FALL 2019 | Vol. XXXII No. 7
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CONNECT. GROW. PROSPER!
Doing the Right Thing - Myanmar 14
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Contents
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THE VIEW
Cascara 101
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An Overlooked Superfruit Ready to Change the Industry
12 14 18
Coffee Service Corner
Micro Market Technology for OCS
Roaster's Rock
Doing the Right Thing - Myanmar
Bellwether Coffee Company Poised to be a Disruptive Force
20 22
Newsbites
RoastMaster™20 Great flavor creation
Industry Calendar
Uniform and efficient coffee roasting
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Advertiser Index
Feature
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Cascara 101 Innovations for a better world.
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10/15/2019 11:10:11 AM
THE VIEW Kerri Goodman
Connection
There is some good news Rocky Rhodes, columnist, stellar Q-Grader instructor, and one of my favorite mentors, shares a beautiful story on page 14. “Fellow roasters, you can be proud of your chosen profession and the specialty industry as a whole. As a group, we do more for the world than most industries, both domestically and internationally. As a group, roasters represent the ‘transformative middle’ of the supply chain. That puts us in a unique position to support and enhance lives at either end. There are countless stories of doing good. This is one of those...”
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Connection” - it’s the reason CoffeeTalk exists today and why I continue to do what I do. In September, Coffee talk turned 25 years old. That’s one-quarter of a century! Wow! Thinking back to why I started this venture, memories and emotions came flooding in! I was young (33) and ready to jump in the deep end, prepared to make my mark, get involved, learn, & change the world. It was terrifying and thrilling and exhausting. And the ride of my life! And, all these years later, I am honored to be a part of this gratifying industry still. I am humbled beyond whatever I could have imagined at the outset of this journey. I have been asked many times, “how did you get into this? What made you start a coffee magazine?” My answer remains constant: entirely by accident! And, it’s an excellent thing that I couldn’t see into the future, for I don’t know if I would have chosen this path had I known in advance the trials, tribulations, hurdles, and obstacles those early years were to bring. And yet, those days passed, challenges became less daunting. Along the way, I met amazing, beautiful human beings who have taught me, mentored me, loved me, and will always be a part of me. The experience has softened my hard edges and humbled initial hubris. Most importantly, it led me to the appreciation and realization - we are ALL connected! And we can all learn from each other, help each other, and collectively change the world, something that none of us can do alone. Sustainability The focus for this issue is Sustainability, and you will see examples of it throughout our editorial offerings. Of primary concern: the crisis coffee farmers are facing. Roberto Vélez, CEO of the Colombian Coffee Growers Federation, recently said, “the coffee value chain is worth between 200 – 250 billion dollars a year, of which producers receive less than 10%. Many farmers in most producing countries cannot even cover their production costs; that is just wrong. The coffee industry cannot turn a blind eye on the gravity of the situation. Economic Sustainability needs to be addressed immediately.” On International Coffee Day, the Columbia Center on Sustainable Investment (CCSI) released a widely-anticipated report: “Ensuring Economic Viability and Sustainability of Coffee Production.” The study addresses the imbalances and sustainability challenges of the coffee value chain and provides recommendations on how these can be addressed. The report analyses the root causes that have led to low green coffee bean prices, which has decimated the livelihoods of many coffee producers, despite the high prices that consumers often pay for a beverage beloved around the world. Professor Sachs states: “The industry risks losing much of its diversity and resilience.”
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Another shining example David Isett’s article showcases Bellwether Coffee. “The Bellwether team exhibits a visceral devotion to a culture of Sustainability, respecting the environment, and a deep appreciation for the farmers producing their coffees. If just one out of 25 people using the Bellwether roaster tipped one dollar directly to the farmer, it would more than double their profit.” Already ten farms are participating in the program, with more added - each of which may be learned about directly on the roaster’s screen.” The Cascara Connection And even more connection and collaboration is being explored in our Cascara article, showcasing an out-of-the-box idea of creating a marketplace for the superfruit coffee cherry, which is currently underutilized. Instead of a waste product, it has the potential to become an additional revenue source to the farmers and is a nutritional powerhouse as an ingredient in innovative products! Making a Difference Our readers have spoken! We are thrilled to announce this year’s Making a Difference Charity Project Winner: Grounds for Health - Treatment in a box, Not a Truck. I can see why this project received so much interest! Cervical Cancer is the number one cancer killer in third World countries. The true tragedy of this is the reality that the disease is 100 percent preventable and 100 percent curable! It doesn’t even cost very much! The challenge is making sure these underserved women simply have access to screening and early treatment. Take just a moment to stop and ask yourself when would our industry be without the women who grow and pick air coffee! So congratulations to Grounds for Health on their win- a $5,000 ad campaign to help spread the word of their essential work to the industry. Looking forward I hope you are inspired to create even more connections with your amazing coffee colleagues to address the challenges we are facing. Our State of the Industry 2020 issue is around the corner and if you are interested in contributing an article discussing this year’s theme of “Creating and contributing to a sustainable future for the coffee industry in 2020 and beyond” please email me a note with a short description of your idea. Cheers
