GCR Oct 2014

September/October 2014

STAMPED OUT OF DATE Why certification schemes are no longer enough

ONE CAMEL MILK LATTE PLEASE Dubai loves its espresso

A ROASTING REVOLUTION

Buhler ups the ante on machine technology

BACKSTAGE PASS

Behind the scenes at Mahlkoenig

EAST MEETS WEST Turkey’s path to branded coffee shop fame

IS THIS THE

COFFEE EXECUTIVE OF THE FUTURE?

ROHAN MARLEY LEADS THE CELEBRITY COFFEE CRAZE

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CONTENTS September/October 2014

COVER STORY

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THE CELEBRITY COFFEE CRAZE

In a crowded market, celebrities are finding success in offering customers a brand they can relate to.

IN THIS ISSUE FEATURES 12 CELEBRITY COFFEE CRAZE

Why celebrities such as Rohan Marley are finding success in coffee.

17 NEW PROBLEMS, SAME OLD TOOLS

Nico Roozen on why certifications schemes are no longer enough.

21 HOOFPRINTS IN ASIA

Juan Valdez just couldn’t wait to head East.

RESEARCH AND DEVELOPMENT 24 PLANTLETS ON THE MOVE

World Coffee Research starts its International Multi-Location Variety Trial.

TECHNOLOGY 28 WHERE TECHNOLOGY MEETS CRAFTSMANSHIP An exclusive tour of the Mahlkoenig factory.

32 THE FUTURE OF COFFEE ROASTING

Buhler unveils revolutionary technology.

37 CATCH ME IF YOU CAN Rychiger says why capsule technology is advancing at an exponential rate.

MARKET REPORT 40 WHERE EAST MEETS WEST

Turkey is a prime target for the branded coffee shop sector.

43 ONE CAMEL MILK LATTE PLEASE

Espresso rules in Dubai’s affluent market.

ORIGIN 46 SEAL OF SUSTAINABILITY

Costa Rica’s long trail to geographical indication.

43

“IT CAN BE A MAIN DRIVER IN SALES. A BUYER WILL TELL THEMSELVES, IF THIS PRODUCT IS GOOD ENOUGH FOR THE CELEBRITY, IT SHOULD BE GOOD ENOUGH FOR ME.” Professor B. Zafer Erdogan

Professor of Marketing at Anadolu University, Turkey

INDUSTRY COMMENT 50 ICO

An example of sustainability.

28

52 VOICE AT THE SOURCE

Trung Nguyen’s move to upscale its industry.

REGULARS 04 EDITOR’S NOTE 06 NEWS DRIP BY DRIP 55 DIARY DASHBOARD 56 MARKETPLACE 58 LAST WORD

17 S E P TE M B E R /O C TO B E R 2 0 1 4 | GCR

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EDITOR’S NOTE Global Coffee Report

PUBLISHER John Murphy john.murphy@primecreative.com.au EDITOR Christine Grimard christine.grimard@primecreative.com.au



JOURNALISTS Sarah Baker sarah.baker@primecreative.com.au

THE PARTNERSHIP POLICY REVOLUTION

SINCE THE 1990s public-private partnerships (PPPs) have become a key tool in public policy making across the planet.

PPPs are popular concepts at the government level because, as nations see increasing levels of debt, PPPs provide a way to secure additional funding for major projects outside of state budgets. In poorer nations where budgets are scarce, PPPs can provide the only path towards increasing local wealth.

But PPPs serve a much larger purpose than bringing corporate dollars into the public arena. Stephen P. Osborne, Head of the Public Management Group at Aston Business School in the United Kingdom, summarises how PPPs are not only a cost-effective mechanism for implementing public policy, but “they have also been articulated in bringing significant benefits in their own right – particularly in terms of developing socially inclusive communities”.

Modern understanding of PPPs has come to also include the involvement of non-government organisations. With each party bringing to the table what it is best at, the results should be an effective project that benefits everyone involved.

The coffee industry can boast of having a few successful PPPs under its umbrella. Although officially classified as a non-profit, World Coffee Research (WCR) is an exemplary example of a successful PPP arrangement. WCR has made remarkable steps in just a few short years towards securing the future of coffee production (see page 24) by helping origins identify what varieties will best serve their producers.

In some cases, private companies can take the lead. Trung Nguyen is a prime example.

The company is working with the Vietnamese

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G C R | S E P T E M B E R / O C T O B E R 2014

government to push the nation’s industry beyond a supplier of commodity level green beans to value add to the industry (see page 52).

In the last edition of GCR Magazine, the International Coffee Organization (ICO) wrote of the need for greater PPPs to help producing countries fight climate change. In this edition, Executive Director Robério Oliveira Silva outlines how Costa Rica has proved a shining example of how this can be achieved (see page 50).

Despite all these successes, however, there is still a long way to go. Solidaridad Executive Director Nico Roozen tells GCR Magazine that the coffee industry has been slow to react to the issues of climate change, and production levels are in danger as a result (see page 17).

Although many companies are proving exemplary in their individual efforts to support farmers, too many companies are acting on their own. They are directing their resources to private programs, without joining the global fight. Now is the time to set individual egos and marketing objectives aside and work together through PPPs for the future of the industry.

Alexandra Crowe alexandra.crowe@primecreative.com.au ART DIRECTOR/PRODUCTION MANAGER Michelle Weston michelle.weston@primecreative.com.au DESIGN Blake Storey, Alice Ewen, Sarah Doyle BUSINESS DEVELOPMENT MANAGER Steve Roberts steve.roberts@primecreative.com.au GENERAL MANAGER COFFEE MEDIA & EVENTS Brad Buchanan brad.buchanan@primecreative.com.au ADMINISTRATION MANAGER Chloe O’Brien chloe.obrien@primecreative.com.au PHOTOGRAPHY Cover photography Ricardo Pinzon Hidalgo, Marlon James, Patrick Varney CONTRIBUTORS Matija Hrkac, Robério Oliveria Silva, Maja Wallengren, Trung Nguyen HEAD OFFICE Prime Creative Pty Ltd 11-15 Buckhurst Street South Melbourne VIC 3205 Australia p: +61 3 9690 8766 f: +61 3 9682 0044 enquiries@primecreative.com.au www.gcrmag.com SUBSCRIPTIONS +61 3 9690 8766 subscriptions@primecreative.com.au

Global Coffee Report Magazine is available by subscription from the publisher. The rights of refusal are reserved by the publisher.

ARTICLES

All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

COPYRIGHT

Christine Grimard Editor

Global Coffee Report is owned and published by Prime Creative Media. All material in Global Coffee Report Magazine is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Global Coffee Report are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

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NEWS In Brief

NEWS DRIPBYDRIP 

AMERICAS

Marley Coffee, a United States company founded by Rohan Marley, son of legendary singer Bob Marley, has seen its revenue jump from US$1.8 million in 2012, to $6 million in 2013.

Celebrity coffee companies such as Marley’s are starting to gain traction among US consumers. Joey Kramer, the drummer from world-famous rock band Aerosmith, has similarly found success in the coffee industry, with his brand Rockin’ & Roastin’ now distributed in over 2000 stores in the US. Marketing Expert Professor B. Zafer Erdogan says that as the coffee market becomes increasingly crowded, celebrities will continue to find success.

With more and more brands on offer, celebrities provide a “short-cut” for consumers to choose which brand they can relate to.

See page 12.

The first shipment of coffee plantlets from World Coffee Research to test farms in 19 countries has been sent this past July. This is a major milestone for the International Multi-Location Variety Trial (IMLVT). The trial is designed to aid coffee farmers by establishing a tool that will give them real information about the best possible varieties to grow.

This trial will allow producing countries to evaluate new varieties from other countries on their own land and in various environmental conditions (altitude, precipitation, soil, etc.). It will serve as a platform to monitor disease movement and levels, how quality is affected by environmental interactions, and climate trends.

The outcome of the trial will have a direct impact on what coffee variety farmers choose.

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Marley Coffee has seen revenue increase five-fold in a single year. It joins other celebrity coffee companies finding success in the Untied States.

Over 30 of the best varieties were shipped from 11 countries to AgriStarts, a laboratory in Florida where the embryo was extracted from each seed. This procedure is recommended for plants grown from seeds containing a very small germ (embryo) plus albumen (the tissue that will feed the embryo during the first stages of development) such as coffee, corn, and wheat. Each embryo was germinated on a nutrientrich medium that supplies the nutrition the seed would have received from the albumen.

See page 24.

Costa Rica has successfully gained Geographic Identification of its coffee producing regions.

Different to the Denomination of Origin, Geographical Identifications, according to the World Intellectual Property Organization that manages the seal, are: “More than just a name or a symbol. They reflect a reputation strongly linked to geographical areas of varying sizes, thus giving them an emotional component.”

The process involved highlighting all the elements that set different regions

of Costa Rican coffee apart.

See page 46.

The coffee cooperative from the Los Santos area of Costa Rica, Coopedota, has around 800 members that produce approximately 50,000 60-kilogram bags per year, mostly for export to high-end markets in the United States, Europe, and Japan.

In 2011 the cooperative certified the first carbon-neutral coffee in the world, under the PAS2060 specification for demonstrating carbon neutrality of the British Standards Institution.

The cooperative substituted 95 per cent of its firewood used in the drying process by utilising the brushwood and husks leftover from the harvest and post-harvest processes of the coffee cherries.

An energy management program and the installation of a micro-mill for smaller batches helped reduce electric use by more than 50 per cent. Water use was reduced from 1 cubic metre per bushel to 0.2 cubic metres per bushel and discharges to the Pirris River were completely eliminated.

See page 50.

SEEDS OF HOPE

World Coffee Research has shipped out the first set of its Multi‑Location Variety Trial to improve productivity in origin countries around the world.

See page 24.

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NEWS In Brief



EUROPE

The Netherlands-based non‑government organisation Solidaridad has released its 2014 Coffee Barometer Report.

The report evaluates how major roasters are keeping their commitments to source coffee under certification and verification schemes.

The report found sourcing levels for Nestlé at 30 per cent, Mondelez at 44 per cent, D.E Master Blenders 1753 at 25 per cent, Tchibo at 30 per cent and Keurig Green Mountain at 31 per cent.

The report noted that there is a large disparity between how much certified and verified coffee was produced verses how much was sold.

Utz Certified sold just 224,000 of 727,000 tonnes produced, while the 4C Association sold just 450,000 of over 2.2 million tonnes of coffee produced.

Solidaridad’s Executive Director Nico Roozen tells GCR Magazine that while these companies should continue to support these schemes, they are not enough to deal with the detrimental effects that climate change is having on coffee farmers.

BRANDED BOOM

Turkey is the third largest branded coffee shop market in Europe.

It will host the European Coffee Symposium this November.

See page 40.

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G C R | S E P T E M B E R / O C T O B E R 2014

Solidaridad is introducing Climate Smart Agriculture, a framework to help coffee farmers deal with the effects of climate change.

Solidaridad is putting forward a potential solution in the form of Climate Smart Agriculture (CSA).

CSA is a tool for farmers to help them improve their productivity and strengthen their resilience to climate change issues.

See page 17.

Buhler, a leading roasting equipment manufacturer based in Germany, unveiled the InfinityRoast at the Interpack event in Germany this past May. The InfinityRoast features a specially designed chamber that allows users to precisely control the time/temperature curve and the airto-bean ratio. By introducing these new dimensions via this technology, Schenker explains how roasters can create “non-traditional roast profiles”.

The InfinityRoast can simulate airto-bean ratios ranging from those matching drum roasters through to fluidised bed roasters.

See page 32.

Rychiger, a leading producer of capsule filling equipment, has designed in-house a volumetric dosing system using augers.

Thanks to its advanced designed, Rychiger’s augers, funnels, and

nozzles can all be changed without tools, helping to minimise time between changeovers and limiting the need for trained technicians.

Rychiger’s equipment is also designed with nitrogen flushing systems, which allow the final coffee to be delivered at low residual oxygen levels. Rychiger equipment offers advanced robotic functions to finalise the assembly of caps and to apply the valve membranes. The equipment offers optional verification lines, and optical controls.

All of these features can be customised thanks to Rychiger’s modular design. This creates a high level of flexibility so that machines can be configured to as many stations as needed by the different capsule designs.

See page 37.

With 1331 branded coffee shops, Turkey is the third largest market in Europe. The country’s market grew by almost 20 per cent in 2013, according to the latest report by UK‑based market research firm Allegra Strategies.

Starbucks has opened 29 shops in Turkey in the past year, most of which are in Istanbul. The American coffee giant says it plans to open 250 locations in the country by 2016.

Starbucks is not alone in finding a receptive crowd in Turkey. Leading national chains include Kahve Dunyasi with 110 outlets, Kahve Diyari with 109 outlets, and Gonul Kahvesi with 56 outlets, according to Allegra’s Project Café13 Europe report. Foreign chains that have laid out their stakes include Mado Café with 295 outlets and Café Nero with 228.

Allegra will be holding its European Coffee Symposium in Turkey for the first time from 24 – 26 November 2014 at the Intercontinental in Istanbul.

For more see page 40.

NEWS In Brief



ASIA

Juan Valdez Café, the coffee shop chain owned by Colombian coffee growers, opened its first coffee shops in Asia earlier this year.

In Seoul, South Korea, Juan Valdez opened in the avant-garde Dongdaemun Design Plaza mall.

The brand hopes to open 150 – 300 stores in South Korea in the next five years.

In Malaysia, Juan Valdez opened a flagship coffee shop in Kuala Lumpur. The group plans to open an estimated 10 stores in Malaysia in the next five years.

Although the first openings were originally planned for 2015, Alejandra Londono, International Vice President of Juan Valdez Café, says that the company just couldn’t wait any longer before entering the booming Asian coffee shop chain market.

