, is a highly-mineralized resin barrier coating that is fully recyclable, performs perfectly and doesn't carry a price premium. Consisting of 51% calcium carbonate and 49% polyethylene, it protects the fiber portion of the packaging as well as PE. But unlike PE, it can be recycled on the same recycling equipment that handles plain paper and other fiber packaging and products. "From a material optimization standpoint, EarthCoating is the best choice," Gasparik says. "Foodservice packaging of all types, with paper, paperboard or corrugated, can be lined with this coating. This includes beverage cups, which now are almost never recycled." Using packaging with EarthCoating has potential appeal for green-minded customers. However, communicating that benefit will take some effort; it's not as readily apparent as substituting paperboard for EPS foam. Gasparik suggests direct messaging, on the package and perhaps with in-store signage, touting the recyclability of the packaging. He notes that environmental claims like recyclability are regulated by the Federal Trade Commission, which generally requires documentation. Smart Planet Technologies is willing and able to provide that documentation on demand. “This coating has the potential to make the great majority of foodservice packaging as easily recyclable as plain paper is today,” he says. “That can only benefit restaurants, their customers and the planet as a whole.”

"While we take great pride in providing our customers premium coffee and delicious food, we're also working hard to optimize our packaging in support of sustainability. After having recently met Todd Gasparik during his visit to Seattle for the Specialty Coffee Association event, it became clear to us that making use of reCUPs is a worthy pursuit.", said Lupe Chaves, Owner/Operator.

Since paperboard and corrugated are more or less commodities, whether a package scores this trifecta will depend almost entirely on the material it’s coated with. And the major alternatives all have issues. By far the most widely used coating for paperboard in quick-service restaurants is polyethylene (PE). It’s relatively cheap and effective. It keeps beverage cups from leaking, and it makes boxes and clamshells, as well as flexible wrapping, maintain temperature and resist moisture and grease. But PE is problematic from a recycling standpoint. As detailed in the Coffee Talk article "A Dirty Secret" (March 2017), standard PE coatings make cups and other packaging unrecyclable, because the coating breaks into flakes that clog the recycling equipment. Most recyclers won’t even accept paper beverage cups; they have their automatic (or human) sorters remove them from the waste stream and send them to the landfill. Another lining alternative is polymers derived from cornstarch or other plant-based materials, the most common of which is polylactic acid (PLA). This has the advantage of compostability and being bio-based. However, packaging lined with PLA underperforms in all three legs of the triad: it's significantly more expensive than PE, doesn't protect as well, and is hard to

Located alongside the Moore Hotel, Seattle, WA based coffeehouse, Moore Coffee, is trialing reCUPs in support of their sustainability initiatives.

10 May 2017


FILL EVERY PACKAGING NEED AND KEEP YOUR BUSINESS BREWING.

With the affordable G21 packaging machine. The G21 is a fully-equipped vertical form, fill and seal machine that provides a variety of packages for a wide range of roasters at a competitive price. Visit fresco.com or call 215.721.4600 to learn more about our flexible packaging solutions tailored to the coffee industry.

Flexible Thinking

sm

3005 State Road, Telford, PA 18969-1021 | fresco.com | 215.721.4600


Roasters Rock

100 YEAR OLD COFFEE

S

ome things better with age – wine and cheese come to mind. Some things don’t – milk and bread. But what about coffee? Can the age of a tree make a difference in the quality of the coffee?

by Rocky Rhodes

Today, the farm is owned by Binchuan Plateau Organic Agriculture Development Co., Ltd. The farm area has expanded to just under 5000 acres, but this ancient forest remains intact.

Ted Lingle brought an interesting sample / experiment back from his work in the Yunnan Province of China. He is doing work there with the Yunnan Coffee Exchange to help the entire industry, from the farmer on up, improve not only the quality of coffee, but the delivery mechanism. He is helping YCE change the ordering methodology as well as the export model of specialty coffee.

So the samples to be cupped are from that same original tree. 100 year old trees, 70 year old trees and 10 year old trees. A significant change over the century is that better production practices are in place. All of these samples are washed, and carefully sorted. The only real variation in regard to production for the three samples was that the 100 year old sample was dried a bit further than the other two.

What he brought was a fascinating trio of samples so a ‘vertical cupping’ could be done. What is a vertical cupping? Glad you asked, because it wasn’t clear to us either! In this case, the experiment had only one real variable: Plant Tissue Age. And the age difference is DRAMATIC. 10 year old trees, 70 year old trees and 100 year old trees!