Cascara: An Overlooked Superfruit Ready to Change the Industry by Carole Widmayer, Scott Strader, Kabir Gambhir
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t’s estimated 54 percent of adults in the United States drink coffee every day, with most consuming an average of three cups. New variations and brews, such as nitro coffee, are continually emerging. Mainstream energy drink companies are capitalizing on the specialty coffee market with the understanding that it commands a diverse social gathering atmosphere for younger consumers that may not yet have acquired a taste for coffee but want the buzz. In the quest for innovation to satisfy new generations of consumers, a beautiful blend of old and new has emerged: Cascara! As legend goes, Kaldi, an Ethiopian goatherder whose energized goats would not sleep after eating the berries of the plant, was the first to discover coffee. Soon after, stories of the miraculous powers of the plant spread to Yemen and cities across Europe and the world. For centuries, coffee farmers have preserved only the coffee beans and almost exclusively discarded the remaining pulp and skin, or Cascara. Cascara, the Spanish word for husk, is the protective outer portion that surrounds the seeds or green coffee beans and also referred to as coffee cherry, coffee fruit, buno, and qishr. In the quest for innovation to satisfy new generations of consumers, a blend of old and new has emerged: Cascara! The supply chain that supports coffee from seed to cup can quickly bring you a cup of delicious single-origin and blended Cascara. The Hidden Crisis Every day, coffee drinkers don’t realize it, but the coffee industry is in crisis. Today, many of the twenty-five million small farm holders are receiving only one-third of the price of a pound of coffee as they received in the 1980s. Financial pressures aside, farmers are also facing environmental challenges due to climate change. Thousands of coffee farmers are abandoning their farms altogether, while others are changing their farm to accommodate new crops or livestock. Some farmers that have left their homes still can’t find a decent living and leave their countries altogether, seeking refuge in wealthier countries. For centuries, coffee farmers have only preserved the coffee beans and discarded the precious Cascara (Coffee Fruit), arguably the best part of the coffee plant. Whether coffee cherries are wetprocessed or dry-processed, 46+ billion pounds of Cascara byproduct, from both Arabica and Robusta cherries, are generated annually.
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While sometimes used as compost for fertilizer or blended with animal feed, the vast majority is discarded, with most dumped into rivers or left to rot in fields. The mountains of Cascara generated as a byproduct of green coffee bean production acidifies the soil and can also remove nutrients from local water bodies, harming fragile ecosystems. This discarded fruit contains unique phenolic compounds that may well relate to its ability to raise the production of a powerful growth hormone, brain-derived neurotrophic factor (BDNF). The time is now for the industry and consumers to embrace Cascara, Fall 2019
building on the rising popularity of Cascara in the functional beverage and food space - where nutrition, innovation, and opportunity for environmental and economic sustainability come together! Transforming byproduct into functional product Cascara ferments quickly so while consumed in origin countries for centuries, only recently has it become popular outside of those growing regions. Over the last several years, new methods of producing stable Cascara developed, facilitating consumption globally. These processing methods result in multiple final formats for use by food & beverage manufacturers. The majority of Cascara is made from Arabica cherries using different methods of dehydration, at both wet- and dry-mills, resulting in whole or pieces of skin and pulp. Some further process the dehydrated Cascara to smaller particle size options, optimizing it for steeping and use as an ingredient in food. Another method utilizes a patented extraction/stabilization process to preserve this nutrient rich superfruit from rapid decay once separated from the coffee bean. Regardless of the method used and end format, it is critically important to confirm that the Cascara is documented food safe.
The flavor and nutrition of the cherry are influenced by growing region, just like coffee beans.
Flavor First and foremost, although it comes from the coffee plant, Cascara tastes nothing like coffee! Cascara has a spectrum of flavor notes resulting from varied growing conditions and processing methods. Typical flavor notes include a range of dried red berries and stone fruit, citrus, black tea, cola, and earthiness. In addition to variations in flavor, there are also varying levels of sweetness, from Cascara that can be considered an alternative sweetener to limited sweetness, to no sweetness at all, resulting in a more umami-like quality. Consistent grading standards, similar to those for coffee, have not yet been established.