Juan Valdez Café currently has 267 coffee shops worldwide, of which 187 are in Colombia and 80 are distributed in 12 other countries including Aruba, Chile, Ecuador, El Salvador, Kuwait, Malaysia, Mexico, Peru, Panama, South Korea, Spain and the US. See page 21.

Camel milk lattes are taking the United Arab Emirates by storm, according to Ryan Godinho, Special Events Coordinator for World Coffee Event’s National Body for the country.

Despite a traditional Ibrik coffee culture, Godinho says espresso-based drinks are by far the most popular way to drink coffee in the UAE. He says that Dubai has been built around coffee chains, and that cappuccinos, lattes, and mochas are the top three favourite drinks. A local sweet tooth enjoys chocolate and caramel flavours. With a warm climate, frozen drinks topped with whipped cream go down well.

Godinho will be leading a strong educational offering at the upcoming International Coffee and Tea Festival, taking place from 12 to 14 November at the Meydan IMAX Gallery. This is the sixth edition of the only internationallyrecognised trade event focused on coffee and tea in the Middle East. Last year, the event welcomed over 6500 visitors from 20 countries. This will be the fifth year that the event has held educational workshops, in partnership with the Specialty Coffee Association of America (SCAA). The event will host the UAE Barista Championship and UAE Latte Art Championship.

See page 43.

Trung Nguyen recently opened its fifth factory, a US$110 million G7 instant coffee plant in Bac Giang province.

The factory will operate at a capacity of more than 100 tonnes a day and employ more than 300 employees during its first phase.

Vietnam’s top coffee company Trung Nguyen is trying to help move the nation’s coffee up the value chain from being primarily an exporter of beans into a recognisable symbol of quality in its own right.

Trung Nguyen has proposed to the government a strategy to develop a National Coffee Industry. The strategy has three main objectives: prosperity, sustainability, and national character.

The company projects the coffee industry could provide 5 – 6 million jobs and grow to a US$20 billion annual business over the next 15 years. See page 52.

Juan Valdez opened its first coffee shops in Asia this year, ahead of schedule.

ORIGIN DOWN UNDER

The Melbourne International Coffee Expo will host Sustainable Harvest’s Let’s Talk Coffee event in 2015.

See page 58.

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G C R | S E P T E M B E R / O C T O B E R 2014

The Melbourne International Coffee Expo (MICE) will host Let’s Talk Coffee in Melbourne in 2015.

This will be the first time a Let’s Talk Coffee Event, held by American coffee green bean traders Sustainable Harvest, will be hosted outside of Latin America. MICE Chairman Brad Buchanan says the event is being hosted to bring origin countries closer to Australian roasters.

MICE is Australasia’s leading coffee dedicated event, with a regular crowd of over 10,000 people and over 150 exhibitors. See page 58.

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COVER STORY Celebrity Coffee

THE

CELEBRITY

COFFEE

PHOTO Marlon James

CRAZE

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G C R | S E P T E M B E R / O C T O B E R 2014

IN A CROWDED MARKET, CELEBRITIES ARE FINDING SUCCESS IN OFFERING CUSTOMERS A BRAND THEY CAN RELATE TO.

R

ohan Marley isn’t your typical coffee executive.

The son of legendary reggae singer Bob Marley speaks frankly about his early business failings, running the company on credits cards, and buying a coffee farm by accident.

Rohan speaks from the heart to GCR Magazine about finding his way in life in the shadow of a legend. One of 11 children his father had to seven different women, the Marley estate has been the subject of bitter court battles since his father’s passing. When Rohan received his first sizeable sum in a US$200,000 payout in 1999, he saw it as an opportunity to start paving his way in life.

“I was looking for something to do with myself. I thought I would buy some property,” he recounts.

“I thought maybe I could start an orange juice or maybe a mango juice brand. I visited this property in Jamaica and didn’t know what was on it. I went down to the river, and just couldn’t believe what I was seeing. It was like the Nile, it was absolutely beautiful. I had this money so I thought it was time to be a man and take some responsibility. So I committed then and there to buying the property.”

It was only after signing on as the new owner that Rohan saw the whole property for the first time. He recalls asking himself, “What did I just do?” as he passed crowds of villagers eyeing him sceptically along the road. He learned then that on the half of the property he hadn’t seen lay acres and acres of Jamaican Blue Mountain coffee trees.

“I asked the people who were working on the farm, ‘So what’s on my property?’ and they told me it was coffee, Blue Mountain coffee,” he says “So that was it, I was in the coffee business.”

Rohan’s story is not one, however, of overnight success. He was eager to support the farmers who for generations had been working the land, only to live in poverty. A previous owner had held back their pay and accused them of stealing, after they picked fruit off the ground to feed their starving families.

Rohan’s timing couldn’t have been worse. He took ownership of the property as the coffee crisis was coming to a peak, with prices crashing at the turn of the Millennium due to overproduction.

In an entire season, the farm made about US$6000, hardly enough to support him, let alone the farmers and their families.

He abandoned his farm to try and start a clothing line in Los Angeles. The clothing line went defunct in 2006, and Rohan moved to Ethiopia on the occasion of the Ethiopian Millennium. He learned here that Ethiopia was the birthplace of coffee, and saw that the stars were aligned for him to reenter the coffee business. From Ethiopia he moved to New York and linked up with a contract roaster. Using the branding elements from his clothing line, he launched Marley Coffee.

Rohan doesn’t use his father’s likeness on the coffee but rather his own, keeping him out of royalty battles with the family. “It’s my name and face on the coffee, so if I fail, I take the fall,” he says.

Fortunately for Rohan, after a rough start, Marley Coffee has seen some impressive recent success.

Publicly traded under parent company Jammin Java Corp, revenue grew from US$1.8 million in the financial year ending January 2013, to $6 million in the latest financial year. It jumped another 153 per cent in the first quarter of fiscal 2015, with plans to hit $10 million in sales by the end of the year and $25 million “in the near future”, according to CEO Brent Toevs. Marley Coffee is currently distributed in around 10,000 stores across the United States, and anther 3000 in Canada, with overseas distribution trickling in.

So what’s the secret to this success? Marley Coffee’s marketing lines – sustainable, ethically farmed, artisan roasted – are hardly unique in today’s market. And while heart-warming, Rohan’s quest to improve the lives of coffee farmers is becoming commonplace in the modern coffee scene.

Fortunately, his brand benefits from his famous last name that attracts instant recognition and positive connotations among a generation of his father’s fans. And he says he can back up that reputation with a quality cup of coffee.

Joey Kramer launched Rockin’ & Roastin’ in 2012.

“IT CAN BE A MAIN DRIVER IN SALES. A BUYER WILL TELL THEMSELVES, IF THIS PRODUCT IS GOOD ENOUGH FOR THE CELEBRITY, IT SHOULD BE GOOD ENOUGH FOR ME.” Professor B. Zafer Erdogan

Professor of Marketing at Anadolu University, Turkey

“I think the name helps in terms of lending integrity,” he says. “It’s like if I go to visit someone, they’ll let me in because I’m Bob Marley’s son. But then I have to prove myself if I want to stay.”

S E P TE M B E R /O C TO B E R 2 014 | GCR

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COVER STORY Celebrity Coffee

Professor B. Zafer Erdogan, Professor of Marketing at Anadolu University in Turkey.

With most modern coffee brands offering tales of sustainability, direct sourcing, and farmer support, passion and quality isn’t always enough. A celebrity name, especially one as globally adored as Marley, may just be that extra kick a coffee needs.

Rohan isn’t alone in getting cut-through in the coffee industry thanks to his name.

Joey Kramer, drummer of legendary rock band Aerosmith, has put his celebrity name behind a fast-growing coffee company. Kramer launched Rockin’ & Roastin’ in April of 2012.

Far from just lending his name, Kramer tells GCR Magazine he plays an active role in running the company as its CEO.

“I’m really hands on with the company. I’m travelling around, going to meetings with potential customers, I do in-store question and answer sessions. I cup the coffee and help decide on the packaging,” he says.

Kramer says he decided to enter the coffee business following on from his own struggle in trying to find a quality cup of coffee while on tour.

“I always wanted a business of my own, to work with my entrepreneurial side,” he says. “So I took the time I had and went for it. And it’s just grown leaps and bounds.”

Indeed, for a two-year-old company, Rockin’ & Roastin’ is certainly gaining ground. Kramer’s coffee is now available in nearly 2000 grocery stores, mainly around the northeast of the US where Kramer is originally from. It’s also available in over 250 restaurants, hotels, and institutions. The coffee was chosen as the “official fresh brew coffee” of the House of Blues, an American musicthemed chain of restaurants, nationwide, this past July.

Kramer’s business partner Frank Cimler says that the superstar drummer’s active involvement sets the company apart. “There’s a difference between what we’re doing and what other celebrities are doing to endorse coffee,” says Cimler. “This isn’t just Joey slapping his name on something.

We’re a real company, with a set growth strategy.”

That Kramer and Rohan are finding success with their names comes to no surprise to Professor B. Zafer Erdogan, Professor of Marketing at Anadolu University in Turkey. An expert in the psychology of celebrity endorsement, Erdogan says it’s a natural progression that in a crowded market, celebrity names are helpful in cutting through the competition. “The coffee market is very saturated, it’s hard to get into,” he says. “A celebrity name creates a statement for the company, it makes a statement to fans.”

From magazines to fashion labels, Erdogan says celebrities capitalising on their success for their own products is the next step up from celebrity endorsement – and they’re not shy in doing so.

“What happens is that celebrities realise they have power in the public. And why not use this on behalf of their own brands?” he says. “It can be a main driver in sales. A buyer will tell themselves: ‘If this product is good enough for the celebrity, it should be good enough for me.’”

With more and more companies looking to tap into a growing thirst for coffee, Erdogan says celebrity brands could be a powerful tool moving forward. “There are so many choices out there, celebrities create a short-cut for the consumer. The celebrity is saying: ‘Here I am, I like this coffee, if you drink this coffee then you are like me.’ Does the strategy work? It works a lot.”

For Rohan and Kramer, Erdogan says the rock star lifestyle is one that consumers can easily relate to, and it makes sense to market upon in the coffee arena.

The popularity of private label roasting is also helping to remove the barriers for these celebrities A partnership with Mother Parkers Tea & Coffee has helped spike distribution and profits for Marley Coffee.

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to enter into the coffee industry. Rohan says he spent years trying to export and roast the coffee he grew on his farm, but was caught up in red tape with the Jamaican government. Then he had more issues with roasters not satisfied with the quality of his beans. He finally engaged a private-label company to both source and roast his coffee, and only recently has been able to actually sell coffee from his own farm.

Marley Coffee trailed along for years before pairing up with Mother Parkers Tea & Coffee, one of the largest independent coffee and tea manufacturers in North America. This partnership coincided with the recent spike in profits. Similarly, Rockin’ & Roastin’ is being roasted, packaged and distributed by Comfort Foods, a private label roaster in Massachusetts, US. The humanitarian side of coffee seems to be a drawcard in attracting celebrity attention. Australian Actor Hugh Jackman launched Laughing Man Coffee company in 2011, with 50 per cent of profits going back to a charitable organisation. Jackman was inspired to launch the business following on from a trip to Ethiopia, where he met a struggling coffee farmer.

This kind of active involvement in private enterprise for a greater good is a trend that we’re seeing among celebrities at large, according to Grant McCracken, a well-known Canadian Anthropologist and Author.

He agrees with Erdogan that the days of celebrity endorsement seem to have given way to a new wave of celebrities actively taking part in driving their own companies.

“It now appeals to celebs’ vanity to get involved with the brand.

Merely pretty faces no longer,” McCracken tells GCR Magazine. “And they like to commandeer the brand for some larger purpose. Good for the brand? Sometimes.”

For Rohan, he tells GCR Magazine he’s pretty happy to have made his own his way in life, especially as it’s a direction that can support others in need. The company’s balance sheets show regular investments back into the coffee farm that decided his destiny 15 years ago.

“It’s my passion, my love, my life,” he says. “I can support my farmers…

I’m hoping what I’m creating can last forever.” GCR

Rockin’ & Roastin and Marley Coffee are getting cut-through to consumers on retail shelves.

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SOLIDARIDAD’S NICO ROOZEN TELLS GCR MAGAZINE WHY CURRENT CERTIFICATION AND VERIFICATION SCHEMES AREN’T ENOUGH TO COMBAT THE CHALLENGE OF CLIMATE CHANGE.

T

hat climate change is negatively affecting the coffee industry should be of surprise to no one.

Brazil and most of Central America have both seen drastic reductions in their production from erratic weather. As a result, coffee roasters are experiencing the early signs of what could happen to their supply chains if nothing is done to help farmers deal with the ongoing effects of climate change.

In this space, the conclusion released in the Coffee Barometer 2014 report that “climate change is already affecting coffee production in many ways” isn’t news.

What is news, however, is the report’s very sobering conclusion that few tools exist in the modern industry to help farmers deal with the effects of climate change.

From certification schemes to voluntary standards, there seems to be a plethora of initiatives out there to help roasters feel better about where they source their coffee from.

Nico Roozen, Executive Director of Dutch NGO Solidaridad, tells GCR Magazine that the problem is that these are tools designed to deal with yesterday’s problems.

“For the last two to three years, we’ve seen a lot of attention on how climate change is affecting agriculture,” says Roozen. “This is a topic that is not at all addressed by certification or verification systems.”

Roozen is well placed to be discussing the original intentions of these schemes. Roozen, via Solidaridad, is perhaps best known for launching Max Havelaar, the first Fairtrade certification initiative in 1988 in The Netherlands.

