GCR Jul 2014

July/August 2014

EXTRACTING A PICTURE

The European espresso machine market

DROUGHT DOUBTS The latest on Brazil

HOTEL SERVICE Horeca ups its game

INSTANT SUCCESS

Soluble takes the next step

CREATING

OPPORTUNITIES WITH COFFEE

COLOMBIA’S SUPERSTAR POLITICIAN SERGIO FAJARDO HAS HIS SIGHTS SET ON THE SPECIALTY COFFEE INDUSTRY TO CONTINUE THE TRANSFORMATION OF ANTIOQUIA. www.gcrmag.com 29.00

SwiSS Quality Made by FS 910

world’S leading Filling & Sealing Solution.

www.rychiger.com

CONTENTS July/August 2014

COVER STORY

12

SOCIAL TRANSFORMATION

The Government of Antioquia is hoping to revitalise the coffee industry to continue the reform of what was once the centre of Colombia’s cocaine wars.

17

IN THIS ISSUE FEATURES

RESEARCH & TECHNOLOGY ORIGIN

12 COFFEE AND HOPE

26 AN INSTANT REVOLUTION

Colombia’s superstar politician sets his eyes on the specialty coffee industry.

17

EXTRACTING A PICTURE

Dataresearch provides exclusive figures on the European espresso machine market.

21 AU NATUREL

Market conditions and improved practices are helping boost the popularity of Natural Arabicas.

30 THE GREAT BRAZIL DROUGHT DROP

Lowered production figures are in from the world’s largest coffee producer.

Buencafé revolutionises freeze-dried coffee products.

34 THE FULL PICTURE

An increasing preference for whole bean coffee is placing new demands on coffee roasters and their equipment.

PROMOTIONAL FEATURE 39 THE QUALITY EQUATION

Hotels are upping their game when it comes to coffee.

42 WMF 44 MELITTA 46 GILANO COFFEE

“COFFEE IS AN EXAMPLE OF THE EXTRAORDINARY THINGS WE CAN DO WITH OUR PEOPLE. THAT’S HOW WE BUILD HOPE.” Sergio Fajardo Governor of Antioquia

48

48 VIETNAM PREMIUMISATION

Some are seeing the potential for Vietnam to enter the specialty realm.

INDUSTRY COMMENT 52 ICO

Introducing a new regular column by the International Coffee Organization.

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

30 J U LY /A U G U S T 2 0 1 4 | GCR

3

EDITOR’S NOTE Global Coffee Report

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



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

COFFEE GETS POLITICAL IT WAS A SPECIAL EXPERIENCE speaking to a politician as accomplished as Governor Sergio Fajardo for our cover story for this edition of GCR Magazine.

In his time as mayor of Medellin, Fajardo played a pivotal role in transforming the formerly notorious city. Medellin was recently hailed as the world capital of innovation by The Wall Street Journal, and it will be the centre of activity for the Latin American coffee industry in October this year as it hosts one of the region’s most important trade exhibitions, ExpoEspeciales.

Fajardo tells us today the Antioquia region is a safe and beautiful place to visit, and he’s hoping tourism might help bring in foreign dollars. He’s also eyeing the region’s specialty coffee industry as a way to continue the transformation of the local economy.

Fajardo is smart to do so. Although Colombia has long enjoyed the work of the Federation of Colombian Coffee Growers (FNC) in ensuring the long-term sustainability of the industry, by further moving into specialty coffee, farmers can lift their income above a sustainable/sustenance level. Initiatives like the Cup of Excellence and direct trade practices are today seeing those farmers who grow at the specialty level generously rewarded. The coffee industry is fortunate to be the next to benefit from Fajardo’s political work.

These efforts come at a time when Colombia is enjoying the spotlight, sadly at the cost of production issues elsewhere. In Brazil, the news isn’t getting any better. Price hikes seen at the beginning of this year have been justified, as general consensus emerges that around

4

G C R | J U LY / A U G U S T 2 014

10 million bags of coffee will drop out of the market (see page 30). News of the effects of Brazil’s drought only adds to supply concerns over quality Arabica following the rust disease outbreak in Central America.

Colombia has largely been spared thanks to the FNC’s efforts over the past few years of revitalising the country’s crop. Colombia’s recovery story shows the success of scientific and coordinated efforts in fighting the effects of climate change. It’s a timely lesson to learn, as the Intergovernmental Panel on Climate Change released a report this past April projecting a drop in Arabica production due to the spread of plant diseases and pests.

In a special column that will now be a regular feature in GCR Magazine, Robério Silva, Executive Director of the International Coffee Organization, discusses why coffee producers need investments – whether it be from governments, private companies, or other – to fight these challenges (see page 52). Let’s hope that more private and public enterprises will follow the work of Governor Fajardo to ensure a bright future for the coffee industry.

Christine Grimard Editor

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

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

ARTICLES

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

COPYRIGHT

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

FLEXIBLE GRINDING SOLUTIONS FOR YOUR PRODUCTS

Our grinders don’t just meet the highest requirements in terms of cost-effectiveness – they also offer trouble-free and low-wear permanent operation, not to mention their high availability, long life spans and low life cycle costs.

Our range of high-performance grinders offers you maximum flexibility, no matter what kind of ground coffee you are looking to produce.

PROBAT-WERKE VON GIMBORN MASCHINENFABRIK GMBH 46446 Emmerich am Rhein, Germany Tel. +49 2822 912-0 •

www.probat.com

NEWS In Brief

NEWS DRIPBYDRIP The government of Antioquia has launched a program Origin of Specialty Coffees to modernise its coffee industry.

Antioquia Governor Sergio Fajardo, former mayor of Medellin, tells GCR Magazine that reinvigorating the local coffee industry is an important part of his work as Governor.

Fajardo has played a key role in transforming Medellin, once known as the former murder capital of the world and centre of Colombia’s cocaine wars. As Mayor, he built cultural centres and monuments in some of the poorest neighbourhoods, and invested heavily in education.

As Governor, he is now looking to use a similar approach to renew the state’s economy, with a central focus on coffee. In targeting the specialty coffee industry, Fajardo tells GCR Magazine he aims to make Antioquia’s “the best in the world”.

Antioquia is responsible for around 1.2 million bags of coffee a year, 16 per cent of Colombia’s total production. Around 92,000 families and 133,000 hectares are involved in coffee production.

The Coffee Quality Institute awarded Fajardo with its Leadership Medal of Merit in May for his work with coffee.

See page 12.

the drought hit the plants during key bean formation stages. The result is smaller beans, meaning it takes more to fill a coffee bag. In some cases, there is a lack of beans in the cherries altogether.

Different forecasting groups are putting forward predictions on every end of the spectrum. Brazil’s main forecasting agency Conab revised its final projections to an output of around 45.6 million.

Brazil’s National Coffee Council has lowered its forecast to between 40.1 – 43.3 million bags, from 44 million. The Brazilian coffee research foundation Procafe says it expects production in the 2014-15 harvest to drop to 40.1 – 43.3 million bags due to drought damage. Coffee traders Volcafe put the output at 45.5 million bags.

On the more optimistic end, the world’s second largest coffee trader Ecom says the crop could hit 51 million bags. The United States Department of Agriculture has put its figure at 49.5 million bags.

The question is now howl final losses affect prices. Financial tools providers INTL FCStone say the revised estimates are already priced into the market. International commodity analyst Judith GanesChase says coffee prices could surge as high as US$3.25 before meeting market resistance.

See page 30.

The latest reports from Brazil are predicting the country could lose around 10 million 60-kilogram bags of coffee due to the drought seen earlier this year.

Although the rains that followed the drought meant that plants became greener, several reports have said that

Buencafe is using micro roast technology to increase the quality of its freeze-dried coffee.

The micro-roast technology uses particles of real, finely ground coffee, in its products. The technology was made famous by Starbucks, which introduced it in its Via instant product.

6

G C R | J U LY / A U G U S T 2 014



AMERICAS

Antioquia’s Origin of Specialty Coffees Project is looking to reinvigorate the coffee sector so the Colombian region can produce some of the best coffees in the world. See page 12.

Buencafe first started operating in 1973. Buencafe is based in the Colombian town of ChinChina.

Buencafe uses 100 per cent Arabica beans grown across Colombia’s coffee regions. Today, it distributes its products to more than 60 countries around the world. See page 26.

Modern Process Equipment (MPE), based in Chicago, the United States, announced its latest technology in capsule/pod grinding with the Ultranova Grinding and Densifying System (UGDS).

The system guarantees the most accurate grind and density attainable through any grinding system offered on the market.

Through a proprietary three-high modular grinding system and the new Vortex Super Densifier, the UGDS is an optimal solution for capsule or pod coffee producers worldwide.

See page 56.

FINE GRIND

Modern Process Equipment has released the Utranova Grinding and Densifying System (UGDS) for advanced coffee capsule and pod manufacturing.

See page 56.

WMF 1500 S Your next step!

The new WMF 1500 S is the successor of the WMF presto!

Another significant step towards a new generation of WMF coffeemachines.

With technology that has been tried and tested thousands of times, and with many new features, the WMF 1500 S is continuing the success story of the WMF presto!

A success story that is unrivalled in the world of commercial automatic coffee machines.

With the WMF Photo Simu app, you can now see how a WMF coffee machine will look in your location. – Simply scan the QR code, install the app, print out the marker and off you go!

For Apple iPhones + iPads

WMF AG Coffee Machines International Eberhardstrasse ‧ D-73312 Geislingen/Steige, Germany

For Android Smartphones + Tablets

Phone +49 7331 – 25 8482 ‧ Fax +49 7331 – 25 8792 gastro-export@wmf.de ‧ wmf-coffeemachines.com

NEWS In Brief



Natural Arabicas are seeing an improved reputation, as production practices and lobbying efforts are raising the hopes of this “inferior” bean.

In 2008, organisers held the first International Conference on Arabica Naturals in Mexico. Event promoter Manual Diaz says that the potential of Natural Arabicas has been largely ignored by the industry, despite making up half of the world’s Arabica production.

Natural Arabicas are less expensive to process because they are typically dried on patios, and the majority don’t go through washing or fermentation. They are sold on the market at a steep discount, typically of US$0.30 per pound. World production in 2013-14 has been forecast by the ICO at 46.7 million 60-kilogram bags, around 55 per cent of total Arabica production, and 32 per cent of total world production.

Brazil produces the vast majority of Natural Arabicas, however other countries have won international acclaim for theirs including Limu, Ethiopia, Mexico, Uganda and El Salvador. See page 21.

Pulped Natural Arabica is increasing in prestige and popularity. See page 21.

8

G C R | J U LY / A U G U S T 2 014

EUROPE



AMERICAS

Neuhaus Neotec’s Rotating Fluidised Bed roaster limits hot spots with a careful air-to-bean ratio. See page 34.

The European espresso machine manufacturing market produces around 340,000 espresso machines a year, according to Dataresearch findings released exclusively to GCR Magazine.

Although Europe continues to be the dominate market, accounting for around 54 per cent of sales, Dataresearch reported that the importance of exports outside of Europe has increased in recent years.

This growth is being led by sales in the United States, Asia, and Australia.

The report found the market has not been spared by the regional economic crisis, with many manufacturers seeing the better part of their profits linked to spare parts and services rather than sales.

Germany was found to be the largest market for new espresso machines sold annually, of which 90 per cent are fully automatic.

See page 17.

The sale of retail whole bean coffee is on the rise in Germany, and around the world, as specialty coffee trends hit the at-home market.

In Germany, those sales have grown at 11 per cent per year, to a total of 62,000 tonnes in 2013.

Ariane Toenjes, from Neuhaus Neotec’s Research and Technology Department, says the new trend is putting more demand on coffee roasters to ensure the aesthetics of their roasted coffee product.

Neuhaus Neotec’s Rotating Fluidised Bed (RFC) roaster is one such innovation. The technology uses a careful air-to-bean ratio to ensure the consistent roasting of the beans without any hot spots. Because the beans aren’t moved mechanically, the technology also results in minimum to no bean breakage.

For more see page 34.

In April 2014, the Intergovernmental Panel on Climate Change (IPCC) released a report that predicted serious threats to coffee due to rising temperatures and changing rainfall patterns.

The International Coffee Organization (ICO) will be responding to the needs of the coffee industry to face these challenges via a report on coffee sector adaptation initiatives to climate change. The report will include plans to diversify the existing Projects Committee to include scientists from national and international research institutions and universities. The first phase of the report will be presented in New York in September 2014 and the second phase and final submission will be delivered in Paris in September 2015 to the United Nations Framework Convention on Climate Change (UNFCCC). See page 52.

NEW HORIZON

Flexicon Corporation has opened a Southeast Asia facility in Singapore.

It will be headed by Applications Engineer, Jhuning Chng.

Exotic Arabica

A connoisseur’s delight

Specialty Coffee Very bold beans, with uniform bluish green colour Aroma of dark chocolate Pleasant sweet taste with balanced citrusy acidity After taste with a hint of roasted nuts

NEWS In Brief



ASIA PACIFIC

Some coffee hopefuls are putting their bets on Vietnam to enter the specialty realm.

Trung Nguyen, Vietnam’s largest coffee roaster, has introduced a Legendee brand of premium coffee.

The coffee is processed with technology that mimics the natural fermentation process of the civet cat.

Quang Tran, Founder of the Vietnam Coffee Company, says he’s sourced high grade coffee in the country’s coffee growing capital of Buon Ma Thuot, in Dak Lak Province.

Tran says that Buon Ma Thuot offers all the growing conditions necessary for specialty coffee. As a micro-climate area, the basalt soil provides a good PH level for coffee. He says that agricultural practices have changes considerably over the years, and that farmers are leaning towards more organic and professional practices. See page 48.

HOTEL COFFEE

Hotel chains now have a range of options available to meet the demand for quality espresso-based coffee among their guests.

See page 39.

10

G C R | J U LY / A U G U S T 2 014

The Coffee Board of India has announced plans for a Barista Training Program, according to reports by the Indian Express.

The ground breaking program is aimed at boosting local demand, with trainees taken on a study tour to the board’s research centres and coffee estates, and plans for the trainees to work at coffee chains.

This follows additional work by the Coffee Board of India to promote specialty coffees from the region. The Coffee Board recently travelled to Australia to participate in the Melbourne International Coffee Expo to promote its fine coffees. See page 58.