One has to question many things when presented with this type of historical opportunity:

To get to the end of this experiment, you have to go back to the beginning. French missionaries brought coffee to Binchuan, Dali Prefecture of Yunnan in 1904. A tree was planted and then survived until 1997. Seeds from that tree were plated and a farm was started between 1908 and 1912. That ancient forest still produces coffee today. In addition, farm expansion created a generational farm of trees, all from the same original planting.

Is there a difference in yield? Is there a difference in cup quality? What type of soil conditions are there after 100 years of growing coffee? Is there a density difference among these coffees? Unfortunately, only one thing is going to be answered in this article: Differences in cup quality. It would be wonderful to get some additional opportunities to really dig into the research. Now that we know this


opportunity exists, it can be scheduled and planned for an even more detailed set of experiments. The sample size of each age group was 550 grams. An SCA / CQI sample roast profile was achieved for each sample. In addition to the three China samples were two from Indonesia. Both were washed coffees; one from Sulawesi and one from Sumatra. All the samples were placed on the cupping table ‘blind’ so the pre-conceived notions about age did not affect the outcome. Prior to the cupping a hypothesis was created: The older age of tree will degrade the cup quality. Following the cupping, all samples were scored and notes taken. When the notes were finished the coffees were revealed. RESULTS OF THE CUPPING The following are the cupping results for the 3 different ages of the coffee. Needless to say we were surprised by the results and more questions were raised than were answered! In general, there were more things about the coffees that were the same, rather than different. The total point difference between them was only 1.25! With this single experiment it would be impossible to draw any concrete conclusions. If a conclusion HAD to be drawn, it would be that age of tree does not impact cup quality! The ‘youngest’ scored the lowest and the ‘oldest’ the highest.

All three coffees had spicy notes and some Sugar Browning odors. The dominant was in the Dry Distillation group and none were extremely complex. 10 was the only one to have any (small) enzymatic odors. All three had a fairly dry finish after a pleasant flavor. The flavors were similar for all three with Bakers Chocolate and light amounts of Lemon and Orange. 100 was the only one with a complexity of acidity which started to present a fruity Acetic acid. Perhaps it was psychological, but notes of black tea were present in 10 and 100. The body was stable throughout the cupping from hot to cold. The only one to improve was 10. Summary of cupping: All three samples were certainly produced to ‘Specialty’ standards. The green was clean. There were little to no quakers. The cup quality was solidly over 80. The age seemed to have made little difference in the overall result of the cupping. The variations found could be just as easily been produced with different post-harvest practices as the age of the tree. Thank you Ted for bringing this opportunity for such a unique cupping experience. Now we have to do some other vertical cuppings to see if the data is consistent! This could be a fun journey! Rocky Rhodes is an 18 year coffee veteran, roaster, and Q-Grader Instructor, and his mission now is to transform the coffee supply chain and make sweeping differences in the lives of those that produce the green coffee. Rocky can be reached at rocky@INTLcoffeeConsulting.com

Frag / Aroma

Flavor

After Taste

Acidity

Body

Balance

Uniform

Clean

Sweet

Over-all

Total

10 year

7.5

7.75

7.5

7.5

7.5

7.75

10

10

10

7.25

82.75

70 year

8

7.75

7.25

7.5

8

7.5

10

10

10

7.75

83.75

100 year

7.75

8

7.5

7.75

7.75

7.75

10

10

10

7.5

84.00

Photo by Trish Rothgeb


Finding the Best Packaging Solution How a Coffee Roaster Increased Production Efficiency