It’s from this background that Roozen finds himself critical of the systems that are currently in place. Certification schemes such as Fairtrade and verification schemes such as the 4C Association can be collectively referred to as voluntary standards systems (VSS). It was a decade after launching Max Havelaar that Roozen saw some serious drawbacks to VSSs, and in particular the Fairtrade system.

“I remember around 10 to 12 years after the launch, we started the discussion in the Fairtrade movement, asking the questions: ‘What have we achieved? What is the potential of this system moving forward?’ It was a critical analysis of our market outreach,” he says.

In the 1990s, a consumer-directed focus took a back seat to the emergence of corporate social responsibility (CSR). Companies started looking at taking increased responsibility for their supply chain.

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FEATURE Solidaridad

Nico Roozen, Executive Director Solidaridad.

In this space, Roozen went on to cofound the Utz Certification system, one that not only guaranteed a premium price for farmers, but encouraged sustainable farming practices.

While these certification schemes continue to exist, Roozen is sceptical of their effectiveness on two fronts. The first downfall is major roasters are falling behind on their commitments to source VSS coffee.

“Our main conclusion is that we have to be disappointed with companies. Some companies have promised to source up to 85 per cent of their coffee under certification, and they’re not even in the middle,” says Roozen. “We have to pressure these companies to get to higher levels.”

The Coffee Barometer report compares top roasters’ commitment to purchasing VSS coffees versus their actual share. The report puts current VSS sourcing levels for Nestlé at 30 per cent, Mondelez at 44 per cent, D.E Master Blenders 1753 at 25 per cent, Tchibo at 30 per cent and Keurig Green Mountain at 31 per cent.

Although these are high levels compared to a few years ago, Roozen points out that there is still a long way to go. Many of these companies, including Tchibo and Keurig Green Mountain, have committed to one day sourcing 100 per cent of their coffee under a VSS. A common explanation among roasters for the shortfall is that they can’t source the quality or types of coffee they need under certification schemes. It’s an excuse Roozen isn’t buying.

“I don’t think that’s the real reason they’re lagging behind,” he says. “They always give this argument, but this coffee is available. They just have to pay the price.”

Indeed, The Coffee Barometer’s figures on the disparity between VSS coffee that is produced versus what is sold are staggering. Fairtrade saw just 140,000 tonnes of coffee sold under its label, versus 440,000 metric tonnes of coffee produced. Utz Certified sold just 224,000 of 727,000 tonnes produced, while the 4C Association sold just 450,000 of over 2.2 million tonnes of coffee produced.

In some instances, Roozen has observed companies launching their own VSS, pointing to Nespresso’s AAA program or Starbucks’ CAFE Practices as successful examples. The result saw 100 per cent of produced coffee sold, and in Starbucks’ case it sources 95 per cent of all of its coffee under

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this verification scheme.

Roozen notes that these company-run schemes only work when the company is sourcing high quality coffee, and can therefore afford to make the investment necessary to do it right.

“Otherwise, a much better approach is to follow existing VSS,” he says.

Roozen stresses, however, that an increased take up of VSS isn’t enough to address modern challenges of climate change. Hereby lies the second front that modern certification schemes will need to battle. These systems were designed to help farmers deal with price fluctuations, sustainable practices, and workplace practices – not to deal with climate change.

“The effects of climate change are really affecting the income of farmers,” says Roozen.

“Farmers can’t afford to make the investment.

The vast majority of farmers are still smallholder farmers with low incomes. We have to close the bridge to address these issues.”

Solidaridad is putting forward a potential solution in the form of Climate Smart Agriculture (CSA). CSA is a tool for farmers to help them improve their productivity and strengthen their resilience to climate change issues. It is a set of proved practical techniques, such as improved waste water and soil management practices, and other resources such as better weather forecasting, more resilient food crops, and risk insurance.

“We want to inform farmers about climate change, and what they can do about it,” he says.

“OUR MAIN CONCLUSION IS THAT WE HAVE TO BE DISAPPOINTED WITH COMPANIES. SOME COMPANIES HAVE PROMISED TO SOURCE UP TO 85 PER CENT OF THEIR COFFEE UNDER CERTIFICATION, AND THEY’RE NOT EVEN IN THE MIDDLE. WE HAVE TO PRESSURE THESE COMPANIES TO GET TO HIGHER LEVELS.”

We care about the PEAK.

www.mahlkoenig.de

“There are changes in rainfall patterns caused by climate change. We need to teach farmers better water management.”

Solidaridad has already launched CSA activities in Colombia, Mexico, and Peru, and is seeking to upscale its collaboration with the coffee sector. Roozen would like to see CSA integrated into the code of conduct with major VSSs. The implementation of this scheme, Roozen says, will mean little without increased investment at the grassroots level. He says more cooperation needs to be done among NGOs, local governments, and industry groups to help farmers cope with the risks of climate change.

“It is absolutely necessary to make higher investments in the supply chain,” he says. “You see this in the cocoa industry. There is a dynamic related to the expected shortage of cocoa, and companies are making huge investments that are addressing social and ecological issues. You don’t see this investment in the coffee sector.”

Roozen says one challenge is that in these cooperative arrangements, local governments need to take a leading role. As coffee continues to be grown mainly in poorer nations with under resourced governments, this can be a challenging feat.

Additionally, Roozen says it’s a mistake for NGOs to see their role as being primarily critical of current practices.

“At every level we need to address what’s on the agenda. We need to encourage NGOs to take a more proactive role,” he says.

Roozen says that creating a real sense of scarcity can help bring relevant bodies into action. He says that most people in the cocoa industry know that by 2020, they will face a 20 per cent supply shortage if they don’t do anything now.

“This figure is top of mind for the industry,” he says.

As the coffee industry looks at another potential consecutive year of production deficit, a similar crisis sentiment in the coffee industry may be setting in soon. GCR

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23rd 25th

2014 Trieste, Italy

HALL 27 - STAND 06

MARKETING Juan Valdez

HOOFPRINTS IN ASIA

JUAN VALDEZ CAFÉ MADE AN EARLY ENTRANCE INTO THE ASIAN MARKET THIS YEAR, WITH AMBITIOUS PLANS MOVING FORWARD.

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MARKETING Juan Valdez

W

ith his characteristic wide-brimmed hat, poncho, and mule in tow, few coffee mascots are as distinguishable in the industry as the Colombian Coffee Growers Federation (FNC)’s Juan Valdez.

The stereotypical South American coffee farmer recently received his fair share of attention at the opening of his newest namesake café this past May. His rugged appearance was a stark contrast to the avant-garde Dongdaemun Design Plaza mall where his first namesake shop opened in Seoul, South Korea.

The sight of the Colombian coffee farmer, however, is one that South Koreans will quickly be getting used to. Juan Valdez Café announced plans to open 150 – 300 cafés in South Korea in the next five years.

This debut in Seoul coincided with the opening of the brand’s flagship Origins café in Kuala Lumpur, Malaysia, marking a strong entrance for the Juan Valdez Café brand into Asia. A year ahead of schedule, Alejandra Londono, International Vice President of Juan Valdez Café, says that the company just couldn’t wait any longer before entering the booming Asian coffee shop chain market.

“Asia is an amazing place. Coffee consumption is rising rapidly, and there is huge potential.

We thought it would be better to start here sooner rather than later,” Londono tells GCR Magazine.

“Asia is going to be a great market for us.”

Indeed, Juan Valdez is not alone is eyeing emerging coffee markets in Asia as its next target for growth. It joins a growing number of foreign coffee chains looking to take advantage of the booming market. From Starbucks, to Costa Coffee, to CBTL, Asia hasn’t been spared an onslaught of foreign brands encouraging the consumption of Western-style coffee.

Where Juan Valdez Café distinguishes itself, however, is in its strong origin branding. Rather than being just one aspect of the picture, the origin-focus is indeed its entire reason for being.

“We haven’t really seen in Asia any origin-branded coffee shops. Stores like Starbucks talk about the origins of their coffee, but the brand isn’t all about that,” says Londono. “What we’re looking to do is really teach people about Colombian Coffee.”

While it may have taken Western markets generations of coffee drinking before they started being interested in where their coffee comes from, Londono is confident that this educational approach is going to be well received in Asia. “The majority of Asians are very open to new things. They like to try new things, and they are quite willing to learn,” she says.

Londono says that the brand will sit especially well among Millennials.

“Millennials are into origin brands, they like to know about the history of the product they

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are buying,” she says. “And this isn’t just the Asian market, but the entire world. With social media and the internet, this generation is really connected. People are looking for compelling stories behind a brand.”

Londono explains how Juan Valdez Café’s entrance into Asia is part of the FNC’s long-term plan to increase the value-add of Colombian coffee by entering into the coffee chain business.

“We knew that customers were paying $5 for a coffee in Manhattan. So we thought that we would take advantage and create our own brand of cafés,” says Londono.

It was a natural progression that the café would embrace the Juan Valdez brand the FNC first introduced in the 1960s. Juan Valdez embraces the stereotype of a typical Colombian coffee farmer, to represent the over half a million coffee farmers the FNC supports. Initially, his job was confined to media interviews and other publicity stints. In 2002, however, the caricature of the Colombian farmer took on a more commercial relevance as the FNC launched the Juan Valdez Café chain.

The FNC opened its first branded coffee shops in New York (United States) and Madrid (Spain). It was during these early years, that Londono says they learned the importance of working with suitable franchise partners.

“That was a very interesting process.

We learned about the importance of those relationships,” says Londono.

Taking those lessons on board, they went on to successfully launch locations in throughout South America, all through the strong support of local partners.

Londono says that today they’ve narrowed down a few key elements they look for in a franchise partner. The first is a solid business plan suited for the region. Second, the partner must have access to capital to invest properly in the brand. A third point is that the FNC needs partners with experience in food and beverage.

However, beyond these main business criteria, Londono says that as an origin-focused brand, partners must have an understanding and passion for Colombian coffee.

“We need a partner who can feel connected to the coffee grower. Because at the end of the day, we are working for these growers,” says Londono. “Money you can find everywhere, but a passion for coffee growers is not as easy to find.” Before any deals are signed, Juan Valdez Café invites the prospective partner to Colombia to meet with farmers and get a feel for the origin.

The Colombian origin is perhaps most strongly represented in the Juan Valdez Café flagship store – aptly named “Origins”. While the South Korea location is a more typical coffee

shop, the Kuala Lumpur store is rather special.

“It’s more of an expert, high end location,” explains Londono. At these flagship stores, expert baristas prepare not only espresso, but offer alternative brewing methods as well as food pairings with coffee.

Londono explains that the decision to open a flagship store versus a traditional chain store centres on the availability of the location.

She says that they were lucky in Malaysia to have found a well-sized location to make their debut, and they’ll be looking for the same in South Korea in the near future.

Juan Valdez Café’s expansion strategy seems to have worked so far. There are currently 267 coffee shops worldwide, and over the past 12 years, Juan Valdez Café has paid over US$20 million in royalties back to the farmers. With plans to almost double that number in South Korea alone, added to multi-fold increases in other markets in Europe and the Middle East, Londono is confident that their ambitious expansion plans are set to pay off even more. “This will be a fantastic market for Colombian coffee,” she says. GCR

RESEARCH WCR Variety Trials

PLANTLETS ON THE

MOVE WORLD COFFEE RESEARCH IS SET TO SHIP ITS FIRST LOT OF COFFEE VARIETIES, MARKING A MAJOR ACHIEVEMENT IN THE INDUSTRY’S GLOBAL SCIENTIFIC EFFORTS.

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F

or the past three years, Timothy Schilling, Executive Director of World Coffee Research (WCR), has been pretty eager to get a project in the mail.

Since the initial announcement of the International Multi-Location Variety Trial, Schilling and the team at WCR have been working hard at nutting out the complexities involved to get it off the ground.

As of August this year, Schilling’s wait is finally over. The first shipment of coffee plantlets will be sent out to 19 coffee producing countries by the end of the year, and to a total of 26 countries by 2015.

This achievement marks a milestone in the coordination of coffee research efforts around the globe. Modern history has seen individual producing countries successfully carry out the development of coffee varieties that are resistant to diseases, high yielding, and that taste great. However, without international coordination of scientific efforts, access to these varieties has been largely limited.

By sending the same group of plants to all these locations, each country will be able to evaluate new varieties on their own land. It will also serve as a platform to monitor disease movement, and how major varieties are affected by environmental interactions and climate trends.

“What we’re setting up is a constant monitoring system. It’s like we’ll have our finger on the pulse of the world of coffee production,” says Schilling. “If a new disease arises in a country, our trial will pick it up, and we’ll be able to see how all of the varieties react to the disease in different environmental conditions.”

This major step in the advancement of WCR’s efforts was no easy feat. Schilling explains how they experienced challenges in collecting and sending the varieties out on many levels.

The first was the biological challenge. When dealing with a living organism, changes in the lifecycle of coffee seeds make it necessary to stick to a timeframe. Usually, coffee seeds only have a six to nine-month window to get into the ground. The delay from transportation and quarantine make it difficult to get those seeds out within this limited timeframe. Schilling explains that it was next to impossible to collect all the varieties and then send them out to each country as a package, so that they could be compared on a single timeline.

Another option was to germinate the plants in the United States and send them out in test tubes. This, Schilling explains, would have caused a virtual brick wall in trying to get them into producing countries.

“If we’re sending these out, then what we’re sending is live plants,” says Schilling. “Producing countries are very reluctant to take in any coffee plants, and run the risk of importing diseases.”

The solution came in the form of something called an embryo rescue technique. This is where a technician uses a scalpel to cut the embryo out of the seed. The embryo is then transferred into a petri dish, where it grows into little plantlets. It’s those little plantlets that are now being shipped around the world. Because diseases aren’t carried in the embryo, the result is safe to transport.

