GCR Nov 2013

November/December 2013

AN APP-ETITE FOR PROFITS Putting brands in consumers’ pockets

RACE TO THE BOTTOM?

Why cheap compatible capsules are a flawed strategy

PROGRAMMING A PERFECT CUP

Advances in filter coffee technology

RUST & SLIDING PRICES The market stands strong

THE BIG LEAGUE

JAB CHAIRMAN BART BECHT ON THE BIGGEST TAKEOVER IN THE HISTORY OF THE COFFEE INDUSTRY www.globalcoffeereview.com 29.00

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CONTENTS November/December 2013

COVER STORY MASTER STROKE

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The Chairman of JAB, D.E Master Blenders 1753’s new owner, talks about why he launched the biggest takeover deal in the history of the coffee industry.

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IN THIS ISSUE FEATURES

COFFEENOMICS

ORIGIN

10 MASTER STROKE

23 RUST AND SLIDING PRICES

48 MARKETING SUSTAINABILITY

JAB’s Bart Becht on the new direction for D.E Master Blenders 1753

14 COFFEE CHAINS IN ASIA

Coffee chains are eyeing

the opportunities of a unified economic zone in Asia

18 AN APP-ETITE FOR PROFITS

While the coffee leaf rust crisis is still hurting Central American producers, the effect on prices remains unclear

EQUIPMENT 31 ENTER THE VORTEX

North American coffee retailers are cashing in on the prevalence of smartphones

Modern Process Equipment has developed the technology to revolutionise capsule production

27 THE SPECIALTY ROAD TO PROSPERITY

35 COMPATIBLE GOLD RUSH

Africa’s first Q instructor sees a growing role for specialty coffee on her home continent

The race to make compatible coffee capsules is on, but quality could be suffering as a result

38 FRENCH COFFEE’S NOUVELLE VAGUE

41 TECHNOLOGICAL ADVANCES, DRIP BY DRIP

Branded coffee chains are breathing new life into France’s coffee culture

We look at the ever more sophisticated technology behind filter coffee

Ecom Group’s Sustainable Management Services are making certification more accessible in PNG

51 A COFFEE SUCCESS STORY

Vietnam’s Buon Ma Thuot is a focal point for the nation’s coffee boom

“MASTER BLENDERS IS A GOOD FIRST ENTRY. IT’S A STRONG PLAYER AND IT’S A GOOD PLATFORM FOR ORGANIC GROWTH AND POTENTIAL ACQUISITIONS.” Bart Becht Joh A Benckiser (JAB) Chairman

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REGULARS 04 EDITOR’S NOTE 07 NEWS 55 DIARY DASHBOARD 56 MARKETPLACE 58 LAST WORD

N OVE M B E R/D EC E M B E R 2 013 | G C R

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EDITOR’S NOTE Global Coffee Review

PUBLISHER John Murphy john.murphy@primecreative.com.au EDITOR Christine Grimard christine.grimard@primecreative.com.au ASSISTANT EDITOR Nick Sheridan nick.sheridan@primecreative.com.au



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

TECHNOLOGY AND YOU

TECHNOLOGY and tradition are a tricky mix.

Companies steeped in tradition benefit from knowledge gained over generations. From a solid business ethos to established customer relations, long-standing companies have an advantage on the market, that can translate into more efficient and profitable operations.

A drawback, however, to companies with well-established business practices can be an aversion to change. And technological advances, in all of their downfalls and glories, are all about change.

For instance, smartphones have surely revolutionised the way consumers access retail information. In the last three years in the United States, smartphones and tablets have driven a doubling of time spent with digital media. That’s an astounding opportunity for companies to connect with potential customers on a regular, and meaningful basis.

The coffee industry is certainly taking notice, with most major roasting operations launching apps, and benefitting substantially as a result (see page 18).

It’s stories like this that show how the coffee industry seems to be an exemption to the notion that traditional companies are adverse to change. In this edition, we were fortunate to speak with three of the world’s leading filter equipment companies: Bravilor Bonamat (see page 43), Bunn (see page 45), and Wilbur Curtis (see page 47). These companies have over a century and a half of experience between them, yet their equipment is leading the forefront of technological advances.

From this consumer-end of the industry, technology is allowing the preparation of an

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unprecedented level of quality of coffee, served by just about anyone.

Similarly, capsules, have made quality coffee available to all those who can afford a few hundred dollars for a machine. On the production side of capsules, Modern Process Equipment has developed equipment that delivers the potential for that quality get even better, with a device that can increase the density of coffee to unprecedented levels (see page 35).

Even further down the production line, from a growers perspective technology is having a real impact on the lives of coffee farmers. Drip irrigation technology in Vietnam is helping to increase yields, minimise input costs, and improve quality, resulting in more dollars in farmers’ pockets (see page 51).

The message here is a tribute to those players in the coffee industry who are prepared to embrace change, while holding on to their past.

DESIGN Blake Storey, Alice Ewen, Sarah Doyle BUSINESS DEVELOPMENT MANAGER Steve Roberts steve.roberts@primecreative.com.au GROUP SALES MANAGER Brad Buchanan brad.buchanan@primecreative.com.au PRODUCTION CO-ORDINATOR Michelle Weston michelle.weston@primecreative.com.au ADMINISTRATION MANAGER Chloe O’Brien chloe.obrien@primecreative.com.au PHOTOGRAPHY Hoa Ta, Patrick Varney, Maja Wallengren CONTRIBUTORS Natalie Dunleavy Campbell, Dave Swinfen, Maja Wallengren, Hoa Ta 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.globalcoffeereview.com SUBSCRIPTIONS +61 3 9690 8766 subscriptions@primecreative.com.au

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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.

Christine Grimard Editor

COPYRIGHT

Global Coffee Review is owned by Prime Creative Media and published by John Murphy. All material in Global Coffee Review 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 Review are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

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NEWS In Brief

NEWS DRIPBYDRIP Usage of retail sites via smartphones has jumped 385 per cent in the past three years.

Coffee companies have been quick to catch on, with leading coffee chains and retailers launching apps that help improve the consumer experience and drive customers in store.

Starbucks, Tim Hortons, Dunkin’ Donuts, Intelligentsia and Briggo Coffee Haus are among the line-up of companies with established apps that do everything from keeping track of coffee orders to payment via mobile phone.

Avinash Kaushik, Google Digital Marketer and Market Motive CoFounder, says the future of apps will be in not only driving consumer traffic, but getting customers to interact with brands on a regular basis.

See page 18.

The rust outbreak continues in Central America, with output for the 201314 crop year expected to be more severely affected than the previous.

The most optimistic estimates, from the US Department of Agriculture, say output could reach 12.61 million 60-kilogram bags, while Volcafe has said output would be closer to 10.7 million.

Arabica prices, however, have remained unaffected, and indeed continue to fall. The drop is attributed to increased production in Colombia and Brazil, as well as stocks left over from bumper crops.

See page 23.

Modern Process Equipment (MOE) have released a Vortex Super Homogeniser. The machine has the

ability increase the density of coffee in capsules to twice the previously achievable range. The breakthrough configuration optimises densifier speeds for specific coffees and density levels, allowing for precise control of both high and low density coffees on a single machine.

The machine works with less than half the temperature rise of the coffee in the process, helping improve the quality of the capsules. The equipment features water-cooling of all the elements of the grinder, all on a PLF controllable system.

See page 31.

EUROPE





AMERICAS

Private investment firm Joh A Benckiser (JAB) launched a US$9.8 billion takeover bid for Dutch D.E Master Blenders 1753 (DEMB) last April.

The successful bid is the coffee industry’s largest ever takeover, and follows on from JAB’s US$1 billion acquisition of Caribou and Peet’s Coffee and Tea in 2012. JAB is now the third largest coffee company in the world after Nestle and Mondelez.

Chairman Bart Becht tells Global Coffee Review that it will look to improve the quality of DEMB’s coffee, while also coming up with new premium coffee products in developed markets such as Western Europe.

See page 10.

More than 25 new companies have launched Nespresso compatible coffee capsules from 2011-2012, according to MoCoffee CEO Pascal Schlittler.

These companies have overwhelmingly taken the approach

of attempting to undercut Nespresso, typically by a 25 – 35 per cent margin.

Schlittler warns that this strategy has inevitably led to a drop in quality of these compatible capsules. He says that price cannot alone ensure success in the coffee capsule market, and gives advice for those looking to enter this booming sector.

See page 35.

Branded coffee chains are reolutionising the coffee culture in France. While France has long had a strong café culture, its coffee culture has left a lot of room for improvement, according to the General Manager of the Allegra Group, Jeffrey Young.

Leading the new wave is homegrown chain Columbus Café, which opened the first branded coffee shop in France in 1994, as well as international players McCafe and Starbucks.

With about 515 branded coffee shops now in France, Allegra predicts the segment will grow at an average annual rate of 11 per cent over the next three years, reaching 695 outlets by 2015.

The future of the branded coffee chain segment in France will be discussed at the European Coffee Symposium, to be held in Paris from 26 – 28 November.

See page 38.

The 35th annual Sigep Expo has been confirmed for Rimini Fiera in Italy from 18 – 22 January 2014.

The world’s leading expo for artisan ice cream, confectionery and bakery businesses will also host the Italian Barista Championships, the Gelato World Cup and the Italian Pastry Championships.

BRANDED

The number of branded coffee chains in France is expected to grow by an annual rate of 11 per cent over the next three years, reaching 695 outlets by 2015. See page 38.

NOVEMBER/DECEMBER 2013 | GCR

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NEWS In Brief

Costa Coffee is among the line-up of companies looking to expand in South East Asia and take advantage of the upcoming economic union of the Association of South-East Asian Nations (ASEAN).

In 2015, 10 member ASEAN countries will follow in the European Union’s footsteps to form a single economic community.

The move will effectively lead to a single market of 600 million people, who can move themselves, their money and purchasing power across borders.

The move could mean good news for coffee chains and operators, who could have greater access to markets via mobility of products, services, labour and capital.

See page 14.

Program’s 2013 Human Development Report, the significance of the industry to the future of the country cannot be underestimated.

But Kalwij says there is more to it than just certification.: You need to bridge that gap between just having a certification or a sustainability system and actually marketing it,” he says. “We certify them, we continue to work with them, and we bring the coffee to the market and we tap into international distribution to make sure they can actually sell it. It’s a win, win, win situation – for consumers, for traders and for the farmers.”

See page 48.

With the attention of the coffee world focused on the Specialty Coffee Association of Europe’s (SCAE) World of Coffee Event in France last June, the Coffee Board of India put its country’s best coffees on display in the 12th Flavour of India – Fine Cup Award.

The results of the 12th Flavour of India Awards were declared in a ceremony organised at the coffee board’s stall at the SCAE World of Coffee Event on 26 June. The winner of Best Arabica was the Pedabayalu Estates’ Arabica Plantation SLN-4.

The Poabs Estates’ Organic Arabica SLN-9 took out the Best Specialty Arabica prize, while the prize for the Best Specialty Robusta went to Harley B Estates’ Old Robusta.

The Best Robusta category was won by Margolly Estates’ Robusta Parchment AB. See page 58.

As coffee consumption grows in Asia, the need for technologically advanced bulk brewing equipment is paramount in ensuring user-friendliness and reliability.

Bravilor Bonomat (page 43) Bunn (page 45) and Wilbur Curtis (page 47) are leading the path in technologically-advanced filter equipment.

The drive for sustainable coffee production has a new champion in Papua New Guinea (PNG) with Sustainable Management Services’ PNG Director Joeri Kalwij spearheading efforts to expose more farmers to the benefits of certification.

According to figures from Monpi Coffee Exports, nearly half of the population of PNG is involved in the coffee industry in some capacity. With PNG ranked 156th of 186 countries in the United Nations Development

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AFRICA

Buon Ma Thuot is Vietnam’s largest coffee producing region. The region has recently led advances in gaining geographic recognition, and is renowned for its quality Robusta coffee.

The region holds an annual coffee festival, celebrating all things coffee. Vietnam is the world’s second largest producer after Brazil, and in 2012 was the world’s top exporter of coffee.

See page 51.

CERTIFIED

Papua New Guinea ranked 156th our of 186 on the UN’s development index.

Efforts in certified coffee could make a difference in the country’s development.

See page 48.





ASIA

Mbula Musau is the first African Q instructor certified by the Coffee Quality Institute (CQI).

As well as participating in the Q program as a grader of coffee according to CQI’s Q Coffee System, Musau can now also train new Q graders to help spread the potential for African coffee growers to have their crops graded and, if successful, sold around the world as specialty coffee.

Musau, who is also a member of International Women in Coffee (IWCA), tells Global Coffee Review that ensuring African coffees meet specialty standards can help improve the livelihoods of producers as they earn more per pound for specialty coffee.

See page 27.

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COVER STORY JAB

M A STE R STROKE

WITH ITS PURCHASE OF D.E MASTER BLENDERS 1753 IN SEPTEMBER, GERMAN INVESTMENT FIRM JAB HAS GONE FROM RELATIVE UNKNOWN TO A MAJOR PLAYER IN THE COFFEE INDUSTRY. GLOBAL COFFEE REVIEW TALKS TO JAB’S CHAIRMAN, BART BECHT.