T

he coffee industry is evolving rapidly, whether you are a co-packer or roaster. There are new demands involving customer expectations of flavor and freshness, aesthetics in packaging, residual oxygen levels, and flexibility and formats. Coffee roasters who have traditional equipment have a hard time meeting these demands. They may struggle with operational efficiencies, fill accuracy, packaging speed, and oxygen levels. Reunion Island Coffee, a wellknown and highly regarded roaster, is an example of a company who faced challenges with their current equipment and took action. Reunion Island Coffee and the VFFS decision Based out of Oakville, Ontario, Reunion Island Coffee is a leading figure in the coffee industry as indicated by their Macro Roaster of the Year award in 2015. They have a passion for their product as well as a focus on maintaining a high level of support, quality, and personal relationships with their suppliers as they continue to grow. The value and pride they place in each other transfers into every aspect of their business. As Greg Rusciolelli describes, Reunion Island Coffee has “…. a great cohesive team. Credit for success of the business is shared among every employee.” An opportunity for product improvement and development arose when Reunion Island Coffee discerned that they would need new packaging equipment for their product. They began to see increased growth and demand combined with aging equipment that could not handle the workload. There was unplanned downtime, inconsistency in bag formation, inaccuracy in fill, and reduced operational efficiency. This triggered an active search for a business partner that could provide them with the equipment they would need for whole bean and roasted grounds packaging. Finding the Right Vendor and Right Machine They approached this process with an open mindset toward the vendors who were presenting VFFS packaging solutions. Rusciolelli, Vice President of Operations, researched options and then attended packaging trade shows as an opportunity to meet with various vendors. This enabled him to narrow down the field to three manufacturers, all of whom would make a site visit to the Reunion Island Coffee facility. When looking at components of the machine, they were interested in the following – what is the quality of the finished product, what is the quality of the machine, what is the run rate, and what is the price? For the vendor, they were looking for someone they felt comfortable with and whose machine’s unique features would make a difference on their current application. Ultimately, Reunion Island Coffee decided to partner with Rovema for their VFFS solution. The company they chose started to differentiate itself from its competitors at a trade show by introducing Rusciolelli to a variety of experts who were able to engage and answer any questions. They also introduced him to current customers who provided personal testimonials. Also, at the site visit they were the only company to bring in someone other than the sales manager. These actions allowed them to feel comfortable with the machine and the people who were going to be providing it.

14

The VFFS machine types purchased were the BVK and BVC. The BVK was utilized for the production of frac packs. The gusseted, larger bags required the BVC machine for the incorporation of the degassing valve. Both machines

by John Paneseny, CEO Rovema NA

demonstrated significant performance boosts over the aged equipment and have helped Reunion Island Coffee achieve and exceed the desired solution. With the decision made, they were on their way to implementing a solution that covered their issues of business growth and demand, aging equipment, and reliability. Benefits/ Outcome Quality enhancement is an important feature for Reunion Island Coffee. With the new machine line, they were able to accomplish this by increasing the output, decreasing overall cost of ownership and reducing labor and unscheduled downtime due to maintenance. At the same time, they were able to improve the quality of their bags. With nitrogen generated on site, Reunion Island Coffee has always been able to have low residual oxygen levels. However, with the new VFFS machines in play, they were able to bring the oxygen levels down even further, well below their former targets. There was also more consistency in the forming of the bags and stricter controls when it came to accuracy, weights, and rejects. Immediate gain achievement for each machine are: BVK 260 with auger: • Capacity increase by a factor of >2 (based on run rate) • 30% OEE increase • Decrease in residual oxygen levels to maintain 2% BVC 260 with scale: • Capacity increase by a factor of 3 (based on run rate) • 20% OEE increase • Consistent and improved forming capabilities have enhanced aesthetics of the gusseted stand up pouch • Scale measurement accuracy eliminated the need for a manual QC process • Decrease in residual oxygen levels by approximately 2% In addition to current immediate gains, both machines are expected to see additional increases in OEE gains of 15% or more. This is because the equipment helped identify and improve areas in their process related to material availability, inline quality controls, and changeover logistics. The reliability of the machines has also enabled a more accurate production forecast. From an operator standpoint, Rusciolelli states that “the machine operators are highly engaged and enthusiastic with the changes.” The goal and desire to see a high-quality product packaged in a high-quality bag was a success. Reunion Island Coffee recognized a need to replace their traditional equipment and improved efficiency, performance, downtime, and quality. They are an example of what a coffee roaster can do to further enhance their product by finding the right solution to fit their needs. John is a packaging industry veteran with over 30 years of experience. He started his career in machinery sales with an engineering degree and moved into management after earning his MBA. He is known for his success in growing businesses with an unwavering focus on the customer.