Flexicon Corporation has accelerated its expansion in Southeast Asia with the opening of a new facility in Singapore.

Applications Engineer, Jhuning Chng has been training at Flexicon in Bethlehem, Pennsylvania for the past year. Chng will run the Singapore office.

Legendee is Trung Nguyen’s premium coffee.

Chng will be responsible for building relationships with plant managers, engineers and other decision makers at Southeast Asian facilities that handle bulk solid materials across the food, pharmaceutical, packaging and general chemical industries.

The Singapore office will have direct access to details on more than 15,000 installations of Flexicon bulk handling equipment and full access to Flexicon’s worldwide engineering resources.

Hotel guests around the world are now expecting quality, espresso-based coffee available during their stay.

Although filter has been the traditional form of hotel service coffee, served via bulk-brewers at breakfast, guests are today expecting the option of an espresso beverage.

Hotels have responded in different ways. Some have included branded coffee chains inside their lobbies.

Because that approach requires heavy investment, other hotel brands are looking at how they can meet those demands with in-house staff.

See page 39.

Upgrading to automatic espresso machines is a preferred option among many hotel chains. Today’s modern machines make that option a viable one, with automatic machines providing a high level of service, as well as a quality coffee offering.

Gert Rietmuller, Export Director

for WMF, says that a quality coffee offering can be the make or break characteristic to maintain customers’ loyalty. He notes that modern guests expect barista quality coffee and service.

To meet these demands, WMF offers one-step and two-step fully automatic machines. For quick service, the one‑step machines offer a quality espresso-based drink at the touch of a button. However to continue on that service, two-step machines provides the user the option of manually frothing the milk, to deliver on service expectations.

See page 42.

Oliver Welschar, Key Account Manager for Melitta, explains how in the Horeca service, industry, the appearance of machines can be just as make or break as the service. The Melitta Cafina XT6 offer high‑performance technology that guarantees perfect beverage quality in every cup. In addition, the product won the prestigious Red Dot Design Award for its sleek design, and compact size.

See page 44.

With advancement in machine design, comes the need for a place to set up shop. Gilano Coffee is offering the latest trend in the lobby coffee experience via coffee carts. The Australian company is offering Melbourne‑made carts with Italian inspiration, as a low-cost, transportable method for hotels to offer coffee service. See page 46.

COVER STORY Sergio Fajardo

A STORY OF

COFFEE HOPE I

COLOMBIAN POLITICIAN SERGIO FAJARDO HAS SET HIS SIGHTS ON THE SPECIALTY COFFEE INDUSTRY IN HIS QUEST TO LEAD SOCIAL TRANSFORMATION IN ANTIOQUIA.

n 1991, the city of Medellin was making headlines around the world – and they certainly weren’t the good kind. At the centre of Colombia’s cocaine wars, the Antioquian capital was one of the deadliest cities on the planet, with its homicide rate peaking at 381 per 100,000.

To put that figure into perspective, the United States was also experiencing its highest homicide rate in recent history that year – at 9.8 per 100,000.

Fast-forward 13 years, and Medellin is making headlines of a different nature. In 2013, the city was named the world capital of innovation by The Wall Street Journal and the Urban Life Institute. The city’s murder rate has fallen a remarkable 80 per cent, as education and other social programs have targeted the around 2.2 million underprivileged residents.

The city’s poorest neighbourhoods are filled with cutting-edge architectural public spaces and libraries, with designs befitting the wealthiest quarters.

Sergio Fajardo has played a central role in this transformation. As mayor of Medellin from 2004 to 2007, and Governor of Antioquia from 2012 to today, Fajardo is considered a superstar of Colombian politics. He ran for Vice President alongside Green Party candidate Antanas Mockus in the 2010 election, and with a strong approval rating in his current position, international media have painted Fajardo as a

12

G C R | J U LY / A U G U S T 2 014

potential future President of one of Latin America’s most important coffee producing countries.

“Medellin has had a profile association with narcotics traffic and destruction. The Colombian youths in our society were facing violence,” Fajardo tells GCR Magazine. “These were the characteristics associated with Medellin. When we came into power, we wanted to show how we could build hope.”

It’s been a long path for Fajardo to help oversee this change. Fifteen years ago, Fajardo was working as a Professor of Mathematics in Bogota, having completed his Doctorate at the University of Wisconsin.

“From very early on, I realised that I came from a privileged background, and as a result, I had different opportunities,” he says. “People without privilege have different opportunities. It’s unfair.”

Fajardo’s background in academia has had a significant impact on his political activities, in which he places a high importance on the role of education in empowering change. “Education should be a right and not a privilege,” he says.

Fajardo first dipped his toe into the political sphere as a member of Colombia’s national science council. He began writing columns for newspapers, and commenting on radio programs. But after a few years working on the sidelines, he was eager to take a position where he would be better placed to enact change.

“We got together as a group and realised that politicians make the most important decisions in society,” he says. “We were the outsiders. [Our choice was] to spend the rest of our lives saying what had to be done, or we could organise ourselves and start a political movement.”

Fajardo ran as an independent, making education the central focus of his election, saying it would be the “engine of social transformation of the city”. In an election system, which Fajardo says is laden with corruption, he and his political team approached it the “traditional” way and took to the streets, handing out leaflets. He says he refused to resort to bribery to win the position, and instead proved the success of the democratic system.

“We came into power without paying anyone,” he says. “We put our bets on education and promoting culture to our citizens.”

The approach was a success, helping him become mayor in 2003. Once in power, he followed through on his plans to reform education. According to The New York Times, he increased the city’s annual budgetary spending on education to US$900 million, around 40 per cent of the city’s budget.

He also invested heavily into erecting architecturally striking public structures in the city’s

J U LY /A U G U S T 2 014 | GCR

13

COVER STORY Sergio Fajardo

Antioquia is responsible for 16 per cent of Colombia’s coffee production.

poorest neighbourhoods. The psychology of this, he says, was to make people feel safe in these neighbourhoods.

“We built spectacular public spaces. In a society with violence, it controls the people with fear.

We wanted to replace that fear with schools and cultural centres, a science and technology park and botanical gardens. Through urban transformation, we provided spaces where people could get together and feel safe,” says Fajardo. “Through architecture, we could empower the people with dignity… As Colombia advanced, we led the renaissance of Medellin.”

Fajardo’s efforts were assisted by an escalation of the federation government’s crackdown on crime stemming from illegal drug trade, with ample support from the United States. Estimates say that from 2000, the United States spent around US$1.8 billion in financial and training support to the Colombian army, deployed domestically against drug cartels.

Fajardo’s philosophy, he tells GCR Magazine, is that security efforts need to be supported by new opportunities for the underprivileged, who often have few options available outside of the drug trade. This is where his work in reinventing Antioquia’s coffee sector comes into play as a powerful agent of social change.

Antioquia accounts for around 16 per cent of Colombia’s total coffee production.

Coffee is grown in 94 out of 125 municipalities, with 92,000 families in the state working in coffee production.

Although coffee was previously Colombia’s most traded commodity, Fajardo points out that it no longer plays the role it did in the past. Today, Colombia is a major exporter of oil and minerals.

In Fajardo’s strategy for the region, he says that coffee is not only a viable employment alternative, it also importantly a part of the state’s culture. In that sense, it plays a significant role in the Governor’s strategy of reviving the region’s culture.

“We take another view of coffee as a product,” he says. “Coffee is not a just a business.”

At the centre of Fajardo’s efforts as Governor is his Antioquia La Mas Educada (Antioquia The Most Educated) initiative. Under the scheme, he has launched the Origin of Specialty Coffees Project, a strategy of “intervention for the development of the coffee sector through education, science and technology, entrepreneurship, and culture to be more competitive and give a boost towards a rural business class,” according to an official government statement.

EMPOWERING YOUNG FARMERS WITH KNOWLEDGE: ONE STORY SANTIAGO DAVILA IS A 16-YEAR-OLD YOUNG COFFEE GROWER FROM SONSÓN, A MUNICIPALITY FROM ANTIOQUIA. SANTIAGO DAVILA grew up in a coffee growing family, and has been working in the business his whole life. After saving for several years, Davila’s family was able to buy their own farm where they planted 7000 coffee plants.

Davila will now be able to contribute to the family’s business with an expertise on the consumption side of coffee, offering a perspective of what baristas and roasters are looking for. Under the Antioquia, Origin of Specialty Coffee Program, Davila is now a certified barista trainer, with his training program recognised by the Specialty Coffee Association of Europe (SCAE).

“I wanted something that would provide me with more knowledge about coffee to understand how to generate my own product, a very good one,” says Davila. “That’s why

14

G C R | J U LY / A U G U S T 2 014

I requested the intensive Barista course and fortunately I was selected.”

Davila completed the training at a special Young Farmers Camp organised by the Antioquian government, that took place in Medellin at the end of May. The camp welcomed 1000 young farmers from around the region to attend professionally accredited training programs, like the ones by the SCAE. Thanks to this training, Davila says he’s discovered “a whole new passionate world around coffee, which became almost a new life style.”

“Today Santiago is on the other side of the table,” says Fajardo. “He conveys an inspirational message for young coffee growers like him who can now have a better quality of life thanks to education. Santiago is the new coffee growers’ generation.”

Around 92,000 families in Antioquia work in the coffee industry.

“There is a new generation of people moving into the 21st Century who are dealing with specialty coffee,” he says. “Our challenge now is moving our coffee culture into the 21st Century.”

It’s in bringing the industry forward that Fajardo sees the role that technology and education can play, and the impact he can have as a politician in the coffee industry.

“Coffee growers come from very humble origins,” he says. “We’re going to use technology to create the best coffee in the world – that’s our challenge.”

Indeed, modernising the industry won’t just be about increasing its value, but ensuring the long-term sustainability of the sector. The average age of coffee farmers in Colombia is 55 years old, showing that the younger generation is struggling to see a future in the industry. Fajardo says that coffee farms are being split up as they are passed down to the next generation.

To modernise the industry, Fajardo will use educational efforts to provide tools for young farmers to better commercialise their farms, with a focus on improving quality so that Antioquian coffee will lead the specialty field. He says education can play a powerful tool in encouraging farmers to learn English so they can work directly with roasters. He’s also hoping to tap into the region’s tourism potential by encouraging coffee farm visits.

At the higher education level, the government has committed around US$10 million to invest in applied research in the coffee production process with recognised universities in the region.

With the area still recovering from a history of poverty and corruption, Fajardo still has some work ahead. The Guardian reported this past April that “micro-corruption” is still rampant in some pockets of the city, with gangs demanding bribes from everyone from taxi drivers through to shop owners. The same report said that more than 5000 Medellin residents were displaced in the first 10 months of last year from violence, threats and forced recruitment by gangs.

By working to improve the quality of the region’s coffee as a way of leading future social transformation, Fajardo’s efforts may not only help improve the lives of his constituents, but coffee drinkers the world over.

“Our coffee will be getting better,” he says. “Coffee is an example of the extraordinary things we can do with our people. That’s how we build hope.” G C R

Leveraging knowledge for coffee sustainability Get ready for the XXV International Conference on Coffee and Science

DISCOVER HOW SCIENCE AND KNOWLEDGE CAN PAVE THE WAY FOR COFFEE SUSTAINABILITY

September 8 th - 13 th / 2014 Armenia - colombia

www.asic2014colombia.org

reasons why Colombia should be on your calendar this year!

Growers, industry and coffee lovers come together to discover the different coffees that the regions of Colombia have to offer.

October 2 nd - 5 th / 2014

MedellĂ­n - colombia expoespeciales.com

MARKET REPORT Espresso in Europe

EXTRACTING A PICTURE MARIANO PELUSO PRESENTS THE LATEST FINDINGS FROM DATARESEARCH ON THE CURRENT STATE OF THE ESPRESSO MACHINE MANUFACTURING MARKET IN EUROPE.

W

hen it comes to espresso machine manufacturing, the industry hasn’t strayed far from its original European roots. The continent continues to house the largest number of manufacturers of professional espresso coffee machines worldwide – by a long shot.

Europe is not only the largest manufacturer of espresso machines, but has also found itself as the meeting point of two different philosophies. The world of traditional espresso coffee machines, catering to establishments with skilled baristas on hand, and the world of fully automatic espresso coffee machines, where technology picks up where talent lacks.

In Europe, it would seem the availability of talent is dependent not only on the type of business, but also the country. According to the latest figures by Dataresearch, Italy, France, Spain and Portugal show a vast preference for traditional espresso machines. In Germany, Netherlands, Switzerland and Austria, fully-automatic machines find a more favourable audience. In the United Kingdom and Poland, traditional models prevail slightly, while in Nordic countries, fully automatic machines have only a slight advantage.

The European production of professional espresso coffee machines currently sits at around 340,000 machines, of which 57 per cent are traditional models and 43 per cent are fully automatic models.

Only two countries, Italy and Germany, account for two thirds of total production.

Half of the main production sites are located in Italy, while other numerous sites are located in Switzerland and Spain, for a total of around 40 production sites in Europe, according to Dataresearch findings.

Europe is the primary target market for professional espresso machines, accounting for 54 per cent

of total sales (185,000 machines). But the share of exports outside Europe is also important, accounting for 46 per cent, with that figure increasing in recent years. Dataresearch has found that demand in Europe is stable or slightly decreasing, while the United States, Asia and Australia are seeing strong growth rates.

The European espresso machine market has not been spared by the regional economic crisis and lack of new investments. Many espresso machine manufacturers are currently seeing the better part of their profits linked to spare parts and services rather than new sales.

But Europe is a colourful and fragmented market. While some areas aren’t growing, others are recording good performance.

Germany is the largest market in Europe for new espresso machines sold annually, of which 90 per cent are fully automatic. Eric Martin Vazquez, Marketing Director of Melitta System Service, explains that after years of growth,

J U LY /A U G U S T 2 014 | GCR

17

MARKET REPORT Espresso in Europe 46% Automatic Models Germany is suffering from a general lack of business investment. The result is mainly affecting coffee machines priced at the upper end. Exports, in particular outside of Europe, are currently the main source of revenue growth.

The HoReCa (hotels, restaurants, catering) industry is showing better potential than the cafĂŠ and coffee shop industry. Companies are seeing good results thanks to the service and sale of spare parts and in terms of the number of machines sold.