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I

n April this year, private global investment firm Joh A Benckiser (JAB) launched the coffee industry’s largest ever takeover bid, offering US$9.8 billion for the Dutch coffee giant D.E Master Blenders 1753 (DEMB).

The bid valued DEMB at around US$17 per share and makes JAB, which had also spent roughly US$1 billion acquiring US retailers Caribou and Peet’s Coffee and Tea in 2012, the third largest coffee company in the world after Nestlé and Mondelez.

The deal, which was approved in late September, has refocused the industry’s attention on DEMB, which just last year had returned to being an independent Dutch company after being spun off from US-based Sara Lee. For JAB’s Chairman Bart Becht, the motivation to pursue DEMB was clear cut.

“Coffee, for us, is an interesting category for one simple reason: it is a very steady business,” he tells Global Coffee Review. “Master Blenders is a good first entry. It’s a strong player and it’s a good platform for organic growth and potential acquisitions.”

But as simple as the decision to acquire DEMB was, as Becht sees it the company has some challenges that it must address before it can realise its full potential.

“I’m a very strong believer that you’re only as good as the product that you provide to your consumers – that in the long-term is what will make you successful. So making better and more interesting varieties is what Master Blenders is going to be about,” says Becht, who is now also DEMB’s Chairman.

Becht says this will be achieved both by improving DEMB’s existing offerings “without necessarily increasing the price”, as well as coming up with new products to cater to the growing appetite for premium coffees in developed markets such as Western Europe.

Whatever changes are made at DEMB under JAB’s ownership, one can be assured that they will not be rushed. Becht says that JAB’s history shows that the company is only interested in medium to long-term investment opportunities.

“Our focus is very much on consumer goods, and it is very long-term,” he says. “Typically 15 to 20 years is the minimum investment period.”

Becht points to another of JAB’s brands, Coty Cosmetics, as an indicator of this approach.

“COFFEE, FOR US, IS AN INTERESTING CATEGORY FOR ONE SIMPLE REASON: IT IS A VERY STEADY BUSINESS, MASTER BLENDERS IS A GOOD FIRST ENTRY. IT’S A STRONG PLAYER AND IT’S A GOOD PLATFORM FOR ORGANIC GROWTH AND POTENTIAL ACQUISITIONS.” Bart Becht

Chairman, Joh A Benckiser (JAB)

N OVE M B E R/D EC E M B E R 2013 | GCR

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COVER STORY JAB

“OUR FOCUS IS VERY MUCH ON CONSUMER GOODS, AND IT IS VERY LONG-TERM. TYPICALLY 15 TO 20 YEARS IS THE MINIMUM INVESTMENT PERIOD.” Bart Becht

Chairman, Joh A Benckiser (JAB)

JAB bought Coty, which owns brands such as Davidoff Parfums and Rimmel London, in the late 1980s, waiting until just this year to float a small percentage (around 10 per cent) of the company.

With 250 years of history and a strong market position in Western Europe, Brazil, Australia and New Zealand, calling DEMB “a good first entry” may be something of an understatement, but that is not to say that it is not without its challenges.

Since separating from Sara Lee, the road for DEMB has not been particularly smooth, and some 80 out of the company’s 120 top managers have been replaced in the past 12 months.

“There needs to be some stabilisation taking place,” Becht says. “Our first job is to make it a strong, self-sustaining unit, because it was only spun-off from Sara Lee last year, so there’s still quite a lot of work to be done to make it a strong competitor in that category.”

In order to achieve this, JAB has made a number of key appointments in senior roles. Chief among these is Pierre Laubies, who in September was announced as DEMB’s new Chief Executive Officer.

Laubies comes to DEMB from Mars, where he ran the global pet care business, giving him experience in many countries of interest to DEMB, including Brazil.

With his extensive experience in the consumer products arena, it can be expected that Laubies has been hired to bring some big ideas, and new ways of doing things, to DEMB. But all of this, Becht says, can be encapsulated in a focus on the basics.

“His vision for the company is to provide a great coffee experience for consumers. Coffee is a very emotional product for people, so we are very much working on making sure that no matter what time of the day people are drinking coffee that it’s a great experience,” he says.

Other key figures to come over from Mars are Dutchman Jan van Bon, who has been made DEMB’s President Retail Developed Markets and Australian Fiona Hughes who is now Senior Vice President of Marketing. Swiss national Oliver Hasler has also joined as President of DE Professional (Out of Home), coming from food service business of Arc International.

Becht says one of the key aspects of the business that he was attracted to is DEMB’s capacity for innovation.

“They have fantastic technology and they know how to make fantastic coffee in just about every segment,” he says.

While DEMB has a strong brand in the pods market with their Senseo coffee maker, Becht says that the company has an equally attractive opportunity in the capsule segment on the L’Or Espresso platform.

However, while Becht sees the opportunity for innovation in the company’s future, in the early

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stages he says JAB is focused on ensuring that DEMB capitalises on its existing strengths.

“Our core focus is to strengthen our position in the markets where we already have a presence before we start considering going into new ventures,” he says.

While there has been plenty of speculation about what JAB’s purchase of US retailers Caribou and Peet’s, as well as DEMB, says about their overall strategy in the sector, Becht says at present there are no plans to connect the businesses.

“We have purposely kept Caribou and Peet’s separate from DEMB for a very simple reason: we believe that those businesses are very different, in terms of what is required to make them successful,” he says.

Becht says that the fundamentals of the retail businesses – good real estate knowledge, strong training practices and excellent workforce management – are completely different to those required in consumer goods. “So we don’t think it’s a good idea to have the two areas managed by the same group,” he says.

For now, Becht says, he is happy for DEMB to focus on doing what it does best.

“We are very much looking at what are the best opportunities, considering the fantastic technologies that we have, and how we can best apply that to different segments in the countries that we operate in.” GCR

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FEATURE ASEAN

COFFEE CHAINS EYE A UNIFIED ASIA THE ADVENT OF A SINGLE ASIAN ECONOMIC COMMUNITY IS EXCITING FOR FRANCHISED BRANDS LOOKING TO THE ASEAN REGION FOR GROWTH.

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T

he Association of South East-Asian Nations (ASEAN) is the Asia Pacific’s version of the European Union; a collaborative effort to eliminate or minimise social and political borders to trade, security and economic integration.

A landmark event will take place in 2015 when the 10 member countries of ASEAN join together to introduce the single economic community – a culmination of multilateral progress made on aligning economic objectives and mechanisms of each member state.

What this means effectively is a collective of 600 million people who can move themselves, their money and their purchasing demands across borders with minimal expense and hassle. It also signifies the introduction of an integrated network for facilitating the movement of goods across the entirety of ASEAN. In theory, this is exciting news for coffee operators at every point in the chain. Growers and distributors should be able to sell into larger overseas markets with no taxes added to scupper their margin. Roasters and retailers should theoretically have access to a stronger domestic market as overseas visitors swell local demand. A greater number of visitor arrivals should increase demand from other sources. For instance, hotels should experience elevated occupancy levels and in turn the need to supply their guests with coffee.

The move has the potential to raise the significance of South-East Asia as a growth outlet for international operators, not least franchised coffee chains looking for “bigger, faster, more” opportunities in under-developed sales regions like Vietnam and Cambodia.

Costa Coffee, the second largest international coffee shop operator in the world, is present in 30 countries and has more than 2600 stores. Of these, over 50 per cent are outside of the company’s home market (United Kingdom), including franchise operations in Europe, the Middle East, North Africa, India, China and South-East Asia. They comprise a mix of company owned, joint venture-operated and franchised stores.

“We are very excited about bringing the Costa Coffee Experience to the vibrant, coffee loving people of South-east Asia,” Aparna Chopra, Head of Marketing – MENA, India, SE Asia, Costa Coffee, tells Global Coffee Review. “So far we have opened stores in Singapore, Cambodia and Thailand. We have not announced any other market entries yet, but we are actively pursuing partnerships in a number of other countries in the region.”

History has proven that a potential danger for international companies looking to roll out tried-and-tested franchising models across the AEC is the diverse socio-economic, political, religious and aspirational mixes. From Kuala Lumpur to Phnom Penh, Manila to Vientiane, Bangkok to Hanoi, the characteristics of each market varies broadly. Integration is designed to help eliminate psychological and logistical barriers, but these local disparities remain.

Costa Coffee have opened an outlet at the Siam Paragon centre in Bangkok, its first in Thailand.

“Our franchisee selection process is very similar across the world and helps us partner with similar organisations in new markets,” explains Aparna on how Costa is overcoming these disparities. “Cultural differences and ways of working vary across the world and we manage this by making sure we understand our customer in every market.”

Costa Coffee’s franchise strategy ahead of AEC integration is based on its four decades of experience in international growth. The question then arises as to how smaller operators are likely to be impacted by the 2015 integration.

Watcharapong “Watch” Areekich is a Strategist, Portfolio Management for Bangkok-based KT ZMICO Securities. He explains that while the ASEAN region will open up a vast number of market opportunities for franchisors, they should be mindful of increasing levels of competition from markets which have experienced sudden growth, as in the case of China and Thailand, compared to those that have not.

“An obvious benefit for chained businesses is scale,” says Watch. “Now that mobility of products, services, labour and capital is promoted, business operation is less subject to geography. A coffee shop in Thailand can open shops in other countries thanks to deregulation. Coffee brands can utilise economies of scale and distribute costs across various countries.

AEC will drive competition among players in the market, so a Thai coffee brand will have to compete with brands in Malaysia or Singapore.”

Watch says that in order to protect a domestic

THE IN CROWD ASEAN member states currently include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Myanmar, Cambodia, Laos, and Vietnam.

N OVE M B E R/D EC E M B E R 2013 | GCR

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FEATURE ASEAN

Costa Coffee is the second largest international coffee shop operator in the world with more than 2600 stores.

growing coffee franchise from the threat of new foreign entrants, due diligence at home is key.

He says that increasing competition is likely to drive innovation, both in terms of product offering and marketing strategy, and that an understanding of how foreign AEC markets operate is essential.

“In a nutshell, we need to build a strong fortress as we set about defending our domestic market share as well as be proactive and reap the opportunities that arise in other markets,” he says. He says business models will have to be revised from sourcing to distribution, as the business environment in which domestic companies operate will change.

This encapsulates the market position of one small but rapidly growing franchisor in Thailand, Doi Chaang Coffee. With 300 stores in Thailand (a majority of which are franchised), the company markets itself for producing superb coffee with a proportion of profits returned to the Akha Hill tribal communities that produce its award-winning beans. Formed on the mantra of “Beyond Fair Trade”, Doi Chaang’s Managing Director John Darch is now considering how other markets in ASEAN can serve the company’s growth franchise model. Doi Chaang is looking to open a further 200 locations by 2015, with Thailand as a core market, with overseas markets as possible growth opportunities.

Doi Chaang’s Vice President of Marketing Anand Pawa does not see the advent of AEC as a threat to smaller domestic players such as Doi Chaang. As the company continues to roll out

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MONEY POT ASEAN was formed in 1967 and is headquartered in Jakarta, Indonesia. It currently encompasses a combined GDP of over US$2 trillion.

coffee shops in Thailand under its own management and via joint ventures, Pawa says international economic liberalisation doesn’t take away the home advantage.

“The launch of AEC will have no real effect on Doi Chaang because our business dominates a local market which focuses purely on quality,” Anand says. “Overseas franchises are given to experts in their own countries who have localised knowledge, and so despite a breaking down of borders, markets will remain local after AEC.” For some, the largest threat from integration comes not from new market entrants but from a traditional conservative apathy which continues to exist in many of ASEAN’s component countries.

Prasarn Trairatvorakul, Governor of the Bank of Thailand, famously noted that doubts about the AEC do not focus on the dangers of integration, but rather on the cynicism that little change will come out of it. As with the European Union, there are influential countries at the economic core, and less influential stakeholders on the periphery. Thailand, by way of example, is likely to be one of the biggest winners following integration due to its geographical location and resilient economy.

“The logistics and transportation sector should see big advantages in terms of cost saving, while sectors that it supports, including food and beverage retail and franchised retail, can benefit from the development of this sector and the possible cost reductions that come with it,” Watch says.

For now, however, it’s business as usual for franchisors as they go about growing their network of franchisees through traditional and proved means. Come 2015, a new theatre of innovation may well emerge, encouraging keen players to look across ASEAN’s newly integrated borders for revenue opportunities. For consumers, a volley of new market entrants means greater choice and new products to enjoy; for coffee industry competitors, vigilance will perhaps be the most important key to protecting their prospects at home while exploiting exciting new possibilities in so far unexplored ASEAN frontiers. GCR

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FEATURE Apps

AN APP-ETITE FOR PROFITS

NORTH AMERICAN COFFEE RETAILERS ARE PROVING THAT THE MODERN WAY TO A CUSTOMER’S HEART IS THROUGH THEIR SMARTPHONE.