May 2017


A Taxing Proposal for Coffee by Bill Murray, NCA President & CEO

Presenting

JAVAU TRAINING WEBINAR SERIES for Specialty Coffee Professionals powered by CoffeeTalk Media

T

ax reform is among the new administration’s top priorities. Generally, reducing the corporate tax rate would be good for business – including members of the coffee industry. But, the tax reform plan currently on the table in the House of Representatives predates the Inauguration, and is a complex amalgam of conflicting priorities. Reflecting a protectionist thrust, the House tax reform proposal also includes a Border Adjustment Tax (BAT) on imports, that would effectively introduce a new 20% tax on imports. There are additional complexities – including the potential for lower corporate tax rates and taxes on exports, but the potential impact on coffee itself is clear. With more than 90% of coffee being imported from outside of the United States, a Border Adjustment Tax would impose a particularly hefty burden on the industry, at least some portion of which would be passed along to consumers. That’s why it’s important for coffee to take a leading, proactive stand against the BAT. The coffee industry has among the purest arguments against such a tax. First, as a tropical commodity, the raw material on which the entire industry rides must be imported. That means a new, 20% tax on virtually everyone’s bottom line across the industry. Second, the thrust behind the BAT is the protectionist goal of encouraging manufacturing in the U.S., in support of U.S. jobs. However, that argument does not hold up for coffee, as there are already hundreds of thousands of jobs in the U.S. dependent upon coffee. Furthermore, unlike other manufactured goods, coffee is imported by necessity – not because it is “cheaper” to produce abroad. As a result, a BAT would not increase U.S. coffee-related jobs – and could in fact lead to a decrease in such jobs if Americans drink less coffee once it is taxed and becomes more expensive. According to the NCA’s economic impact study – Understanding the Economic Impact of the U.S. Coffee Industry – coffee currently accounts for about 1.6% of the entire U.S. Gross Domestic Product annually. We’re responsible for total economic output of $225.2 billion, nearly 1.7 million jobs, and $68.5 billion in income. We also generate nearly $28 billion in federal, state and local tax receipts. And, consumers spend more than $74 billion a year, plus another $6 billion on ancillary goods like brewers, sweeteners, flavorings and paper goods. Later this month, the NCA will be taking these arguments to Washington, D.C. We’ll connect key NCA members with influential members of Congress in a two-day “flyin” to Capitol Hill, with the goal of presenting a strategic, systematic and consistent message about the BAT and coffee. Legal, regulatory and policy matters often seem far removed from the day-to-day challenges of running a business – but if neglected, they have the potential not only to harm your business, but also to present Bill Murray, unintended consequences. Look for further news later in President & CEO, May about the NCA fly-in and the latest developments on National Coffee this issue, which are rapidly changing. Association

Sign up for our complimentary webinar series and visit our archives: WWW.COFFEETALK.COM/JAVAU

MAY 2017 EVENTS MOLDING YOUR STAFF INTO ALL-STAR BARISTAS Tuesday, May 9, 2017 - 1:00pm-2:00pm ET

PRESENTED BY

Anna Gutierrez, National Sales Consultant Barista Twenty Two

May 9th

WHY QUALITY IS A KEY DRIVER FOR COFFEE SUSTAINABILITY Tuesday, May 16, 2017 - 1:00pm-2:00pm ET

PRESENTED BY

Mark Romano, VP of Quality, Education & Sustainability illycaffé North America

May 16th

COFFEE BUSINESS: THE ART & FINANCE

Tuesday, May 23, 2017 - 1:00pm-2:00pm ET

PRESENTED BY

Ed Arvidson, President E&C Consulting Coffee Business School of the Cascades

May 23rd

GROWING COFFEE IN NEPAL: A PROMISING FUTURE WITH MANY HURDLES Tuesday, May 30, 2017 - 1:00pm-2:00pm ET

PRESENTED BY

Rick Peyser Lutheran World Relief

May 30th

15


Getting Profitable Lesson 6: Building Sales – Part 1: Being The Business Consumers Want to Patronize

S

o far in this series of articles on profitability, we’ve explored how to control a “cost of goods,” and how to reduce your other business expenses. However, if those actions don’t result in profitability, then building sales will be the only option left to you. Every coffee business can generate a profit if its sales are great enough! Being a business that consumers want to patronize is essential for ramping-up sales. Who are your customers and what do they want? Where can you take advantage of opportunities in your marketplace? What menu items, services, actions, store features, or concept modifications can you add to your business that will generate additional income? My first suggestion is to evaluate your business strengths and weaknesses, and then develop a strategy to make your weakness into one of your strengths, in essence turning it into a selling point! For example, I’m assuming you may never have the name recognition and marketing budget that Starbuck’s or Dunkin Donuts has. In reality, they are the “sharks” in the ocean, and you are a “little fish.” However, being the small local guy or gal can have its advantages. A proclamation of, “Locally owned and operated, keep your money in (name of your town),” prominently displayed on your business sign, store window, and marketing materials, can be extremely effective. After all, you’re probably not a mega global corporation with a never-ending lust for greater profitability and higher stock values. In reality, you’re most likely a “little guy,” striving to provide a better life for you and your family. And, most of your customers are probably just like you. People have a choice of where to spend their money. All other things being equal, consumers would rather support a locally-owned business. You should let them know that you are locally owned, and encourage them to spend their money at your business!