Central Europe, the area that includes Germany, Switzerland, Austria and The Netherlands, currently accounts for around 29 per cent of the European market by number of machines sold. It is the richest region in terms of market value, worth around 237 million euro (US$322 million). In next few years, operators surveyed say this area should see strong performance thanks to the recovery of investments. The market expects growth from independent businesses (i.e. small bars and bakeries) and the development of petrol stations with bars and restaurants.

Italy is the second largest market and, together with Spain, Portugal and Greece, represents the largest area in terms of the number of machines sold (59,000 machines) and around 93 million euro (US$126 million) in terms of market value. This area has suffered the most from the economic crisis and a lack of new investments. The value of the espresso machine market dropped significantly over the past few years but, according to David Escoda, Export Manager of Ascaso, there are early signs of recovery, at least for the Spanish market.

According to Maurizio Giuli, Chief Marketing Officer at Nuova Simonelli, the success of the Italian professional coffee machine market comes mainly from exports, in particular from Far East markets, while the internal market is still weak.

France and the UK are two other important markets in terms of the sale of professional coffee machines. In these markets, traditional models prevail, but a large share of fully automatic coffee machines are sold. Western Europe, the area that includes France, Belgium, Ireland and The United Kingdom, represents around 23 per cent of the total European market in terms of number of machines sold (43,000 machines). Currently, businesses in Paris and London have reported a strong interest in opening new coffee businesses.

The UK, particularly, has large potential, according to Chris Salierno, Marketing Director at La Marzocco. The country is seeing a rise

18

G C R | J U LY / A U G U S T 2 014

Breakdown of production by type (% of number of machines sold)

46% Automatic Models

54% Traditional Models

54% Traditional Models

Breakdown of European Market by main areas (% of number of machines sold) 13% Eastern Europe

29% Central Europe

3% Northern Europe

Breakdown of European Market by main areas (% of number of machines sold) 13% Eastern Europe

3% Northern Europe 23% Western Europe

29% Central Europe

32% Southern Europe

in the opening of independent coffee shops interested in offering quality coffee. He says that this niche is strong and is seeing large growth. Other professional coffee machine markets that are slowly expanding include Nordic countries and Poland.

The Western professional coffee machine market in Eastern Europe accounts for 13 per cent of the total 23% Europe European market (around 25,000 machines). Poland and Czech Republic the richest countries 32%are Southern Europe in term of market value at 34 million euro (US$58 million). Poland is the biggest in terms of the number of machines sold, and is experiencing growth thanks to new investments in the hospitality sector.

In discussing main market dynamics, countries can more easily be aggregated. However, when discussing success factors and competition, it is more difficult because of peculiarities among territories.

Kamal Bengougam, Deputy Chief Executive at Eversys, says that, for example, Germany and Switzerland have common characteristics, such as a large share of fully automatic coffee machines, a distribution linked to regional operators, and a knowledgeable customer mindful of the service

10% Others

50% Italy

5% Germany

Location of production sites in Europe

8% France

10% Spain

10% Others

50% Italy

5% Germany 17% Switzerland 8% France

10% Spain

17% Switzerland

Breakdown of European Market by main areas (% of market value) 10% Eastern Europe 3% Northern Europe

44% Central Europe

Breakdown of European Market by main areas (% of market value) 25% Western Europe 10% Eastern Europe 3% Northern Europe

44% Central Europe

18% Southern Europe

25% Western Europe and characteristics of machines. But when discussing market dynamics, these two countries have an important difference: Swiss customers have a greater propensity to investment. This means that while Switzerland is a good market to sell premium products, Germany is a good market for entry level machines and most bartenders prefer to rent (and not to buy) the coffee machine.

Globally, most manufacturers say price and servicing are the top factors affecting a purchaser’s 18% Southern Europe decision. However, some areas tend to prioritise pricing, including Italy, Spain, France and Poland.

The economic crisis has increased the pressure on prices, and manufacturers are adopting a strong policy of discounts.

The Polish market is one such market, according to local experts. Although demand in the Polish market is increasing, the average price of a machine is 20 per cent less than a comparable machine in Germany.

According to John McGinnell, Sales Manager at Fracino, success factors in the British market are linked overall to the quality of machines and to the brand’s image.

The British market has features that make it unique from others in Europe, explains Eversys’s Bengougam. The distribution of machines is in the hands of national operators that offer total solutions: machines, coffee, assistance, training and other services. UK coffee shops have an impressively high level of consumption of coffee per year, and baristas look for high-performance machines.

The majority of espresso machine manufacturers surveyed say that the quality of machines is the true deciding factor in that machine’s success – even if the market will not necessarily pay more for that product. Horeca operators are becoming increasingly interested not only in the quality of the machine and the quality of coffee in the cup.

Manufacturers are developing models that include new features and are investing in technology. A strategy of “new models” and often “old prices” is being used to try to capture new market shares.

In surveying machine manufacturers, one interesting innovation is remote control.

Producers of professional coffee machines are introducing this new technology to measure the frequency of usage and for maintenance.

Modularity has also emerged as an important element. When a machine is modular, it is easier to remove only the part that malfunctions to facilitate servicing. Functions like this are allowing fully automatic machines to become more similar to small computers.

Traditional espresso machines are also focusing on improving technology. T3 technology developed by Nuova Simonelli, provides advanced performance to improve the quality of coffee in cup. The principle is based on the ability of the machine to adapt to the characteristics of each coffee blend by controlling the temperature. To guarantee the best coffee in cup, each coffee blend needs different parameters of calibration for the machine. According to Giuli from Nuova Simonelli, this feature helps baristas to work with different coffee blends and origins on one machine.

With all these new technologies, financial trouble at home is forcing manufacturers to look overseas for growth. Internally the strongest prospects are in Eastern Europe, in particular Poland, even if these markets are not yet ready to pay a premium for innovation.

Excluding the UK, other Western markets are still weak but there is hope that innovations can stimulate demand. GCR

J U LY /A U G U S T 2 014 | GCR

19

InfinityRoastTM – a new dimension in coffee flavor creation. Imagine having unprecedented control over flavor generation ! Let the InfinityRoastTM inspire your product innovations and assist you in creating new traditional and innovative non-traditional roasting profiles for customized flavor characteristics and physical bean properties. With the InfinityRoastTM you are in control. The InfinityRoastTM series represents the next-generation coffee roaster that is leading the way into the future of roasting. It is designed for high-performance operations setting superior standards in safety, reliability, energy-efficiency and minimal environmental impact.

Bühler AG, Coffee, CH-9240 Uzwil, Switzerland, T +41 71 955 11 11, sc.buz@buhlergroup.com, www.buhlergroup.com

InfinityRoastTM – Widest process flexibility for traditional and non-traditional roasting profiles – Variable air-to-bean-ratio – High performance Infinity Profile Control for outstanding quality consistency – Efficient and uniform cooling – Cutting-edge automation for user-friendly operation, process monitoring and reporting – Superior safety concept

Innovations for a better world.

FEATURE Natural Arabica

AU NATUREL

OFTEN REGARDED AS THE INFERIOR ARABICA, NATURALS HAVE RISEN IN PROMINENCE IN RECENT YEARS. AS MARKET VOLATILITY CONTINUES TO SURGE, SO MIGHT THE IMPORTANCE OF NATURAL ARABICAS. J U LY /A U G U S T 2 014 | GCR

21

FEATURE Natural Arabica

I

ndustry circles love to debate what beans provide the best quality in the final cup.

The discussion is fuelled by changes in farming and processing practices that are making the hierarchy of beans much less obvious. Some industry experts are now saying that Natural Arabica beans, which typically command a discount on the market compared to their washed Arabica cousins, are the latest to see their spot on the stepping ladder potentially go up a notch.

“The dry processing science and technology involved in producing Natural Arabicas has improved considerably in the past five years. Today we have a much better understanding of cherry fermentation and the flavour migration processes in Arabica Naturals. But we need to see this discussed much more actively on the global agenda,” says Manual Diaz, a leading international expert on gourmet Robusta and natural Arabica beans. Diaz is part of a small group of people who launched the 1st International Conference on Arabica Naturals, held in Mexico in 2008. Since then, they have held several more conferences, in places including Yemen and Brazil.

“Over half of the world’s Arabica production consists of Natural Arabicas, yet for years this has been largely ignored by the industry when debating the importance of the different types of coffee,” Diaz tells GCR Magazine.

Naturals are Arabica beans dried in the cherry directly on patios, and the majority don’t go through washing or fermentation, although a portion of naturals are depulped. They are typically sold at a steep discount of up to US$0.30 per pound in the world market. Arabicas are divided into three subsections: Naturals, Colombians – which always receive a premium a few of cents above the rest – and “other milds” refer to all fully washed Arabicas not of Colombian origin. Naturals are grouped together regardless of origin, however they are predominantly supplied by Brazil.

World production of Natural Arabicas in the current 2013-14 international crop cycle is forecast to reach 46.7 million 60-kilogram bags, according to the International Coffee Organization (ICO).

This is equivalent to an impressive 55 per cent of the total world Arabica production of 85.4 million bags, and equivalent to 32 per cent of total world production projected to reach 145.7 million bags in the 2013-14 cycle, the ICO said in its last market report released in mid-June.

“Natural Arabicas continue to be an essential component for roasters throughout the world.

While other Natural Arabica origins do exist, no other delivers body as well as Brazil,” says Carl Leonard, Vice President for Green Coffee at United States-based roasters Community Coffee.

Leonard argues that Brazil has proven its ability to produce high-quality Naturals and to deliver consistency in fulfilling contract obligations. He says Brazil is well positioned to remain dominant in the world of Naturals. Add to this the cost-efficient component of using cheaper Natural Arabicas

from Brazil, and these beans are becoming increasingly attractive to roasters.

“Arabica Naturals, especially from Brazil, will continue to be an intricate part of blends of many roasters. This will be driven by the beans’ flavour, body, and availability. Due to large volumes typically available from Brazil, cost effectiveness will most likely also be a factor,” says Leonard.

Christian Wolthers, a veteran Brazilian coffee trader, agrees that Naturals not only make up an important share in the overall market, but also that a very significant share is making it into the specialty market. Some of the highest quality Natural beans available today are scoring at least 80 points on the 100-point scale developed by the Coffee Quality Institute.

“Looking at the 2013-14 crop in Brazil, which we forecast to produce 53 million bags, we had about 9 million bags of strictly soft or fine cups, all scoring at least 80 points and above.

Of those about 5 million are Pulped Naturals of which most fall into fine cup commercial blends,” says Wolthers, of Florida-based importers and brokers Wolthers-Douque.

Scores like this show that an increasing preference for Naturals won’t just be about cost, but flavour attributes that can bring multiple benefits when added in a blend.

“If we compare coffee to wine, as an example, the natural process is comparable to red wine. The grape is processed with the

Brazil supplies the majority of the world’s Natural Arabica.

22

G C R | J U LY / A U G U S T 2 014

“TODAY WE HAVE A MUCH BETTER UNDERSTANDING OF CHERRY FERMENTATION AND THE FLAVOUR MIGRATION PROCESSES IN ARABICA NATURALS. BUT WE NEED TO SEE THIS DISCUSSED MUCH MORE ACTIVELY.” Manual Diaz

Promoter, International Conference on Arabica Naturals

pulp, allowing the full body and aroma to show up in the final product when the fruit has the right flavour profile,” explains Marcelo Vieira, a coffee producer and one of the founders of the Brazil Specialty Coffee Association.

“This is the same for coffee, and the natural process, preserving the entire fruit with the pulp during the processing, allows the full development of the body and the aroma, and the sweetness is preserved,” he says.

Vieira says that based on the processing methods used in coffee, a fully washed coffee washes away the mucilage and provokes the loss of body and sweetness. Pulped naturals, that often are included in the “Naturals” category, can be compared to a rosé wine which has “an intermediary quality but with a much more uniform standard than naturals,” according to Vieira.

For producers, Naturals are more cost efficient to process, as they don’t have to go through the expensive fermentation process to remove the mucilage. Vieira cautions, however, that it is a more risky process and should not be done without expertise.

“The difficult side of natural coffee production is that for you to achieve the full

Natural production requires cherries to be picked at ideal ripeness.

quality potential, the beans must be picked at the right time and be processed very carefully.

Therefore, really fine lots are a small percentage of final production, as is also the case in the wine industry,” he says.

In addition to Brazil, other important origins that have won international acclaim for their Natural Arabicas are Harar, Limu and Yirgacheffe in Ethiopia, Mexican Atoyac from the state of Guerrero and smaller volumes from origins including Yemen, Uganda, Ecuador and El Salvador.

Mexico’s Diaz says that these beans are “the best Arabica naturals in the world including some less known jewels like Uganda’s Drugar,” and that they go a long way in the specialty market.

The use of Naturals in blends has long been practiced by top Italian espresso roasters like Illy and Lavazza. These roasters have said that the drying of the bean inside the cherry leaves a desirable natural sweetness that is ideal for espresso-based coffees. With this kind of history, Diaz says that Naturals have the potential for wider use.

“Today, the processing of Naturals has improved to the extent that we are able to produce clean golden naturals, the name given in many regions to green dry processed coffee beans. This – together with the shift towards espresso-based coffee consumption, its intense aroma and sweetness and the intrinsic fruit-rich flavours and full bodied profiles – all make Natural Arabicas ideal for many roasters,” he says.

Another factor in the Naturals equation is the shift in the balance of demand between Arabica and Robusta. Much has been written about the surging demand for Robusta beans in recent years.

Today, Robusta accounts for between 40 – 45 per cent of total world production, compared to between 30 – 35 per cent a little over 15 years ago.

Robusta’s rise has not come at the cost of a decline in demand for Arabica, which continues to grow at between 1.3 – 1.5 per cent a year in traditional consumer markets like the US and the European Union, according to ICO statistics. Rather, the surge in Robusta is attributed to the much faster growth rates of an average 3.8 per cent per year in emerging coffee markets, where growth is fuelled by instant coffee and cheaper blends using a much higher ratio of Robusta coffee.

Arabica’s rally to 14-year-highs in the New York futures market in 2010 certainly didn’t help

J U LY /A U G U S T 2 014 | GCR

23

FEATURE Natural Arabicas

Natural Arabica is dried in the sun in the cherry.

demand for Arabica. Prices stayed above US$2 a pound for over two years.