Kabir/Colombia Coffee Federation meeting. cont. on page 10
Cascara Nutrition: Cascara is a natural superfood Research has confirmed the powerful health benefits of coffee fruit. Cascara fruit is high in antioxidants, can boost brain health, enhance immunity and reduce blood pressure, plus potentially even fight the growth and spread of cancer cells. Food and beverage manufacturers have begun taking notice, finding new ways to include this nutrient-rich superfruit into beverages, baking & snacks, confectionary, and supplements. One company creating a buzz with Cascara in specialty coffee, Lotus Energy Drinks, has created a unique line of plant-based energy drinks and concentrates, featuring Cascara through a patented extraction/ stabilization process to preserve all the nutritional value that Cascara has to offer while making it as powerful as coffee with the addition of natural caffeine from green coffee beans. Lotus plant-energy mixes with flavored syrups specialty coffee retailers already carry to make flavored energy spritzers! “Lotus Cascara Energy Drinks have been an ideal fit for the specialty coffee market,” says David Morris, CEO/founder of Dillanos Coffee Roasters. “They help expand our reach to a younger audience with an energizing and flavorful way to enjoy another efficacious part of the coffee plant“ Rob Maddux, Pepsi Bottling Montana, adds, “Finally, a healthy energy drink derived from the coffee plant without the health concerns of artificial/synthetic mainstream energy drinks or their ingredients. Beverage innovation is critical to the health of our industry and better-for-you options are at the forefront for consumers.”
standards. These are small hurdles and, once defeated, can create a lasting impact on millions of people’s lives. Realizing the potential of Cascara As suppliers of Cascara, we are passionate and inspired to bring this upcycled ingredient to consumers in sparkling and still teas, energy drinks, fermented beverages, syrups, and shots, as well as in baked goods, snacks, and chocolate. We envision a future, where the coffee bean and its protective outer peel, Cascara, are enjoyed throughout the world. Let’s bring Cascara to everyone and create positive change to the entire coffee industry, one coffee cherry at a time. Carole Widmayer is SVP of Marketing & Sales of The Coffee Cherry Co., visit coffeecherryco.com. The Coffee Cherry Co. offers food-safe, high volume Coffee Cherry from multiple origins for use in beverages and foods. Scott Strader is CEO/founder of Lotus Energy Drinks, visit lotusenergydrinks. com – Creator of the unique line of plant-based energy drinks and concentrates featuring Cascara. Kabir Gambhir is CEO/founder of Bevea, visit drinkbevea.co Bevea produces a line of carbonated cascara beverages high in antioxidants and organic botanicals.
Moreover, it doesn’t stop with antioxidants. For those in search of their daily pick-me-up, Cascara is an additional source of caffeine, containing approximately one third the caffeine level of coffee beans. Combined with superfood levels of magnesium, potassium, and iron, it’s ideal in beverages and foods that provide an energy boost or support recovery. When used whole in its dehydrated form in foods and chocolate, Cascara delivers significant amounts of naturally occurring dietary fiber. Also, don’t forget today’s hot nutrient – it also contains plant protein! As a plant-based food, Cascara is Non-GMO, naturally allergen and gluten-free, as well as friendly to nearly all diets, including vegan, vegetarian, and keto. Sustainability Producing Cascara generates traceable environmental and economic impacts. Environmental sustainability can be measured by the reduction of Cascara rotting in fields, which directly reduces greenhouse gas emissions, reduces insect breeding grounds, and improves the quality of the soil to create more arable land. Economic sustainability is derived as Coffee farmers generate new revenue streams through the sale of Cascara, helping to off-set the economic instability resulting from the fluctuations in the c-price. In addition to direct revenue from the sale of Cascara, given the need to process Cascara simultaneously with the green beans, new jobs are created at mills. Many of these jobs may be open to women for the first time as the weight of dried cherries is significantly less than green beans in a standard coffee bag. Social sustainability is achieved when this new source of critical nutrients is provided to consumers on a global basis. Consumer appeal Although it comes from the coffee plant, it tastes nothing like coffee. Today, Cascara is on the rise in the functional beverage and food space, — it’s where nutrition, innovation, and sustainability come together. Coffee shops and drive-thru espresso stands across the country are serving energy spritzers, generating as much as 50 percent of sales, especially among Generation Z (those 20 years old and younger), who are looking for healthy alternative ways to get caffeinated. There are hurdles to overcome in bringing Cascara to market, such as educating consumers about this new ingredient and establishing grading
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“Cascara”:
the fruit byproduct of green coffee bean production The coffee industry is at a crossroads. First world coffee consumers are savoring the most exceptional single-origin coffees from every growing region around the world, yet farmers are unable to make ends meet.