by Ed Arvidson

wine by the glass and beer by the bottle for your customers to enjoy in-store, then obtain a modified beer and wine license that also allows you to sell bottles of wine and six-packs of beer out the door. Of course you’ll have to designate some floor space to set up some merchandising racks and shelving, but your business will then become a coffee bar/fine wine & microbrew beer shop. By doing this you will attract a whole new segment of the population. You are also likely to discover that some of your current morning coffee customers will return in the afternoon on their way home from work to by a bottle of wine or six pack of beer. And, your new wine and beer customers will also see that you serve coffee, so you are likely to capture some of them as morning coffee customers as well. Motivating customers to patronize your business starts by identifying what they want, and what there are needs for in your marketplace. The philosophy of, “build it and they will come,” only works some of the time. The philosophy of, “build it and stock it with products and features that people want and need,” works every time! Ed Arvidson is a 25-year veteran consultant to the Specialty Coffee industry, and President of E&C Consulting. Elements of this article are from his new book, “How to Get Profitable in the Coffee Business.” www.coffeebizhelp.com

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You should also reinforce the assertion that you are a good local citizen, one who’s worthy of supporting. Do this by embarking on some high-profile activities that will benefit the local community. How about organizing a walk or run to raise money for the local food bank or homeless shelter? Or, find an expert speaker to give a presentation at your store about the available options and implications of different Medicare programs. Of course you will need to promote your events, and you’ll need to ask you local media outlets to do the same… for free (since these events are a public service). Having your name circulated throughout the community promoting your good deeds, and having participants come to your store to participate in or attend those events, is an effective and positive way of promoting your business, especially to those you have never visited it, or perhaps never even heard of it. Because your business generates the majority of its income from the sale of beverages and food, how might you expand upon what you are currently offering to generate more customers and a greater check average? Adding wine and beer to your menu will certainly increase your average beverage purchase, and attract more customers in the evenings. What about your food menu? Do you currently offer hot breakfast sandwiches? What about lunch, do you offer a variety of grilled panini, salads, and soups? Do you offer any items that could fulfill the niche of being a quick, ready-to-eat dinner? If you answers are “no,” then you are missing a lot of opportunities. Realize that one of the things you have to offer as a coffee business is being the viable alternative to lack-luster fast food. Beyond offering breakfast, lunch, and dinner, there might be other food items you can offer that fulfill a need within your marketplace. If there is no ice cream shop in your area, then why not add an ice cream dipping cabinet with a half dozen flavors, and sell cones, bowls, and milkshakes? If no one in your area offers pizza by the slice for lunch, then why not take on pizza production? Between your slice business at lunch, and whole pie sales in the evenings, pizza alone might double your current business volume.