This price level helped bring attention back to Naturals.

“Coffee consumption has not decreased, but demand has largely moved away from washed Arabica to Brazilian-natural Arabica or Robusta, which has shifted differentials closer,” said Keith Flury, Senior Analyst for Soft Commodities for Rabobank in a 2013 report. “The 2010 – 2011 price rally in New York supported washed Arabica production” but this caused “demand moving towards Brazilian

roasting solutions – for every requirement roasting. perfect. coffee.

www.neuhaus-neotec.de

Naturals,” said Flury. He correctly predicted that the shifting demand profile in the global coffee market in 2013 “will keep washed Arabica prices and differentials under pressure and support Brazilian Naturals and Robusta markets.”

General global coffee demand, meanwhile, is “likely to be concentrated in emerging and non-traditional markets as it has been for the past couple of seasons. Given the price conscious consumers in these growing markets, roasters are expected to focus on lower-priced beans,” Flury said. This will give the edge to Robusta demand, while demand in traditional markers will focus more on cheaper Naturals in their blends.

Market fundamentals outside of the coffee realm might also work in favour for Naturals’ market share.

“There are so many conflicting results in the market and this will cause additional uncertainty in both directions,” says Coffee Community’s Leonard. “What may actually drive coffee along with other commodities will be oil due to the continued unrest in the Middle East. This can draw more speculative investors into Index Funds where some portion of each dollar hits the ‘C’ market in New York.”

Roasters will certainly be keeping a keen eye on these price movements. With Naturals from Brazil still offered at negative differentials on average 20 cents cheaper per pound compared to regular washed Arabicas, the interest for Naturals looks set to grow. G C R

th

TO T ec I C P of K U fe E R ee T C xp S H er A ie V nc I S E e. S I co T m .a

Exhibitor enquiries contact +61 3 9690 7022 or email hannah.ryan@cogadvertising.com.au

4 T H - 6 TH S EP TEM B ER 2 0 1 4 ROYAL H AL L OF I ND U ST R I E S , M O O R E PA R K , SY D N E Y, NS W P L AT I N U M S P O N S O R S

Facebook.com/Thecoffeeexperience

@CoffeeExperienc

M E D I A PA RT N E R S

theco ffeeex p er ience . com. au

u

TECHNOLOGY Buencafé

AN INSTANT BUENCAFÉ’S LATEST DEVELOPMENTS ARE LEVELLING THE PLAYING FIELD BETWEEN SOLUBLE AND SPECIALTY.

I

n some coffee circles, words like decaffeinated, Robusta and soluble are associated with the lower end of the quality spectrum.

New technology and improved practices, however, have helped a lot of those products shed their stigmas. The Coffee Quality Institute’s certification of Robusta coffee has shown that this bean can, in some cases, can be just as prestigious as Arabica.

Advanced decaffeination methods are making it harder to notice whether one is drinking decaf or not.

The latest segment to lift its reputation is the soluble market. Since the launch of the “Via” soluble blend by United States-based Starbucks Coffee Company in 2009, even some coffee snobs have changed their views on soluble. The exercise served as an eyeopener for the level of quality possible from soluble coffee today.

“The soluble category has for years been somewhat stagnated within its own levels as a mature industry in itself,” says Cristina Madriñan, Commercial Director of Buencafé, a freeze dried coffee factory owned by the Colombian Coffee Growers Federation (FNC).

She says the launch of Via was described as the “big revolution” as a soluble coffee mixed with fine micro-components of roasted coffee.

“But the most important part of this innovation was the nature of the product itself, that the coffee shop chain decided to enter new segments with another range of coffees,” says Madriñan. “This made market players across the soluble industry open their eyes to products of much higher quality which can deliver the aroma and flavour of a properly

26

G C R | J U LY / A U G U S T 2 014

REV

In both 2013 and 2014, the Brussels-based International Taste and Quality Institute awarded Buencafé’s Sublime blend a double gold star.

brewed cup of filter coffee.”

The trend for high quality coffee in soluble form has started to take shape in traditional coffee consumer markets of the United States and Europe. As the global economy starts to show evidence of a recovery from the world financial crisis that started in 2009, consumers are also starting to look toward better coffees again. Economic theory says that as economies recover, consumers should be increasing what they spend on coffee. This is not only good news for the coffee shop industry, but also for gourmet brands on supermarket shelves.

Buencafé is based in the Colombian coffee town of Chinchiná and sources all its coffee from 100 per cent Arabica beans grown across Colombia’s producing regions. The operation is fully owned by Colombia’s coffee growers and the value add it generates supports FNC’s sustainability initiatives. At the same time Buencafé also is in the cutting edge by applying new technologies to expand the flavour components in its range of soluble products. The technology leading the front is the “micro roast” technique, which was first introduced by Starbucks onto the world stage.

Buencafé first started operating in 1973, and today distributes to more than 60 countries across

OLUTION LITTLE BY LITTLE, WE SEE THAT THE CONSUMER IS STARTING TO CHANGE HIS OR HER PERCEPTION IN REGARD TO QUALITY AND KNOW THAT IT IS POSSIBLE TO FIND A GOOD QUALITY EXPERIENCE ALSO IN SOLUBLE COFFEE.” Cristina Madriñan

Commercial Director, Buencafé J U LY /A U G U S T 2 014 | GCR

27

TECHNOLOGY Buencafé

Carlos Osorio is Head of the Research and Development team at Buencafé.

Latin America, the United States, Australia, Russia, Africa, South East Asia and the Middle East.

“The market conditions could not be better at the moment for Buencafé. Since we first started business, the main focus has been on the production and marketing of the highest possible freezedried soluble coffee,” says Madriñan. “Our products are created to offer consumers a beverage that truly resembles the coffee experience you get in a real brewed coffee which represents the coffee’s character.”

Buencafé’s efforts have been well-rewarded in recent years. The company’s Sublime and Roasted Instant soluble products have won numerous awards. In both 2013 and 2014 the Brussels-based International Taste and Quality Institute honoured the Sublime blend a “Superior Taste Award” double gold star, while major American retail chain Walmart in Chile named Buencafé its “best private brands supplier” among 450 international suppliers and one of its most important Russian customers recognised Buencafé as its “best partner 2014.”

“These products have won widespread international recognition because of their high quality.

Little by little, we see that the consumer is starting to change his or her perception in regard to quality and know that it is possible to find a good quality experience also in soluble coffee,” says Madriñan.

GCR Magazine visited Buencafé’s main processing plant in Chinchiná. It looks like any major roasting operation. A total of 28 massive coffee brewers are working non-stop to brew the millions of litres of extra strong coffee for the freeze-dried product. The aroma of freshly brewed coffee is overwhelming to visitors entering the area where the brewing is done.

Carlos Osorio, Head of the Research and Development team, carefully studies the consistency and density of a sample. “We have to handle it very gently in order to be able to maximize the aroma and flavours we preserve in the final product,” Osorio tells GCR Magazine during the visit.

Instant coffee is real brewed coffee which is then put through a complex technological process to extract the water from the brew, leaving only the coffee concentrates behind. Once extracted, these coffee concentrates are frozen, and through several more steps finally defragmented and turned into the either powder-based or granulated form of freeze-dried soluble coffee

28

G C R | J U LY / A U G U S T 2 014

Micro roast technology incorporates tiny fragments of real roasted coffee.

that consumers know from the supermarket shelves.

“Instant coffee is real coffee, just smell how the aroma fills the air here,” Osorio tells GCR Magazine on the visit. “What is so exciting with the micro-roast technology is that by incorporating tiny fragments of roasted coffee, the process leaves the consumer with the same delicate aromatic experience, the same real ‘mouth-feel’ as you get from a freshly roasted and brewed coffee. This is what truly has revolutionised the soluble market.”

World coffee consumption is booming, growing at an average 2.5 per cent since 2000. Analysts expect total demand for the 2014 calendar year to approach 150 million 60-kilogram bags. The market share for soluble exports has risen to more than 12 per cent in the current cycle from 10.5 per cent five years ago.

This is quick growth, considering how slowly it took for instant coffee to catch on.

From when it was first launched in 1890, it didn’t receive market acceptance until the middle of the 20th Century.

In terms of quality, however, efforts like those by Buencafé are helping soluble coffee reach the next level of appreciation. G C R

Melitta Professional Coffee Solutions www.melitta-professional.de

COFFEE PERFECTION IN EVERY CUP Melitta®

Cafina® XT 6

THE GRINDING DISKS of the newly developed Melitta® grinder are made from durable tool steel. With a diameter of 75 millimeters, they ensure a consistent and even grind while protecting the bean’s aroma.

THE INNOVATIVE MILK SYSTEM WITH COLD MILK FROTH supplies various types of warm and cold milk froth – enabling an even greater variety of beverages.

THE PROFESSIONAL STAINLESS STEEL BREWING UNIT is made from high-grade materials – mainly stainless steel – to ensure wear-free operation up to a maximum dosage of 20 grams.

THE CLEAN IN PLACE SYSTEM (CIP®) guarantees maximum cleanliness with fully automatic cleaning of all milk supply tubes.

COFFEENOMICS Brazil Update

THE GREAT BRAZIL

DROUGHT DROP CONSENSUS IS NOW BUILDING THAT BRAZIL’S HARVEST WILL LIKELY FALL BETWEEN 40 – 45 MILLION 60-KILOGRAM BAGS. WHERE WILL THE COFFEE GIANT’S SMALLEST CROP IN YEARS LEAVE COFFEE PRICES?

30

G C R | J U LY / A U G U S T 2 014

I

t was set up to be Brazil’s best year yet. At this time a year ago, industry bodies were pegging the 2014-15 harvest at 55 – 60 million 60-kilogram bags. The bumper crop was set to pull production figures out of a deficit, and into the first surplus the market had seen in five years.

This was until the bad weather reports started coming through. One by one, analysts from private producer groups, exporters, traders and funds have been lowering their predictions. As this magazine went to print, consensus has seen around 15 million bags of coffee disappear since the beginning of the year. The latest forecasts don’t expect more than 40 – 45 million 60-kilogram bags of coffee out of Brazil.

As the physical harvesting peaked across the Brazilian coffee regions at the end of June, mill deliveries brought in a high volume of beans. This wasn’t the good news people were waiting for, as disappointing samples are starting to emerge. While the percentage of defects is always higher in mill deliveries registered during the first month of harvesting, industry officials are saying that the percentage this year is two to three times higher than year-ago comparisons.

“The rains in Brazil were not only too late but could be more damaging than good. There is very little coffee inside. The outside appearances are deceiving,” international commodity analyst Judith Ganes-Chase tells GCR Magazine.

Ganes-Chase’s comments summarise basic market sentiment.

“We are getting a steady stream of reports that beans are of a small size, are malformed, or are not there at all. Farmers are harvesting cherries without any beans in them,” reported Sterling Smith, a commodity analyst with financial services company Citigroup Inc. Word on the ground is the smallest bean size has been cut by an average 35 per cent, with farmers now needing 600 to 700 litres worth of green beans to fill one 60-kilogram bag. This is compared to the normal ratio of between 400 – 500 litres. “If you have one empty cherry, two to three malformed beans, and five to six normal, that is going to lead down the road to crop reductions,” Smith said in a market report published in early June.

An example of the current situation can be found at the mighty Cooxupe cooperative, the world’s largest coffee cooperative. More than 11,000 producer members account for between 12 – 15 per cent of the total annual harvest in Brazil. Mill deliveries to date confirm that a “significant share of the beans are very small in size”, according to the cooperative, while another large percentage of the beans have turned black or failed to develop. These reports confirm fears that the drought cut the maturation (or formation) period of the bean short.

“You look at the fruit on the outside and it does not look too bad. But inside the bean is dry, and there is little fruit left, so the yield is going to be significantly lower than initially forecast,” Cooxupe President Carlos Paulino da Costa tells GCR Magazine. In a comment to Brazilian coffee bloggers Cafépoint, de Costa put losses at, best case scenario, 30 per cent. In some parts of Southern Minas,

Brazil’s new harvest comes with a major share of unripe, empty and multiple bean malformations, as witnessed during a crop trip

by US importers Wolthers-Douque.

one of the regions most severely affected by the drought, de Costa puts the damage as high as 50 per cent.

These figures are backed by the local Agriculture Ministry of the state of Minas Gerais. In a report released in late May, the ministry said that up to 45 per cent of the state’s coffee harvest has been damaged.

Southern Minas and Zona de Mata account for around 75 per cent of all production in the Minas Gerais state. As a whole, the area accounts for between 50 – 60 per cent of Brazilian coffee production. In the initial forecast released last January by Conab, Brazil’s crop supply agency, Minas Gerais was projected to yield between

“THE RAINS IN BRAZIL WERE NOT ONLY TOO LATE BUT COULD BE MORE DAMAGING THAN GOOD. THERE IS VERY LITTLE COFFEE INSIDE. THE OUTSIDE APPEARANCES ARE DECEIVING.” Judith Ganes-Chase

International Commodity Analyst

J U LY /A U G U S T 2 014 | GCR

31

COFFEENOMICS Brazil Update

25.6 – 27.1 million bags. That figure was cut to 23 million by Conab’s revised forecast in midMay. Conab cut its overall production number for Brazil to 45.6 million bags from its previous prediction of 46.5 – 50.1 million bags.

Brazil’s National Coffee Council, meanwhile, has lowered its forecast to between 40.1 – 43.3 million bags, from 44 million. The Brazilian coffee research foundation Procafe says it expects production in the 2014-15 harvest to drop to 40.1 – 43.3 million bags due to drought damage.

Among the few optimistic forecasts is Swissbased Ecom Coffee Group. As the world’s second largest coffee trader, it insists the Brazilian crop can still reach 51 million bags. This is a significant drop from an initially ambitious forecast of 60 million bags. The United States Department of Agriculture (USDA) similarly had issued its first forecast for Brazil at 49.5 million bags, but recognises that uncertainty prevails.

“At this moment, it is unclear to predict to what extent the aforementioned problems will affect the final size of the crop,” said the USDA in a statement.

Volcafe, the Swiss trading arm of United Kingdom trading house ED&F Man, meanwhile issued its second revised forecast for the 2014-15 harvest in late April, cutting the crop potential to 45.5 million bags.