Coffee Service Corner
MICRO MARKET TECHNOLOGY FOR OCS
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s it time for OCS operators to explore Micro Market technology? The invoice building opportunities for OCS operators have been growing for several years, being driven by employee demand for products beyond the cup and the willingness of business owners and managers to subsidize them. The opportunities come in varying sizes, ranging from small snack box displays and coolers to the much larger markets that our industry has named “Pantries.” By definition, a pantry is a product destination that provides product at no charge to employees and sometimes guests. Micro markets, on the other hand, are typically broader, unattended retail sites that offer products for purchase. More than Coffee – Vending and Micro Market operators found it easy to capitalize on expanding office demand for more snacks and drinks as abundant SKUs were being stocked to meet this demand. These operators were already well versed in warehousing and handling capabilities of these products, many of which are perishable and with higher date code sensitivity that typical OCS menu items. Soon, progressive operators who historically serviced OCS-only accounts recognized these opportunities within their customer base and began expanding their offerings, becoming more comfortable in sourcing and handling the perishables while realizing significant profit growth at many brew sites. Even better news, the financial models did not change much as these new products were invoiced in full upon delivery, just like the coffee. Most agree that this expanding opportunity is significantly underdeveloped. Some large regional and even national OCS operators have been passive in this area, leaving what appears to be unmet and pent up demand. Many of my operator friends report account growth (and loss) when the incumbent provider is unable or unwilling to provide what is desired. That is the scenario today. However, what happens when business conditions change, both with the economy in general or within the individual workplaces? Can OCS-only operators prepare for what might come while expanding current opportunities by studying Micro Markets? I offer that it would be beneficial for the OCS operator community to learn from Micro Market providers and consider the benefits of payment apps. Why, you ask? Office Coffee Service is a valued amenity provided to employees and visitors at a very modest cost. When times are good, there is virtually no employer resistance to provide this benefit. History tells us, though, that when business slows and profits diminish, there is more attention given to OCS cost control. In some situations, employees have been asked to participate in paying for their beverages. In extreme conditions, Coffee Service can disappear. Can an economic downturn spell a significant decline, or end, to snack and cold drink freebies? What can be done to mitigate the potential dilemma? Payment Apps – Micro Markets are mini retail outlets, mostly unattended, that are primarily cashless. The payment solutions can be provided by check-out site devices or apps that reside within one’s smartphone. The product inventories can be owned by the service provider or owned by the client, with the payments being directed towards either. The costs for these apps is very reasonable. Upfront costs per location are well less than the price of an air pot coffee brewer. Recurring costs per account typically range from $5 to $15 monthly, and the fees are calculated based upon consumption. The APPS are very intuitive and easy to learn to use.
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How does a phone payment app work for the client? It’s simple: • Employees download the App from the App Store. • They fund their account. • Technology automatically connects the shopper to the App when they are in close proximity to the location. • Shopper selects a product, scans the barcode then checks out. • The collected funds can be directed to the office bank account to subsidize the next order.
Fall 2019
by Ken Shea
For the operator, some systems can provide inventory management and other backend features which facilitate the reorder process. Purchases can be tracked with visibility provided to both the operator and client. Menus can be managed easily. It makes sense for OCS operators to look into this and have payment solutions in hand if and when economic situations change and create the need. This would also be an essential next step should an OCS operator consider going after Micro Market opportunities. Remember, in the 1990s, when Vending Operators began a wholesale move into coffee and water opportunities? Today, the OCS market share leaders in OCS are national vending companies. As NAMA so appropriately has declared, this is the Convenience Services Industry. This column will continue to review other technologies beyond the brewer that might have an application in the Coffee Service Industry. If you have questions or comments, please reach out to me at sheaathome@msn.com. Until next time - Ken.
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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Roasters Rock
Doing the Right Thing - Myanmar
F
ellow roasters, you can be proud of your chosen profession and the specialty industry as a whole. As a group, we do more for the world than most industries, both domestically and internationally.
As a group, roasters represent the ‘transformative middle’ of the supply chain. That puts us in a unique position to support and enhance lives at either end. There are countless stories of doing good. This is one of those. Direct trade doesn’t work… Or does it? The 2.5-kilo roaster is still being manufactured. There is a place in the kitchen near the vent of the proofing oven where the roaster will go. The owners of this café are traveling to the roaster manufacturer to get trained — a husband and wife team on a mission. Jennifer and Sladin need some help.
?!?!?!! What? You did what? You don’t even have your 2.5-kilo roaster installed, and you bought a three year supply of green beans?!? How was it processed? What size are the bags? How much did you pay? What does it taste like? WHAT WERE YOU THINKING?!?! Jennifer’s eyes sunk. Sladin sat back in his chair. Finally, Jennifer spoke. “We don’t know what we are doing. Ok. Fine. That is why we are seeking your help.” Then she said those magic words that resonate with all of us. “I visited a village and had an overwhelming need to help. So I told the village that I would take it all.” The instructor asked, “All what?” Jennifer replied, “All the coffee.”
I visited the village and had an overwhelming need to help
They have two goals at this training. Sladin is going to learn everything about roasting. Jennifer is going to find out how to execute direct trade. Since this is a roaster training, Sladin is quickly meeting his goal. Jennifer, on the other hand, is peppering the instructor with questions about how to buy coffee directly from the farmer. The three met for dinner, where the instructor listened patiently to the hopes, dreams, and aspirations of the couple. He also knew it was him that would have to explain why there is no fiscally responsible way they will be able to do what they want. He must tell them the harsh truth about how the supply chain works and what the costs and responsibilities are of the ‘middle men.’
After listening for a bit, a few pieces of surprising information were revealed: First, they are from Myanmar. Second, they have a coffee shop in Yangon, and they want to do direct trade with a village in a state just a few hour drive up the road. Third, they already bought 60 bags of coffee, and they are not sure what to do next.
Village Farmers
by Rocky Rhodes
processing is?”