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Coffee Service Corner

by Ken Shea

AN EVOLVING INDUSTRY

A

s I pen this article, I remain in Las Vegas headed back to the final day of the NAMA OneShow convention, short on voice, having been on the presentation side of the podium a bit too much and having robust interactions with my operator and supplier friends discussing our ever-evolving industry. The week has been jam-packed with timely education sessions and one of the more active trade show floors in recent history. In a subsequent article, I will speak to some of the exciting new things I found at the show. For today, I will focus upon some opposing dynamics impacting operator numbers and market share. Fragmentation to Consolidation? The Coffee Service Industry has been in existence for approximately one half century. Since its inception, our operator base has been extremely fragmented, beginning with a moderate number of regional entrepreneurs that grew into a national presence of several thousand. Around the early 1980s, a number of second-generation sons and daughters began taking over the family businesses while other offspring opted to move into alternative career paths, resulting in a wave of divestitures, mostly smaller, single market companies. But even with this protracted wave of buying and selling, no operating company emerged with double digit percentages of market share…until now. Even on the supply chain side of the business, mega distributor Vistar now dominates, having been on an acquisition mission since back in the 1980’s. In addition to the national players, there is a group of well-funded, progressive, regional operators in acquisition mode. A few appear to be well on their way to establishing a legitimate national footprint. How Big is the industry? The National Automatic Merchandising Association, trade magazines, and industry analysts generally accept that the Coffee Service industry generates around 5 billion dollars in annual sales. Some believe, as do I, that number might be somewhat understated for two reasons. Sales from E-commerce companies, office supply specialists, as well as purchases from big box stores, are not completely captured nor reported by the trade magazines in their state of the industry summaries. Secondly, with the fairly recent millennial-driven office snacking tendencies, much of what is being purchased by the Vend/OCS operator community for their OCS businesses is coming through the Vending side of things. Not many operators use discrete account codes even though distributors such as Vistar can accommodate this.

An Expanding Operator Base Having been an operator for nearly 20 years and active in trade associations and various education committees, I frequently come across individuals or groups looking to get into Coffee Service. During last year’s Coffee, Tea and Water show I had the opportunity to present to the International Bottled Water Association’s contingency. Since they already operate in the same office space as OCS operators, they have a built-in customer base to whom they can solicit. Additionally, most Coffee Service operators offer water in some form and compete with the Bottled Water companies for the right to hydrate. I have not been able to obtain data as to how many water companies are active in Coffee Service, but I can confidently report that the number of participants is growing. During OneShow I was invited to present to the National Association of Blind Merchants for a question-filled session for Vending operators exploring OCS opportunities. Under the umbrella of the Randolph-Sheppard Act, for the purpose of helping the blind with expanded business opportunities (thusly becoming more self-supporting), priority licensing provisions to operate vending facilities have been provided for many years. Many now see Coffee Service as a natural evolution of this opportunity. Competition in this industry has always come in many shapes and forms and always will. It’s exciting to see new faces come into the fold, even while market share continues to grow for many others. The one constant that remains is that long term market share will continue to be determined by the operative word in Coffee Service...service. I should add that the Coffee Service Industry remains in the strong and capable hands of the National Automatic Merchandising Association. Providing a forum for the education and nurturing of those looking to become members of our industry, as well as being the leading-edge revelator of expanding goods and services for all, will help ensure Coffee Service’s future for many years to come. Until next time - Ken

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Ken is President of Ken Shea and Associates and also serves as V.P. of Coffee Service for G&J Marketing and Sales

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NewsBites

Primera Introduces LX1000 Color Label Printer Primera Technology, Inc., one of the world’s leading manufacturers of specialty printers, announces its new LX1000 Color Label Printer. LX1000 replaces Primera’s best-selling LX900 Color Label Printer. The printers are virtually identical in price, performance and functionality. However, LX1000 offers a number of additional features, including: pigment inks, fast print speeds and lower cost per label. Typical applications include product labels for coffee, and hundreds of other specialty and gourmet foods. Industrial applications include full-color box-end labels, safety and warning labels, WIP, Kanban and inventory labels and tags and much more. LX1000 can also be used for private labeling, test marketing, pre-press proofing and retail shelf labeling. Printer drivers are included for Windows 7/8/10. Most other popular graphic design programs for Windows can be used to design and print labels. More information about Primera and its products is available at www.primeralabel.com. Fire Department Coffee America & Great Coffee, Doesn't Get Much Better Coffee for the Working Class: Fire Department Coffee proves you don't need a brick and mortar storefront to develop a strong customer following. This company in Rockford, Illinois is owned and operated by "Firefighters on a mission to make the easiest drinking coffee for our nation's hardworking men and women." Their success comes from great coffee, roasted by veterans, and building a large following on social media with posts and content that speak to their niche market. We're fortunate they decided to partner with us to spread their brand with great custom mugs. For further information, contact Jack Akers, jack@greyfoxpottery.com.