“Heat and drought in some parts of the coffee-producing areas in the first months of 2014 have negatively affected the bean formation

“YOU LOOK AT THE FRUIT ON THE OUTSIDE AND IT DOES NOT LOOK TOO BAD. BUT INSIDE THE BEAN IS DRY, AND THERE IS LITTLE FRUIT LEFT SO THE YIELD IS GOING TO BE SIGNIFICANTLY LOWER.”

stage of crop development. We have revised down our 2014-15 Arabica estimate from 34.6 million bags to 28.4 million bags, a drop in production potential of 18 per cent. We have revised up our conillon estimate from 16.1 to 17.1 million bags due to improved expectations of yield,” Volcafe said in a report.

Volcafe noted that as a consequence of the lower forecasts, the world can “expect an 11 million bag deficit in the coffee market in 2014-15”, adding that the negative impact of the drought will definitely extend into the next harvest.

“The recent unprecedented weather has affected both the 2014-15 and the 2015-16 crops. Even under the most optimistic scenario for the 2015-16 Brazil crop, we expect a second consecutive coffee market deficit in that season,” said the company.

These predictions are supported by a report released in May 2014 by INTL FCStone. Based on on-the-ground observations made in February and end of May/beginning April, the United Statesbased financial services provider is predicting losses of 8 – 10 million bags of coffee, which will put the world coffee balance into a deficit of 2 – 3 million bags. However, it said it believed those losses were currently priced into the market.

Other analysts agree, saying that there is sufficient market support to see coffee prices stay in a range of US$1.60 – $1.80 per pound for now, with the occasional spikes in the market of more than $2 per pound. But this price range is volatile, and can change in either direction, depending on the news of the day from Brazil.

Ganes-Chase says coffee prices could surge as high as US$3.25 per pound this year, before meeting resistance.

“There is no way for coffee trees to make up for growth that they have lost to the drought in Brazil’s coffee belt earlier this year. The impact on prices will be to send them above 300 cents a pound,” she says. “I think the market is downplaying losses to the Brazil crop and damage will prove to be worse than current views.”

Brazilian coffee trader John Wolthers of Santos-based exporters and brokers Comexim, says

by September “we will have a good idea” of the true extent of damages. That might be too late for roasters to start making contingency plans. G C R

BRAZIL’S REGIONS AND STATES

North Northeast Center West Southeast

Carlos Paulino da Costa Cooxupe President

32

G C R | J U LY / A U G U S T 2 014

South

Flavour Art Flavoured coffee based hot and cold milk beverages of premium quality The new Flavour Point syrup system of the Schaerer Coffee Art offers no limit to the variety of coffee-based flavoured hot and cold milk beverages.

Up to four different syrup flavours guarantee enormous flexibility in composing individual beverage specialties.

Exotic beverages with consistent quality at all times on the touch of a button.

Everything that’s good for your coffee business Schaerer has the world’s largest selection of fully automatic coffee machines and technologies for milk preparation. Along with numerous optional accessories and systems, they are the foundation for truly individual coffee machine configurations, be it for restaurants, vending facilities, takeaways, coffee shops, quick-service restaurants, hotels, chain restaurants, convenience stores, offices, cafés, universities, bistros, hospitals, bars, sports centres, cultural events ...

Schaerer Coffee Joy

Schaerer Coffee Prime

Schaerer AG, Allmendweg 8, 4528 Zuchwil, T: 032 681 62 00, info@schaerer.com, www.schaerer.com

Schaerer Coffee Vito

Schaerer Coffee Art

EQUIPMENT Neuhaus Neotec

THE

FULL PICTURE THE RISE OF WHOLE BEAN COFFEE IN RETAIL SHELVES IS PUTTING NEW DEMANDS ON ROASTING OPERATIONS. NEUHAUS NEOTEC’S ARIANE TOENJES TELLS GCR MAGAZINE HOW TECHNOLOGY IS KEEPING PACE.

34

G C R | J U LY / A U G U S T 2 014

A

lthough roast and ground is a familiar term in the market of at-home coffee retailing, an increase in specialty coffee trends might soon see that segment on the decline.

This is certainly the case in Germany, where retail sales of whole bean coffee has grown at 11 per cent a year for the past three years, to 62,000 tonnes in 2013.

Ariane Toenjes works in the Research and Technology Department for Germanybased coffee roasting machine manufacturers Neuhaus Neotec. She’s witnessing this trend first hand, as consumers are keen to replicate their coffee shop experience at home.

“It’s become more trendy to prepare a specialty coffee at home,” says Toenjes. “From what you see in coffee shops, to American television, people want to be able to enjoy different types of coffee, a latte, a cappuccino, or more. It’s become something really special, especially for the younger generation.”

From a coffee roaster’s perspective, Toenjes says they have two different markets to target their retail whole bean coffee to: those using

“FROM WHAT YOU SEE IN COFFEE SHOPS TO AMERICAN TELEVISION, PEOPLE WANT TO BE ABLE TO ORDER DIFFERENT TYPES OF COFFEE, A LATTE, A CAPPUCCINO, OR MORE. IT’S BECOME SOMETHING REALLY SPECIAL, ESPECIALLY FOR THE YOUNGER GENERATION.” Ariane Toenjes

Neuhaus Neotec

Neuhaus Neotec’s Rotating Fluidised Bed (RFB) roaster uses a precise air-to-bean ratio.

Ariane Toenjes works in Neuhaus Neotec’s Research and Technology Department.

fully automatic machines at home, and those using traditional domestic espresso machines.

While these segments have different demands on coffee, they have one common characteristic: both want top quality coffee with a good flavour at a reasonable price.

Importantly, from a roasting machine manufacturer’s perspective, Toenjes says the rise of whole bean coffee sales means that customers are now judging coffee beans for themselves.

From identifying broken beans, to looking at the colour, consumers of whole bean coffee are evaluating dimensions that simply weren’t applicable with roast and ground.

“Consumers today want a much better quality product. They want a more uniform roast, and you can’t have any broken beans,” she says. “It’s like anything else, the product has to be nice when you open the package.”

Fortunately, technology has kept up with modern demands, to give coffee roasters the tools to improve the appearance and quality of their product.

Neuhaus Neotec’s Rotating Fluidised Bed (RFB) roaster is one such innovation. Toenjes explains that RFB should be seen as different to hot air roasting, using a carefully measured air to bean ratio. The coffee beans aren’t moved mechanically, as they are roasted only through contact with heated air.

“When people think of hot air, they think of 400 – 500° Celsius temperatures needed to roast the coffee. This is different than that,” says Toenjes. The new RFB roaster uses the lowest air temperature of any technology available.

She explains how the carefully designed shape of the chamber ensures gentle roasting via an optimum flow of hot air through the coffee product. As the name of the technology implies, uniform fluidisation is key to ensuring the best possible mixing of beans and gentle heat transfer throughout the roasting process. Because the heat is transferred to the beans via convection (versus the contact process of drum roasters), there are considerably less hot spots in the coffee.

“This is particularly important when roasted coffee is to be used as whole beans,” Toenjes notes.

Another stand out element of RFB technology is that the cooling process takes place in an identically designed, but separate, cooling chamber. The discharge gate is located at the bottom

J U LY /A U G U S T 2 014 | GCR

35

EQUIPMENT Neuhaus Neotec

Demand for whole bean coffee has increased 11 per cent a year for the past three years in Germany.

of the roasting chamber, meaning that gravity alone helps discharge the entire roasted coffee batch within five seconds into the cooler. By separating the cooling process, the machine cools the temperature of the coffee beans quickly and effectively.

Because of this ingenious design, Toenjes says coffee roasters have an unprecedented level of control over their product. The RFB system can constantly produce a high quality product thanks to a precise temperature control system. The computerised system helps the roaster visualise every step of the process. Programs such as profile and copy roasting allow precise and flexible control over individual flavour profiles.

This flexibility offers a major advantage in making it easier for roasters to blend after roasting. Roasters can better achieve optimum profiles of each type of bean by roasting in single-origin batches first, then blending after the roast.

Toenjes explains how artisanal roasters appreciate the flexibility of the RFB system to help them in the process, because of the roaster’s ability to quickly change between recipes.

“When you’re able to roast each origin separately, you can program a recipe that’s special for the needs of that bean,” she says.

36

G C R | J U LY / A U G U S T 2 014

The beans are dropped via gravity into the cooling chamber at the end of the roasting process.

“Coffee roasters know that Robusta needs a higher temperature than a Colombian or a Kenyan bean. If you put them together, it can be challenging to get the best characteristics out of each.”

That being said, the scale of some operations – and space and time constraints – can make it impractical for roasters to blend after roast.

“Blending after roasting can require a greater expenditure, and more energy. You also need more silo space,” explains Toenjes.

In this case, she says the RFB technology has many advantages over traditional drum roasters because of the direct transfer of heat from the air to the bean. “The key is to get the best out of each bean, in flavour and aroma with the right roast profile, or recipe,” she says.

Quality aside, from an operations perspective, Toenjes says the technology offers multiple benefits. Without any movable parts – as all coffee is transported via gravity or air – the system is much safer for the operator. This is complimented by a full range of safety switches, sensors, and detectors, so that the system is protected even against operator errors.

“Safety has to be a major point here. These systems have come a long way over the years,” says Toenjes.

The technology is also set up in a way to be highly efficient for high-capacity operations. The roasting gas required for the roasting process is recirculated, bypassing the roasting chamber during the filling and discharge process. A fan produces the pressure level required for the roasting level and for fluidisation, while a burner generates the necessary temperature. The burner is so efficient, that the plant is heated up 20 minutes after the start, and can switch to automatic operation.

The nature of this technology also lends itself well to limiting energy consumption and emissions. The cooler exhaust is cleaned catalytically, where precious metals break down the emissions. Heat from the exhaust system is used to preheat the beans, which further helps reduce roasting time and maximises energy use.

Thanks to technology like this, Toenjes says coffee roasters can embrace increased demand for whole bean coffee, with the confidence that their beans will hold up to new scrutiny.

“Your advantage as a customer lies in the fact that you can judge the coffee beans yourself,” she says. “Quality criteria such as colour, appearance of the bean, fraction of broken beans, and flavour will become increasingly important.” G C R

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

Sept 24–26 2014 H A M B U RG • G E R M A N Y

COTEC A - H A MBU RG.COM

Owned and organized by:

Supported by:

In par tnership with :

International media partners: part ners:

MEL BOURNE INTE RN ATIO N A L CO F F E E E XPO

13 -15TH MARCH

S PAC E O N S A L E N OW EXHIBITOR ENQUIRIES CONTACT +61 3 9690 7022 OR EMAIL HANNAH.RYAN@COGADVERTISING.COM.AU

A U S T R A L A S I A’ S C O F F E E S H O W

INT E R N AT IO NALC O FFEEEXP O .CO M FACEBOOK.COM/MELBCOFFEEEXPO

@MELBCOFFEEEXPO

FEATURE Hotel coffee

THE

QUALITY EQUATION LE MÉRIDIEN IS ONE OF THE LATEST HOTEL CHAINS TO BENEFIT FROM OFFERING A GOURMET BREW.

A

s global hotel brands sink significant dollars into gearing their lobbies for a new generation of travellers, one chain is bringing it to the next level with an experience some say is better than sex.

A lobby experience focussed on giving guests a taste of local culture through coffee has helped the Le Méridien global hotel group make significant gains on the food and beverage front.

A series of brand-wide lobby renovations over the last few years, along with a recently introduced in-house barista program, have propelled some locations to see food and beverage revenue increases as much as 40 per cent.

So what’s the secret?

According to Arnaud Champenois, AsiaPacific Senior Brand Director of St. Regis, The

Luxury Collection, W Hotels and Le Méridien at Starwood Hotels & Resorts Worldwide, Inc., it’s about introducing guests to local culture through one of the world’s most popular drinks.

A MATCH MADE WITH COFFEE Walk into any of the Paris-born hotel brand’s more than 100 locations across 50 countries, and you’re greeted by a blend of large-scale art, trendy Parisian-themed music, and a qualified barista ready to cater your drink in a coffee house setting.

With the majority of its properties in the world’s top cities and resorts throughout Europe, Africa, the Middle East, Asia Pacific and the Americas, Le Méridien aims to bring local cultural experiences in-house in large part through its food and beverage menu.

According to Le Méridien, it’s a recipe for success when it comes to meeting the needs for today’s social traveller who seeks more time outside the guest room.

Champenois says Le Méridien has been working on re-energizing the brand in this stream for the last seven years.

“We have been injecting a lot of new life (into the brand),” he tells GCR Magazine. “The last five to six years have been to focus on culture and the cuisine.”

The chain stepped up efforts with the introduction of its renovated lobby, Le Méridien Hub, in 2011. The move was designed to help its public space steer away from the traditional lobby into one more suitable as a social gathering place.

In September 2013, Le Méridien announced the launch of a master barista initiative, which has quickly become a staple to the brand’s signature guest arrival experience. Already partnered

J U LY /A U G U S T 2 014 | GCR

39

FEATURE Hotel coffee

Le Méridien has already seen a 40 per cent increase in its food and beverage revenue since the introduction of its renovated lobby and master barista initiative in Kuala Lumpur.

Le Méridien is working closely with partner Illy to create custom drink menus for each destination.

with Italy-based Illy for its coffee offering, it worked with the company to help find top shelf talent and provide training.

The role of the master barista is to serve as a coffee cultural ambassador, leading inhouse coffee-related initiatives and staying abreast of current coffee trends within the destination.

Working from its Latitude Bar, the coffee house offers a menu of coffee selections customised to reflect local culture in each destination.

“We think the approach around coffee is extremely relevant for our brand,” says Champenois. He believes their lobby-focused coffee initiatives are a perfect platform to help guests socialise while providing a taste of local culture. “We have a place where people can mix and mingle and really have a good time.”

Champenois says the brand has already seen impressive financial results through its Le Méridien Hub program. The brand’s location in Kuala Lumpur in Malaysia saw a whopping 40 per cent increase since it introduced the new lobby concept.

Champenois says the barista program played a significant part in its success.

40

G C R | J U LY / A U G U S T 2 014

“It’s definitely (due to) the new look and feel and the programming,” he says.

While guest feedback clearly shows they value the quality of coffee, Champenois noted guests also find great value in the programming aspect such as coffee learning workshops and tea talks facilitated by master baristas.

“They see the coffee not just as a drink but as a social experience,” he says.