Silent blank stares for a while. “So you bought green beans? How much did you pay?” More silence. Finally, the instructor understood and offered, “You have no idea what you bought or how much you paid for the green beans because you paid for cherries and they need to be processed into green beans, and you don’t know how to convert it? Right?” Jennifer’s eyes were a bit brighter. Someone was getting on board her train. “Right. I paid for cherries. And I got green beans. Now explain what
The instructor sat back in his chair. Is this a can of worms that is worth opening? She just wants to help, but they are really not ready, and they are bleeding money before they have started. An olive branch to show solidarity of overall goal, “Send me a sample of the green coffee, and we will start there.” It just so happened that Jennifer and Sladin had both green and roasted samples with them. “Thank you for helping and understanding.” About a week after the class, the instructor evaluated the coffee and provided the results in a report. To make a long report shorter, the following was in the first section:
cont. on page 16
Only Female Farmer Representative
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Village Representatives Fall 2019
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Roasters Rock I have good news and bad news. The BAD news is that your coffee is about 30% full sour, 10% full black, and contains almost every defect found in the Arabica defect book. You are not to sell this coffee to anyone until it is tested by a lab to verify it does not contain ochratoxin and mycotoxins. The GOOD news is that EVERY defect found was caused by poor human choices, and all of those can be trained away. If this coffee was free of defects, I would anticipate around an 82 cup quality score. Shortly after that, the instructor was requested to go to Myanmar and ‘fix it.’ “Wait? What? The expense of that would never be justified over a 60 bag lot. Get some free processing training from CQI who is working in your country right now doing this specific training.” “Nope. We trust you so when can you get here?” Long pause. The instructor weighed the idea of going to origin, which would be cool, with the responsibility of saying no, this is a waste of your time and money. “Listen, this is not my area of expertise even though I have taken my Q-Processing Level 1 and level 2 class, I have never done this work before.” “Thank you for your honesty; when will you get here.” Long introspective pause… “So when is harvest in Myanmar?” Myanmar is a country that has been colonized, a home to war, decolonized, and military government-controlled. It was previously BURMA but has changed the name to Myanmar to be able to recognize the 14 provinces and 135 ethnic groups. It is a quasi-democratic state now, but ethnic tensions and trust issues remain.
The instructor, not surprisingly, did not speak Burmese, so he asked Sladin, “What happened?” Sladin said, “We just made a massive contract!” “What do you mean? It was a lot of money?” Sladin smiled a wry grin. The agreement in simple terms did the following: 1) It paid the farmer a HUGE amount for the red, ripe cherries. It essentially transferred all of the margin of a roasted pound of coffee to the farmer. 2) It set strict quality controls on ripeness. Not ripe? No sale! Over-ripe? No Sale!
The instructor arrives in Myanmar to help improve the quality of the lives of the people that produced this coffee that was undrinkable. With the bar set low, great things were bound to happen! Jennifer and Sladin decided to explain their motives more clearly. “So here is the thing… Our family has done very well here, and we have a good reputation in the country. As a family, we think it important to give back. Our family founded an NGO to help some villages in an underserved province by helping them find new products and ways to market so they could lift themselves up. It was on a trip to one of the villages that we got the idea to help by buying the coffee which we could serve in the coffee shop we own in one of our buildings. Since then, we bought our own roaster to complete the chain.” “So you bought the coffee before the roaster. Not everyone does it that way, but who am I to judge! Let’s strategize on how we can get the villages to do a couple of things and also how we will get the coffee processed and moved to your shop.” “What do you mean by processing? The farmers just did everything last year.” “Umm, yeah. And the coffee had to be thrown away. They cannot and should not do the work of getting the seeds out and drying them. They only did it because you said you would buy ‘all the coffee,’ but wanted it green. I can guarantee that they have never done this before based on the results. They made a lot of other mistakes first, but we will get to those when we visit the farm. We do need to find someone that can take the cherries and process the seeds out and mill them to green beans.”
Roaster Installed
Upcountry in the Kayah State in the meeting area of a farmer’s house, representatives from 19 villages arrived to hear about this new plan. All 19 members, the NGO representatives, Jennifer and Sladin, and the instructor sat on the floor, and the meeting started. A large piece of butcher paper was taped to the wall. Conversations began, notes were taken on the butcher paper. Questions were asked and answered. In the end, heads nodded up and down, and everyone stood to get food that had been prepared.
Sladin smiled a wry grin. He glanced at the large brown paper on the wall and said. “Look! It is a massive contract!”
There are times in life where you scratch your head and think, “I don’t have the whole story here.” That is how it was with the instructor about to head to Myanmar and work with Sladin and Jennifer to improve the quality of the coffee coming off the farm. “Where is the village? How do they process the coffee now? What are you paying for the coffee? Can you even come close to using the amount of coffee you are buying?” All these questions were met with a similar response to the effect of, “We’ll tell you when you get here.”