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Smart Intellifresh™ Technology Keeps Coffee Fresher, Longer Curtis Gemini® with IntelliFresh® literally remembers freshness settings throughout the dispensing cycle. Putting brains behind the brew, the

Wilbur Curtis Company developed IntelliFresh™ Technology as part of their quest to simplify serving a totally fresh, perfectly heated cup of coffee to the masses. Part of the company’s tradition of innovation, IntelliFresh maintains coffee’s ideal freshness and temperature throughout the dispensing cycle by enveloping the satellite with pulses of gentle heat. IntelliFresh settings are locked in just by touching the brew button, and are kept until the next brewing cycle—even if the vessel is moved to a remote serving stand. Insulated satellite servers feature a unique server connection that literally “remembers” settings both at the brewer and on their remote serving stand as well. Integrated into the famed Gemini brewing system, IntelliFresh nearly eliminates the possibility of serving cold or ‘cooked’ coffee. For more information, visit wilburcurtis.com.

designed for use in environments where dust from grinding, milling or other operations creates risk of explosion. This BFC series model features a pneumatically-powered hoist and trolley to raise and position the bag inside the discharger frame, eliminating the risk of potential sparks from electrical equipment or fork trucks that might be otherwise used for this function. A SPOUT-LOCK clamp ring forms a dust-tight seal between the clean side of the bag spout and the clean side of the equipment, while a TELE-TUBE telescoping tube maintains constant downward tension on the bag as it empties, promoting complete discharge of material from the bag. The all-stainless-steel construction can withstand corrosive environments and allows rapid, thorough wash down. The unit is available with a hopper and pneumatically-driven flexible screw conveyor, or tubular cable Follett 7 and 15 Series Ice conveyor to feed material into Dispensers Now Available a pneumatic conveyor line. with Sparkling For more information, contact Water sales@flexicon.com. Follett announced a sparkling Terranova Papers water option for Terranova their popular Papers 7 and 15 Series produces filter ice and water dispensers. paper for food "Follett is excited to offer an and beverage industry supplying all-in-one, chilled still water, master rolls to companies and chilled sparkling water that manufacture coffee pods, dispenser," said Mike Purcell, single serve capsules, coffee Product Marketing Manager. filters, k-cups among others. "There's a trend away from soft The company’s headquarters drinks toward more healthful and production are located beverages, and Follett's unique in Barcelona, Spain, and we combination of consumermanufacture environmentpreferred, Chewblet® ice and friendly filter paper that can sparkling water is a delicious be perfectly adapted to your combination for people looking specifications. Our filter paper for a healthy alternative to follows high-quality standards sugary sodas." Follett's line and we guarantee punctual of ice and sparkling water deliveries as well as excellent dispensers includes countertop terms and conditions. For more and freestanding models with information, visit 7 or 15 lbs of ice storage in http://terranovapapers.com. dispensers that produce up to 125 lbs of Chewblet ice per Tilt-Down Sanitary day in addition to dispensing Flexible Screw Conveyor chilled sparkling or chilled still Rolls Through Doorways, water. All models share the Aisles unique feature of not requiring Flexicon a drain, making them perfect Sanitary for installation in a variety of Flexible Screw settings, including locations Conveyor can where no drain is available. be tilted down For more information, contact and rolled to serve multiple info@follettice.com or visit functions. Using a manual www.follettice.com/sparkling. jack screw, the support boom and conveyor can be raised Bulk Bag Discharger for for discharging into vessels Explosive Environments or other process equipment. A new BULK-OUT® Bulk Bag Fully lowered, it can be rolled Discharger from Flexicon is May 2017

through doorways as low as 7 ft in height, and aisles as narrow as 42 in. Sanitary features include: a caster-mounted frame, support boom and hopper grate constructed of 316 stainless steel, sanitary quick-release clean out cap, quick-disconnect discharge box access cover, stainless control panel with stainless conduit and liquid-tight compression fittings, allowing wash down during changeovers and/ or conveying of corrosive materials. HMI controls allow manual and automatic start/stop and speed adjustment. Material flows through the hopper into an adapter that charges the conveyor. The flexible screw rotates and self-centers within the tube, providing ample clearance between the screw and the tube wall to eliminate or minimize grinding. For more information, contact sales@ flexicon.com.