BETTER THAN MORNING SEX Le Méridien doesn’t just see coffee as an important part of the guest experience.

They’ve gone as far as to claim that most people prefer their morning cup of coffee to morning sex.

To find out where coffee ranked on the average person’s priority list, the brand commissioned a telephone survey last year of 7455 coffee drinkers in six different countries including the United States, Dubai, China, France, Germany and India.

The study found that 53 per cent of people prioritised coffee over sex. The announcement of their findings coincided with the introduction of their master barista program.

The study also found that, with such distinct coffee traditions and flavours around the world, most seasoned travellers reported experiencing nostalgia “for a destination due to the cup of coffee they enjoyed while travelling.”

Bjorn Hanson, Dean of New York University’s School of Hospitality, says a hotel’s coffee offering is an important part of the guest experience.

He explains to GCR Magazine that there are several possible outcomes from a hotel’s coffee strategy. For instance, if a hotel does not have coffee available in the lobby or has bad coffee, it becomes a guest “dis-satisfier” and can influence the guest experience.

“It may not be enough to cause a guest not to stay in the future,” he says. “But it could affect their future (decision).”

Offering good coffee is not just an advantage, as Hanson says this has become a norm.

“Guests have almost come to expect some kind of branded coffee or a good coffee experience,” he says.

According to Hanson, the coffee offering with the most potential is the one that provides a “wow factor”.

Hanson explains this strategy as providing guests a special coffee experience either in terms of the brewing process, education process, or just a difference experience overall.

Hanson, an industry expert whose research focuses on statistical and econometric analysis, says a hotel brand like Le Méridien is one where guests could expect a wow factor, such as what is provided in the master barista program.

For select service hotel brands, however, the aspect might be more of a rarity.

Whereas Le Méridien caters to a higher end clientele, select service brands are typically medium-sized hotel establishments that offer limited on-site amenities and market to a specific demographic of travellers. “(For Le Méridien), the coffee could be an especially relevant compliment to the hotel brand,” says Hanson.

FUTURE GROWTH Le Méridien’s Champenois says the brand plans to further enhance its coffee offering in several ways.

It will be working with Illy to provide additional training for baristas and more coffee-related programming in its locations. They are also working with the partner to further customise drink menus with specialty seasonal offerings.

The hotel brand is also exploring partnerships to offer a specialised pastry line to compliment the beverage offerings.

“We’re going to offer to our guests a culinary experience,” says Champenois. He says recipes will be tailored to incorporate local culture for each hotel as part of its concept to help guests “unlock the destination.” G C R

Arnaud Champenois is Asia-Pacific Senior Brand Director of St. Regis, The Luxury Collection, W Hotels and Le Méridien at Starwood Hotels & Resorts Worldwide Inc.

Handcrafted in Melbourne from high quality materials

Inspired by Italian design, form, function and economy

gilano.com.au The modern interpretation of the coffee cart

Gilano is the choice for specialty coffee roasters, business owners and professional baristas

ESPRESSO HITS

THE HOTEL LOBBY GERT RIETMULLER, COFFEE MACHINE EXPORT DIRECTOR FOR WMF, TELLS GCR MAGAZINE WHY SERVING CAFÉ-QUALITY COFFEE IS NO LONGER OPTIONAL FOR HOTELS.

T

hat hotels have upped their coffee offering is no news to Gert Rietmuller, Coffee Machine Export Director for WMF. WMF is a leader in the development of fully automatic coffee machines, and the Horeca industry (hotels, restaurants and quick service) has been an integral customer base for the German company.

“Coffee is such an important product nowadays, it’s spoken about daily even among non-professionals,” says Rietmuller. “And we all know how much profit is in a cup of coffee. For guests in a hotel, offering a quality cup of coffee will defi ne whether they purchase another one. Good coffee improves the atmosphere [of a hotel]. Without it, there is a good chance that a customer might stay somewhere else next time.”

Over the years, Rietmuller has seen hotels change their approach to coffee. Instead of being simply a part of the breakfast service, many hotels now serve coffee from in-house coffee shops.

As a result, hotels are delving into the realm of espresso-based cappuccinos and lattes, drinks with far different equipment and service requirements that require a novel approach.

“At peak times, hotels today are not only offering filter coffee, but customers are now expecting to be able to order cappuccinos,” says Rietmuller. “This has been a good move for our business.”

WMF is a leader in the automatic espresso machine category, as the fi rst company outside of Italy to have dabbled in the espresso machine market. Bringing to the table German automation ingenuity, WMF introduced a semi-automatic espresso machine to its range in 1954. In 1997 WMF introduced the fi rst machine to allow its operator to prepare a cappuccino without having to change cups. In 1999, WMF was the fi rst manufacturer to make it possible for the operator to prepare a latte macchiato at the touch of a button.

The automation of the espresso-based drinks market has been good news for hotels, in providing them a way to serve these drinks without having to staff a full-time barista.

“Hotels today don’t have to have a coffee professional on staff to serve consistent quality coffee,” says Rietmuller. “A five-star hotel needs to consider its reputation, there is a lot of market pressure these days in terms of competition.”

As hotels have added espresso-based drinks to their offering, Rietmuller says he is undoubtedly observing the increased pressure to improve the quality and variety of their coffee offering.

42

G C R | J U LY / A U G U S T 2 014

“HOTELS TODAY DON’T HAVE TO HAVE A COFFEE PROFESSIONAL ON STAFF TO SERVE CONSISTENT QUALITY COFFEE, A FIVESTAR HOTEL NEEDS TO CONSIDER ITS REPUTATION, THERE IS A LOT OF MARKET PRESSURE THESE DAYS IN TERMS OF COMPETITION.” Gert Rietmuller

Coffee Machine Export Director, WMF

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

“And this isn’t just in the United States, this is a global picture,” adds Rietmuller. In some cases, Rietmuller has seen this pressure translate into hotels setting up branded coffee shops such as Starbucks and CBTL in their lobbies. Where these partnerships aren’t possible, bean-to-cup, fully automatic solutions are often the answer.

WMF’s solutions not only cater to the requirement for an espressobased drinks list, but offer options to profi le the coffees served based on regional taste preferences. Management can set the taste profi les of the drinks, whether for Italian, Asian, or European palates, and those profi les can be programmed across an entire region or even an entire chain. It’s a level of consistency that even the best training program can’t guarantee.

WMF automatic machines offer two levels of automation. The fi rst is one-step preparation, where the drinks are prepared at the touch of a button.

Two-step preparation is for hotels that are looking to offer a little more service. This is where the machine prepares the espresso shot, however the operator manually textures the milk.

“It’s about a philosophy of service,” says Rietmuller about how a hotel should decide which method is best. “While the two-step offers more craftsmanship, the one-step is more automated.”

WMF’s two-step system includes the 8000S New Generation.

The newly developed container matrix permits the individual configuration of up to four coffee bean containers and variations with up to two powder containers for hot chocolate or milk topping. The optionally integrated Dual Milk

and Active Milk systems provide that professional barista feeling, so that operators can either texture milk manually or fully automated.

The machine also features an integrated milk temperature monitor, with a sensor that can report an increase in temperature. This ensures that the quality of the milk remains constant, even if the temperature of the milk inside the machine deviates.

The WMF 1500S is also a favourite among the world’s top hotel chains. The system allows the automatic changeover from fresh milk to toppings, and different milk and steam systems, including Basic Milk, Easy Milk or Basic Steam. As a result, the user can provide the kind of diversity offered by a professional barista. The SteamJet system allows cups and glasses to be heated to the perfect temperature by a short jet of stream. The barista button allows the strength of coffee to be set to the guest’s preference with the single press of a button.

Whatever equipment a hotel chain opts for, Rietmuller outlines that while the choice of machine is there, the question of whether a hotel should offer quality coffee or no longer valid.

“The rise of specialty coffee has affected the Horeca industry just as much as it has cafés and coffee shops,” he says. “There is a lot of pressure all round. And the expectations of a customer at a hotel these days are pretty high.” G C R

POWER OF CHOICE Gert Rietmuller, Export Manager for WMF, says that modern hotels are offering a rich variety of espresso-based drinks. He says the quality of that offering can help ensure customer loyalty. www.wmf.com

J U LY /A U G U S T 2 014 | GCR

43

WHEN QUALITY & DESIGN

MEET TECHNOLOGY MELITTA’S OLIVER WELSCHAR EXPLAINS HOW THE NEXT GENERATION OF FULLY AUTOMATIC EQUIPMENT IS HELPING HOTELS INCREASE CUSTOMER SATISFACTION AND REPEAT BUSINESS.

T

here was a time when many hotels saw a disadvantage in providing a quality coffee offering, recalls Oliver Welschar, Key Account Manager International for Melitta Professional Coffee Solutions.

“Very often, coffee was seen as something that a hotel must offer,” explains Welschar. “It was part of the breakfast service, available as a large bulk brew. If it wasn’t good, the hotel would save money because people would only have one cup, or nothing at all, and would make their way to the nearest Starbucks.”

Welschar says, however, that in today’s competitive market, this “old-fashioned way of thinking” could be detrimental to a hotel’s ability to draw repeat clients. A frequent traveller himself, Welschar says the quality of a hotel’s coffee leaves him with a lasting impression, one strong enough to draw him back to that chain. He says there are an increasing number of people like him worldwide who are appreciating better quality, thanks to single-serve systems and general trends in specialty. As a result, a hotel chain today has a lot to gain from guests choosing to stick around for an extra coffee or two.

“Today, the quality of a coffee can be considered the second most important consideration after a bed,” he says. “Many guests will check into a hotel, spend the day out visiting or at meetings or a conference, and not make their way back to the hotel until after dinner. But they will almost always stay for breakfast and have a coffee in the morning.”

As a guest, Welschar says that the advantage of staying in a globally recognised chain is that you can anticipate a certain level of service. Coffee has now become an integral part of those expectations.

Depending on the market, Welschar says guests not only want a quality coffee offering, but also a range of espresso-based coffees.

“It’s different between markets,” he says. “Of course in Italy, they have expected quality espresso for a while now. However, even in markets like India, hotels that are advertising international standards have to provide the same in their coffee. Coffee culture is a bit like a virus, we bring it everywhere we travel.”

To provide a variety of espresso-based drinks, hotels have two machine options. The fi rst is a traditional espresso machine. The tricky part here, says Welschar, is that these machines require trained baristas, something most hotels struggle to resource.

“With traditional machines, it’s necessary to have trained staff,” he says. “It’s quite challenging in this case to set a standard at headquarters. Staff at hotels are constantly changing.”

44

G C R | J U LY / A U G U S T 2 014

“IN ITALY, THEY HAVE EXPECTED QUALITY ESPRESSO FOR A WHILE NOW. HOWEVER, EVEN IN MARKETS LIKE INDIA, HOTELS THAT ARE ADVERTISING INTERNATIONAL STANDARDS HAVE TO PROVIDE THE SAME IN THEIR COFFEE. COFFEE CULTURE IS A BIT LIKE A VIRUS, WE BRING IT EVERYWHERE WE TRAVEL.” Oliver Welschar,

Melitta Professional Coffee Solutions

PROMOTIONAL FEATURE////////// Traditional machines also make it difficult to keep track of expenditures. Not only is coffee wasted through dialling in grinders and checking parametres, but it’s next to impossible to keep track of how much coffee baristas are using per coffee shot.

“A hotel will never know how much they are really spending on a cappuccino,” says Welschar.

A popular option for most hotel chains are fully-automatic machines such as those available from Melitta Professional Coffee Solutions. These machines help hotels keep track of their bottom line by measuring the cost of each coffee served. “You know exactly how much you’re spending on each coffee. Bookeepers love these machines,” jokes Welschar.

The major advantage with fully-automatic machines is that quality is guaranteed with minimal staff requirements. As modern fully-automatic machines are controlled by intelligent software, standards can be set at headquarters, carried around on a hard drive, and copy and pasted at every hotel.

With hotels often using the same coffee beans across their locations, this means that a hotel’s entire chain can offer the exact same coffee, no matter where the guest is staying around the world.

What’s particularly remarkable about the Melitta system is the machine’s ability to recognise and correct itself whenever set parametres aren’t met. In its newly released Melitta Cafi na XT series, the machines feature the company’s unique Automatic Coffee Quality System (ACS). The system is the equivalent of having a highly trained head barista on every machine, as it continually monitors and regulates relevant parameters, such as coffee grind, dosage, brewing time and water temperature.

For instance, if a parameter is set to have an extraction time of 20 seconds for a 7-gram shot, the machine is programmed to remember the height of the tamped coffee in the filter basket. Across three coffee shots, the machine will pick up on anything more than a 5 per cent difference. When it does pick up on a variance, the machine will stop and automatically readjust the grinding blades.

The blades themselves are specially polished, durable tool steel. The disks will adjust themselves automatically to compensate for increasing wear, or changes in the coffee.

Without this technology, Welschar says a hotel is dependant on operators to notice shortened or lengthened shot times or – worse case scenario – negative customer feedback. “Often, no one will pick up on a difference until a technician checks on the machine months later,” he says. “And even then, they have to physically unscrew the grinders to manually adjust them.”

Thanks to technology like this, Welschar compares Melitta design and craftsmanship to that of a luxury car.

“While cars might all run the same after 1000 kilometres, it’s how the car runs after 100,000 kilometres that makes the difference,” he says. Quality craftsmanship and the ACS system guarantee that the Melitta coffee system will continue to provide the same quality in a cup, even after years of use.

Another stand-out feature of the new XT series is its small footprint. At just 30 centimetres wide, the machine was recognised for its compact and sleek design by two international juries, who awarded the machine the IF Product Design Award 2014 and Red Dot Award 2014.

Welschar explains that Melitta considers the design of the machine paramount to the overall coffee experience.

“To enjoy a coffee, you have to enjoy the environment. If the coffee comes out of something that looks like a dishwasher, chances are you aren’t going to enjoy it,” he says. “We are visual beings. If we see something and we like it, we are more likely to enjoy the taste.” GCR

EXTRA TECH Oliver Welschar is Key Account Manager International for Melitta Professional Coffee Solutions. He explains that XT stands for Extended Technology in Melitta’s newest series. www.melitta.de

J U LY /A U G U S T 2 014 | GCR

45

AN ADDED

TOUCH OF CLASS G

GILANO COFFEE IS OFFERING HOTELS A STRIKING ALTERNATIVE TO IN-HOUSE COFFEE SERVICE.

ilano Coffee Director Alan Perrins says that as people travel the globe, they encounter different perceptions of the common coffee cart.