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The team came up with a plan to work with the villagers to educate them on the new harvesting practice. They also identified a person that could be responsible for overseeing a collection of cherry with a process that paid for red-ripe cherries and started drying them using the natural process. Lastly, plans were made to install a dry mill in Yangon where the dried cherries would be shipped. Word was sent out through the NGO that a meeting was being set to discuss this new ‘supply chain.’ If the villages wanted to get top dollar for their coffee, they needed to come to this meeting to find out how.
Work was done with the new buyer of cherry. Construction happened in about a day to build drying beds from designs that were drawn on the back of a paper towel. Simple instructions were given as there was a grand total of about 4 hours to train him. “Just get the cherries on the table, move them every four hours for the first two days. Keep each ‘farmer’s cherries separate.” Back in Yangon, a reality check was given to Sladin and Jennifer. “You are potentially buying about 80 bags of coffee. If you roast and brew it, you will make money. If you wholesale it, you will about break-even, and if you export it, you will lose money.” They did not seem concerned. They actually seemed happy! They knew something the instructor didn’t. They knew that their goal was to try to help. If it actually broke even that would be a bonus. If it became sustainable, that would be a home run. Lives were being improved just by TRYING. A FEW MONTHS LATER cherries had been rolling into Yangon. They seem to be good, but a sample was sent to the instructor. The instructor hulled the coffee and was a bit shocked. – Zero defect. Perfect 11% moisture content. Fruity in the green. A quick sample roast and a Q grade cupping. The phone rang in Myanmar in the middle of the night. “Get up! You have to hear this! I just cupped the coffee, and I have some good news and some good news! I scored it an 86! That’s from ‘will hurt people’ to 86 in 3 days of training!” “What’s the other good news?” – Choking back some tears the instructor said, “I can’t wait to see what we can do in the next harvest! See you in November!” 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
The Coffee Shop Fall 2019
Photo by Trish Rothgeb
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Bellwether Coffee Company by David Isett
Poised to be a Disruptive Force
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n 2003 the Turbochef oven company began installing ventless ovens in all Subway stores, allowing customers to get fresh hot sandwiches fast – a revolutionary concept at the time. That technology has since become ubiquitous in Starbucks, 7-Eleven, Dunkin, and thousands of hotels, grocery stores, and delis around the world. This technology allowed in-store heating and cooking without the requirement for expensive and often prohibited ducting and exhaust systems - thus being highly disruptive within nontraditional retail and quick-serve foodservice environments. Today, another young tech company is bringing the same level of innovation and disruption to the specialty coffee space with the Bellwether “ZeroEmissions” coffee roasting system. This innovative technology allows on-site roasting in small batches, which reduces cost, increases quality, and provides a hands-on custom-crafted experience within cafes, grocery chains, and other customer-facing foodservice environments. Moreover, our industry is taking notice. A prototype system debuted at the SCA show in Seattle in 2018, and just one year later at SCA 2019 in Boston, the Bellwether Roaster won the award for Best New Product. History Bellwether, founded in 2013 by Ricardo Lopez in Berkeley California, has seen significant growth and industry excitement since receiving the accolade at SCA. “Coming from the wine industry, we noticed the correlation with coffee, and how coffee was following the same trajectory of the consumer wanting more variety and a better experience,” states Lopez. “We wanted to bridge the gap between the coffee farm and consumer by making coffee roasting more accessible by creating a more sustainable supply chain.” Ricardo and his team spent a few years pioneering the technology and working through the technical challenges necessary to produce a consistent premiumquality roast. Joining his team to lead operations was Arno Holschuh, a former VP within Blue Bottle Coffee, and soon followed by seasoned tech exec Nathan Gilliland, as CEO. Technology The copper-accented Bellwether coffee roaster is about the size of a refrigerator. Utilizing hot air and a rotating drum, the Bellwether system roasts 7 lbs. of coffee in approximately 15 minutes. A catalytic process similarly traps emissions like a Turbochef oven, reducing greenhouse gases by more than 90% and requiring no ductwork or building modifications. The entire system is controlled by an interactive app running on an iPad connected to the cloud. This app not only manages all aspects of the roasting process but allows direct ordering of green beans, inventory management, collaborative sharing of roast profiles, and a unique feature called Tip the Farmer (more on this later).