“What the country is getting now is completely sterile,” explains Schilling. “Countries can be more relaxed in their photosanitary procedures.”

WCR’s Technical Committee and Board of Directors made the decision on which countries they would approach to work with on the trials, and receive the plantlets. The final list includes major coffee producing countries including Brazil, Kenya, and Colombia – as Schilling says, “the usual suspects”. Some surprising smaller players like Papua New Guinea and the Congo also made the list.

“We wanted countries that represented diversity in their coffee environments,” explains Schilling.

“We wanted to ensure we captured the maximum variability in climate and geography.”

A few countries were selected as part of WCR’s work to deal with the effects of climate change.

Using a climate prediction model developed by the International Centre for Tropical Agriculture (known as CIAT), they selected countries that currently have climate situations coffee producing countries might be seeing in decades to come. “With the varieties in these locations, we’ll be able to see how some of these coffee strains will be coping with climate in 30 years time,” says Schilling.

In each location, a full-time technician funded by WCR will be responsible for overseeing the climatisation of the plantlets, their planting, and the recording of their performance. WCR has standardised data collection across the countries – as much as possible – to allow for a fair evaluation of how each variety performs in different climates/geographies. Each plot will also have a weather station to provide accurate weather data.

While it will be at least three years until the plants produce coffee, WCR is already looking

An embryo rescue technique was used to grow plantlets.

The result is a sterile plant that should pass through photosanitary procedures.

to when it will be time to evaluate the taste characteristics of these coffees.

Leo Lombardini is the new Deputy Director of WCR. He says that while cupping practices have come a long way in providing a good measure of taste profiles, they are dependant on the senses of the cuppers. Because of this, cupping results don’t work well in scientific studies. In this space, WCR is working on a scientific evaluation of taste profiles that will help them provide publishable results on the taste characteristics of the coffee produced.

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RESEARCH WCR Variety Trials

Map courtesy WCR depicts countries that are taking part in either receiving and/or providing varieties.

WCR is currently working with Doctors Edward and Delores Chambers from the Sensory Analysis Center at Kansas State University. The centre has a long history of working with the food industry to development scientific sensory evaluations. The pair will now work on the first scientific protocol for the evaluation of coffee tastes, with the goal to produce results that can be published in an academic journal next year.

Their work will be paired with a chemical analysis of the aromas using gas chromatography, the analysis of vaporised compounds, which will be done by Doctors Rhonda Miller and Chris Kerth at Texas A&M University. They use what Lombardini describes as a “human nose” attachment, to analyse only the relevant aromas that can be picked up by human senses. Interestingly, the project will not evaluate traditional cupped coffee, but will look at prepared drip and espresso drinks.

Combining a sensory analysis and a chemical analysis, the final result will be a set of scientific

A technician performs the embryo rescue technique to create a sterile plantlet that’s safe to ship.

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tools that can be used on an ongoing basis in coffee research. With results set to come out next year, the tool should be well in place when the Multi-Location Variety Trials start bearing fruit. The tool will be used to compare the quality across locations. Plans are to ship all of the coffee to the US, where this scientific tool will be used alongside more traditional cupping methods.

This will be the final step of a project that will give producing countries comprehensive information they can use to choose varieties for their farmers.

“They will be able to see how this hybrid or strain performs against their traditional varieties,” says Schilling. “They should be able to then select and request authorisation, which might come at a cost, to replicate and distribute the variety.”

All of this work naturally comes at a high cost. In general, Schilling says coffee roasters have responded well to the need for these research efforts. WCR has secured ongoing funding of around US$2.5 million a year, mainly from large roasting companies.

“These companies are realising that with all this talk about climate change, they need to be part of something will help them sustain a supply of high quality coffee,” he says. “There are those companies who get it, and those that don’t. In the end, everyone is going to reap the benefits of this.” G C R

TECHNOLOGY Mahlkoenig

WHERE TECHNOLOGY MEETS

CRAFTSM W MAHLKOENIG’S JOCHEN CHRISTOPH TAKES GCR MAGAZINE ON A TOUR OF ONE OF THE MOST ADVANCED COFFEE GRINDER FACTORIES IN THE WORLD.

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alk into the Mahlkoenig factory in Hamburg, Germany, and if you look quickly, it would seem that the poster on the wall is the typical “Keep Calm and Carry On” poster that you can pick up at any kitsch shop.

Take a closer look, however, and you’ll see that the poster is a custom design for Mahlkoenig: “Keep Calm and grind flat.”

Despite the hype in the past decade over conical burrs in the coffee industry, Mahlkoenig has stayed true to its founding philosophy of coffee grinder manufacturing, which is based on the use of flat burrs. Jochen Christoph, CFO of Mahlkoenig’s parent company Hemro Group, says that the company has continued to build upon this sound foundation by further developing their own original design and technology.

While at times working in the shadows of their competitors, Mahlkoenig’s values and work ethics have helped steer the company back to the forefront of the coffee industry, explains Christoph. He says this is evident in the wildly growing demand for their best known coffee grinders, the K30 and EK43.

A look at Mahlkoenig’s history helps explain the progression. The company produced electric motors when it was founded in 1924. It was in the 1960s that the company decided to concentrate solely on the production of coffee grinders. Today, along with Anfim and Ditting, they are an integral part of the Hemro Group. This joint venture of the three principal coffee grinder manufacturers has allowed Mahlkoenig to share access and subtle manufacturing principles with, what were until recently, their major competitors. Christoph says that the partnership with Anfim and Ditting has helped to further the quality, efficiency, and marketing capacities of Mahlkoenig’s production without compromising its basic structure and technology.

MANSHIP GCR Magazine recently visited the Mahlkoenig factory. Stepping into the facility, one cannot escape the sensation of the 90-year-old tradition of Mahlkoenig manufacturing coming to life. It embodies the stereotype of German meticulousness, organisation, and standards of high quality engineering, by both its personnel and the organisation of the work space.

The majority of the grinder parts are manufactured in-house. Most of the materials used continue to be sourced from Europe – something the company has been committed to since its earliest founding.

“While the company was primarily associated with the production of high end shop and industrial grinders, in 2004 Mahlkoenig made a significant impact on the way we approach grinding for espresso by issuing model K30,” explains Christoph. By introducing the on-demand feature to an espresso grinder, Christoph says they challenged the industry to re-think the link between freshness and quality, showing that freshly ground beans are needed to get optimal taste from coffee.

“Mahlkoenig’s radicalisation of how we approach grinding for espresso continues even today,” says Christoph. In 2013 Australia’s Barista Champion Matt Perger opted to use the Mahlkoenig shop grinder EK43, explaining how the technology that goes into the production of the EK43 gives more to coffee than anything that the industry has come to expect from our top espresso grinders. This idea took the coffee world by storm, making EK43 a highly sought-after product. The same year US Barista Champion Pete Licata won the World Barista Championship using Mahlkoenig’s K30 Twin, showing that Mahlkoenig’s basic manufacturing methods, paired with improvements the company has made over the years, can bring about the highest results in espresso grinding.

Mahlkoenig’s major contribution to the industry is breaking down self-imposed limitations (some imposed by coffee professionals and others by grinder manufacturers), explains Christoph.

“That good espresso taste is less a question of a grinder category. It’s all about dedication for the best cup of coffee,” says Christoph. He says that this idea is embodied by the EK43 perhaps more than any other Mahlkoenig grinder.

While traditionally used and classified as a shop grinder, the EK43 is efficient in achieving aimed percentages of extractions for filter and espresso. This is why it is now less unusual to see baristas using the EK43.

Christoph credits much of this success on Mahlkoenig’s in-house burr production. As one of the most important steps in grinder production, the shape of the burrs is valuable knowledge that stays within the company. All burrs are manufactured on-site, in a specific facility within the factory. This facility hosts more than 40 different machines; from steel saws and five axis turning centres, to precision grinding machines.

Christoph explains the intricate production

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TECHNOLOGY Mahlkoenig

process in detail: “Most burrs start as a tool steel bar with a length of up to 5 metres. At that starting point you could never imagine that the final product could be something so precise and sharp as a grinding burr for coffee. Based on decades of experience, Mahlkoenig uses various ferrous alloys, some are even tailor-made for our needs.”

Following a clear workflow, steel bars are cut into slices and pre-tooled, for example, for precise diameter and flatness. The following steps involve the cutting of the teeth into the steel. This is done on modern tooling machines and constantly monitored by experienced staff. To achieve the required abrasiveness and creeping strength, Mahlkoenig applies hardening and annealing technologies to the burrs. Then the semi-finished burrs are sharpened on grinding machines, a process that can take quite a while for burrs made of carbide metal. In the final step Mahlkoenig applies abrasive glass blasting, washing, and labelling of the final burrs.

Mahlkoenig also produces ceramic burrs or cast burrs, and in both cases the process starts with the pre-tooling or the sharpening.

Quality assurance goes hand in hand with the production process. At all critical points burrs are measured and compared against samples using state of the art laser measurements and other optical and mechanical devices.

Along with selecting high quality materials, Mahlkoenig also pays close attention to durability and reliability. The finished grinders are tested for performance and efficiency in coffee shops and coffee production facilities.

For each grinder Mahlkoenig keeps a grinding test protocol with a traceable link. They also test if each Mahlkoenig grinders comply with the required performance. In the case of a K30, for example, this is measured as grinding capacity in a given time. They thereby ensure that every K30 is ready to deliver the requested number of shots per minute.

Building so many different types of grinders requires exquisite organisation. There is clearly a meticulous order in the rows of burrs to be made and grinder body parts waiting to be assembled.

“Mahlkoenig grinder types are designed for a defined application range, determining the selection of components,” explains Christoph. “For instance, motors and burrs vary by power and size for different purposes such as a heavy-duty shop grinder versus espresso grinders.”

He says that customer specifications require a flexible answer to key components of the grinders.

Consequently, the company bundles assembly in competence centres. Finally, but importantly, order

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sizes vary between home, espresso, and shop grinders.

“This also has an impact on the way grinders get assembled,” says Christoph. “The larger the average lot size the more we strive to achieve a constant assembly flow.”

The production of a single grinder happens in several phases. The key steps are pre-assembly, final assembly, testing, packaging, and shipping.

Some parts are produced upstream, such as body elements or burrs, due to their lead times.

To ensure the highest quality and assembly compliance, EK43 and K30 are produced in different competence centres in their Hamburg factory.

Both of these models have a defined set of assembly steps that require a specific set-up of tools and workspace. Because the production of the burrs happens on-site, grinder assembly and production of burrs occur hand in hand. The final assembly takes more than two hours, not including the testing and packaging.

Although Mahlkoenig is known for its innovative technologies, human hands are essential to the creation of each grinder. All grinders are hand-assembled, and employees have a solid background in craftsmanship and a passion for high quality, says Christoph. Most of the staff have worked with the company for many years, some even for decades, which has created a stable company structure and working environment.

All new staff – including administrators – participate in a mandatory production program during which they assemble grinders by hand.

For those in the production line, Mahlkoenig ensures job rotation, so that everyone has the skills to fully assemble shop or espresso grinders.

Mahlkoenig is a privately-owned company, so while exact sales figures aren’t disclosed, their annual output of all grinders numbers several thousand, and they produce over half a million grinding discs each year.

While these numbers may not be the largest in the industry, they are a testament to the high quality and attention to detail that define the company. Mahlkoenig’s ability to maintain excellence and precision from the production line to the espresso bar, in combination with their forward-thinking approach to coffee grinding (and grinder distinction), will surely ensure their position as a leader in the specialty coffee world for years to come. GCR

Trieste, Italy

TECHNOLOGY InfinityRoast

THE FUTURE OF COFFEE

ROASTING

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BUHLER’S LATEST ROASTER IS REDEFINING THE COFFEE INDUSTRY

BY INTRODUCING NEW PARAMETERS OF CONTROL.

O

ver the years, the technology available in roasting equipment has improved exponentially in allowing users ultimate control in creating roasted coffee.

From digital controls to novel roasting methods, today’s coffee roaster – especially on the large-scale – has an unfathomable number of tools at his or her disposal to accurately recreate, time and again, a set roast profile.

However, while the technology to control and recreate the roast profile has improved, operators have been largely limited to two variables in setting that roast profile: the length of the roast and the final product temperature.

Dr. Stefan Schenker is the Head of Business Unit Coffee for Buhler, one of the world’s leading coffee roasting machine manufacturers, based in Switzerland. Schenker has spent the bulk of the past few years studying roast profiles, thinking outside of the box to see how the company could help improve the roasting process.

“The classical way to control roasting is to control two things: the degree of the roast and the roasting time,” explains Schenker. “However when you’re only working with two parameters, you will always have limitations. For instance, you can lower your acidity with a longer roasting time, but you end up losing porosity. The only way to optimise certain characteristics is to compromise the other.”

Schenker and his team’s efforts at Buhler are now set to revolutionise how roasters think with the introduction of the InfinityRoast. Unveiled for the first time at the Interpack event in Germany this past May, the InfinityRoast gives roasters control over new dimensions never before available. Through a specially designed chamber, the InfinityRoast allows users to precisely control the time/temperature curve and the air-to-bean ratio.

By introducing these new dimensions via this technology, Schenker explains how roasters can create “non-traditional roast profiles”.

“These new dimensions were not in focus years ago, and now they are in focus, and they offer new possibilities in extracting flavour from coffee beans,” says Schenker.

The Maillard reaction is the main chemical reaction responsible for creating the chemical compounds in roasted coffee. Research has shown how the dehydration of the beans, that is the water available at each stage of the process, affects the Maillard reaction. By modifying the time/temperature curve, this modifies the dehydration kinetics of the bean, and therefore affects the Maillard reaction and flavour formation.