A

s global internet usage rates shift towards access by smartphones and tablets, marketers are finding unique ways to get their brands into consumers’ pockets.

They’d be silly not to. Smartphones and tablets have driven a doubling of time spent with digital media over the past three years in the United States, according to a recent comScore report.

As a result, digital retail content usage

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has also seen impressive growth rates. US retail site usage by smartphone has increased 385 per cent in the past three years alone.

The coffee industry appears to be taking notice. Anyone who does a quick search on their smartphone will find hundreds of apps that aim to enhance the coffee lover’s experience.

Some provide practical solutions, such as allowing a consumer to record group orders for a coffee run. Others focus on a more educational experience, like teaching how to brew a perfect cup in a French press.

And then there are those that offer more of a novelty experience. A café kiosk in Taiwan embraces the art of the selfie by allowing a user to take a picture of themselves with a smartphone and turn it into coffee art. Yes, really.

Whether useful or absurd, some of the leading coffee retailers are realising the potential of apps to enhance a customer’s experience and drive them in-store.

A NEW ERA FOR FAST FOOD With some of the world’s largest coffee retailers investing serious dollars into mobile applications (see breakout box, right) that help consumers get their caffeine fix faster and easier, some experts believe the future of fast food is about to undergo a big change.

Evan Sornstein is a principle designer at Fuseproject, a company that is helping Briggo redesign its barista Robotic Coffee Haus and mobile experience, which allows consumers to order coffee and pay online. Not only does he think Briggo’s app will catch on in a big way, he believes it will change the way people think about ordering food.

“It will change people’s expectations on ordering,” Sornstein tells Global Coffee Review.

“We’ve gotten used to ordering food by phone… and in other aspects in our lives. Once the Briggo is running, I think there will be a lot of competition in that space for any type of food.

We’re depending on our phone for so many things. It just seems like a natural extension.”

Sornstein suspects other companies who use computer technology to make their coffee, such as Starbucks, will eventually be able to replicate the ability to order drinks remotely.

With mobile technology becoming such a daily part of consumers’ lives, he believes it is crucial for businesses to have a mobile strategy.

“At one time, it was something that was cool for businesses to do,” he says. “But looking at the data of how many people use mobile devices for everything in their life… the Internet of Things and all these elements are becoming so ubiquitous. To not do it would hinder your brand experience as a company and also the point of entry.”

Digital marketing evangelist and Market Motive co-founder Avinash Kaushik, is certainly an animated mobile enthusiast. An industry-recognised thought leader who speaks professionally on the subject, Kaushik says businesses need to focus on mobile marketing to stay competitive, as smartphones and tablets increasingly become the access point for internet use.

“Mobile presents a unique opportunity to shift from interruption to becoming a persistent part of someone’s life,” wrote Kaushik in a blog post entitled Mobile Marketing 2015: Rethink Customer Acquisition, Intent Targeting.

While several companies have existing apps that provide helpful features, he advises companies who want forward-thinking mobile solutions to embrace the concept of utility marketing.

“In normal marketing, we do research, bidding, guessing and demographic, psychographic, and behaviour targeting and so much more just to guess when to interrupt people with a message about our brand,” he wrote in the blog post. “Utility marketing is about delivering such incredible value that you simply become part of your audience’s life.”

WHAT THE BIG PLAYERS ARE DOING: Here are some of the leading apps in the industry, and why it’s worth paying attention. mySTARBUCKS When it comes to creating a userfriendly app with handy features, Starbucks deserves bragging rights.

Not only can a user learn how to create a perfect cup of coffee and order it in ‘Starbucks speak’, the app allows them to find the nearest location and pay for the coffee via mobile. Its most valuable feature has proved to be this mobile payment system that works in combination with its rewards program.

Launched in 2011, the rewards program gives customers incentive to purchase in-store and come back for more. By paying through their Starbucks card or mobile account, the user earns ‘stars’ which they can later exchange for company product.

With US$25 million spent in the payments processor last year, it’s a feature that appears to have been worth the investment.

One in 10 US Starbucks customers are using their mobile phone for payment, and approximately 4 million mobile transactions are made weekly.

TIM HORTONS Tim Hortons offers a digital solution for the Canadian (or American) going on a ‘Timmy Run’ (Canadian speak for getting coffees for everyone in the office).

The app provides a feature that allows a user to record the group order, save it for future use, and find the nearest location to accomplish the mission.

They can also look up nutritional info, and share their activity through social networks.

Tim Hortons also has a card payment system which users can manage with the app. The downfall, however, is that customers can’t pay by mobile.

They still have to use their cards at the counter.

DUNKIN’ DONUTS Like Starbucks, Dunkin’ Donuts also gives consumers the ability to pay via mobile.

They can also find the nearest location, get nutritional information, and even share a gift through social networks. While it has many features similar to its colleagues, this app focuses on enticing customers with mobile offers and coupons.

N OVE M B E R/D EC E M B E R 2013 | GCR

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FEATURE Apps

Avinash Kaushik.

“IT’S NOT JUST ABOUT MAKING MONEY, THOUGH THAT IS GREAT AS WELL. IT IS ABOUT MAKING A DEEP CONNECTION WITH THE BRAND BY DELIVERING UTILITY THAT YOU CAN’T GET THROUGH ANY OTHER DEVICE ON THE PLANET.” Avinash Kaushik

Digital Marketing Evangelist Google and Market Motive Co-founder

Kaushik uses Skullcandy as an example of a company getting it right. While its product line consists primarily of headphones and accessories, Kaushik, an avid surfer, found the app while searching for wave reports on his smartphone.

While it may not lead to direct sales, the company app offers a useful service that gives its target audience a reason to interact with the brand on a regular basis.

Kaushik predicts utility marketing is the wave of the future, and advises companies to adopt the tactic in order to “future-proof their marketing strategy”.

“Strictly speaking the ability to order (or pre-order) coffee is good but it is not utility marketing,” he tells Global Coffee Review. “It is just enabling ecommerce more efficiently.

That is important, but not sufficient in a mobile world.”

Kaushik says that these apps could provide even more value to their customers.

“Utility would be… if their app provides the ability to connect with like-minded peer coffee lovers and set up parties or coffee binges. The utility is creating community. If their app allows the users to micro-finance small coffee growers in the Andes so that they can have a better life, the utility is making it easier for coffee lovers to do good in the world.

“If their app keeps track of my coffee consumption and automatically computes how much I have to run to burn off the calories, or it prevents me from ordering coffee after 6 pm because I won’t be able to sleep, the utility is my wellbeing,” he says. “It’s not just about making money, though that is great as well. It is about making a deep connection with the brand by delivering utility that you can’t get through any other device on the planet.”

And according to Kaushik, the technology is pretty cheap. He points out that developing an app costs a fraction of producing a television commercial.

Done right, “it delivers a hyper-relevant audience you never have to “rent” again via TV or magazines or Google, because you’ve invested in building a relationship with them and created a meaningful long-term connection,” he says.

“And you’ll never have to remember to interrupt them, because you’ll be part of their life already.” G C R

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INTELLIGENTSIA COFFEE As a specialty coffee retailer, Intelligentsia has churned out a pretty useful app to turn the user into a coffee expert.

The app is loaded with intuitive how-tos on different brewing techniques like French press, cupping and chemex. It even has a built-in timer to help keep baristas on track.

How does it helps the in-store experience? The app can help customers choose what to order by letting them know which coffees are in season and what they taste like, and a detailed history on where they come from.

BRIGGO COFFEE HAUS Briggo Coffee Haus is trying to change the stigma of vending machine coffee with its industrial-sized robot coffee barista Coffee Haus. The Texas-based company is about to change the face of fast food convenience by allowing users to order and pay for their lattes through their smartphones, and have it ready for a specific time.

Once it’s ready, the user gets a text message with a three-digit access pin to pick up the order. If the phone dies or the customers can’t remember code, they can use their credit card to retrieve the order.

While the technical aspect may sound complex, CEO Kevin Nater tells Global Coffee Review the company’s goal is to give people the ability to create a completely customised cup of coffee.

“We’re a coffee company delivering great coffee with the latest technology available,” says Nater.

“It’s allowing someone to control their own coffee experience.”

After success with a test location at a university campus, the company wants to put their machines in high traffic areas such as airports, corporate and university campuses, and hospitals across the US and eventually abroad. “One of the things we found was that kids were getting out of class, walking 10 minutes to Starbucks and waiting in line for coffee,” says Nater. He says their machines will solve that by allowing students to open the app in class and see the current wait time.

“Our business is fully digital and our lines are virtual,” he says. “We can tell people exactly how long the line is, and have a drink ready at a specific time. You can’t do that at a regular coffee shop.”

Nater says the company, who poached two former Starbucks executives, is targeting the out-of-home coffee market. The company will launch the first set of kiosks in Texas, including one in the Austin airport early next year.

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COFFEENOMICS Rust & Prices

RUST AND SLIDING

PRICES

AS THE RUST OUTBREAK CONTINUES, FORECASTS ARE VARYING GREATLY ON PRODUCTION IN CENTRAL AMERICA, WHILE PRICES REMAIN UNAFFECTED.

C

offee forecasting is a tricky business, and recent happenings suggest this is not about to change.

Since the coffee trade entered the full force of a free market system at the end of the Cold War, coffee forecasting these days is anyone’s guess.

With unpredictable factors, like the major weather crisis that caused the ongoing rust disaster in Central America, South America and the Caribbean, uncertainty seems to be the only certainty in the game.

Since harvesting started on the new 201314 crop across Central America in October, data on how severely rust will affect the final output has been widely conflicted. The most conservative figures, the London-based Man Group Plc’s coffee trading arm Volcafe/ED&F Man, said output for the region could be as little as 10.7 million 60-kilogram bags. At the same time, the US Department of Agriculture (USDA) has projected output from the region could reach 12.61 million bags. This is a staggering difference of some 2 million bags for a region of just five producing nations.

“Central America and Mexico account for one fifth of the world’s Arabica production.

The region’s production is forecast to decline

1.4 million bags, due to lower yields from coffee rust,” the USDA said in its first 2013-14 world coffee market outlook.

Meanwhile, Volcafe said in its quarterly report: “Rust-affected mild crops in Central America and in Peru are still a real concern. The 2013-14 crop is more severely affected and we see output falling a further 2.5 million bags.”

One green bean trader in the New York physicals market tells Global Coffee Review that the difference in the two forecasts is “very large”, considering the region only accounts for about 25 per cent of the volume produced by Brazil.

“The fact that there can be such a big difference shows the extent of uncertainty that still wraps the Central American rust situation and that we still could face quite a few more shocks on that side as far as supply upsets are concerned,” he says.

When news of the outbreak first reached the market last January, damage estimates varied from between 20 – 30 per cent in the now completed 2012-13 harvest. Damage was expected to be worse in the new 2013-14 cycle, at an additional 20 – 40 per cent on top of the last crop’s losses.

The International Coffee Organisation (ICO) put final losses for the last crop at 2.7 million bags.

Honduras has one of the most conflicting forecasts in terms of the rust outbreak, at up to 1 million bags. The country has been Central America’s biggest grower in the past two years, with total production reaching a record 5.9 million bags in the 2011-12 cycle. The jump was attributed to extensive replanting and renovation programs, in addition to significant new plantings. While the USDA says it expects Honduran production to rebound 9 per cent to 5 million bags, Volcafe says it expects Honduras to produce no more than 4 million bags. The government-run Honduran Coffee Institute, Ihcafe, is sitting in the middle, saying it expects 4.6 million. The institute says that rust had damaged some new areas that, prior to the outbreak, had been projected to enter production this year.

“The disease has lowered crop yields, cost jobs, lowered incomes and damaged plantations, negatively affecting the 2013-14 harvest. The job losses are reflected throughout the coffee supply chain, from harvesting to exportation, especially in the populations that live in Honduras’ coffee areas,” Jaime Salazar, Institutional Advancement Director at the Zamorano University in Honduras, tells Global Coffee Review. The University advises Ihcafe on poverty eradication strategies

N OVE M B E R/D EC E M B E R 2013 | GCR

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COFFEENOMICS Rust & Prices

in coffee dependent areas. “This will lead to lower purchasing power, deepening poverty, negative environmental effects of deforestation caused by the abandonment of farms and more migration to other countries.”

Disagreement about the level of impact is also high in Guatemala, the region’s second largest producer and leading exporter for most of the past decade. While the forecasts again vary greatly – from Volcafe’s 2.8 million bags to the USDA’s 3.9 million bags – there is a consensus on the significant impact of rust.

Production drops from rust is in conflict with the occurrence that coffee prices have yet to react. One factor that has prevented a lift in prices is that large stocks were left over from the 2011-12 bumper crop across the Central American region, which in Guatemala alone reached close to 3.9 million bags. These bags were not shipped until after the start of the 2012-13 cycle, hence softening the impact shown in export figures and not showing the market the “hard evidence” of the more significant drop from losses. Some analysts argue that the real size of the losses should not be measured in comparison to the most recent crop, but against the original forecasts for the 2012-13 harvest to produce another bumper crop in Central America. Officials from the grower-run Guatemalan Coffee Association (Anacafe), say the effect of stocks have made up a significant difference in export figures.