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Business Model “If a customer is roasting just 80 pounds of coffee a week, they can see a 30% reduction in the cost of goods sold, and a revenue increase of up to 10%” asserts Nathan Gilliland, “and more as the volumes increase. The system will begin paying for itself within just two months of installation”. The Bellwether roaster is typically leased, the green coffee is ordered directly from Bellwether through the integrated app, and all of the green coffees are sustainably sourced through strategic alliances with importers such as Royal Coffee and Sustainable Harvest. Fall 2019
Core Commitments and Sustainability The Bellwether team exhibits a visceral devotion to a culture of sustainability, respecting the environment, and a deep appreciation for the farmers producing their coffees. The Bellwether app offers a unique feature called “Tip the Farmer.” “A typical coffee farmer makes roughly 75 cents per pound of coffee, and most farmers are from some of the poorest countries in the world,” says Gilliland. “If just one out of 25 people using the Bellwether roaster tipped one dollar directly to the farmer, it would more than double their profit.” Already ten farms are participating in the program, with more added - each of which may be learned about directly on the roaster’s screen. The Tip the Framer program is managed by Chief Coffee Officer Arno Holschuh as part of the company’s suite of digital services. Anyone who purchases green coffee through the Bellwether Marketplace is automatically set up to participate. The program is currently piloted with the Coocentral cooperative in Huila, Colombia. Three hundred female farmers build a women’s lot for the co-op that is marketed as “Mujeres Cafeteras” by Sustainable Harvest.” The Bellwether team rethought the sustainability issue in coffee roasting, beginning with the elimination of all fossil fuels in the roasting process. Add in reduced shipping and transportation of roasted coffees from centralized roasteries and the overall carbon footprint is meaningfully reduced. New Growth Funding To support its aggressive growth ambitions, Bellwether announced in early September that it had closed a $40-million Series B equity round led by DBL Partners and brothers Lyndon and Peter Rive. Funds will be used to ramp up production, expand its marketing efforts, and grow its team. From Farm to Cup Innovative café owners and foodservice operators should consider on-premise ventless roasting to bring the freshness, quality, and hand-crafted experience of sustainable specialty coffee even closer to their end consumer. David Isett is a veteran of more than 20 years in the specialty coffee industry, having served as the president and CEO of Concordia Beverage Systems. Today he is Managing Director of First Hill Partners, a Mergers and Acquisitions advisory firm, as well as an industry consultant, speaker, and author. david@firsthillpartners.com
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NewsBites on work in East Africa that builds sustainable, healthy, and durable origin communities. For more information visit groundsforhealth. org Introducing Snickers® Flavor COFFEE MATE® Now Available For Foodservice COFFEE MATE® Snickers ® Liquid Creamer Singles have arrived! Everybody knows snacking is a hot trend—and 74% of consumers say coffee creamed with COFFEE MATE® is a good snack.1 Whether for here or on the go, hot or iced, when America’s favorite creamer2 meets America’s favorite candy bar,3 you’ve got an irresistible new way to help guests turn your coffee into an anytime snack occasion. Why COFFEE MATE® Snickers? Consumers have an appetite for exploring new flavors to indulge their senses. Available in convenient 180ct foodservice and 50ct grab-and-go dispenser boxes, add a new flavor to your beverage program today! Visit CMFeelTheLove.com to discover flavors and formats for your unique operation. 1 Datassential 2018 2 Nielsen data 52 weeks ending 1-26-19 3 TrendingTopMost.com
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SCA Renews Its Support For Grounds For Health Grounds for Health, an international non-profit health organization headquartered in Williston, Vermont, is pleased to announce the renewal of its strategic partnership agreement with the Specialty Coffee Association (SCA). A previous three-year agreement with the Specialty Coffee Association of Europe (SCAE) was instrumental in enabling Grounds for Health to expand its cervical cancer prevention programs into Nyeri County, Kenya. Notes Kim Elena Ionescu, Chief Sustainability Officer for SCA, “The SCA is proud to support Grounds for Health and their work to reach members of the specialty coffee community with life-saving health care.” Bringing preventive health care to underserved communities is an important step in protecting the quality of life of women who work in coffee and live in some of the most remote coffee regions. Over the next two years, the organizations will collaborate
The Better Travel Coffee Press: Aeropress Go Brings Delicious Coffee Along With You Coffee lovers need a quick, convenient way to brew delicious coffee while they’re away from home. The new AeroPress Go travel coffee press packs all the excellent brewing capabilities of the original AeroPress into a convenient self-contained mug, making it easy to fit in a suitcase, in a desk, with camping gear, in an RV, or on a boat. It quickly and easily produces up to three cups of delicious American-style coffee or cold brew coffee that is remarkably richer, smoother and lower in acidity than coffee brewed by conventional coffee presses. All it takes is coffee, water, and around a minute of time for hot coffee or around two minutes for cold brew coffee. The AeroPress Go is expected to be available around the end of October. For more information, visit www. aeropress.com. To place an order, email sales@aeropress.com or call +1(650)493-3050.
Skill Building Sessions For Coffee Roasters Please join us for the Roaster Sessions, skill-building sessions for Coffee Roasters held at Organic Products Trading Company (OPTCO) Thursday, October 17, 2019. Discussion includes differences in filter coffee and espresso during Defining Espresso; introduce roasters to Identifying Origins, a discussion of coffees for specific flavor & the attribute contributions to espresso blends. The afternoon is hands-on Roasting & Blending Part 1 & Part 2 selecting specific coffee for the blend, blend percentages, how many bean
Fall 2019
types per blend? Hands-on designing an espresso blend. Save the date, October 17, 2019, 8:30 am – 4:30 pm.; Lead Instructor, Kathi Zollman, Coffee Holding Company, is known throughout the coffee industry for her extensive contribution to the science of coffee roasting. As a trainer, Kathi brings decades of experience and enthusiasm for coffee. To register or for additional information, please contact Coffee Holding Company (KZollman@coffeeholding.com), Organic Products Trading Company (MFerguson@optco.com) or Sonofresco (RPenrose@sonofresco. com).