The air-to-bean ratio similarly affects the flavour formation of the bean. This effect is most obvious in the different taste characteristics that come out of drum roasting and fluidised bed roasting.

“If you use a fluidised bed roaster, your air-to-bean ratio is very high. Similarly, if you use a drum roaster, then your ratio is very low,” he explains.

Perhaps one of the InfinityRoast’s most striking characteristics is its ability to simulate airto-bean ratios ranging from those matching drum roasters through to fluidised bed roasters.

“There is no other roaster that can offer this same degree of flexibility,” says Schenker.

This is possible thanks to the novel design of the InfinityRoast’s roasting chamber. The chamber is the result of four years of research and development at Buhler.

“The chamber was the focus of our work, because we wanted something that would maximise process flexibility by allowing us to adapt both a high and low air-to-bean ratio,” he says.

While fluidised bed roasters are praised for their lack of mechanical parts, Schenker says that in wanting to offer low air-to-bean ratios, it became clear early on that they would

Stefan Schenker, Head of Business Unit Coffee for Buhler

have to have some sort of mechanisation in the chamber to keep the beans moving. Because moving parts can cause bean breakage, the task was no easy feat.

“We spent a lot of time optimising the movement in the roasting chamber. We started off with computer simulation, then we built prototypes and installed cameras to observe the beans’ movements,” recounts Schenker. “We roasted at least 150 tonnes of coffee just in the research and development phase.”

The result is a ground-breaking roasting chamber design never before seen on the market; a stationary chamber with a rotator inside. The rotator is equipped with special paddles that distribute the beans in the chamber evenly, without causing any damage.

The chamber is specially designed in two parts. The lower part contains the rotator and moves the beans through a mix of mechanisation and air, while the upper part of the chamber – called the expansion chamber – slows down the air speed to move the beans back down.

It’s thanks to this hybrid that the air-tobean ratio and time/temperature curve can be controlled to generate non-traditional roast

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TECHNOLOGY InfinityRoast

profiles. Returning to Schenker’s earlier example of compromising acidity for porosity, he explains how these non-traditional roast profiles help an operator have the best of both worlds. For instance, a slow start profile can provide the flavour characteristics of a longer roasting time, however can maintain some pleasant acidity, while maintaining porosity.

“Roasting profiles are something that I’ve studied for quite some time. The question was always, are these non-traditional roasting profiles achieving something we were not able to achieve before? After all my work, I’m now 100 per cent convinced that the answer is yes,” says Schenker.

The key to controlling these roast profiles is not only having the ability to manipulate the process, but the tools to carefully monitor and adjust as needed. In this space, the InfinityRoast was carefully designed as highly reactionary.

Schenker explains how Buhler technology uses what he calls “real-time” roast profiling.

This means that the energy inputs into the machine are determined by the temperature of the bean. It’s like cooking a chicken with a temperature probe rather than setting the temperature on the oven.

This is certainly no easy feat considering all of the possible elements that could affect the product temperature: everything from the temperature of the room, how long the equipment has been running for, and especially the varying characteristics of each coffee bean as a natural product.

“With all of the InfinityRoast technology, and a chamber designed to be highly reactionary, the machine can maintain temperature stability of plus or minus one degree Celsius, even with non-traditional profiles,” says Schenker. “This is a level of stability that we have yet to see on the market.”

This stability is supported by quality hardware, including a high performance burner that can modulate gas consumption very quickly.

The machine also features an air bypass system that modulates how much air flows through the system.

The software on the roaster is the Infinity Profile Control (IPC) system. This system automatically calculates and adjusts the energy input based on the programmed roasting profile. With even the slightest deviation from the set “master curve” the IPC system will calculate what changes are required and give

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Buhler’s new InfinityRoast

a signal to the burner and air bypass system to bring the actual product temperature back to the master curve.

Schenker explains that the need for this level of technology stems from major advancements in the coffee industry. This has largely been modern demands for greater process flexibility. Especially with the surge in specialty coffee, Schenker explains how modern roasting operations require equipment that can keep up with frequent recipe changes.

“Many roasters are offering different blends and different origins. Each requires a different roast profile to get the most out of the bean,” he explains This trend is only reinforced in modern trends of coffee capsule manufacturing. A single manufacturing operation may feed into different packaging lines, that each has its own time sequence and degassing requirements. As a result, modern plants need the flexibility to switch between these recipes with minimal down time.

“Every time you change a recipe, the challenge is always that the first batch might be out of the norm,” says Schenker. “With quality controls getting stricter and stricter, especially when we’re talking about specialty coffee and capsules, these requirements can simply not tolerate any fluctuations in quality.”

Another industry trend that is certainly leading technology developments is the need for sustainability. In this space, the InfinityRoast can hold its own. The machine uses air recirculation, saving a whopping 30 per cent on energy usage. It’s also well insulated as a standard offering, and has optimal heat transfer from the air to the bean to minimise energy usage.

To deal with emissions, the system has an after burner that maintains the off-gas at 350 degrees Celsius, and is processed at this temperature via a catalytic converter. Next year, Buhler will be introducing a green coffee pre-heating system that can further decrease energy usage.

After so much work to introduce this revolutionary system, Schenker is proud to say that it will already be in industrial operation this September, as the first machine was already sold as this edition of GCR Magazine went to print. In offering the next phase of roasting control, Schenker is confident more sales are soon to follow. G C R

TECHNOLOGY Rychiger

CATCH ME

IF YOU CAN

RYCHIGER’S MARIUS OLSZEWSKI TELLS GCR MAGAZINE WHY COFFEE CAPSULE TECHNOLOGY IS ADVANCING AT AN EXPONENTIAL RATE TO KEEP UP WITH CONSUMER DEMAND.

M

arius Olszewski, Vice President of Sales at Rychiger’s US-based subsidiary, admits that historically, coffee packaging has been evolving very slowly, and perhaps has not been the most thrilling subject to discuss.

Compared to romantic stories of travel to origin, or the rise to fame of superstar baristas, on first glance, coffee packaging doesn’t offer much of a compelling tale.

A closer look at packaging, however, would tell otherwise. Olszewski has worked in the industry for 20 years. In that time, he says he’s seen the industry’s most significant inventions: coffee pods and coffee capsules appearing on grocery shelves.

Olszewski credits Cyrus Melikian’s coffee pod invention, and especially Eric Favre’s invention of the Nespresso coffee capsule, as the most ground-breaking achievements that are revolutionising the modern coffee industry.

“These were very important steps in developing new technologies that deliver the perfect cup of coffee,” he says. “It covered so many problems that were relevant to coffee. Coffee from a capsule is very well protected from oxygen, it has a long shelf-life, and because it contains a precisely dosed amount of coffee it tastes always the same, not to mention the convenience of use.”

With climate change, urbanisation and disease outbreaks affecting the nature of coffee production, coffee capsules have made an important impact on reducing overall coffee waste related to traditional brewing methods. As coffee consumption continues to rise, Olszewski highlights how ensuring

minimal waste of this important resource will be vital in the sustainability of the industry.

“In the next 20 to 25 years, [coffee capsules] will continue to play an important role,” says Olszewski. “Think of the exploding increase in consumption in coffee producing countries taking place right now, or the potential for populous Asian countries to increase their consumption. Take this into account and demand for coffee is going to increase substantially. With single serve, there is a decrease in waste which allows the supply to better meet this new demand.”

The rise of single serve is a trend Rychiger has capitalised on as a leading supplier of filling and sealing equipment. Rychiger has supplied some of the world’s leading capsule manufacturers since the product was first developed in the 1980s. “Today we supply packaging machines for all the top selling coffee capsule systems,” Olszewski says. “Our installed machine base

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TECHNOLOGY Rychiger

Rychiger offers R&D filling and sealing equipment (pictured left) to perfect parameters that can be transferred onto commercial machined (FS910 model pictured right).

covers an estimated 40 per cent of all capsules filled.” Although the company also designs and builds packaging machinery for food in retortable containers, including pet food as well as tea, coffee and health care products, Olszewski says beverages – and especially coffee – is by far the fastest growing segment. “We’re realising there is so much room in this segment for everyone from huge multinational beverage companies, down to regional and small coffee roasters,” he says.

In this space, Rychiger offers a range of equipment to suit different needs. Depending on the configuration chosen, on the lower end, Rychiger’s Rotary filling equipment can accommodate 110 – 240 capsules per minute. At mid-range, the Balcony style filling equipment can accommodate 240 – 360 capsules per minute. At the upper end, Linear machines can produce an astounding 600 – 1500 capsules per minute. “We have equipment for any size of company,” says Olszewski. “One of our core competencies at Rychiger for the last 50 years has been precision filling and high quality sealing, including single-step punching and sealing. These technologies perfected by Rychiger are critical components of manufacturing capsules.”

Olszewski points to the fact that Rychiger is not only manufacturing some of the world’s best filling and sealing equipment, but it also works closely with customers developing their capsules and brewing systems, and with manufactures of packaging materials during the design process. With the entire development process in mind, Rychiger has developed R&D level testing equipment for filling and sealing, making it possible to test the parameters of the process on a single capsule. The process parameters help optimise the machine settings during these tests, which can then be easily transferred onto a commercial machine.

In the capsule manufacturing industry, Olszewski explains how precision is absolutely vital to successful production. Because of the high speed of capsule processing, the capsule’s parameters must fit perfectly with the machine, there is very little – if any – room for error.

“From the handling of the capsule, beginning from the de-stacking and cup transfer to cup assembly, product filling and sealing lids, this has to be done very precisely,” he says. “Many machines [from other companies] are built on fixed frames. This limits the ability to allow any variance. Because Rychiger machines are built as modules they can execute different processes on a single machine.”

Over the years Rychiger has perfected their in-house designed and manufactured filling systems using different solutions for the variety of products filled on their machines. Olszewski adds that Rychiger developed and successfully deployed new techniques including ultrasonic welding for several applications. Olszewski also highlights that Rychiger systems are designed with laminar flow nitrogen flushing systems, which allow the coffee to be delivered and encapsulated at very low residual oxygen levels. The equipment offers advanced robotic functions to finalise the assembly of

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caps and comes equipped with sophisticated quality control systems.

Rychiger is finding a growing consumer base for this equipment, as more roasters opt to offer their coffee in capsule format. While many turn to contract packagers, Olszewski says more and more roasters are opting to purchase their own lines.

“Very often, roasters are finding themselves shipping their ground coffee over a long distance to have it packaged into a capsule. This may not produce a high level of quality because of the time necessary to travel and coffee being exposed to the elements,” he says. “It can also be challenging because they have to fit their packaging into a time slot available at the contract roaster. When roasters have their own equipment, they have control over the entire production process.

“What we’re seeing on the packaging side is that the acceleration of new ideas is incredible in the market. Cartridges are becoming universal, not only for coffee, but other liquids including carbonated drinks, soups and more.”

Olszewski says he’s seen everything from baby formula, oatmeal, and even flatbread in a capsule.

“This category is growing very fast. With so many different beverages on the market there are many companies trying to capitalise on the advantages of single serve beverage systems now widely recognised. We’re only going to see packaging technology continue to advance.” G C R

Marius Olszewski is Vice President of Sales at Rychiger’s US-based subsidiary

MARKET FOCUS Turkey

WHERE EAST MEETS WEST

I

ALLEGRA STRATEGIES’ JEFFREY YOUNG TELLS GCR MAGAZINE WHY ISTANBUL HAS BEEN CHOSEN TO STAGE THIS YEAR’S EUROPEAN COFFEE SYMPOSIUM.

stanbul’s Galata Bridge spans the Golden Horn on the edge of the Bosphorus Strait. It has breathtaking views and is just a short walk away from the city’s old quarter, making it a popular tourist hot spot.

Along the bridge, and spilling onto either side, hawkers spend their days trying to pull tourists into seafood restaurants, velvetclad night spots, and shisha bars. Ample competition means that few of these venues are ever crowded.

Only one shop seems to keep relatively full throughout the day and night, without any help from local hawkers. Standing out from the Middle Eastern décor of the bars and restaurants, the iconic green and white Starbucks is a beacon of Western comforts in the thriving tourist district.

The shop is just one of 29 branded cafés Starbucks has opened in Turkey in the past year, most of which are in Istanbul. The American coffee giant says it plans to open 250 locations in the country by 2016.

Starbucks is not alone in finding a receptive crowd in Turkey. With 1331 branded coffee shops, Turkey is the third

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largest market in Europe. And it grew by almost 20 per cent in 2013, according to the latest report by UK-based market research firm Allegra Strategies.

Jeffrey Young, Managing Director of Allegra Strategies, tells GCR Magazine that Turkey has all the pieces in place to secure the successful development of its market.

To begin with, the country has a young population. Around a quarter of its population are under 14 years old, and around 40 per cent are under 24. Young says that this booming young population is receptive to Western brands.

Fortunately, this youth should have an increasing number of dollars in their pockets, as Turkey has a relatively strong economy. The International Monetary Fund (IMF) classifies Turkey as an emerging market, joining the ranks of India, Brazil, China, and Indonesia. The country recorded strong real GDP growth of 9.2 per cent in 2010 and 8.8 per cent in 2011.

Although those figures dropped to under 3 per cent in 2012 – 2012, they are expected to lift up to over 3 per cent again in 2015, and move towards 4.5 per cent in 2018, according to the latest IMF forecasts.

“Turkey is a reasonably advanced economy. It’s been a star market for some years now,” he says. “And it’s an important market in terms of its positioning in the world. It is a safe haven for many Middle Eastern countries to put their money into. It’s a quite strategic part of the world, and it always has been.”

Turkey’s position, straddling both Europe and the Middle East, dates back thousands of

years. From passing through Persian hands and the Greeks’, Turkey’s history is coloured by the clashes of civilizations.