“We had a very high volume of carry over stocks from 2011-12 and this is why we are not seeing any significant change to the pace of exports. Of the total exports in 2012-13, between 7 – 10 per cent was all old crop and we are without doubt going to see more of an impact in 2013-14,” says Adolfo Boppel Carrere, former Guatemalan Agriculture Minister and a past President of Anacafe. “In some of the worst affected regions, like Atitlan, Fraijanes, Antigua, and Acatenango, we still see infestation levels of between 19 – 24 per cent.”

For Central America’s smaller growers Costa Rica and Nicaragua, official forecasts put production at around 1.4 million bags in each country. Some producers in Costa Rica say this might be too optimistic, and officials in Nicaragua warn output could be much more severely affected. Over 90 per cent of the coffee land in Nicaragua is managed by smallholder

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Guatemalan small holder producers, seen here in Coban, are among the hardest hit by rust.

growers, who have not had the means to fumigate or apply any other level of control.

Juan Carlos Munguia, President of the Nicaraguan Specialty Coffee Association, says that production could “easily fall by as much as 30 per cent or the equivalent of 460,000 bags” in the 2013-14 cycle. He echoes the views of the Nicaraguan Agricultural Producers Union (Upanic) that says the lack of any level of control in large parts of the country could provoke losses so severe that the new harvest will not surpass 950,000 bags.

Official coffee research institutes in Costa Rica and Nicaragua reported that 67 per cent and 36 per cent of the countries’ respective coffee areas are still affected by rust.

“All these areas where there has been little or no assistance to small producers provide a scenario that at any given point could provide the perfect storm as to higher than expected impact,” says Costa Rican trader Rodolfo Mora.

Central America’s smallest grower, El Salvador, could become even smaller in this new harvest. El Salvador’s official coffee research institution, Procafe, said in its first forecast released in September that it expects the total volume of “exportable production” to drop to around 700,000 bags, with an additional 80,000 bags available for domestic consumption. This would be the smallest crop in history since figures first started to be registered more than 50 years ago.

For roasters and green buyers looking for replacements among Latin America’s traditionally Mild Washed Arabica producers, there is little source of encouragement. The rust epidemic has spread to most producing countries. In Mexico’s biggest growing state, Chiapas, which accounts for about a third of total national output in any given year, rust is being reported in over 40 per cent of farms. In Ecuador, rust fungus has hit over 50 per cent of growing areas. In Peru, the spread of rust has continued to worsen during the past four months, with up to 25 per cent of coffee areas now affected to varying degrees.

An official at Peru’s National Coffee Council, also known as La Junta, says some 10,000 Peruvian coffee growers have lost their entire crop because of “extensive damage caused by rust” and losses could reach 1.5 million bags.

Despite these supply concerns, global coffee prices have fallen to their lowest levels in more than four and a half years. Producers who are growing less coffee, and getting less money for the coffee they are growing, are getting increasingly desperate.

Flowering in rust is affecting Chiapas State in Southern Mexico.

“THE REASON FOR THE OVERALL BEARISH SENTIMENT IS THE FACT THAT MOST BRAZILIAN WAREHOUSES ARE REPORTED WITH HIGH STOCKS.” John Wolthers

Senior Comexim Trader

Prices are staying low because the market shows little preference for where the coffee is coming from, and major players Brazil and Colombia are making up for most of the Arabica losses. In Colombia, recovery is finally coming along. The new 2013-14 Colombian harvest is approaching double-digit figures for the first time since the 2007-08 cycle. In Brazil, the country’s producers are picking the biggest off-cycle crop in history.

“There’s plenty of Arabica supply out there,” said Mark T. Smucker, President of J.M. Smuckers, in a recent teleconference. Smuckers owns the Folgers coffee brands in the US. The situation, however, isn’t entirely positive. Brazilian exporters and traders Comexim, which generally has been known to take an optimistic position in forecasting, recently made a stunning withdrawal from previous positive projections.

Senior Comexim Trader John Wolthers said that ahead of the 2012-13 harvest, flowering and weather conditions looked set to produce “the mother of all crops” of at least 60 million bags.

Ahead of the 2013-14 harvest, Wolthers predicted Brazil to hit at least 55 million bags. Wolthers now tells Global Coffee Review that Brazilian producers and traders have become “bearishly brainwashed” in a market sentiment that bodes ill for future crops.

“The reason for the overall bearish sentiment is the fact that most Brazilian warehouses are reported with high stocks. This, combined with relatively friendly weather for the next harvest so far, does not exactly stimulate our producers to continue investments in the fields. Also, low prices are impacting the production levels and will definitely claim consequences,” says Wolthers, who last August cut Comexim’s figure for the 2013-14 crop by 3.8 million bags to reach a total 49.4 million bags after reporting massive damage to Brazil’s Robusta crop.

The conflict over the outlook for supply in the medium term begs the question, what exactly can industry stakeholders expect in the next cycle? Volatility is expected to be a potent factor at any given point. Changes in prices from unexpected scarcity in demand may be played out in the cash market. Differentials at origin could repeat what happened in 2009 when Colombian and Central American premiums surged on the supply deficit needed to fulfill contract obligations, because of the shortfall of Colombian coffee.

Volcafe summed up the situation in a recent report: “This should be a classic differential story, but could coffee surprise us again?” GCR

Brazil’s biggest crop in an off-cycle has helped soften the impact on the market from the rust disaster in Central America.

N OVE M B E R/D EC E M B E R 2013 | GCR

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PROFILE Musau

THE SPECIALTY ROAD TO

PROSPERITY

AS THE FIRST CERTIFIED Q INSTRUCTOR IN AFRICA, MBULA MUSAU SEES HUGE POTENTIAL FOR THE ROLE THAT QUALITY COFFEE CAN PLAY IN EMPOWERING FARMERS.

W

hile some of East Africa’s coffees may be coveted for their characteristics, those beans represent only a fraction of the coffee sold on the market, as just 10 per cent of the region’s coffee meets specialty coffee standards.

There is one woman in Africa who is now looking to change that figure. Mbula Musau is the continent’s first certified Q instructor, and she sees huge potential for the role that specialty coffee can play.

“Already Africa is known to be the home of uniqueness when you talk of coffee, due to the various climates, varietals, altitudes, processing methods, soil and culture,” Musau says. “Ensuring that the coffees meet specialty standards can only help improve the livelihoods of the producers as they will earn more per pound for specialty coffee.”

In addition to the extra money earned from selling coffee at a higher premium, specialty coffees are more likely to be cultivated using socially responsible and agriculturally sustainable practices. Not only does this help to preserve the land for future use, specialty farmers benefit from larger markets as their practices often make them eligible for certification under schemes such as Fairtrade, Utz, Rainforest Alliance and 4C. “Buyers and markets are now fully aware of this and in the spirit of social and environmental responsibility, are willing to pay a higher price for coffees that comply,” she says.

Musau is well placed to be leading the push to specialty in Africa. Like many great careers in coffee, hers began purely by chance. As she prepared to begin her undergraduate degree in commerce and marketing in Nairobi in 1999, Musau happened to walk past the construction site for what was set to become Kenya’s first specialty coffee shop, Nairobi Java House (NJH).

The chance encounter turned into a job and by the time Musau finished her degree, it had developed into a full-blown career. Musau became NJH’s Head of Coffee Department, a role that saw her training staff and clients and sourcing the finest coffee from throughout Kenya and Ethiopia.

Musau’s commitment to building the business, as well as her growing passion for quality coffees, drove her to register NJH with the Eastern African Fine Coffee Association (now the African Fine Coffee Association, or AFCA). It was around this time that Musau began to be involved with the

Mbula Musau is the first qualified Q instructor in Africa.

N OVE M B E R/D EC E M B E R 2013 | GCR

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PROFILE Musau

Musau is a member of the International Women in Coffee (IWCA) which promotes the role of women in the coffee industry.

US-based Coffee Quality Institute (CQI) through training and cupping events that helped her to build her expertise in the field.

In 2007, Musau began working for EAFCA, and was put in charge of implementing quality programs and trade and marketing activities for the Association.

While at EAFCA, Musau began training for the highest qualifications in coffee quality, a journey that has taken her all around the world and has now led to her making history as the first African to become an internationally certified Q Instructor.

This means that, as well as participating in the Q program as a grader of coffee according to CQI’s Q Coffee System, Musau can

Musau took part in the Zambia National Coffee Competition.

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now also train new Q graders to help spread the potential for African coffee growers to have their crops graded and, if successful, sold around the world as specialty coffee.

The CQI’s grading system has been devised in conjunction with the Specialty Coffee Association of America (SCAA) to provide a benchmark against which coffees can be measured in order to qualify for classification as specialty coffee.

This requires that the coffee in question achieves a score of at least 80 points against the quality criteria set by the CQI and the SCAA. Musau became a grader of Arabica coffee in 2009, and in 2011 she completed her training to also become an R Grader, which is the equivalent program for high quality Robustas. As a side note, there are only three Robustas in the world that are R certified, and all are grown at the Sethuraman Estates in India.

While Musau is enthusiastic about the potential for this specialty trend to positively impact on the lives of African coffee producers, she is also wary that it needs to be closely monitored to ensure that what is being promoted is actually happening on the ground.

“There needs to be a completely traceable process between producers and markets through strong relationships between the two,” she says. “This is currently happening in certain countries through several certification and verification schemes that are working for coffee sustainability, both as individual institutions and also recently in cooperation. However, it is a drop in the ocean compared to the numbers affected and the system developments required to ensure this happens.”

Another of Musau’s driving passions is recognising the role of women in the African coffee industry. Musau has worked with a number of organisations examining these roles and looking at how women’s lives can be improved through involvement in the industry.

In 2008, Musau worked with the International Trade Centre, which is a joint agency between the United Nations and the World Trade Organisation, on a report looking at these specific issues. The report found that while women perform some 70 per cent of the labour involved in coffee production, there

“THERE NEEDS TO BE A COMPLETELY TRACEABLE PROCESS BETWEEN PRODUCERS AND MARKETS THROUGH STRONG RELATIONSHIPS BETWEEN THE TWO.” Mbula Musau

Independent Coffee Consultant

are still myriad issues around gender equality that need to be addressed for that involvement to translate into real improvement in quality of life.

“We have come a long way by recognising the need to engage women and give them the required motivation and remuneration,” she says. “However we still need more advocacy and lobbying on legislative issues that affect women in the industry, such as

land issues, access to credit and ownership of coffee and proceeds and decision making. These need to be made more fair and equitable to ensure optimum benefit to families, society and the sector in general. Some countries are further ahead on this issue than others.”

She also advocates the implementation of affirmative action practices to build the capacity of women to effectively and efficiently work in the coffee industry at various levels. “Creating slots for women in training, leadership and participation in workshops, events and conferences would enable more participation,” she says.

The IWCA is one organisation looking to make a difference on this front.

The IWCA has chapters in several countries such as Burundi, Uganda, Tanzania, Rwanda and Kenya, and are in the process of developing strategies to empower the women in coffee in these respective countries.

However, Musau says that efforts on these issues need to be balanced with recognition of the traditional roles that many women are still required to play in their communities.

“This is because their other roles in the family and domestically, for example, are critical but sometimes clash, and need to be addressed just as importantly if not more,” she says.

Today, Musau works as an independent consultant across the East African region. Musau says that the current coffee leaf rust crisis in Central America presents some unique opportunities for the coffee industries of Africa.

“It is envisaged that production will decline by 30 per cent for the next five years,” she says. “African producers need to step up to the plate and ensure that the world coffee demand is met. They stand to gain even more.” G C R

Photos: Rick Forrestal

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TECHNOLOGY Vortex

ENTER THE VORTEX LEADING EQUIPMENT PROVIDER MODERN PROCESS EQUIPMENT OFFERS A GLIMPSE AT THE FUTURE OF COFFEE CAPSULE MANUFACTURING.

N OVE M B E R/D EC E M B E R 2013 | GCR

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TECHNOLOGY Vortex

W “WE’VE SEEN FACTORIES INCREASE THEIR CAPACITY FROM 200 UNITS A MINUTE TO 800.

AT THOSE RATES, THE NEED TO FILL EACH CAPSULE ACCURATELY, WITH A SPECIFIC AMOUNT OF COFFEE, IS CRITICAL… THAT’S BEEN A REVOLUTIONARY DESIGN, THE ABILITY TO PUT AN ACCURATE AMOUNT OF COFFEE IN A CAPSULE, AND VIRTUALLY ANY QUANTITY.” Dan Ephraim

President Modern Process Equipment

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G C R | N OVE M B E R/D EC E M B E R 2013

hen coffee capsule technology was first introduced in the United States, few could have anticipated the impressive impact those little pods would eventually have on the coffee industry.

Dan Ephraim, President of Modern Process Equipment (MPE), remembers when one of his clients first patented the technology over 15 years ago. With coffee pods (also known as soft pods or pads)– the predecessor to the capsule – never quite taking off in the United States, he says the commercial potential seemed limited in a market not accustomed to single-serve.