“Some believe it’s a New York street vendor, others think it’s a trolley that runs around hospitals and offices, and some think it’s a motorised caravan,” he says. “But our interpretation of a coffee cart is Gilano – a stylish and simplistic platform to serve quality coffee in either indoor or outdoor applications.”

For the past 10 years, Gilano has supplied coffee carts to major Australian roasters, events and exhibitions in Melbourne and Sydney. But after modifying and improving his product, Perrins says he has found a new niche that’s set to change the perception of hotel coffee.

“There hasn’t been anything on the market suitable to meet the look, feel, and cost demands that the Australian and international Horeca (hotel, restaurant and catering) industry requires to serve quality coffee – until now,” says Perrins.

He says business travellers would be all too familiar with the dilemmas of sourcing quality coffee at hotels. In many cases, customers face a line-up in the lobby. Or, once checked out, they spend time loitering in the lobby while they wait for their transfer to the airport.

“Too often, hotels allow customers to walk out to the streets in search of a café. Sometimes they invest in establishing a café infrastructure that’s significantly expensive. But what if they started to encourage customers to stay on the property and be served Italian espresso from a cost-effective coffee cart that take up no more than two metres of space?”

Over time, Perrins says there has been an increased understanding that a quality coffee offering in a lobby space adds a new level of experience for guests, and can be an added revenue source to any business.

Today, more than ever, Perrins says consumers want to be served a coffee in line with what is expected in a sophisticated market, regardless of location. “A traditional coffee offerings at hotels was once just a pour over, or other fi lter-style options. Perhaps 10 years ago it was relevant, but it’s not now. Today, most markets see Italian espresso as the benchmark. Businesses need to look at a point of difference to compete, and serving quality Italian espresso is what’s going to be that difference,” he says.

What’s more, Perrins says modern business travellers prefer to buy a product from a venue that is aesthetically pleasing. “Customers don’t want to be served a quality coffee off a collapsible table, push cart or bench. They want a product from a platform that embraces class and quality to match their preference in coffee. No one has seriously addressed the issue of what to place a machine on without

46

G C R | J U LY / A U G U S T 2 014

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

“OUR INTERPRETATION OF A COFFEE CART IS GILANO – A STYLISH AND SIMPLISTIC PLATFORM TO SERVE QUALITY COFFEE IN EITHER INDOOR OR OUTDOOR APPLICATIONS.” Alan Perrins

Gilano Coffee Director

spending large sums of money establishing a café space. That’s where we have a solution. Gilano has designed a product that not only looks elegant and stylish, but addresses the logistical challenges many hotels face,” says Perrins.

Gilano’s coffee carts feature an Italian-inspired design, with the shape and contour similar to an Italian automobile: high-end, prestigious and lightweight. An individual cart measures 182 centimetres in length, 72 centimetres in width, 92 centimetres in height, and weighs approximately 65 kilograms. The platform is large enough to accommodate a commercial two-group espresso machine and grinder with a service area, yet its slim line physique means the carts can fit in any standard doorway.

Each cart comes with two built-in sinks, an on-demand hot water wash system, and low energy pump.

The under-bar area is fi nished in a smooth, washable fibreglass finish, that can be used for refrigeration, and dry storage, with provision for water and waste. The cart is easy to manoeuvre thanks to its large wheels and castors. The nonmarking tyres will protect any floor surface, and the built-in brakes can lock into position to guarantee optimum safety.

Each cart is manufactured from reinforced fibreglass, and finished in a high-gloss gel coat, which is durable, fully washable and available in a range of designer colours to coordinate with a business’s décor and branding.

“The lightweight design means that the carts are easily transferable from a hotel lobby to a restaurant for the morning breakfast service, conference rooms during the day, and can even double as a wet bar at the night,”

Perrins says. “Most importantly, the coffee cart can function independently of any other infrastructure.

We’ve brought the carts back into their purest form, and what we’ve produced is high-end equipment that’s a naked platform to help deliver the best service and product possible.”

Gilano’s coffee carts are hand made and manufactured in Melbourne, and will remain Australian-produced. “This decision is important for quality control to meet our bench marks and the very high Australian Food Safety Standards, which we want to maintain. Because the carts are lightweight, it also means shipping costs are reduced,” says Perrins. “The world is our limit.”

Two prestigious five-star hotels in Melbourne have already seen the potential in Gilano’s coffee carts, purchasing the carts for their lobbies. Now, Perrins says he’s ready to take his product beyond Australia’s shores to offer the international Horeca industry the same opportunity.

“The hotel uptake and interest is validation to us that our products are the right fit for the Horeca market,” says Perrins. “I expect to see growth for this product in the Asian and North American markets where fi lter coffee has been their mainstay for many years, but is changing with the world’s evolving palates. Italian espresso is travelling and spreading around the world just as much as people are these days.” GCR

AUSTRALIAN MADE Gilano’s Alan Perrins says the Horeca industry is ready to embrace a product that represents the spirit of Italian design, elegance and espresso.

Gilano coffee carts are built from fibreglass, and can fit through any standard doorway thanks to their slim-line physique. gilano.com.au

J U LY /A U G U S T 2 014 | GCR

47

ORIGIN Vietnam

PREMIUMISING VIETNAMESE BEANS

48

G C R | J U LY / A U G U S T 2 014

TRUNG NGUYEN’S LENGENDEE COFFEE IS A SYMBOL OF VIETNAM’S ECONOMIC RISE, AND IS HELPING TO REDEFINE THE COFFEE INDUSTRY INTO THE PREMIUM REALM.

T

he quality of Vietnam’s coffee is starting to reflect the dramatic economic growth the country has experienced over the past three decades.

The Doi Moi economic reforms of 1986 saw the country revitalise its economy, to embrace a gradual shift towards private enterprise.

The result has been a steady rise in income and decrease in poverty levels. From an average annual income of $100 per head when Doi Moi was introduced, that figure grew ten fold by 2010. In 1993, around 58 per cent of the country’s population was in poverty. By 2008 it was down to 14.5 per cent.

Vietnam has also been rising steadily on companies’ lists of places to do business.

In 2009, Anne-Welle Strand, Director of the Centre for Development Studies and Microfinance at the BI Norweigian Business School, published a study calling “Vietnam: A New Economic Dragon in Southeast Asia”.

The term seems to have stuck, as the country continues to attract business from abroad.

Indeed, these days Vietnam is becoming better known for its tourism potential than its troubled past. Ha Long Bay, a spectacular sight of some 1600 islands and a seascape of limestone pillars, has been recognised as an official World Heritage site by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). Other noteworthy spots are the ancient towns of Hue, Hoi An, My Son Holy Land, Phong Nha and Ke Bang National Park.

While BRIC nations (Brazil, Russia, Indian and China) were long talked about for their economic potential, Vietnam has earned a position in what’s being called the

Professor of Strategic Development at the University of Liverpool Management School Tom Canon meets with Trung Nguyen Chairman Dang Le Nguyen Vu.

“new BRIC”. CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are the current six favoured emerging markets, according to the term first coined by Robert Ward, Global Director of the Global Forecasting team of the Economist Intelligence Unit in late 2009.

It’s a convenient sequence of events, then, that the civet cat has inspired the latest coffee release by Trung Nguyen Coffee Company, Vietnam’s largest coffee roasting company that exports to over 60 countries around the world.

Civet cats live in Vietnam’s Western Highlands. The wild civets live in the immense green jungle, set on the red land of basaltic volcanic rock formed over the past 160 million years. The highly intelligent cats have a discerning palate, and only select the most ripened coffee cherries to eat. After ingesting the flesh of the fruit, the civet excretes the beans. Trung Nguyen has been cultivating this coffee, and using it for its Càfê Chon – Civet Coffee. Trung Nguyen only releases around 40 – 50 kilograms of Càfê Chon a year, and it is some of the most expensive coffee in the world.

Inspired by the civet cat, Trung Nguyen has devoted its time, labour, and research facilities to artificially reproduce the biological fermentation process. The results, they say, is the successful recreation of the natural digestive fermentation that occurs in the body of the wild

J U LY /A U G U S T 2 014 | GCR

49

ORIGIN Vietnam

Vietnam has made remarkable improvements in the quality of its coffee thanks to modern production practices.

“IN THE CURRENT CONTEXT OF GLOBALISATION, VIETNAM IS CREATING MIRACULOUS AND POWERFUL PACES OF GROWTH TO BECOME A NEW DRAGON OF ASIA. AT TRUNG NGUYEN, WE ASPIRE TO CREATE A THING WHICH IS THE MOST SPECIAL.” Dang Le Nguyen Vu

Chairman, Trung Nguyen Coffee

50

G C R | J U LY / A U G U S T 2 014

species of civets. The coffee is sold under the label of Legendee Coffee, and is sold as Trung Nguyen’s finest gourmet brand.

“In the current context of globalisation, Vietnam is creating miraculous and powerful paces of growth to become a new Dragon of Asia,” Chairman Dang Le Nguyen Vu tells GCR Magazine. “At Trung Nguyen, we aspire to create a thing, which is the most special in the world, to contribute to the process of integrating and growing the nation. With Trung Nguyen, coffee is not a drink for entertaining. We see it as a source of creativity, to awaken the great power hidden inside each of us.”

Trung Nguyen’s marketing campaign for the premium coffee focuses on the drink’s role in the intellectual sphere. The campaign quotes some of the world’s greatest achievers, including Ernest Hemingway and Napoleon Bonaparte .

“In moments of creative ecstasy, Trung Nguyen creates a high level of awakening to create historic breakthroughs,” says Vu. “Coffee is not just a drink, but is about overcoming challenges in life. In Vietnam, it has helped us write our own history.”

Although Vietnamese coffee is better know for its volume and consistency, Lengendee is part of Trung Nguyen’s campaign to elevate the image of its home-grown coffee in the gourmet arena.

“Lengendee is one of the coffee masterpieces of Trung Nguyen offerings to coffee connoisseurs,” says Vu. Those sceptical of Vietnam’s potential to produce high quality coffee should speak with Quang Tran, a Viet Kieu (a Vietnamese citizen living overseas). Tran, who grew up in Australia but visits Dak Lak regularly, is the founder of Vietnam Coffee Company. He started the company after cupping some coffee he stumbled upon in his family’s backyard.

“I was visiting some relatives back in Vietnam, and they showed me the coffee trees they had on their property. They would harvest it, and keep the best beans for themselves, then sell off the rest,” he sells. “When I tasted the coffee, I realised what they were keeping was really good coffee.”

Tran is working to encourage Australian roasters to take better advantage of their neighbours, and give Vietnam single origins a try.

He says that, so far, Australian roasters are quite surprised by the taste characteristics of the specialty lots he’s sourced.

Tran’s efforts will join Trung Nguyen’s in promoting the premiumising of Vietnam’s coffee. Lengendee has become a preferred gift for visitors at global conferences, including organisations and events such as the Asia-Europe Meeting, the Asia Pacific Economic Cooperation, and the World Economic Forum. Prominent visitors to Vietnam, including emperors, kings, heads of states and diplomats throughout the world have received Legendee coffee.

“Legendee Coffee is the conjugation of heaven, earth and human passion embodied in the people of the Mythic Highlands,” says Vu. “It offers coffee lovers exquisite exotic perfume to excite their endless source of inspiration.” G C R

Trung Nguyen’s Legendee Coffee is a premium blend of coffee processed to replicate the fermentation process of the civet cat.

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

SCIENCE STEPS

FORWARD Robério Oliveira Silva

Executive Director, International Coffee Organization

A

t the 112th session of the International Coffee Council in early March 2014, delegates from coffee producing and consuming nations discussed several major problems currently faced by farmers.

In Central America, coffee farmers saw their trees ravaged by coffee leaf rust, a fungus that seemed almost impossible to contain. In Brazil, the worst drought in decades sparked fears that the supplier of a third of the world’s coffee would face a serious deficit, driving prices up.

Although these individual events are not conclusive evidence of the detrimental effect of climate change, they are indicative of an ongoing trend where extreme climatic events are to be expected more often. Furthermore, in early April 2014, the Intergovernmental Panel on Climate Change (IPCC) released a report which predicted serious threats to coffee due to rising temperatures and changing rainfall patterns. Based on a thorough review of scientific studies on climate change from around the globe, the IPCC projected that coffee production, especially Arabica, would be significantly reduced by the spread of plant diseases and pests in all countries studied by 2050. In Brazil, for example, a temperature

52

G C R | J U LY / A U G U S T 2 014

COFFEE PRODUCERS NEED PUBLIC-PRIVATE INVESTMENTS TO PROTECT FROM DROUGHT AND DISEASE

rise of 3°Celsius would cut the area suitable for coffee production by two-thirds in the states of Minas Gerais and Sao Paolo and eliminate it in others. In Kenya, regions which currently have an average growing suitability of 60 to 80 per cent would decrease to between 30 and 50 per cent.

These predictions require decisive action to secure our supplies of coffee and protect the livelihoods of millions of farming families around the world. It is time for the public and private sectors to step up and invest in robust scientific research and extension services for farmers.

COFFEE FARMERS ARE MOST AFFECTED BY CLIMATE CHANGE At the ICO, we speak to the media, stakeholders, and others interested in the coffee sector about climate change and coffee prices on a weekly basis. Questions regarding the effects that climate change may have on retail prices for consumers always come up. While coffee lovers may not see a significant rise in the price of their cup of coffee in the short term, we should not underestimate the threat that climate change poses for prices in the long term. Climate change affects much more than just yields, it affects quality, and this is a serious threat to a sector that is increasingly interested in the sale

of high-quality, differentiated coffees.

If we do nothing to mitigate the effects that climate change will have on coffee production, everyone along the supply chain will suffer – but farmers will be hit the hardest. It is the millions of smallholder, coffee-producing families who live in regions of the world with the lowest levels of access to agricultural services or protections whose livelihoods will be disrupted the most.

COFFEE NEEDS SCIENTIFIC RESEARCH AND EXTENSION Most industrialised nations have systems of agricultural research and development that support their food industries. Governments, private companies, and foundations collaborate to invest in scientific research of major food crops to support the needs of farmers with disease-resistant crop varieties, innovations in farming implements, knowledge on efficient farming techniques, among other services.