“We see this history playing out in the modern day,” says Young. “Turkey is on the edge of both worlds. It has access to both Western and Eastern economies.”

Coffee shops from either side of the fence are finding success in the country. Leading national chains include Kahve Dunyasi with 110 outlets, Kahve Diyari with 109 outlets, and Gonul Kahvesi with 56 outlets, according to Allegra’s Project Café 13 Europe report.

Foreign chains that have staked their claims include Mado Café with 295 outlets and Caffè Nero with 47, meaning Starbucks still has a ways to go.

Although the factors for success are there for branded coffee shops, Young says that challenges still remain.

At present, the current market potential is fairly limited to Istanbul. The large country has vastly different cultures from the east to the west, and the north to the south, not all of which are receptive to foreign brands. With varying income levels, dropping especially as one leaves the cities, many locals couldn’t afford these Western comforts, even if they wanted to.

“With the economic conditions of places outside of Istanbul, it would be impossible to have price parity across the country,” says Young. He suggests chains look at different entry points to attract customers with varying levels of wealth.

Also, while locals are receptive to foreign brands, it can be challenging for foreign suppliers to crack this market.

“Istanbul has a robust economy, but it can be a challenge breaking through the existing partnerships,” he says. “It’s harder for Western suppliers to get into this market.

People tend to think and buy domestically.

They want what the West has got, but they tend to have strong local imitators.”

Young’s advice to companies looking to break into the Turkish market is to “not take anything for granted”. While relatively Westernised, local trading customs need to be respected.

One existing custom that Young doesn’t see as a challenge to Western coffee shops is

Starbucks plans to open 250 locations in Turkey by 2016.

the long-standing tradition of Turkish coffee. Although Turkish coffee is well-known throughout the world, Young says it doesn’t overlap with what branded coffee shops are looking to do.

“Turkish coffee exists as an established coffee culture, but only to a point,” he says. “An overwhelming majority of people drink tea… Turkish coffee has been there, but it’s more of a ceremonial beverage.”

Young explains that tea is traditionally drunk out on the streets, meaning that the country has an established out-of-home consumption market. This is great news for branded coffee shops, as out-of-home consumption is not something that can easily be introduced.

This culture is also highly beneficial to the branded coffee shop industry because, as a Muslim country, there is less competition from alcohol.

“A coffee is a perfect excuse to be out,” says Young.

Allegra estimates that Turkey’s branded coffee shop market will grow at an impressive rate of 10.4 per cent a year over the next five years, to exceed 2000 outlets by 2018. The city makes the perfect setting, then, as the location for its 2014 European Coffee Leaders Symposium this November. Still technically in Europe, as the conference is being held at the Intercontinental Hotel on the European side of Istanbul, this will be the closest that the event has ever made it to the Asian border. Young says that the timing is perfect, as Istanbul as a city is shining on the world stage.

“Istanbul is one of the most prime cities. It’s really starting to have its day,” he says. “Alongside New York, London, Paris, Rome, and Tokyo, Istanbul is really up there.” G C R European Coffee Symposium “Beyond Borders: From Home Markets to Globalisation” 24 – 26 November 2014 Intercontinental, Istanbul www.europeancoffeesymposium.com

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CO FFEE . T E A . CO COA G LO BA L I N D U S T RY E X P O

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OUR CONFERENCE PROGRAMME (EXTRACT): Wednesday, 24 Sept 2014: Cocoa and coffee topics ■ Cocoa market key drivers: profit, progress, sustainability?

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MARKET REPORT UAE

One camel I milk latte please! One hump

n looking to promote specialty coffee in the iconic city of Dubai, in United Arab Emirates, Ryan Godinho finds himself on the edge of two worlds.

Traditionally, coffee is nothing new to the region. The Middle East has an established traditional coffee culture: roasting beans on open flames in an almost ceremonial style, grinding them by hand, and mixing them with spices in the final drink.

As Special Events Coordinator for World Coffee Events’ UAE National Body, however, Godinho has focused on seeing the evolution from this traditional space to a more international and diversified service of coffee.

His interest lies in the world of espresso-based and filter coffees, high-grade beans, and essentially everything that specialty coffee stands for.

Fortunately, he’s found himself in the lucrative Dubai market, one that is not only brimming with wealth and diversity in culture, but also has a highly receptive crowd to anything that is trending in the food and beverage industry.

“Espresso has gained a lot of popularity here, with a vast number of big brand names and Western franchises,” he says.

“The groundwork here is all set for the rise of specialty coffee.”

Despite a traditional coffee culture, Godinho says it’s safe to say that espresso is by far the most popular way to drink coffee. He says cappuccinos, lattes, and mochas are the top three favourite drinks. A local sweet tooth enjoys chocolate and caramel flavours and with a warm climate, frozen drinks topped with whipped cream go down well.

In the last few years, however, Godinho has even seen people beginning to experiment with drip coffee. “But it’s a slow process – in two ways,” he says.

“Drip coffee is literally slower to make and doesn’t lend well to staff-time efficiency and the takeaway service. Also, it’s taking SPECIALTY COFFEE EDUCATION MIXED WITH LOCAL a while to catch on.”

CULTURE IS DRIVING COFFEE CONSUMPTION IN THE One interesting trend is camel milk. More than just a UNITED ARAB EMIRATES.

or two?

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MARKET REPORT UAE

novelty, camel milk offers many health benefits as it’s higher in protein, and lower in fat than cow’s milk. However, because camel milk is quite potent when heated up, Godinho says that most cafés add flavours like cinnamon and caramel to balance the taste.

A preference for flavoured lattes is a strong sign of US coffee giant Starbucks’ influence. Indeed, the company has well over 100 coffee shops in the country. Godinho says Starbucks did a good job of introducing the American-style branded coffee house, a trend that’s been followed by other chains.

“Since the introduction of a first major coffee franchise in 1997, Dubai has been built around branded coffee chains,” says Godinho. “It’s been quite a rapid expansion.”

Fortunately, what Starbucks and Costa Coffee didn’t have to do was introduce an out-of-home coffee drinking culture. As elsewhere in the Middle East, the population is naturally sociable, with alcohol consumption typically limited to weekends for most expatriates – the perfect setting for coffee shop success.

“Meeting up outside of the home is culturally what the UAE is built on,” he says. “There are plenty of clubs and bars, but mostly coffee houses fill that role. Many are open past midnight where people usually like to congregate after work. It’s very common to see people sitting in coffee houses late into the night, sipping on lattes and cappuccinos.”

Godinho says that he is working to encourage the evolution of this branded coffee shop culture into the next level of specialty coffee service. He compares the current situation similar to the United States’ early uptake of espresso-based drinks. “Branded coffee shops are great for getting people ready for Third Wave coffee,” he says. “I think that’s what is happening here now. We’re seeing people who used to manage franchises setting up their own neighbourhood shops. The costs are less than licensing from a franchise, and they can add value and a unique identity to their business. I would say specialty coffee is currently at its embryonic stage in the region.”

Godinho says more work needs to be done to educate consumers and the industry, in the form of awareness that can be driven by the set up of a formal specialty coffee association in the region, for example.

Although Dubai may be known for its wealth, he says it’s not the economy that will drive coffee consumption here, but rather education and consumer awareness. “Dubai is known as being a taxfree zone, and people see a lot of potential to make money here. There certainly are a lot of affluent people here,” he says. “But the driving factors to the growing coffee consumption are more cultural than economical.”

Taking it further, Godinho says geographical and logistical factors should eventually help Dubai sustain itself as the regional hub for coffee trade and distribution. He says the vast majority of coffee is currently being imported as roasted for the major chains. In a country with more than 9 million people, he says only around five Western-style roasters operate in the UAE. A prominent limitation, he says, has been the challenge of importing quality green coffee and awareness of the advantages of freshly roasted coffee. “There’s a lot of room for the improvement of Ruler of Dubai and Vice President of the UAE, HH Sheikh Mohammed bin Rashid Al Maktoum accompanied by the Crown Prince of Dubai, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, visit the 2013 edition of the International Coffee & Tea Festival.

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Ryan Godinho, Special Events Coordinator for World Coffee Events’ National Body for the UAE.

quality, but that has to be driven by competition,” he says. “Imagine only having five roasters in such a densely populated country.”

Introduction to Coffee Roasting Techniques will form just one of the many workshops Godinho has lined up in the educational offering at the upcoming International Coffee and Tea Festival, taking place from 12 to 14 November at the Meydan Gallery. This is the sixth edition of the only internationally-recognised trade event focused exclusively on coffee and tea in the Middle East. Last year, the event welcomed over 6500 visitors from 20 countries. This will be the sixth year that the event will incorporate the educational workshops, in partnership with the Specialty Coffee Association of America (SCAA). The event will host the UAE Barista Championship and UAE Latte Art Championship.

The event will also host a WCE All- Stars event, where past world barista champions discuss their experience, share their knowledge, and work through a fun and interactive schedule of activities Interestingly enough, the event will come full circle in terms of coffee culture, as it hosts for the first time a national Ibrik competition.

Godinho says it’s a great opportunity to bring the old in with the new, and reconcile the two worlds he’s been straddling. “People who make Ibrik don’t really know much about competing in a coffee challenge or even specialty coffee for that matter,” he says. “This is a great chance to get them involved in ‘the evolution of coffee.” GCR International Coffee & Tea Festival 12 – 14 November 2014, Meydan Gallery www.coffeeteafest.com

September/October 2014 July/August

May/June 2014

STAMPED OUT OF DATE Why certification schemes are no longer enough

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ONE CAMEL MILK LATTE PLEASE

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A ROASTING REVOLUTION

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EAST SHIFT MIDDLE We st, East meets Old meets New

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SA SPENDING sumer A caring con

Dubai loves its espresso

Buhler ups the ante on machine technology

BACKSTAGE PASS

Behind the scenes at Mahlkoenig

EAST MEETS WEST Turkey’s path to branded coffee shop fame

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O P P O R T U N NITIES I W I T G H N C I O F F N E COFFEE EXECUTIVE E N I W A R K ET OF THE FUTURE? A CROWDED M IS THIS THE

COLOMBIA’S SET ON THE SUPERSTAR POLITICI ANTIOQUIA. SPECIALTY COFFEE IN AN GOVERNOR SERG H IN IO DUSTRY TO ING THE BIG FIS CONTINUE FAJARDO HAS HIS SIGH NTAGES OF BE TERS. VA AD E TH THE TRANSF ON AS RO HIRATO ROHAN MARLEY LEADS THE CELEBRITY COFFEE CRAZE EE SC FF S CO ORMATION TS LE O UE CE UTIQ VITTORIA OF com €29.00 OF SMALLER, BO ND www.gcrmag.

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ORIGIN Costa Rica

: A C I R A T S O C E CAFÉ D

L A E S

Y T I L I B A N I A T OF SUS

COSTA RICA’S SUCCESS IN OBTAINING GEOGRAPHICAL INDICATION MARKS A MILESTONE FOR THE REPUTATION OF THIS PRODUCER’S EXEMPLARY INDUSTRY.

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G C R | S E P T E M B E R / O C T O B E R 2014

F

irst it was Champagne from France.

Then Mexico took its Tequila to the world trade courts to protect its identity. Since the world of coffee started to look at international trade regulations covering what constitutes the denomination of origin the issue has become a hot topic.

Costa Rican coffee hasn’t escaped the challenge of maintaining its identity. With wildly differing premiums paid per pound of Central American beans, coffee smuggling and contraband sales are not uncommon practices in the industry.

But registering Café de Costa Rica as a Geographical Indication, and eight production regions as Origin Denominations (currently underway) has been more challenging than the official Costa Rican Coffee Institute (ICAFE), imagined.

“It was the year 2000 when visionary people decided to answer a big concern. The big question at the time was how to protect the quality, and furthermore the value proposition, of our unique sustainable production,” Mario Arroyo, Marketing Director of ICAFE, tells GCR Magazine. “This triggered the idea of Geographical Indication and the eight Origin Denominations as seals of the origin’s sustainability throughout the chain.”

The debate over Geographical Indication of coffee made headlines in the mid 1990s when a California-based company sold 10 times more Kona coffee than Hawaii could produce. It turned out that most of what it was selling was Central American beans. By 2005, the aftermath of what became known as the “Kona Kai scandal” was still weighing heavily on the specialty coffee trade. That year, the world of coffee reached common ground that denomination of origin-type trademarks would be the best measure to protect the uniqueness of a country’s coffees.

And so ICAFE also started in 2000 to secure all of Costa Rica’s coffee producing regions with their individual seals of Origin Denomination. Arroyo recounts, however, that it turned out to become a much more tedious affair than they imagined. Global trade regulations for these highly coveted seals involve a complicated and time-consuming process, especially considering the complexities of each region.

“We first launched the concept of different producing regions in 1988 and today we have eight different growing regions in Costa Rica. All these regions are entirely unique. Moreover, growing quality implies the interaction of so many aspects: genetic, agronomic, climatic, geographic, social, economic and environmental variables that must be protected as added value. These relate to the uniqueness of the origin and benefit the producers,” says Arroyo. “Costa Rica geology is very notable, sharing an incredible biodiversity and ecosystems formed by two tectonic plates pushing against each other. This process formed the volcanic soils that give distinctive organoleptic characteristics to each of the defined regions and future Origin Denominations.”

ICAFE has worked in conjunction with the regions to obtain Geographical Indication (already registered) of Café de Costa Rica and the eight coffee Origin Denominations (currently in process).

This is important, since to obtain the registrations, three main topics are considered to grant the titles.