“At the time, the difference between capsule and pod technology was not all that apparent,” says Ephraim. “Both were single-serve systems that were painted with the same brush.”

Fast-forward a decade and a half, and those companies who saw the potential for capsule technology have seen their foresight pay off. US market leader Green Mountain Coffee Roasters attributed 90 per cent of its US$3.9 billion in net sales to Keurig brewing systems, accessories and single K-Cup packs. European leader Nespresso is now present in more than 60 countries around the world, with 180,000 unique customers visiting its online shop daily.

MPE’s Scott Will says that the key to the success of capsules over pods has been the ability to deliver quality in the cup.

“A decade ago, when you went to make a coffee with a pod it wasn’t exceptional,” says Will. “I remember the first time I tried Kona coffee in a capsule, and it was so amazing – the flavours really came through. The ability of the capsule to deliver that quality definitely had something to do with its success in North America.”

Ephraim points to pods’ limitations in the paper filters’ impact on the quality of the brewed coffee.

“With the pod, you have water going through the filter on both sides. This makes the coffee taste different,” he says. “The capsule is just like brewing a fresh pot of coffee. You can control the elements around the brew chamber. If you can technically iron out all those challenges, then you can make a good cup of coffee.”

Like any overnight success, Ephraim says it took a while for this technology to “work itself out” before it took off in the US. It’s this foundation in quality that is now serving as the basis for the future development of coffee capsules in the US, and indeed around the world. As pioneers in developing the equipment for the first coffee capsules, MPE is well-placed to be leading the technological forefront.

From a manufacturing perspective, when MPE was first approached to assist with the production of coffee capsules in the US, perfecting the grind was a central focus of technological development. Ephraim explains that the performance-based grind for coffee capsules is quite technical. Similar to the parameters that baristas use on an espresso machine, the uniformity and particle size of the grind must be highly accurate to produce a quality cup.

From a manufacturing perspective, the grind is even more critical in ensuring factory operations are running at maximum capacity.

“We’ve seen factories increase their capacity from 200 units a minute to 800,” says Ephraim.

“At those rates, the need to fill each capsule accurately, with a specific amount of coffee, is critical.”

To address this need, MPE has added normalisation and densification elements to its grinders. The densification elements standardise the amount of coffee in each capsule, while also increasing the density to ensure the coffee fits into the pods.

The ability to control these two elements becomes paramount when considering that the coffee used will never be a constant factor. From different origins to roast methods, the physical characteristics of coffee vary constantly. MPE’s developments have focused on how to control these factors, while increasing a plant’s manufacturing capacity.

In the process, MPE has developed the MPE Vortex Super Homogeniser. The Vortex can

DENSITY VS. TEMPERATURE & RESONANCE TIME 47.0

Previous Density Limit

42.0 37.0

New Density Limit

32.0 27.0 22.0 280

290

300

310

320

330

340

350

360

370

380

390

400

Density (g/L) Standard Densifier (Low Density, High Temperature) Super Densifier (High Density, Low Temperature) Source: Modern Process Equipment

increase density levels to twice the previously achievable range. The breakthrough configuration optimises densifier speeds for specific coffees and density levels, allowing for precise density control of both high and low density coffees on a single machine.

“That’s been a revolutionary design,” says Ephraim. “The ability to put an accurate amount of coffee in a capsule, and virtually any quantity without an elevation in weight and product overflow.”

Important in the quality equation, is that the Vortex works with less than half the temperature rise of the coffee in the process. Because aromas are released as coffee is heated, Will explains that minimising temperature rises has been a key focus in the development of the Vortex. The equipment features water-cooling of all the elements of the grinder – from the rolls to the normaliser – all on a PLC controllable system.

“As part of the initial design, we’ve been looking at keeping coffee colder and colder,” he says. “We’re seeing less of those volatile aromas lost between the grinding and packaging process. We can maintain the temperature and keep it cool during the densification process.”

From a sustainability perspective, the Vortex works with half the energy consumption of comparable previous products.

Some of the inspiration for the Vortex came from MPE’s work in Europe, with espresso capsules more popular across the Atlantic.

“We were working with some of the biggest capsule manufacturers at the time, who turned to us for our ability to produce higher density,” says Will. “It really opened up our eyes to what was happening in Europe.”

As the espresso capsules are a much smaller capsule size than what is standard in the US, MPE’s expertise in increasing density has come in handy. Because the amount of coffee that can fit in a small capsule

size is limited, the only way to increase brew strength is to increase the density of the coffee. MPE’s Vortex technology allows clients to increase that density without altering the particle size of the grind.

This is where Will and Ephraim see the future of coffee capsules, where a company with Vortex technology will be able to set its products apart. GCR

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PROFILE Mocoffee

C O M PAT I B L E

G O LD R U S H ALTHOUGH COMPATIBLE COFFEE CAPSULES MAY SEEM LIKE AN EASY PATH TO PROFITS, MOCOFFEE’S PASCAL SCHLITTLER WARNS THAT CURRENT PRACTICES MAY BE LEADING A RACE TO THE BOTTOM.

A

t 25 new companies launching Nespresso compatible coffee capsules from 2011 to 2012, Mocoffee’s Pascal Schlittler just stopped counting.

“We’re seeing a lot of big companies who are after a quick dollar, they see a chance to enter the market without having to invest into a machine,” says Schlittler.

From a short-term business perspective, Schlittler admits that launching a compatible capsule makes sense. Market entry is relatively simple. From a manufacturing perspective, a coffee roaster can purchase a specialised grinder and filling machine, or even just contract out the capsule making process. From a sales perspective, virtually all of these compatible companies are taking an undercutting strategy, under the assumption that surely price savvy customers will go for the lesser-priced compatible capsules.

As many of these companies have learned, however, the path to success isn’t quite so simple. With some already failing, and Nespresso still holding on to its record-breaking profits, Schlittler warns that there is a lesson to be learned: the compatible “gold rush” isn’t the easy money-making path that it seems to be.

Working alongside Eric Favre, the inventor of the Nespresso capsule, Schlittler is well-placed to know that it takes more than a capsule for market success.

“Eric always says that he didn’t invent the capsule, what he invented was the formula,” says Schlittler. “It’s not just a cylinder, but a careful combination of a certain level of oxygen and water passing through coffee at a certain pressure.

It’s this formula that produces a quality espresso.”

With this in mind, Schlittler says producing a compatible capsule that works with a machine is simple in theory, i.e. it will produce a cup of coffee.

However, the practice won’t replicate the quality that the full Nespresso system was originally designed for.

“When you look at the technology, there are big issues here versus the original,” says Schlittler. “Most of these capsules are not protected. They are made of plastic and perforated, and there is a big impact on quality.”

It’s this sacrifice of quality that Schlittler is observing as a dangerous trend among compatible systems. While lesser price points are one part of the equation, Schlittler says they can’t be taken in isolation.

Pascal Schlittler is CEO of Mocoffee

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PROFILE Mocoffee

“COMPANIES NEED THE COURAGE TO BE PROUD OF THEIR PRODUCTS. A CAPSULE CAN PRODUCE SOMETHING REALLY WONDERFUL. IT’S A SHAME THAT WE’RE SEEING THAT SACRIFICED FOR THE LOWEST PRICE POINT.” Pascal Schlittler

CEO, Mocoffee

Since it was quality, alongside convenience, that led to the success of capsules in the first place, Schlittler says sacrificing quality to enter the market simply doesn’t make sense.

“These substandard products will lose out to Nespresso, even without a fight,” says Schlittler.

“At the end of the day, what these products are really doing is boosting Nespresso’s business.”

Schlittler points to proprietary systems that have had some success. Importantly, he says that these proprietary systems are ensuring that customers have a choice.

“Will we end up with a Microsoft situation?” asks Schlittler. “It would be sad for the market, and for the development of coffee.”

Mocoffee currently produces a private label solution for companies looking to enter the market. The turnkey solution provides companies with the tools to provide their own system, while maintaining top quality.

Schlittler says launching a system onto the market is a viable alternative to compatible capsules, because customers have shown that they are willing to purchase new systems.

“Even Nespresso offers 30 models of its own machine,” he says. “People are looking to buy new machines. Now that price is no longer an issue, people are tempted by change… Globally, it’s a big business and there is money to be made

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G C R | N OVE M B E R/D EC E M B E R 2013

Mocoffee offers private label solutions to entering the coffee capsule market.

in new markets. But you need to offer a good product.”

So what approach should companies take when they look to enter the capsule market? The first advice Schlittler offers is to get familiar with the technology.

“Once you decide to enter the market, do your homework,” says Schlittler. He advises roasters to carefully research exactly how capsule systems function before deciding to jump in bed with any specific system.

Next, Schlittler says companies should consider setting up a separate marketing and distribution strategy. As a distinct product, capsules need their own marketing approach.

He reminds that the key to Nespresso’s success has not just been its product, but the luxury brand that’s been created thanks to its stylish advertising campaigns and 300 boutiques around the world.

Schlittler says roasters with strong brand recognition should similarly take note, and charge for their capsules accordingly.

“There are roasters out there who have been on the market for hundreds of years. They are proud of their coffee, yet they won’t even sell their capsules for the equal price of Nespresso,” he says.

A good retail strategy is similarly important to success. Having a capsule to sell is one thing, however getting that capsule into the “buying circle” of a customer is paramount to commercial success, Schlittler explains.

“People are used to buying through a channel. They are pretty loyal in that sense,” he says. Even if a capsule is less expensive, if it’s not convenient for a customer to purchase, he says they are much less likely to buy it.

Finally, Schlittler advises for companies to remember after-sales.

“Customers are not just buying coffee from you anymore,” he says. “They have a machine at home now that they are using every day.”

Schlittler says only when the coffee side of the business aligns with the technical side will a coffee capsule operation see success. With so many roasters focusing on increasing the quality of their whole bean and roast and ground coffee, Schlittler says it’s a shame that quality in the capsule business seems to be sliding downhill.

“Companies need the courage to be proud of their products,” he says. “A capsule can produce something really wonderful. It’s a shame that we’re seeing that sacrificed for the lowest price point.” G C R

PROFILE French coffee

FRENCH COFFEE’S NOUVELLE VAGUE

FRANCE’S COFFEE CULTURE IS CHANGING RAPIDLY, THANKS IN LARGE PART TO THE GROWTH OF BRANDED COFFEE CHAINS IN THE EUROPEAN NATION.

A

t first glance, selling new ways of drinking coffee to the French might appear to have all the commercial potential of selling sand in the Sahara.

Not so, says Jeffrey Young, who is Managing Director of the Allegra Group and a key strategist on the coffee industry in Europe.

While France may have a very strong, entrenched café culture, this does not mean that their coffee culture is also particularly sophisticated, Young says.

“The best coffee shop in France is run by an Australian,” he tells Global Coffee Review.

“There’s a good analogy there with the wine industry,” Young says. “For a long time the French made the best wine in the world, but then they rested on their laurels and a whole new world of winemakers from California and Australia and Chile started to emerge,” Young says that the French idea of coffee is tied to tradition, rather than quality.

“Coffee for them is a ‘petit noir’ – a little black – and the expectation is that it’s just going to be a little shot of espresso, which in most cases is not even a very high quality shot,” he says.

But, he says, that is all changing, thanks in large part to the growth of the branded coffee shop segment in the country.

“The chains have slowly developed the French market, introducing different types of coffees and flavoured drinks,” Young says.

The first branded chain in France was the homegrown Columbus Café, which opened its first stores in 1994.

Chief Executive Officer of Columbus Café Nicolas Riché says that, at that time, stylishly appointed cafés and coffee-to-go were foreign concepts in the French market.

“French consumers were used to having their espresso at the counter in cafés or brasseries, nothing very trendy,” he says. “We had to educate the French customer on this type of coffee consumption (in paper cups). French consumers are now keen to try new coffee recipes such as cappuccinos, macchiatos and frappes.”

While in many of the new wave of coffee countries such as the US and Australia exposure to good coffee in specialty coffee shops has led to a growing demand for good coffee in the home, Riché says that in France the opposite has occurred.

“With the new coffee capsule trend introduced by Nespresso, French people experienced different coffee quality and can have good coffee at home. Now they want the same outside,” he says.

Columbus now has about 70 stores across France and is opening around 10 new stores per year.

However, it is not alone. Young says that, since Columbus broke ground there almost 20 years ago, international players have also seen the potential of the French market. McCafé is the market leader there now, with 176 outlets, while Starbucks also has a strong presence with 75 stores.

Overall, France now has about 515 branded coffee stores, a figure that Allegra forecasts will

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Nicolas Riché is Chief Executive Officer of Columbus Café, with 70 stores across France.

grow by around 11 per cent per annum over the next three years to reach 695 outlets by 2015.

Riché says that the design of the stores is key to the success of Columbus.

“Columbus Café’s atmosphere is very far from that of traditional cafés,” he says. “We offer a true living space open to every customer in a cozy atmosphere. This type of place didn’t exist before we opened in France.”