If you are interested in sponsoring a presentation, or in being one of our featured Subject Matter Expert (SME) presenters, please email CoffeeTalk’s publisher at: kerri@coffeetalk.com (206) 796-4471

Probat Presents Sustainable Solutions For The Coffee Industry At Interpack Probat shows its proficiency in building tailor-made integrated solutions for the coffee industry at this year`s Interpack in hall 1, booth C29 in Düsseldorf from 4th to 10th May. Meeting customers’ individual demands to the greatest extent is what the world market leader for plants and machinery for the coffee industry puts its overall focus on. At the leading trade fair for processes and packaging Probat CoffeeTalk Media impressively demonstrates Announces May 2017 the importance of efficiency, Complimentary Webinar flexibility, transparency and Titles for Specialty Coffee control in the various fields Professionals of roasting plant design and CoffeeTalk engineering. With almost 150 Media is years of experience in building proud to plants and machinery for coffee announce that it is launching roasting and grinding, Probat a monthly Webinar education has developed an outstanding and training series via its Java U ability in providing tailor-made Training Center. sustainable solutions for every Online registration is open for requirement. At Interpack all four complimentary May the company demonstrates its 2017 events at www.CoffeeTalk. overall process competence in com/JavaU the field of coffee production. For more information, visit • Tuesday, May 9, 2017 www.probat.com. 1:00pm-2:00pm ET MOLDING YOUR STAFF Loring Signs Exclusive INTO ALL-STAR BARISTAS Distribution Agreement Presented by: Anna Gutierrez with Shanghai - Barista Twenty Two Fortunecaffe Co. Loring • Tuesday, May 16, 2017 Smart Roast 1:00pm-2:00pm ET designs and WHY QUALITY IS A KEY manufactures the most DRIVER FOR COFFEE innovative coffee roasting SUSTAINABILITY solutions in the world, along Presented by: Mark Romano - with destoners, bean carts, and illycaffé North America custom roaster accessories. With coffee roasters operating • Tuesday, May 23, 2017 in more than 30 countries, 1:00pm-2:00pm ET Loring supplies clean and COFFEE BUSINESS; THE efficient roasting solutions to ART & FINANCE specialty coffee roasters around Presented by: Ed Arvidson – the world. Roastmasters using E&C Consulting Loring roasters have won top coffee honors, including 1st • Tuesday, May 30, 2017 place at the World Roasters 1:00pm-2:00pm ET Cup in Taiwan. For more GROWING COFFEE IN information, contact Hana NEPAL - A PROMISING DeVore FUTURE WITH MANY hana.devore@loring.com. HURDLES Presented by: Rick Peyser Lutheran World Relief


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Presenting

JAVAU TRAINING WEBINAR SERIES for Specialty Coffee Professionals powered by CoffeeTalk Media

Sign up for our complimentary webinar series and visit our archives: WWW.COFFEETALK.COM/JAVAU

MAY 2017 EVENTS MOLDING YOUR STAFF INTO ALL-STAR BARISTAS

WHY QUALITY IS A KEY DRIVER FOR COFFEE SUSTAINABILITY

In this 1-hour Webinar presentation we’ll discuss how a proper training program is the foundation for consistency, one of the most important factors attributing to the success of a specialty coffee establishment. This presentation will walk you through how to put that program together, what information it should include as well as cover the best quality control practices.

Mark Romano, vice president of quality, education and sustainability for illycaffè North America shares his perspective on why quality matters in creating sustainable practices along the entire supply chain. In this 1-hour presentation, we'll take a look at what actions contribute to the virtuous circle that can be established between the well-being which quality coffee offers to consumers and the development opportunities it creates for farmers.

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COFFEE BUSINESS: THE ART & FINANCE

GROWING COFFEE IN NEPAL: A PROMISING FUTURE WITH MANY HURDLES

The coffee business is both fun and demanding. In this 1-hour Webinar presentation we’ll discuss how focusing the necessary time and attention on the planning and administrative portions of the business is critical to becoming financially successful. Remember, no matter how great your business might be, if you can’t generate a profit you won’t remain in business for long!

Rick Peyser of Lutheran World Relief just returned from visiting Nepal with a lot of feedback to share on its current state of production and well-being. In this 1-hour Webinar, Peyser will discuss how Nepal's national and international specialty coffee markets are beginning to open and production is increasing, but the country will need a lot of assistance to improve coffee quality, from tree to cup.

Tuesday, May 23, 2017 - 1:00pm-2:00pm ET

Tuesday, May 30, 2017 - 1:00pm-2:00pm ET

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Ed Arvidson, President E&C Consulting Coffee Business School of the Cascades

May 23

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PRESENTED BY

Rick Peyser Lutheran World Relief

May 30th


May 2017  

INFORMATION IS POWER - Do you know as much as your competition? Do NOT give them the competitive advantage! CoffeeTalk makes it easy to stay...