The first is geographic delimitation and historical background, showing that each area has been in the relevant business for some time. The second is regulations, which are the relevant details concerning the delineation of the production zone, altitude, authorised varieties, and production, among other factors. The third consideration is the operators of the Origin Denomination and/or Geographical Indication, a council that represents the producers and has the authority to regulate and successfully achieve and maintain its prestige as perceived by the consumer.

“Geographical Indications are more than just a name or a symbol. They reflect a reputation strongly linked to geographical areas of varying sizes, thus giving them an emotional component.

A Geographical Indication’s reputation is a collective, intangible asset,” according to the World Intellectual Property Organization, or WIPO, which manages the seal.

In the case of Costa Rica, the Geographical Indication today applies to all the coffee produced within the frontiers of the small Central American country and is “a sign used on goods that have a specific geographical origin and possess qualities, a reputation or characteristics that are essentially attributable to that place of origin,” WIPO documents read.

The key difference between Geographical Indication and Origin Denomination – also known as “appellation of origin” in trade vocabulary – is that “the place of origin must be stronger in the case of an appellation of origin,” according to WIPO documents. This, trade analysts and industry officials argue, makes it easier to apply for recognition as a nation,

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ORIGIN Costa Rica

rather than individual regions that often have to provide much more excessive and detailed paper work.

The Geographical Indication of Costa Rican coffee is an acknowledgment of the incredible characteristics of this country’s beautiful production.

“Our bean has been recognised over time as being of high quality and we know how to maintain and promote that quality. But we also know we are not the only ones in the world with these kinds of qualities so we had to find ways to add value to the coffee,” says Arroyo. “For more than 205 years we, as a country and thanks to our visionary coffee farmers, have been finding ways to improve livelihoods and nourish capital creation in terms of social, physical, financial, nature, and human assets. This is the biggest value proposition of the Geographical Indication and Origin Denominations.

They warrant sustainability and let customers know that we are not ‘expensive’. Our beans are priced to cover the real cost of being genuinely monitored, verified and registered as sustainable .”

Costa Rica’s coffee history is well documented. The first trees were planted in 1779 in the Central Valley around the capital of San Jose. It was in 1808 that bigger commercial plantings started in earnest.

“We recognise coffee was introduced to Costa Rica [by] 1808 and we know that for sure because in 1808 thanks to Father Felix Velarde, who wrote in his last will, he was leaving a nursery of coffee and eight year coffee plants to be distributed within the habitants,” says Arroyo. “The local people quickly saw how coffee was doing really well here, producing great yields and great quality and that would soon generate a revolution. The government promised land titles after five years of proved coffee cultivation, the first land redistribution of the emerging Republic,” he says.

Hence began the initial development process in Costa Rica, largely thanks to coffee. Production reached an all-time high between 1989 and 1991 with total annual output of 2.7 million 60-kilogram bags. But when coffee prices hit historic lows between 2001 and 2003, hundreds of producers abandoned the crop and output plummeted. Today coffee production has stabilised at about 1.5 – 1.7 million bags, ICAFE data shows.

“Since its earliest beginnings Costa Rica has seen a lot of progress thanks to coffee. Thanks to these revenues, Costa Ricans were able to go and study abroad bringing into the society new concepts and technical knowledge. Coffee has and continues to generates work, it has a great social impact, and coffee generates wealth through rural development and jobs,” says Arroyo. “But today we have a constant struggle between development and growing coffee because the locations of the

Geographical Indication is harder to achieve than Denomination of Origin as the applicant has to prove an emotional link and regional reputation.

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“OUR BEAN HAS BEEN RECOGNISED OVER TIME AS BEING OF HIGH QUALITY AND WE KNOW HOW TO MAINTAIN AND PROMOTE THAT QUALITY. BUT WE ALSO KNOW WE ARE NOT THE ONLY ONES IN THE WORLD WITH THESE KIND OF QUALITIES SO WE HAD TO FIND WAYS TO ADD VALUE TO THE COFFEE.” Mario Arroyo

Marketing Director ICAFE

best soils for coffee are all in the areas closest to the capital. Tres Rios is an example of this and today we probably, at the very most, have only 30,000 bags of production left here, all strictly hard beans.”

From climate change to the ongoing demand for increased efficiency at all levels of production, Arroyo admits that the challenges to the future of coffee can seem overwhelming. But thanks to seals such as Geographical Indication, ICAFE firmly believes that Café de Costa Rica is here to stay, even if there may be less of these famed beans available today.

“We have some of the highest differentials paid for coffee in the world and this is due to the recognition of the social, economical, and environmental standards we have as a coffee origin. This is particularly amazing considering we only produce 1 per cent of the world’s production,” he says. “We are very proud of this and will continue to work on improving these sustainability standards.” GCR See Industry Comment article, pages 50 – 51, for more on the sustainability of the Costa Rican coffee sector.

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//////////// ICO COMMENT

LEADING THE WAY

IN CLIMATE CHANGE MITIGATION: Robério Oliveira Silva

Executive Director, International Coffee Organization

I

n the July/August 2014 edition of GCR Magazine, we advocated for publicprivate partnerships to support climate change adaptation measures for coffee farmers. In this issue, we want to look at how hands-on measures have been taken in Costa Rica to tackle the pervasive effects of greenhouse emissions in coffee production.

While we all recognise that providing coffee producers tools to adapt to a changing and increasingly extreme climate is essential, we should also consider what the global coffee industry (and the agricultural sector as a whole) can do to mitigate climate change. It is, after all, the other side of the coin and one that often gets neglected in view of the more urgent claims that adaptation imposes on coffee farmers worldwide. What can the coffee community do to reduce greenhouse gas (GHG) emissions from seed to cup?

Enter the case of the small Costa Rican coffee cooperative that could, Coopedota.

Based in a region that Lonely Planet calls one of the world’s top ten places to have a cup of coffee, Coopedota is a cooperative composed of 800 farmers. For the last two decades, the group has transformed its operations to produce the world’s first carbon-neutral coffee. Soon, they may make history in transforming Costa Rica by helping the country achieve its goal

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THE CASE OF COSTA RICAN COFFEE COOPERATIVE COOPEDOTA of becoming the world’s first carbon neutral state by 2021.

COOPEDOTA’S HISTORY The coffee cooperative from the Los Santos area of Costa Rica, Coopedota, was founded in 1960 by 96 coffee producers. Today, its 800 members produce approximately 50,000 60-kilogram bags per year, mostly for export to high-end markets in the United States, Europe, and Japan.

Hortensia Solis, former Sustainability Manager for Coopedota, says that the cooperative’s leadership began exploring methods of changing and improving their operations to become carbon-neutral upon seeing the negative effects of unforeseen climatic events.

“Coopedota’s efforts to reduce emissions started in 1998 when Costa Rica signed the Kyoto Protocol,” says Solis, “But the damage caused by the changing climate in the last few years really compelled us to begin looking at community-level actions that could help our country and the global community fight and mitigate climate change.”

In 2009, a drought – caused by the El Nino phenomenon – hit the region of Los Santos causing early flowering and uneven maturing.

As a result, coffee production in Costa Rica

dropped by 15 per cent compared to the previous year. Then, in 2010, the Pirris River overflowed, destroying 80 per cent of the roads in the area, causing massive cracking and soil erosion in farms, and costing the municipality over US$550,000 in repairs alone.

SETTING THE EXAMPLE AT A LOCAL LEVEL Globally, the agricultural sector accounts for 24 per cent of GHG emissions. It is estimated that the world coffee industry accounts for 1 – 2 per cent of this number. However, in Costa Rica, as Coopedota learned, the coffee sector was contributing as much as 10 per cent of the country’s total GHG emissions.

“Finding out that 40 per cent of total emissions in Costa Rica was coming from the agricultural sector and that such a significant portion of that was from the coffee industry really opened our eyes,” says Solis.

Coopedota saw an opportunity to demonstrate that actions could take place at the community level to reduce carbon emissions and increase the efficiency of their operations. But they also saw an opportunity to tap into a market of environmentally-conscious consumers who would pay a premium for such coffee.

“In 2009, when we decided to go carbonneutral, we worked with key stakeholders to

“FINDING OUT THAT 40 PER CENT OF TOTAL EMISSIONS IN COSTA RICA WERE COMING FROM THE AGRICULTURAL SECTOR AND THAT SUCH A SIGNIFICANT PORTION OF THAT WAS FROM THE COFFEE INDUSTRY REALLY OPENED OUR EYES.” Hortensia Solis

Former Sustainability Manager, Coopedota

coordinate and execute the plan,” says Solis.

“We began by reducing our processing plant energy consumption by 40 per cent.”

The cooperative substituted 95 per cent of its firewood used in the drying process by utilising the brushwood and husks leftover from the harvest and post-harvest processes of the coffee cherries. An energy management program and the installation of a micro-mill for smaller batches helped reduce electricity use by more than 50 per cent. Water use was reduced from 1 cubic metres per bushel to 0.2 cubic metres per bushel and discharges to the Pirris River were completely eliminated.

“We didn’t stop at the cooperative’s headquarters. With the help of our farmers and community leaders, we began a composting and recycling programme. Today, over 70 per cent of the community’s waste is recycled,” says Solis.

The cooperative’s efforts paid off in 2011 when they certified the first carbonneutral coffee in the world, under the PAS 2060 specification for demonstrating carbon neutrality of the British Standards Institution.

ENGAGEMENT IN INTERNATIONAL CLIMATE CHANGE AGREEMENTS Encouraged by the success of their efforts

The Coopedota launches the very first carbon-neutral coffee in the world at press conference. From Right: Ronald Peter, Director of ICafe; Andrei Bourrouet, Former Vice Minister of Environment; Tania Lopez, Former Vice Minister of Agriculture; Rene Castro, Former Vice Minister of Environment; Xinia Chavez, Former Vice Minister of Agriculture; Hortensia Solis, Former Sustainability Manager at Coopedota.

and the recognition they received, Coopedota began engaging on climate change matters at an international level.

“We wanted to show that coffee could be a force for good in this global challenge,” says Solis. “We wanted to show that farmers could do the things that the politicians at the international level were finding so difficult.”

In 2011, Hortensia and Coopedota gathered a national coalition to brainstorm ways to create a Nationally Appropriate Mitigation Action (NAMA) proposal for the Costa Rican coffee industry. Under the Copenhagen agreement, NAMA proposals are a set of policies and actions undertaken by countries to reduce GHGs which can receive funding for implementation, if successful.

The group that was formed included representatives from the Costa Rican Ministry of Agriculture, Ministry of Environment, Institute of Coffee, and a local climate change non-governmental organisation called CO2.cr.

They were aiming high.

“To start, we wanted to reduce emissions in the Costa Rican coffee industry by 15 per cent and help 100 coffee farms go carbon‑neutral by 2015,” says Solis. “Ultimately, we thought that if we could do this in Costa Rica,

the rest of the world would follow.

“It took a lot of work, but we believed that it has been worth the efforts,” she adds.

“We needed to get lots of people on board with the idea and to make sure that we had key actors involved or else the NAMA would never receive funding.

“Over the last year, the Costa Rican coffee industry received funding from the United Nations’ NAMA facility for a pilot project.

From a humble start in Coopedota, Costa Rica is now leading the way towards making the best coffee for the world.”

Today, as we prepare for the upcoming ‘Climate Change: Time for Action’ workshop during the 113th Session of the International Coffee Council in September, Hortensia and CO2.cr are working closely with us at ICO on developing a strategy to help our Member Countries plan and execute their own NAMAs. It may take time and much effort, but examples like Coopedota’s show us that it is possible (and necessary) to bring civil society and the public and private sectors together to enable meaningful actions to mitigate climate change.

Let us learn from this group of entrepreneurial farmers to engage for the future of the coffee industry and for the future of our planet. GCR

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//////////// VOICE AT THE SOURCE

BRINGING

VIETNAMESE

COFFEE TO THE WORLD THE NO. 1 VIETNAMESE COFFEE COMPANY, TRUNG NGUYEN, TALKS ABOUT TURNING VIETNAM INTO A GLOBAL COFFEE POWERHOUSE.

C

offee is a massive global market. Roughly 2.5 billion cups of coffee are consumed around the world every day and sales exceed more than

US$70 billion a year.

Vietnam is a major player, currently the number two global exporter of coffee, trailing only Brazil. However, while the country has earned a record US$3.6 billion in exports last year, many feel that this only represents

Trung Nguyen coffee was served at the ASEAN summit in Vietnam.

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a fraction of what the coffee industry in this country can become.

Vietnam’s number one coffee company, Trung Nguyen, is trying to help move the nation’s coffee up the value chain from primarily an exporter of beans into a recognisable symbol of quality in its own right.

Trung Nguyen coffee has already become one of only a handful of Vietnamese brands that have gained international recognition, with high-profile political leaders asking for it by name.

In a visit to Vietnam, Brazilian President Luiz Inacio Lula da Silva suggested a cup of Trung Nguyen coffee at the very first meeting.

“This is a true rival of the Brazilian coffee industry,” he said.

Spain’s King Juan Carlos requested a taste of Trung Nguyen’s Legendee “weasel coffee” (called Kopi Luwak in Indonesia). The coffee, some of the world’s rarest, is made from the beans of coffee berries that have been eaten by civets, and then passed through their digestive tracts.

Trung Nguyen is served on every Vietnam Airlines flight, is exported to 60 countries all over the world, and featured at international events in Vietnam such as the ASEAN summit and the Miss Earth 2010 pageant.

Contestants in the Miss Earth pageant hosted in Vietnam enjoy Trung Nguyen Coffee.

Its G7 instant coffee can be found at major supermarket chains around the world, such as Costco in the United States.

In 2011, Trung Nguyen hosted a coffee festival in Buon Ma Thuot, Vietnam’s coffeeproducing hub, welcoming 500 international ambassadors and domestic and foreign coffee experts to what the company hopes will one day become the world capital of coffee.