While traditionally food culture has flowed from France across the channel to the UK, the

growth of the branded coffee shop segment has seen a reversal of that trend. Two major British chains, Costa Coffee and Pret A Manger, have planted their flags in French territory over the past 18 months. This, Young says, reflects the fact that much of the innovation in the industry is now coming from non-traditional coffee countries.

“Countries that had an espresso culture to begin with, when the next waves of coffee came along they didn’t really move,” he says.

But all that is changing now, and Young says the results are exciting.

“There is massive interest in the Americanstyle coffee culture. Columbus is riding this wave,” he says. “The French are becoming a lot more open-minded about food culture in general, which is great news for them and great news for the coffee industry.”

Young and Riché will be speaking alongside other leaders of the European and international coffee industries at the European Coffee Symposium in Paris from 28 November For more information visit www.europeancoffeesymposium.com. GCR

This year’s European Coffee Symposium will take place in Paris, France.

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PROMOTIONAL FEATURE//////////

TECHNOLOGICAL ADVANCES,

DRIP BY DRIP

MODERN FILTER COFFEE SYSTEMS ARE HIGHLY ADVANCED MACHINERY, WHICH ENSURE USER-FRIENDLINESS AND MAXIMUM QUALITY OUTPUT.

I

t seems simple enough, that cup of filter coffee.

For generations, filter coffee has been the staple drink served, from the smallest dinner parties to the largest corporate function.

And while that little cup may not change, alternations in the context in which coffee is served has a significant impact on the equipment required. The goal is to have the same finished product, a high quality cup served at the right temperature. How you get there, however, is a complicated feat.

Brant Curtis, Marketing Manager for Wilbur Curtis, one of the oldest filter coffee companies in the world, explains that today’s filter coffee equipment has more technology than the first spacecraft that landed on the moon. For Wilbur Curtis, the focus has been on technological developments that ensure a smooth end-user experience.

“Our philosophy is that no news from a customer is good news,” says Brant. “That’s what drives our technological advancements.”

Breakthroughs such as a temperature probe outside of the tank may seem quite simple, so much so that a consumer would never notice, even though it took years to develop. The difference, however, is that the user will never have to deal with lime build-up on the probe. (For more on Wilbur Curtis, see page 47) At Bunn, the focus has remained on the quality of the coffee in the drinker’s hands, according to Lina Chiodo, Vice President

Sales and Marketing for Europe, the Middle East and Africa (EMEA). She says that Bunn President and CEO Hy Bunn is very focused on quality, which led to the development of the now world-renowned trifecta brewer.

“Hy wanted to make a machine that would let consumers taste the notes of each coffee and have a full cup experience,” she says. “It has been a tremendous success and we’ve had fun selling it.” (For more on Bunn, see page 45.)

Bravilor Bonamat’s Peter Kaas, Sales Manager Export, says that the company’s efforts have led to the development of long-lasting and stylish equipment.

“Kitchen designers appreciate our quality, our equipment is recognised as stylish,” he says. “We think that if a machine is going to be on display in a kitchen, it should look good.”

Kaas points to the technological advancements of Bravilor systems that allow them to brew large amounts of coffee in very short time frames. For instance, the bulk brewers can make 40 litres, that’s 300 cups of coffee, in just 17 minutes. (For more on Bravilor, see page 43) G C R

Filter coffee systems have been improved by the additions of new technologies such as external temperature probes and a focus on style.

N OVE M B E R/D EC E M B E R 2013 | GCR

41

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G C R | N OVE M B E R/D EC E M B E R 2013

The taste of quality worldwide

PROMOTIONAL FEATURE//////////

WHEN UTILITY MEETS QUALITY BRAVILOR BONAMAT’S PETER KAAS DISCUSSES HOW 65 YEARS OF EXPERIENCE IN THE BUSINESS TRANSLATES INTO TOP-LEVEL FILTER EQUIPMENT.

I

t was on a trip to Singapore that Peter Kaas, Sales Manager Export for Bravilor Bonamat, realised that there was something truly exceptional about the products he was selling around the world.

“Someone asked me to have a look at one of our machines. I had a glance, and saw it was a really old-looking model,” recalls Kaas. “It was built in 1988. It was practically a museum piece, and here it was, still working.”

Although Kaas was impressed with the 25-year-old brewer, he wasn’t surprised.

Bravilor Bonamat, a Dutch-based company that has just celebrated 65 years in business, prides itself on the quality of its equipment.

Supplying everyone from hotels, to major events such as the Olympics, the company has made quality and user-friendliness the focus of its technological advancements.

Inside the machine, Bravilor’s work has kept apace with trends in the market. As consumers have become increasingly interested in the coffee-making process, Bravilor has released equipment that helps them experience the whole process. “From the sound of the grinding to the smell of the beans, people want to be more involved in the coffee making process,” says Kaas.

When time is of the essence, Bravilor’s efforts in bulk brewing have focused on user-

friendliness, and efficiency. “These bulk brewers offer the possibility to brew large amounts of coffee is a fast period,” he explains. “For large events, you need to get people their coffee and fast.”

Bravilor’s bulk brew units are made entirely of stainless steel, are insulated and feature an individual heating device. This means that they can be disconnected from the main brewer, moved to where the coffee is being served, and reconnected to maintain the heat.

Kaas points to the technological advancements of Bravilor systems that allow them to brew large amounts of coffee in very short time frames. For instance, the bulk brewers can make 40 litres, that’s 300 cups of coffee, in just 17 minutes. The system works by passing the water through a small reservoir as it brews, rather than trying to heat all that water at once in a large boiler.

Another advantage of the Bravilor Bonamat bulk brewer is a mixer fitted into the coffee container. Because of the nature of brewing filter coffee at such large volumes, the first cup of coffee brewed will usually be stronger than the last. The mixer, fitted at the bottom of the container, ensures the first cup served will taste just as good as the last.

Another unique feature of the Bravilor Bonamat bulk brewer is the adjustable descaling program. The machine features an indicator that warns when the descaling process needs to be undertaken, based on the number of coffees made. However, as different countries have different water types, the indicator can be adjusted based on the hardness of the water. When the user does have to undergo the descaling process, the machine will talk them through it step by step.

Features like this makes Bravilor Bonamat equipment “monkey-proof”, jokes Kaas.

“Imagine you have a lot of people out there who don’t even drink coffee. For some tea-drinking countries it’s not even in their cultures. How are they going to know how to make a good brew?” says Kaas. Bravilor Bonamat systems are designed specifically with user-friendliness in mind. For instance, the machine asks how much coffee the user wants to brew. If they don’t put in enough coffee for that amount, the machine will tell them.

Further fool-proofing of the equipment is in the quality build of the machines. Made entirely of stainless steel, the parts are easy to clean and maintain their shape. Kaas explains that the drawback of plastic parts – which are cheaper to supply – is that they are not intended for longterm use. He says Bravilor Bonamat machines can easily be used for over 10 years.

The company’s work goes beyond utility, and has been recognised for aesthetic appeal. Bravilor Bonamat recently received an industrial design award for its Mondo and Matic series Quick Filter machines. “Kitchen designers appreciate our quality, our equipment is recognised as stylish,” he says. “We think that if a machine is going to be on display in a kitchen, it should look good.”

Not only does this lend itself to the appeal of the business, but Kaas explains that if a machine looks good, customers are more likely to drink more coffee. And this, he says, is good for everyone in the industry. G C R

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PROMOTIONAL FEATURE//////////

WHAT’S I N TH E

CUP

BUNN’S LINA CHIODO DISCUSSES HOW A FOCUS ON CUP QUALITY HAS GUIDED THE COMPANY’S TECHNOLOGICAL ADVANCEMENTS WHILE LEADING INDUSTRY TRENDS.

A

lthough the specialty market may only represent a fragment of the markets she works in, BUNN’s Lina Chiodo says she can thank that fraction for some of the success quality filter coffee is experiencing today.

As Vice President Sales and Marketing for Europe, the Middle East and Africa (EMEA), Chiodo was front and centre to witness the rise of the independent coffee shop, and the newfound interest in filter coffee.

“Consumers have had a good cup of coffee, and they aren’t willing to go back,” she says.

“Now they want to try filter coffee, which brings out bean complexities in a way espresso can’t.”

With a historical focus on filter, Chiodo says BUNN is well-placed to be leading developments that are delivering quality filter coffee to the masses.

BUNN is a family-run business founded in the 1950s. Chiodo explains that a focus on quality has helped guide the company since its early beginnings. George Bunn invented the fluted flatbottomed paper filter and the company went on to introduce the Pour Over Brewer in 1963.

The 1990s were perhaps the most exciting in terms of developments, Chiodo explains, with the introduction of electronics in filter technology, which has allowed BUNN to lead the path of filter coffee technology like never before.

A shining example of BUNN’s success in working with digital technology to improve the brewing process was the release of trifecta in 2010. Chiodo says BUNN President and CEO Hy Bunn tasked the research and development team to enhance the experience in the cup and promote consumer engagement.

“Hy wanted to make a machine that would let consumers taste the notes of each coffee

and have a full cup experience,” she says. “It has been a tremendous success and we’ve had fun selling it.”

While trifecta may cater to the pointier end of the market in specialty and single cup; BUNN’s developments across its range of equipment are designed with similar flexibility in mind.

“We’re always looking at how we can make the equipment simpler to operate, and what impact our developments will have on the user,” she says.

Simplicity, ease of service, and speed of service guide the development of BUNN’s equipment, with the customer in mind.

The advent of digital technology and Radio Frequency Identification (RFID) has been a pivotal advancement in this regard. Chiodo explains how digital technology has allowed greater brew control, while RFID has made possible wireless programming and intelligent communication between parts of the equipment to ensure the best brew. These advancements, patented by BUNN, are now leading the forefront in filter coffee brewing.

For instance, the Smart Hopper can communicate with the grinder through a microchip in the hopper.

The grinder adjusts the grind time for each batch to deliver just the right grind volume. The grinder also communicates with the Smart Funnel during the process. The BrewWISE brewer can read the information in the Smart Funnel and adjust the precise recipe and brew a perfect cup of coffee every time.

“What it does is take the guesswork out for the operator,” says Chiodo. “Once the equipment is programmed its error free, allowing consistency and quality in the cup.”

In all of these developments, Chiodo explains that BUNN’s efforts have never steered off the main focus – that is the quality of the coffee served.

“What we are driven by is what the customer will taste in the cup,” she says. “The question is always: ‘How will we create a piece of equipment that will serve the best quality coffee.’” GCR

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PROMOTIONAL FEATURE//////////

TH E

DETAILS THAT COUNT BRANT CURTIS EXPLAINS HOW THE GREATEST DEVELOPMENTS IN FILTER COFFEE OFTEN LIE BENEATH THE SURFACE AT WILBUR CURTIS.

A

lthough the sleek exterior of Wilbur Curtis filter brewed coffee equipment might be appealing enough, Marketing Manager Brant Curtis says the true ingenuity of the company’s technological developments might never be noticed by the end user.

From single fool-proof connections to exterior temperature probes, Brant explains how the team of engineers at Wilbur Curtis have helped revolutionise filter coffee technology by focusing on the smaller details to improve the user experience.

“More than anyone, we place a high emphasis on technology,” says Brant. “We’re known for the unique way we design our equipment.”

From its initial founding in 1941 by Brant’s great grandfather, Wilbur Curtis, ingenuity has helped define the company. A former glass salesman for the Silex company, Wilbur invented the disposable glass coffee pot. In the 1980s, the company introduced the Gemini Coffee Brewer, a system that revolutionised the commercial coffee industry by offering the speed of a brewer with the quality of an urn. It enabled servers to create remote coffee stations with removable “satellites” while maintaining the temperature and quality.

Brant says that a new technological trajectory was set for Wilbur Curtis in the mid-1990s, when the company sought out a strategic partner in Renau Electronics to assist them in the development of the first ever truly digital coffee brewing system. “Karol Renau asked us for a brewer and together we ideated to define what digital brewing should be. Three months later he came back with the first truly digital coffee brewer,” Brant recalls. “It had the intelligence of a computer to monitor the brewing process.”

That digital coffee brewing technology has now entered its fourth generation, with touch screen controls and graphics similar to a smartphone. “There is more technology in our coffee brewers today, than there was in the Apollo 13 spacecraft that landed on the moon,” says Brant.

Much of this technology, however, is hidden in the unnoticeable details of the machine. For instance, all Curtis equipment uses a single Molex connector for the controls. Fewer contact points ensures the system is more reliable and can’t be connected incorrectly. “It takes years of foresight and planning for a small detail like that,” says Brant.

Brant points to another “small” detail that required

enormous research and development. Curtis brewers don’t have immersed temperature probes because lime is attracted to them. Without regular descaling an immersed probe will often not work correctly once the lime has built up.

Mounting a temperature probe on the side of the tank, however, is quite a complex process. Brant explains: “We must ensure the stainless steel used in our tanks has a specific reaction based on temperature.