365 Retail Markets Acquires Company Kitchen 365 Retail Markets announced today they acquired the self-service technology company, Company Kitchen of Merriam, Kansas. “We are thrilled to work with other pioneers within the MicroMarket industry. We certainly expect to leverage this to expand our leadership position, to enhance the already great dining experience that CK offers, and to bring our self-service technology expertise to customers we have not worked with in the past.” Joe Hessling, 365 Retail Markets, CEO. “Company Kitchen couldn’t be more excited to become part of the 365 family. I am delighted to continue utilizing the technology that we created and being able to innovate with 365 and their employees. We have a wonderful customer base that will continue to receive the amazing services they have known from CK and will benefit from the expertise within 365. I look forward to growing with our new team and strategically helping the industry flourish.” Cory White, CK Director of Operations.
Rick Steves Awards $50,000 Grant To Food 4 Farmers Food 4 Farmers is among 11 organizations to receive $1 million in grants to support
climate-smart initiatives in the developing world and US advocacy. Food 4 Farmers has received a $50,000 grant from Rick Steves’ Europe, one of America’s leading European travel and guidebook companies. The grant will support Food 4 Farmers’ work with coffeefarming families to address food insecurity in Latin America’s rural communities by transforming smallscale coffee farms into diversified, environmentally sustainable agricultural hubs. “We’re happy to receive this generous support for our work with coffee-farming families,” said Janice Nadworny, co-director of Food 4 Farmers. “The increasing impacts of climate change, coupled with rising food costs and devastatingly low coffee prices, make food security a more critical need than ever.”
Diedrich Roasters Announces Key Promotion Diedrich Roasters, today announced the promotion of Leonard Fister to Manager Process Systems Solutions & Regulatory Matters. His primary role is to provide technical support to our customers to further advance their coffee process solutions systems as we expand our Industrial footprint into the market. “Leonard has been a key part of our success, and we are thrilled to promote him to this important position,” said Karl Schmidt, CEO of Diedrich Roasters. Diedrich Roasters is now in a unique position to capitalize on its industry reputation for highquality products and services. At the same time, the company is always working to improve the performance of our roasting equipment and build quality using the best available new technology and innovations on the market. Our future is committed to the advancement of roasting technology, efficiency, and environmental responsibility in both the Specialty and Commercial segments of the market. Visit https:// diedrichroasters.com
CoffeeTalk
May 2009
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Cup for Education’s mission is to help poor, rural coffee communities around the world build schools within their communities, and assist in providing them with teachers and the basic tools needed to educate the future generations of coffee farmers. Remember those back to school adventures shopping for your new loose-leaf or spiral notebook, the perfect pencil case, or the coolest book covers? In in these rural communities there are no pencils to put in those cases, nor books to cover. The children in these areas do not have the basics. With our help though, they can have the materials they need to study hard, create a better future, improve their coffees, their lives, and their countries. A little goes a long way in these countries. For $1,900 you can sponsor a teacher for an entire year in Nicaragua. You can put a roof on a school for $500. Imagine how many pencils $25 can buy. Books cost money, and many of the schools do not supply them to the students. These are just some of the ways your donations can help. Please join in our cause of improving the educational situation of our partners in this wonderful industry of coffee. As we send our kids off to school with their backpacks weighted down with books after downing our morning java, let’s give a thought to who picked the beans, processed them, and helped create that wonderful brew.
Library created through raffle held at SCAA 2003. Jinotega, Nicaragua
Cup for Education is a non-profit organization with 503(C) tax-exempt status. 100% of all donations go to our projects.
Donations can be sent to: Traveling Library in Chacaya 2013. The Traveling Library was created to bring story hours and book kits to rural schools in Santiago Atitlan.
Cup For Education 3475 Victory Boulevard Staten Island, NY 10314 Or Paypal at www.cupforeduction.org www.CoffeeTalk.com
The teacher on the right was sponsored by Coffee Holding Company (Brooklyn, NY) through a Cup for Education project
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Calendar
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For complete and updated show information visit our online calendar: http://coffeetalk.com/industry-calendar/
October 5-9
Anuga Fair Trade Food & Beverages
September 28-29
Northwest Tea Festival
November 1-10
Kona Coffee Cultural Festival, Kona, Hawaii
November 15-16
Coffee Fest PNW, Tacoma, WA, USA
November 18-20
Coffee, Tea and Water (CTW), Anaheim, CA, USA
November 19-23
7th WORLD TEA & COFFEE EXPO Mumbai, INDIA
November 27-28
COTECA Asia Bangkok, Thailand
Fall 2019
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