GREAT EXPECTATIONS Trung Nguyen has proposed to the government a strategy to develop a National Coffee Industry. The strategy has three main objectives: prosperity, sustainability, and national character. The company projects the coffee industry could provide 5 – 6 million jobs and grow to a US$20 billion annual business over the next 15 years.

Trung Nguyen recently opened its fifth factory, a US$110 million G7 instant coffee plant in Bac Giang province. The factory will operate at a capacity of more than 100 tonnes

a day and employ more than 300 employees during its first phase.

The coffee brand has already firmly established itself at home. According to a survey of brands by B&C Company and Nikkei BP Consultancy in Vietnam, Trung Nguyen Coffee was voted one of Vietnam’s most popular brands, alongside Apple, Google, and Nokia.

A recent survey by Taylor Nelson Market Research Company found that G7 is the most popular instant coffee in Vietnam. And Trung Nguyen Coffee shops are a nationwide presence, with over 1000 across Vietnam and a handful abroad.

The next step for Vietnamese coffee, then, is to gain a powerful presence on the international market. Trung Nguyen’s CEO, Dang Le Nguyen Vu, is confident that this is within reach.

“The fine taste of Vietnamese coffee and the right strategies will allow us to conquer the world,” he says. G C R

IN A VISIT TO VIETNAM, BRAZILIAN PRESIDENT LUIZ INACIO LULA DA SILVA SUGGESTED A CUP OF TRUNG NGUYEN COFFEE AT THE VERY FIRST MEETING, AND SPAIN’S KING JUAN CARLOS REQUESTED A TASTE OF TRUNG NGUYEN’S LEGENDEE “WEASEL COFFEE.”

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DIARY Dashboard COFFEE AROUND THE GLOBE

WORLD COFFEE EVENTS

COTECA

EUROPEAN COFFEE SYMPOSIUM

ISTANBUL, TURKEY

TRIESTESPRESSO

24 – 26 NOVEMBER

TRIESTE, ITALY

As the trade fair for coffee, tea and cocoa, COTECA is the only business forum in Europe that unifies all three sectors. The prestigious two-day conference provides a comprehensive market overview of current topics and trends.

The Hamburg location is a trade metropolis with the key European ports. www.coteca-hamburg.com

Fuelled by contributions from industry thought leaders from across Europe and leading-edge market analysis from sister company Allegra Strategies, the European Coffee Symposium provides key decision makers with ready-to-implement market insight, innovative ideas and enhanced networking opportunities. The conference, titled ‘Beyond Borders – From Home Markets to Globalisation’ will explore several key themes with a strong focus on the Turkish, European and global markets. www.europeancoffeesymposium.com

Triestespresso is a biennial business-tobusiness international exhibition for the espresso coffee trade industry. It brings together all aspects of the coffee industry under one roof. Triestespresso is an exhibition designed for international coffee industry professionals. In last edition 230 exhibitors from 22 countries representing the entire coffee chain showcased their latest products to 10,000 professional visitors coming from 85 countries. www.triestespresso.it

INTERNATIONAL COFFEE & TEA FESTIVAL

WORLD COFFEE LEADERS FORUM

BUON MA THUOT COFFEE FESTIVAL

12 – 14 NOVEMBER

19 – 22 NOVEMBER

MARCH 2015

HAMBURG, GERMANY

24 – 26 SEPTEMBER

DUBAI, UAE

KEEP A LOOK OUT

The International Coffee & Tea Festival showcases all facets of coffee, tea, bar and café products, equipment and services in an industry-recognised platform. Since its inception, the festival has proven instrumental to the development of the industry, providing professionals with exposure to promote products, launch new concepts and seek new business channels. www.coffeeteafest.com

SEOUL, KOREA The World Coffee Leaders Forum brings together around 1200 delegates from 35 countries to examine and discuss topics pertinent in the world and Asian coffee Industry. Global coffee professionals from all over the world will gather to discuss the current problems and solutions to social, environmental, and economic aspects of the global coffee industry. www.wclforum.org

23 – 25 OCTOBER

BUON MA THUOT, VIETNAM The Buon Ma Thuot Festival will take place in March 2015, as a celebration of the quality coffees available from the coffee growing region. Buon Ma Thuot is largely considered as Vietnam’s coffee capital, with ideal growing conditions and advanced production methods.

The festival, sponsored by Trung Nguyen Coffee, will bring together the international coffee community to highlight the amazing coffees available from Buon Ma Thuot.

Let’s Talk Coffee Panama Panama 9 – 12 October www.letstalkcoffee.org

Seoul Int’l Café Show Seoul, South Korea 20 – 23 November www.cafeshow.com

Melbourne International Coffee Expo Melbourne, Australia 13 – 15 March 2015 www.internationalcoffeeexpo.com

Sintercafe San José, Costa Rica 12 – 15 November www.sintercafe.com

Coffee Fest Atlanta Atlanta, United States 6 – 8 February 2015 www.coffeefest.com

Hotelex Shanghai Shanghai, China 30 March – 2 April 2015 www.hotelex.cn

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PRODUCTS Marketplace

MPE CHAIN-VEY Transfer coffee product with the MPE Chain-Vey, a gentle and efficient form of transportation offering maximum yields and zero degradation. With a dust‑tight enclosed design, companies can be confident their coffee product maintains its aromatics and is protected from the surrounding environment. Its flexible design and compact footprint are sure to fit virtually any configuration. The MPE Chain-Vey also features Clean‑In-Place (CIP) capabilities with automated wash cycles for sanitary conveying needs.

For more information visit www.mpechicago.com, www.chainvey.com or contact MPE directly at solution@mpechicago.com

KEEPCUP ALCHEMY SERIES KeepCup has introduced a new Alchemy colour series.

The Australian manufacturers of the world’s first barista‑standard reusable cup released the new colour series in early August. The move followed the release of the KeepCup Brew in April, a glass version of the world-famous reusable cups. The new colour range is inspired by on‑trend colours, and the range’s name speaks to the magical properties of coffee. Since KeepCup was introduced in June 2009, the company has sold over 3 million KeepCups, diverting billions of disposable cups from landfill. KeepCups are now sold in 32 countries around the world. The company has offices in Australia, the United Kingdom and the United States, and has 25 global distribution partners. www.keepcup.com

UW 1500.2 PROBAT GRINDER The newly developed two-stage grinder UW 1500.2 by Probat guarantees quality and homogeneity of ground coffee produced on an industrial scale. It is particularly suitable for the grinding of filter coffee and espresso products. It works according to the gradual grinding principle, is highly economical, and achieves capacities of up to 4000 kilograms per hour. The machine features solid, high-quality design and particularly easy access for cleaning and maintenance. The grinder offers maximum flexibility and consistently good grinding results. The easily accessible cleaning flap is convenient and user-friendly. The use of split bearing housings provides for quick replacement of the grinding rolls without impact on predefined grinding gap adjustments. The new grinder also features other highlights such as special deflectors with extremely smooth surfaces to prevent product deposits, as well as a dust-tight construction which ensures reduced CO2 release.

To round the grinder’s high performance off, Probat also offers a modern control system with a clear visualisation for comfortable handling of the versatile functions of the UW 1500.2. For more information visit www.probat.com

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WMF 8000 S NEW GENERATION With its software-based machine intelligence, the premium bean to cup coffee machine WMF 8000S sets standards in terms of both userfriendliness and coffee quality. The newly developed container matrix permits the individual configuration of up to four coffee bean containers and variations with up to two powder containers for hot chocolate or milk topping. The optionally integrated Basic Milk and Active Milk systems provide that professional barista feeling and guarantee hot and cold milk mix specialities, as the milk can be texturised manually or fully automatically.

A sensor controls the milk temperature. The machine uses a Windowsbased man-machine interface (MMI) touch display, which also permits customised design of the user interfaces according to the application area.

For more information see www.wmf-coffeemachines.com

HARIO SMART BEAM HEATER Hario has released its Smart Beam Heater. The nifty device is a heater for coffee syphons featuring an LCD panel which allows users to operate the heater by touching the screen with their fingertips or a stylus pen.

Separating itself from conventional alcohol lamps and gas flames as the source of heat, the new heater uses halogen to offer the best results via this clever and efficient energy. The Hario Smart Beam Heater produces stable heat via a soft, red light. The control panel functions are adjustable via a simple touch. The stopwatch function can be set and temperature adjusted by tapping or sliding on the screen. The screen will indicate the adjustments by the colour it displays. The heater displays the temperature and time all at once, giving the user the ability to operate all the variables.

For more information see www.hario.jp

MELITTA CAFINA XT6 The Melitta Cafina XT6 Range has been developed for Horeca businesses, and can prepare up to 170 coffees an hour. The machine features an ergonomically angled control centre and a large touchscreen display with LED support. Advanced high-performance technology guarantees perfect beverage in every cup. This is thanks to an in-house developed grinder with 75-millimetre grinding disks made from specially polished, durable tool steel. The Automatic Coffee Quality (ACS) system continually monitors and regulates all relevant parameters, such as coffee grind, dosage, brewing time, and water temperature. The grinding discs are automatically adjusted so that optimum coffee grind is guaranteed. For more information visit www.melitta-professional.de

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BRINGING ORIGIN TO

MELBOURNE THE MELBOURNE INTERNATIONAL Coffee Expo (MICE) has had its fair share of the international spotlight in the past few years.

Since it was launched in 2011, MICE has hosted almost every World Coffee Event competition, with highlights being the World Barista Championship in 2013, and the World Latte Art Championship in 2014.

The result has been a regular attendance of around 10,000 guests from over 50 countries for the past three years, all coming to witness Melbourne’s coffee scene. Brad Buchanan, General Manager of Coffee Media and Events for Prime Creative Media, and Chairman of the MICE Organising Committee, tells GCR Magazine that this international attention has helped fast-track MICE to becoming a must-attend event on the world stage.

“Melbourne has such a celebrated coffee culture around the world. For years I would hear people talk about how much they wanted to come to Melbourne to see if the coffee scene matched up to its reputation. MICE gave visitors a reason to come, and few were disappointed in what they saw,” he says.

Hosting world competitions, Buchanan says, was no easy decision.

It was a large commitment on behalf of the organisers, both logistical and financial. However, with the growth of the national coffee industry in mind, Buchanan says the idea had been front of mind from early on.

“From the very first show in 2011, we were hoping to one day host world competitions,” he says. “We didn’t think it would happen so quickly, but with the first event being so well received, and the opportunity to host a WBC not one that comes up often, we took the chance while we had it.”

Buchanan says that MICE organisers, working closely with the Australian Specialty Coffee Association (ASCA), knew that hosting a world competition would show that MICE “wasn’t just another trade show” but was about supporting and growing both the local and global coffee industry.

It’s with the growth of the coffee industry in mind that MICE organisers made an impressive announcement this past August that it would be hosting Let’s Talk Coffee Australia 2015. United Statesbased coffee traders Sustainable Harvest has been running the Let’s Talk Coffee events in Central and South America for the past 12 years.

The events are designed around the Sustainable Harvest’s Relationship Coffee Model, bringing supply chain partners together in coffee

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IN 2015

LAST WORD Australia

producing countries to discuss pressing issues in the industry, strengthen business relationships, and participate in training workshops and cupping.

Buchanan says the decision to host Let’s Talk Coffee Australia in Melbourne was a response to the industry’s interest in these topics. Just like hosting the coffee competitions was about celebrating barista talent, hosting Let’s Talk Coffee is about nurturing regional interest in what’s happening at origin.

“We’ve seen over the past few years Australian roasters spend a fortune on sending their staff, and themselves, to visit origin countries,” he says. “Roasters realise the multiple benefits on being connected with the countries that grow their beans, from better understanding the conditions coffee farmers are facing, to working with farmers to improve production and processing practices.”

A major challenge for most Australians, however, in visiting origin is simple geography. With a large majority of specialty coffee in Australia coming from Central and South America, roasters need to commit to a long flight and extended time outside of the roastery to visit origin.

It’s with this in mind that Buchanan connected with Sustainable Harvest Founder David Griswold to discuss bringing an origin-focused event to Melbourne.

Next year will mark a milestone when Sustainable Harvest holds Let’s Talk Coffee Australia, as it will be the first time the event is held outside of a coffee producing country.

“Sustainable Harvest has always been a pioneer in transparent relationships and traceable coffee,” says Griswold. “In our recent visits to Australia, we have begun to realise that our model is warmly received and understood by roasters here. Let’s Talk Coffee Australia tangibly demonstrates our commitment to this market.”

Let’s Talk Coffee Australia will link the country’s thriving specialtycoffee market to some of the world’s top coffee producers, those who have earned MVP (Most Valuable Producer) honours in the Sustainable Harvest supply chain, using the company’s Relationship Coffee Model.

“We realise that both small and large Australian roasters want to have traceable and transparent relationships that have a meaningful impact on the lives of the growers they’re working with,” says Griswold. “That’s something Sustainable Harvest has been doing for the last two decades with roasters in the US and beyond, and we’re thrilled to be bringing our model to Australia.” GCR

To register for the Let’s Talk Coffee Australia 2015 event visit www.letstalkcoffee.org

Ask your supplier, “Is it Buon Ma Thuot?”

No coffee producing region is better placed to provide premium Robusta than Vietnam’s Buon Ma Thuot region. With modern processing methods and a focus on sustainable practices, Buon Ma Thuot coffee tastes good on every level.

Ask your importer today about the quality coffees available from Buon Ma Thuot Trên nền tối

Trên nền sáng

www.trungnguyen.com.vn Recognising Buon Ma Thuot Coffee A Trung Nguyen initiative

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