All of our stainless steel is tested for quality compliance with an x-ray gun to test its makeup. Once we confirm the raw material complies to Curtis quality requirements, it’s a matter of calculating an algorithm that provides the temperature inside the tank.”

These technological feats take years of work. As a result, Brant says the company is more interested in long-term quality. “We don’t really focus on trends,” he says. “We’ve decided that our business philosophy will be to do a few things exceptionally well.”

In its development efforts, Brant says the company doesn’t isolate work within a single department, but rather encourages engineers to listen to customers and look for ways to improve equipment. “We’re not interested in reinventing the wheel,” says Brant. “We’d like to refine it, improve it, and make it last longer.”

Efficiency in service is the latest focus for the team, with yet another small detail set to significantly reduce labour and increase coffee quality. In the latest Curtis vacuum dispensers, the Curtis Thermal FreshTrac (TFT) System is included. The TFT features LED lights that flash green when the coffee volume and brew time is within requirements; then red when it needs to be replenished. The lights can be seen from across the room meaning that staff can be alerted immediately when a fresh brew is needed.

“A server doesn’t have to leave the counter to check on the coffee. It’s something simple, but if you think about the loss of labour sending someone to constantly check on the coffee in a convenience store or a fast food chain, that’s significant,” says Brant, adding jokingly: “Red and green lights… these are the things that bring spirited discussions in our boardroom meetings.” GCR

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ORIGIN Certification

M A R KE TI N G

SUSTAINABILITY

ECOM GROUP’S JOERI KALWIJ DISCUSSES MAKING SUSTAINABILITY SCHEMES ACCESSIBLE IN PAPUA NEW GUINEA THROUGH SUSTAINABLE MANAGEMENT SERVICES.

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oeri Kalwij may be working towards an idealistic vision of how the coffee industry should operate, but he is doing so informed by a strong dose of realism.

Kalwij has been living and working in Papua New Guinea (PNG) for the past six years, integrating sustainability and certification into the supply chain for smallholder farmers throughout the rugged Pacific nation.

He is the Director of Sustainable Management Services, an affiliate of the Ecom Group that works with some of the major certification bodies and provides sustainable community projects to its grower networks. But Kalwij says that the truly important part of his work is making sure that this development work goes hand-in-hand with basic economics.

“We certify them, we continue to work with them, we bring the coffee to the market and we tap into international distribution to make sure they can actually sell it,” Kalwij says.

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Kalwij is also the Deputy Country Manager for trader, Monpi Coffee Exports. Monpi has developed 10 distinct brands of coffee, a number of which are certified by various bodies including Rainforest Alliance, Utz and Fairtrade. It also offers coffees across the full spectrum of grades, both certified and not certified. But Kalwij says that a lot of work needs to be done before relationships reach that stage.

“In PNG, the attitude towards coffee is often: ‘It just happens to grow in my backyard’,” he says. “People will harvest what they have simply as a means to get cash. What we need to do is continue to buy this coffee to encourage people to maintain their gardens and improve their quality.”

According to Monpi’s figures, nearly half of the population of PNG is involved in the coffee industry in

“THE PARADOX OF CERTIFICATION IS THAT THOSE WHO WOULD BENEFIT MOST FROM IT ARE THOSE THAT ARE THE LEAST LIKELY TO GET IT.” Joeri Kalwij

Director Sustainable Management Services

some capacity. With PNG ranked 156th of 186 countries in the United Nations Development Program’s 2013 Human Development Report, the significance of the industry to the future of the country cannot be underestimated.

Kalwij knows that this is not a simple fix.

“It takes a long time, we can’t forget that,” he says. “A lot of people think that certification means (automatic) economic and quality improvement. Yes, but not immediately. It takes at least two or three seasons for that to kick in.”

But the work does not end once certification is achieved. Kalwij says this is just a foundation stone upon which the truly transformative economic work can be built.

“You need to bridge that gap between just having a certification or a sustainability system and actually marketing it,” he says.

Having worked in PNG since 2007, Kalwij can point to plenty of examples of when this approach has succeeded. However, he says those success stories are not as far-reaching as he would like.

“The paradox of certification is that those who would benefit most from it are those that are the least likely to get it,” he says. “My success stories are with the people who are already in areas that have access to the market.”

But that does not mean he is about to stop trying. While Kalwij is a coffee person, at the heart of his work is a desire to see peoples’ standards of life improved through their involvement in the industry.

“The first priority is, and should always

be in my opinion, the (coffee farmers’) food garden,” he says. “If coffee comes a distant second, so be it.”

That said, the quality of the coffee that comes out of these gardens is such that the coffee enthusiast in him is continually inspired to keep on working.

“If you look at the state of the trees, people are usually surprised at the quality that comes out of there,” Kalwij says.

Monpi has relationships with farmers in each of PNG’s coffee growing regions, and Kalwij says that awareness about the advantages of certification has spread in the time he’s been working in PNG. “When I started, I had to go around, soapbox style, and preach certification. Now there are people coming to me trying to get involved,” he says.

Kalwij says that underpinning this is a strong entrepreneurial desire among many of the farmers he works with.

“Don’t think they’re poor little ignorant farmers, they’re not,” he says. “They’re poor farmers but they’re smart – they know exactly what they need to do to make money and they appreciate any chance they can get to do that.”

It is this pragmatic basis for the certification work that Kalwij sees as the key to its success.

“Of course there is a financial trigger for all of this, but if looking after your environment and providing a better future for your kids is the side effect, that’s great,” he says. G C R

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Targeting cafĂŠ owners and F & B establishments, Cafe Asia 2014 features equipment, machinery, accessories and other relevant supplies and products for the effective and ideal functioning of coffee and tea businesses.

Focusing on the upstream sector of the coffee and tea industries, ICT Expo 2014 showcases everything from the provision of raw coffee beans and tea leaves, to processing and packing for wholesale purchases and trading of coffee

www.facebook.com/CafeAsia.Page www.cafeasia.com.sg | www.intlcoffeeteaexpo.com Joint Organizers

Offcial Publications

Supporting Organizations (2013)

Host

Held In

Concurrent Event

ORIGIN Buon Ma Thuot

A COFFEE

SUCCESS STORY COFFEE IS PROVING A DRIVING FORCE IN VIETNAM’S PROSPERITY, WITH THE QUALITY OFFERINGS FROM BUON MA THUOT A CENTRAL PLAYER.

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BY HOA TA

na Ayun, a coffee farmer from Vietnam’s central province of Dak Lak, is a contrast to the romantic ideals of rural farming.

Walking past a US$28,000 Hyundai Utility truck he bought eight months ago, he pulls out his Samsung Touch smartphone and sends a quick text. A few seconds later, his phone beeps, letting him know a kilogram of coffee was priced at 35,200 Vietnamese Dong (VND), or US$1.67.

“That a VND500 decrease,” he says.

Despite the price drop, Yna smiles with confidence, explaining to Global Coffee Review: “The

A coffee farmer’s daughter collects coffee seed in their front yard in Buon Ma Thuot, Vietnam’s flagship coffee producing area.

harvest is coming and the price normally drops until we start harvesting coffee in the next one to two months.”

Yna is an Ede ethnic minority farmer from Ea Tun Village, one of the most well-known coffee plantation areas of Vietnam’s top coffee producing region Buon Ma Thuot. For Yna, checking coffee price has become as ingrained in his daily routine as eating rice.

A few days later, when Yna checks on his crops, his lifestyle benefits from the happenings of the London Liffe exchange, where coffee is being traded at US$1734 per tonne that day, a slight increase of US$1.00 or 0.06 per cent. The lift is attributed to a slowdown in exports from Indonesia, the third largest exporter of Robusta after Vietnam and Brazil.

Yna, however, is in no rush to sell. His farm is seeing a bumper crop this year.

Where modern telecommunications technology has brought to Yna the same information that was previously only available to traders and roasters, modern cultivation technology has helped him increase his yields.

These are important development in a region that depends largely on coffee for its income.

According to statistics from the Dak Lak People’s Committee, more than 64 per cent of the province’s population – over 1 million farmers – are growing coffee as their primary activity.

In addition to farmers, the coffee industry is responsible for more than 300,000 jobs in the whole area. The region produces more than

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ORIGIN Buon Ma Thuot

“THE PROCESSING MARKET HAS BEEN OCCUPIED BY FOREIGN GIANT CORPORATIONS. IT’S VERY DIFFICULT TO COMPETE WITH THEM IN THAT AREA. SO THE ONLY WAY FOR THE INDUSTRY IS TO STAY FOCUSED IN WHAT WE ARE DOING.” Trịnh Duc Minh

Standing Vice Chairman Buon Ma Thuot Coffee Association

Workers at Simexco Dak Lak separate coffee. Cheap labour is an advantage in the region, at only $150/month per person.

400,000 tonnes of coffee per year, contributing to around 40 per cent of the country’s production.

At the national level, Buon Ma Thuot has played a key role in Vietnam’s success as the world’s top Robusta exporter, and second coffee exporter after Brazil, for the past 12 years.

Buon Ma Thuot is well placed to do so, at only half an hour by plane from Ho Chi Minh City, Vietnam’s biggest economic hub. The region is also well connected to the national road system.

Coffee is grown widely in many districts of Dak Lak province. However, coffee from Buon Ma Thuot is renowned for its high quality and distinct taste. Buon Ma Thuot coffee now benefits from geographical identification, and the region is generally considered the coffee metropolis of Vietnam.

Coffee was first introduced to the region by French colonists in 1857. With ideal growing conditions, coffee from Buon Ma Thuot gained a reputation for its superior taste characteristics between the 1920s and 1930s. The region benefits from Basalt soil, and is 500 metres above sea level. Despite the American war, which devastated much of the country, coffee areas remained relatively unaffected.

They even managed to increase by a few thousand hectares to 20,000 hectares by 1975, when the Americans withdrew and the country was reunified.

Vietnam’s global success in coffee, however, was sparked following the Vietnamese government’s move to liberalise the economy in 1986. Coffee production has since boomed, with astonishing results.

According to the United Nation’s Food and Agriculture Organisation, Vietnam’s coffee areas were growing by 23.9 per cent a year during the 1990s. In 1997, the country was the world’s fourth largest exporter after Brazil, Colombia and Indonesia. Only three years later, Vietnam passed both Indonesia and Colombia to become the world’s second largest exporter, at a total export volume of 734,000 tonnes. The country has kept that ranking ever since. Last year, exports reached a record increase of over 30 per cent to 1.7 million tonnes, helping bring in US$3.67 billion in income. That level of export overtook Brazil’s top position. Currently, Vietnamese Robusta accounts for 70 per cent of Robusta traded in the world.

The expansion of plantation areas in the country has played a key role in these achievements.

Interestingly, the global economic crisis has not had an adverse impact on the development of coffee in the country. “Arabica price have jumped too high, forcing roasting businesses to increase the amount of Robusta in coffee products in the West to reduce production cost,” says Le Duc Huy, Deputy General Director of Simexco Dak Lak, the state-owned biggest exporter in Dak Lak Province.

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Huy points out that in the past three years, the price gap between Arabica and Robusta has narrowed by 300 per cent, down to around 30 per cent.

Emerging demand in Asian markets, such as China and South East-Asian countries, has also helped significantly. As these markets largely prefer instant with Robusta as the main ingredient, this has further helped drag the price of these two coffee beans closer.

“If it continues, Robusta price will even advance against Arabica,” says Huy. Traders and roasters have seen these opportunities in Vietnam. In an effort to reduce costs, some roasting companies have started setting up their businesses domestically.

A trader from Dakman Ltd., a processing and export company under ED&F Man Corporation, says that some of the company’s biggest clients have started launching their own factories in Buon Ma Thuot to take advantage of cheap labour and a zero export tax incentive by the government.

As a result, domestic businesses, who are looking for a way to increase the value added from coffee, are now debating whether it’s worth investing in the processing industry.

“The processing market has been occupied by foreign giant corporations. It’s very difficult

to compete with them in that area. So the only way for the industry is to stay focused in what we are doing,” says Trịnh Duc Minh, Standing Vice Chairman of Buon Ma Thuot Coffee Association.

According to the Ministry of Agriculture and Rural Development, the country currently has a total of 616,000 hectares of coffee, much higher than the targeted 500,000 hectares of the Ministry’s Coffee Development Plan 2020 vision 2030. The ministry is now looking to reduce on planted areas, and instead focus on improving the quality.

The latest figures from Dak Lak provincial authorities released in mid-October show that coffee areas in the region reached 202,000 hectares. More than 23 per cent are old coffee trees, which have a low production capacity of 2.2 tonnes per hectare.

To encourage farmers to look after their crops, Dak Lak authorities announced at the end of May VND3 trillion (US$142.1 million) in loans, at 10 per cent interest, to replant coffee.

Businesses were also encouraged to assist farmers in setting up sustainable practices, encouraging investment in modern cultivation techniques.

“Farmers are the foundation of the industry, we cannot survive without them. It is not right when we can make a lot of money thanks to what they provide while they drown in poverty,” says Dang Le Nguyen Vu, Chairman of Trung Nguyen Corporation, the biggest domestically-owned roasting and instant coffee business in Vietnam.

A rags-to-riches story, Vu was named by Forbes as Vietnam’s Coffee King. He emphasises the importance of maintaining good relations with farmers in the region. Trung Nguyen employs more than 3000 people in Vietnam, with a quarter of those in Dak Lak. The company has started a project that provides training to coffee farmers on personal financial management.

Ea Tun Village was chosen as a pilot, as an especially socially-disadvantaged area.

In the 2000-household village, with a population of more than 10,000, nearly 98 per cent are Ede ethnic minority group. The majority have been growing coffee for three to four generations, however their experience is often limited outside of coffee growing.

“I grow coffee because everyone here does,” says Hrue Hwing, an Ede villager.

In this village, the only habitants who don’t grow coffee are those who don’t own land. For a long time, each household in the village could

Yna Ayun picks dead branches from his coffee plantation.

only get 2 tonnes a year from their single hectare plantations, due to poor cultivation traditions.

Trung Nguyen has introduced the UTZ certified model to villagers, and has sent experts to hold courses at the village to teach farmers on cultivation techniques. An annual training course for the whole village has been carried out since 2010. The coaching has also been conducted on site at farmers’ plantations. Farmers are taught to keep a diary of all activities related to planting, including fertilizing periods, amounts, production yields and revenue.

Along with skills training, Trung Nguyen has made a significant investment installing Israeli drip irrigation systems to support farmers coping with deranged weather. The system provides irrigation directly to the root of the tree and fertilises according to need. The system helps save on water during the dry season, that seems to get worse each year.

The pilot was first conducted with the village patriarch, Ama Chuong, at no cost. Chuong has been attending Trung Nguyen training sessions since they were first introduced, and understands the benefit of taking proper care of his plantation.

“It’s great. I’m very happy that I have it. I can save a lot of money and water. The greatest thing is that it helps my plantation survive during the dry season,” says Chuong. The first year the irrigation system was introduced, Chuong saw a 1 tonne increase in yield to 2.6 tonnes per hectare. His farm has produced 4 tonnes per hectares since 2011. The local authority has since adopted a joint investment with Trung Nguyen, the government and the farmers at the rate of 50-40-10. The systems cost around US$2800 per farm. “I’m proud of Vietnamese farmers. They are very hard working and always eager to learn,” says Vu. Three more farmers have applied the new watering system to their plantation including Yna, who is expecting to produce at least 1 tonne per hectare higher than last year. Other farmers are similarly looking at the investment as a necessary step to increase their incomes. “There is no more land to expand the plantation. I have to find a new way to improve the productivity,” says Hrue, a 60-year old farmer.

Trung Nguyen currently supports farmers by paying a premium of US$20 per tonne over the market price for the coffee it purchases. “We work towards sustainable development in the region, brought up from the quintessence of the coffee tree,” says Vu. “We are doing business but we want to create a win-win situation.” GCR

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DIARY Dashboard COFFEE AROUND THE GLOBE

WORLD COFFEE EVENTS INTERNATIONAL COFFEE & TEA FESTIVAL

DUBAI, UAE

WORLD COFFEE LEADERS FORUM

THE EUROPEAN COFFEE SYMPOSIUM

SEOUL, KOREA PARIS, FRANCE

6–9 NOVEMBER 20-22 NOVEMBER 27-28 NOVEMBER The International Coffee & Tea Festival is the one-stop event showcasing all facets of coffee, tea, bar and café products, equipment and services, presenting a focused, industry-recognised platform in the Middle East. www.coffeeteafest.com

COFFEE OUTLOOK

HO CHI MINH CITY, VIETNAM

4-6 DECEMBER Coffee Outlook, presented by IBC Agribusiness, is a prominent coffee gathering in Asia’s coffee hub. The event offers an opportunity to share news and views, while also providing networking opportunities. The program will look at developing Vietnam’s coffee sector, global trends, changing market structures, quality challenges, trade risk, and more.

KEEP A LOOK-OUT

www.asiainternationalcoffee.com

Following a successful debut in November 2012, this year’s 2nd annual World Coffee Leaders Forum 2013 will examine and discuss further in-depth topics facing the world and Asian coffee Industry. The event expects to attract more than 1000 participants from 30 countries.

The European Coffee Symposium is Europe’s flagship event for senior executives from across the vibrant branded coffee shop and food-to-go sector. The event annually brings together 400 senior industry leaders from across the Pan-European branded coffee shop and food-to-go market.

www.wclforum.org

www.europeancoffeesymposium.com

SIGEP RIMINI, ITALY

18–22 JANUARY 2014 At its 35th edition, the Sigep expo is acknowledged as a top show in the artisan gelato sector, a primary European showcase for artisan Italian confectionery and is also strengthening its position in the artisan bakery field. www.sigep.it

GLOBAL COFFEE REVIEW LEADERS SYMPOSIUM – ASIA

SINGAPORE 5 MARCH 2014 Global Coffee Review brings its preeminent professional development opportunity and networking event to Singapore, where industry leaders will gather to explore the booming opportunities in the Asian market.

The event features vivid presentations and panel discussions aimed to help grow and inform the coffee industry. www.globalcoffeereview.com

World Tea & Coffee Expo 2014 6 – 8 February 2014 Mumbai, India www.worldteacoffeeexpo.com

SCAA Event & Symposium 23 – 27 April Seattle, United States www.scaasymposium.org

World of Coffee & Tea 2014 21 – 25 May Bangkok, Thailand www.world-of-coffeeandtea.com

Hotelex Coffee & Tea 31 March – 3 April Shanghai, China www.hotelex.cn

Melbourne International Coffee Expo 15 – 18 May Melbourne, Australia www.internationalcoffeeexpo.com

COTECA 24 – 26 September Hamburg, Germany www.coteca-hamburg.com

NOVEMBER/DECEMBER 2013 | GCR

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PRODUCTS Marketplace

COMPACT BY ASTORIA The new Compact by Astoria represents a new frontier for professional single group coffee machines. The machine is versatile, with a small footprint, but is professional in performance and quality. It fits in any kind of environment. It is ideal for those places where a high quality cup of coffee is required alongside minimal dimensions and a display of unique beauty and design. The machine is available in various models, including: ground coffee; paper pods; plastic capsules.

All models are available in the semi-automatic and electronic version, with built-in water tank or connection to water mains. For more information visit www.astoria.com

LAVAZZA ESPRESSGO Lavazza has introduced a new Lavazza A Modo Mio espresso machine, EspressGo, a mobile espresso machine. The compact and sleek device works with 12V power supply, meaning users can make a coffee on the go. Lavazza EspressGo is easy to use. A user connects the power cable to a vehicle’s 12-volt cigarette lighter, unscrews the filter holder, pours in the water using the supplied measuring cup, inserts a Lavazza A Modo Mio capsule, closes the filter holder and presses ‘on’. When the machine beeps three times, the user disconnects the power supply and presses the espresso button.

Lavazza’s EspressGo won this year’s Coffee Innovation Award in Germany. For more information see www.lavazza.com.au

MPE SOLUTION FOR CAPSULES, PODS & PADS Modern Process Equipment Corporation (MPE) is a world-leading manufacturer of precision particle reduction equipment. MPE grinders provide the proper balance between coarse and fine coffee particles, while achieving the optimal density for the perfect single cup brew. With the MPE family of capsule grinders, users can actively monitor and adjust roll position, temperature, density, and output rate in real time. The superior technology of MPE grinders provides the ability and precision needed to walk the tight rope of grinding for capsules, pods and pads. For more information about MPE’s complete line of equipment, contact Modern Process Equipment Corporation at 3125 South Kolin Avenue, Chicago, IL 60623, call 773-254-3929 or visit www.mpechicago.com.

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DETPAK APP Australian packaging manufacturer Detpak has introduced an app that allows customers to order products via their smartphones. The app is unique in the market, allowing cafĂŠs to receive products faster than ever before. At the touch of a button, a user can place an order, which includes free shipping over AU$300 and fast next day delivery to all main cities in Australia.

Detpak are the producers of Detpak Eco. Detpak Eco hot cups are made with a bio-film lining based on Polylactic Acid (PLA), instead of traditional plastic. The PLA material is made with plant starch, and is accredited to the European composting standard EN13432. These cups and lids will break down in 90 days in commercial composting facilities. The new Detpak App is now available in Australia for free download at the Apple iTunes Store.

For more on Detpak visit www.detpak.com

CABLEVEY Cablevey Conveyors is a manufacturing company that develops and builds state-of-the-art systems used to convey specialty materials. Based on patented, gentle, cable and disc technology, Cablevey conveyors gently move products such as roasted and ground coffee through an enclosed tube without the use of air. This virtually eliminates the product separation and degradation that occurs with traditional conveying systems. Systems can convey up to 35 cubic metres per hour. Numerous and flexible layouts are customised using multiple inlets and discharge points to customer specifications. Product separation and degradation are practically eliminated. All systems utilise cable and disc technology and operate at convey speeds which average 30.5 metres per minute. For more information visit www.cablevey.com

WEGA MY CONCEPT The My Concept is the latest generation of the Wega Concept line. The machine maintains all its innovation regarding energy savings, to which a highly technologically advanced touch screen has been incorporated for the control of the parameters of each group. Each touchscreen can be personalised to display a company’s logo, name, or even a favourite photograph. Apart from the Wega Concept energy saving features, and its ability to consistently produce the perfect espresso, new features include the control of the machine parameters and functionality from a remote location. A revolutionary system of control allows for electronic dialogue with hand-held devices, supporting innovative applications. For more information see www.wega.it

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LAST WORD World of Coffee

INDIAN COFFEES ON THE WORLD STAGE WITH THE ATTENTION OF THE COFFEE WORLD focused on the Specialty Coffee Association of Europe’s (SCAE) World of Coffee Event in France last June, the Coffee Board of India put their country’s best coffees on display in the 12th Flavour of India – Fine Cup Award.

The cupping competition was open to Arabica and Robusta beans in washed and unwashed varieties, as well as specialty classes of both types of bean.

The green coffee samples received from growers were coded and tested according to physical and visual quality parameters.

The coffees that were selected in the physical/visual quality test were then evaluated for cup quality by an experienced panel of tasters to select the best coffees for the final round of cupping. The outstanding coffees were then chosen for the final cupping by an international jury of cup tasters.

The Coffee Board of India received a total of 221 coffee samples comprising 72 samples of Arabica, 42 samples of Robusta, 65 samples of Specialty Arabicas and 42 samples of Specialty Robusta from the various coffee growing regions of the country. Out of 221 samples, 40 samples, including 20 samples of Arabica, six samples of Specialty Arabica, eight samples of Robusta and six samples of Specialty Robusta were selected for cup quality evaluation by the international jury.

The final round of the cupping competition was held at the Acropolis Exhibition Centre in Nice, France and the logistic and technical support was provided by the SCAE itself. The cupping session began with an introduction by Dr K Basavaraj and an insight into the finer nuances of the Indian coffees from Sunalini Menon, an international quality expert who has helped design the Flavour of India Competition over the years.

The results of the 12th Flavour of India Awards were declared in a ceremony organised at the coffee board’s stall at the SCAE World of Coffee Event on 26 June. The winner of Best Arabica was the Pedabayalu Estates’ Arabica Plantation SLN-4. The Poabs Estates’ Organic Arabica SLN-9 took out the Best Specialty Arabica prize, while the prize for the Best Specialty Robusta went to Harley B Estates’ Old Robusta. The Best Robusta category was won by Margolly Estates’ Robusta Parchment AB. The full details of the winners in all categories and regions can be found on coffee board of India’s website, www.indiacoffee.org.

Another high point for Indian coffees was achieved recently when two new Robusta coffees from Sethuraman Estates became just the second and third coffees in the world to obtain Q Robusta certification from the Coffee Quality Institute (CQI).

Sethuraman Estates’ 2013 Robusta Kaapi Royale (RKR) and

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The Coffee Board of India’s stand at SCAE’s World of Coffee was a focal point for visitors curious about the different flavours coming out of the Subcontinent.

RKR Peaberry join the farm’s 2012 RKR crop to remain the only Robusta coffee farm in the world to meet the program’s rigorous standards.

“We are stunned and extremely honoured to have been recognised as producing the only certified Fine Robusta coffees in the world for a second year,” says Sethuraman Estates’ Mr Gurjer.

“Furthermore, within India, domestic green grading standards stipulate that peaberry coffees are inferior to others, which we have long believed is not the case from our independent tastings. It is very exciting to see our own results validated by an independent panel of international experts.”

In a process similar to industry standard Q grading for Arabica varieties, Q Robusta Coffees are evaluated by three Licensed Q Robusta graders under the Coffee Quality Institute’s Q System by one of its authorised in-country partners. Coffees successfully meeting program standards to be considered Fine Robusta receive a Q Robusta certificate.

Those that do not meet the minimum requirements receive a technical report but are not listed in on the institute’s website. G C R

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.

Trên nền tối

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

Recognising Buon Ma Thuot Coffee A Trung Nguyen initiative

W E

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