An excellent example of this type of publicprivate partnership in agriculture is embodied in the innovations of the Green Revolution which continue to impact our world today.

In the 1940s and 1950s, the Rockefeller and Ford Foundations funded work led by Nobel Peace Prize Winner Dr. Norman Borlaug to breed varieties of wheat and rice that are

credited with having prevented famines in Latin America and Asia.

These kinds of services tend to be underfunded in most regions where coffee is grown but governments who have embraced the model have seen the benefits to their agricultural sector and their economies. The governments of Colombia and Brazil, for example, have strong research and extension programs that support their coffee farmers. Thanks to these systems, Colombia was able to react relatively quickly when its coffee production was hit with coffee leaf rust in 2009, deploying extension agents to conduct an intensive replanting effort. Brazil is renowned for its productive agricultural research and extension services, which are also linked to its public universities, and support the world’s largest coffee producer.

Faced with an increase in pests, diseases, and droughts, one of the most crucial agricultural services required by the coffee sector today is plant breeding to produce more resilient hybrid coffee varieties. Natural plant crossing and selection has been practised for thousands of years and has produced the healthy, climate-adapted crops that support the world’s population today. While many coffee producing countries have publicly funded coffee breeding programs, unlike most other highly traded agricultural commodities like wheat, rice, and maize, there has been no advanced genetic work (non-GMO) and little international cooperation done in coffee plant breeding, until now.

FACED WITH AN INCREASE IN PESTS, DISEASES, AND DROUGHTS, ONE OF THE MOST CRUCIAL AGRICULTURAL SERVICES REQUIRED BY THE COFFEE SECTOR TODAY IS PLANT BREEDING TO PRODUCE MORE RESILIENT HYBRID COFFEE VARIETIES.

their farmers. In its efforts to support scientific research activities of WCR and its partners in producing and consuming countries, the ICO will be collaborating with WCR and PROMECAFE on the 2nd International Coffee Rust Summit to take place in 2015.

THE ICO’S ROLE IN CLIMATE CHANGE ADAPTATION IT’S TIME FOR COLLECTIVE ACTION The public and private sectors need to act now to support coffee science and extension, engaging the consumer to get involved as well.

We must support scientists and extension agents at public agricultural research institutions to bring new coffee varieties as well as information on best practices to farmers.

Public-private partnerships like the World Coffee Research (WCR) program promise to revolutionise our scientific knowledge of coffee and produce hybrids for both higher quality and yield. WCR is a non-profit program funded by companies of the global coffee industry and led by scientists from universities and research institutions around the world. Through formal agreements with producing countries (including members of the ICO) research organisations will host variety trials and collaborate on the production of stronger coffee varieties for

As the main intergovernmental organisation for coffee, bringing together exporting and importing governments to tackle the challenges facing the world coffee sector, we at the ICO are dedicated to providing leadership through the challenges presented by climate change.

To better inform all stakeholders in the coffee sector of the challenges farmers are facing, we publish statistics and monthly market reports. Our staff respond to media requests for data and interviews on a daily basis to bring information to the consumer.

We continue advocating for the public-private financial support of colleagues in innovative programmes like Coffee & Climate (c&c), an initiative which collects and consolidates best practices for adaptation in four project regions.

The ICO is in talks with colleagues at c&c regarding hosting and expanding their online platform of case studies in collaboration with

coffee research and extension organisations around the globe.

In addition to a lack of research and extension services, insufficient access to mainstream financial mechanisms is an obstacle preventing producers from adopting sustainable farming practises and adapting to the prevalent threat of climate change. With limited opportunities to obtain low-interest loans, farmers find it difficult to invest in their farms and even harder to recover when disaster strikes.

The ICO is addressing this issue through the Consultative Forum on Coffee Sector Finance, which aims to facilitate dialogue on topics related to finance and risk management in the coffee sector, with a particular emphasis on small and medium scale producers. The 4th Consultative Forum will be held in London in September and will bring together major donors and multilateral financial institutions along with coffee producers to ensure that the financing available from these institutions meets the very specific needs of the coffee sector, helping to promote a sustainable coffee economy.

To help our member countries make scientifically sound decisions on climate change adaptation policies and investments, the ICO will be producing a report on coffee sector adaptation initiatives to climate change which will include plans to diversify the existing Projects Committee to include scientists from national and international research institutions and universities. The first phase of the report will be presented in New York in September 2014 and the second phase and final submission will be done in Paris in September 2015 to the United Nations Framework on Climate Change (UNFCC).

CONCLUSION There is a sense of urgency in the coffee world and it is of prime importance that we use science to inform policy. We must never forget that coffee farmers depend on their crops to ensure that they put food on the table and send their children to school. The climate is changing now and will continue to change but there is hope. Adaptation is possible if we support strong public-private investments in scientific research and the functional tools to support the men and women who grow our coffee. Let’s work together to make this happen. G C R

J U LY /A U G U S T 2 014 | GCR

53

Your global coffee magazine and online resource July/August 2014

EXTRACTING A PICTURE

The European espresso machine market

DROUGHT DOUBTS The latest on Brazil

HOTEL SERVICE Horeca ups its game

INSTANT SUCCESS

Soluble takes the next step

CREATING

OPPORTUNITIES WITH COFFEE COLOMBIA’S SUPERSTAR POLITICIAN GOVERNOR SERGIO FAJARDO HAS HIS SIGHTS SET ON THE SPECIALTY COFFEE INDUSTRY TO CONTINUE THE TRANSFORMATION OF ANTIOQUIA.

www.gcrmag.com 29.00

Join the conversation now for less than €3 per week! www.gcrmag.com/subscribe

DIARY Dashboard COFFEE AROUND THE GLOBE

WORLD COFFEE EVENTS CHINA INTERNATIONAL

THE COFFEE EXPERIENCE

INTERNATIONAL CONFERENCE ON

COFFEE SCIENCE

8 – 10 AUGUST

SYDNEY, AUSTRALIA 4 – 6 SEPTEMBER

ARMENIA, COLOMBIA

To cater to the growing need of the Chinese market, CIEC and Exporum, the organisers of Cafe Show Seoul, have joined hands to bring the renowned Café Show brand to China.

The purpose of Café Show China is to offer a diverse cultural environment for coffee professionals and coffee lovers. Exhibits range from coffee beans, coffee powder, instant coffee, coffee utensils, coffee machines, coffee house franchises, tea, desserts and every other segment in coffee industrial chain. www.cafeshow.com.cn

The Coffee Experience is making its debut at the Royal Hall of Industries in Australia’s largest city. Catering to the Sydney café market, The Coffee Experience will capture the process of crop to cup – exploration, experience, education, design and sensory innovation – to provide the Sydney coffee and café industry with a platform to develop, share and grow Sydney’s leading-edge coffee offering. The event is organised by the owners of the Melbourne International Coffee Expo. www.thecoffeeexperience.com.au

The International Conference on Coffee Science will be organised this year by the Colombian Coffee Growers Federation, along with the Association for Science and Information on Coffee. The international event will focus on science, innovation and the impact of knowledge and sustainability on the industry as a whole. The event attracts more than 400 scientists and specialists from all over the world. www.asic2014colombia.org

COTECA

EXPOESPECIALES

WORLD COFFEE LEADERS FORUM

2 – 5 OCTOBER

19 – 22 NOVEMBER

CAFÉ SHOW BEIJING, CHINA

HAMBURG, GERMANY

24 – 26 SEPTEMBER

KEEP A LOOK OUT

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

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

8 – 13 SEPTEMBER

MEDELLIN, COLOMBIA

SEOUL, KOREA

ExpoEspeciales Café de Colombia is among the most important specialty coffee fairs in Latin America. The event integrates the value chain and displays the coffee industry’s trends and innovations in the domestic and international arena. ExpoEspeciales seeks to strengthen the coffee industry and promote national and international commercial dynamism. www.expoespeciales.com

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

World Tea & Coffee Expo 11 – 13 September Mumbai, India www.worldteacoffeeexpo.com

Moscow Coffee and Tea Expo 23 – 26 September Moscow, Russia Expocoffeetea.ru

Triestespresso 23 – 25 October Trieste, Italy www.triestespresso.it

United Coffee & Tea Industry 15 – 16 September Moscow, Russia www.unitedcoffeetea.ru

Coffee Fest Portland 17 – 19 October Portland, United States www.coffeefest.com

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

J U LY / A U G U S T 2014 | GCR

55

PRODUCTS Marketplace

BUHLER INFINITYROAST Buhler has released the InfinityRoast, an innovation in roasting technology that provides unprecedented control over flavours. The newly designed roasting chamber can operate efficiently at a low or high air-to-bean ratio. The advanced process control systems enable any traditional, as well as innovative non-traditional, roasting profiles. Operators can adjust the time-temperature pathway and air-to-bean ratio in order to master aroma formation and the micro-structure changes in the bean.

The Infinity Profile Control system can precisely reproduce roasting profiles to ensure consistent high-quality coffee products. The system can accommodate for fluctuations in initial green bean moisture, interruption of production and frequent recipe changes. The high-performance profile control automatically regulates the energy input into the roasting chamber to ensure consistent and optimum heat transfer. The round-bed cooler ensures efficient and uniform cooling of the beans. The InfinityRoast series is designed for high-performance operations, offering temperature surveillance, emergency water systems, full automation and situation-adapted safety concept including online Carbon Dioxide monitoring.

For more information visit www.buhlergroup.com

CAFÉ DE COSTA RICA – THE SPIRIT OF A NATION The Costa Rican Coffee Institute (ICAFE) has released a new book that beautifully portrays the history of Costa Rican coffee and how its influence has shaped this nation and its people. Published with Ojala Ediciones hallmark, the work provides a wealth of images and information on traditional coffee farming villages, revealing the faces, the settings, the natural scenery and the coffee-growing techniques that have placed Costa Rican coffee among the most highly valued in the world. The book is being released as Costa Rica celebrates 205 years of coffee production. To purchase the book email libro@cafedecostarica.com

DALLA CORTE – NEW BRASS ALLOYS Espresso machine manufacturer Dalla Corte has released two new brass alloys with low-lead content that conform with new regulations released by the United States Food and Drug Administration (FDA). The new materials are CW 501 L and CW 509 L, that comply with the FDA rules on the channelling/ treatment of water for human consumption. The company conducted extensive research to reach a desired result that would meet the FDA rules and Dalla Corte’s own high manufacturing standards. Parts that have been manufactured with the new allows include the group bell and body, group fitting pipes, boiler fitting pipes, steam tap/steam wand, flexible water pipe, tea group connections, and more. For more information visit www.dallacorte.com

56

G C R | J U LY / A U G U S T 2 014

MPE ULRANOVA GRINDING AND DENSIFYING SYSTEM FOR CAPSULE/POD PRODUCTION Modern Process Equipment (MPE) announced its latest technology in Capsule/ Pod grinding with the Ultranova Grinding and Densifying System (UGDS), which guarantees the highest precision grind and density attainable through any grinding system previously available. Through the utilisation of MPE’s proven and proprietary three-high modular grinding system, as well as the new, patented Vortex Super Densifier, the UGDS Granulizer is the optimal solution for capsule or pod coffee producers worldwide.

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

NEUHAUS NEOTEC WMS-E ROLL GRINDER Neuhaus Neotec has released a new roll grinder specifically designed for grinding capsule and pod coffee. The WMS-E Roll grinder ensures flexibility for coffee roasters, as a grinding solution that fulfils the demanding product requirements of single-serve systems. The motor and each roller has its own frequency converter. As a result, each roller can be driven at its own speed. The grinding pressure can also be individually adjusted to new product specifications when changing between types of coffee. These parameters can be saved as a recipe for quick adjustment when changing between coffees. The new WMS-E is available in two or three stages for different throughputs, and can be integrated with a compactor that provides high compacting rates in a space-saving design. For more information visit www.neuhaus-neotec.de

WMF 1500 S The new fully automatic WMF 1500 S follows the WMF Presto. The Windows CE-based Man-MachineInterface (MMI) touch display makes operation, care and maintenance intuitive. The user interface helps create of a wide range of different coffee and milk products, combined with a number of milk systems, which offer cold and hot milk or hot milk froth. It has a storage capacity of up to 48 individual drinks. Equipped with two generously sized coffee bean holders (650 grams each), a hand applicator and a chocolate powder or topping container, the WMF 1500 S enables drinks to be created from coffee, water, milk and chocolate.

The machine also offers the new SteamJet. This function enables cups and glasses to be brought to the perfect temperature by a short jet of steam. In addition, the Barista Button can be set the strength of a guest’s preference with a single press of a button.

For more information visit www.wmf.de J U LY / A U G U S T 2014 | GCR

57

LAST WORD India

TAKING INDIAN COFFEE

TO THE WORLD INDIAN COFFEE is making a name for itself, as it better connects with coffee-consuming nations. The Coffee Board of India (CBI) is an initiative of the Indian government working hard to showcase this wonderful coffee to the world.

“Our aim is to improve the quality and productivity of Indian coffee,” says Dr. K Basavaraj, Head of Quality Control Division, Ministry of Commerce and Industry. “An important part of that means going out and visiting the farmers, but equally important is speaking to our consumers.”

According to Basavaraj, the world is starting to take note of the variants of coffee coming out of India.

“The market is definitely growing for Indian coffee, says Basavaraj.

“We are travelling a lot now to exhibit at trade shows and each year we have more and more people wanting to hear about what we’re producing.”

One successful trade show for CBI was the Melbourne International Coffee Expo (MICE) held in Australia this past May. “Whenever we exhibit we encourage people to come and sit down and learn a bit about our coffee,” says Basavaraj. “At the Melbourne Expo we showcased prime grades of both Arabica and Robusta, highlighting some top specialty coffees.”

Indian Robustas are mainly washed Robustas with good body and softness. The washed Robustas are soft in the cup, and go well with filter and espresso coffee blends.

In recent years, Basavaraj says Indian coffee growers are exporting pulped natural coffees to Australia, with positive feedback from buyers on the coffee’s sweet characteristics.

“The quality of Indian coffee is appreciated worldwide by roasters and traders,” says Basavaraj. “Australian Roasters especially like Indian Washed Robustas which are soft and neutral.”

Basavaraj says Australian roasters have recently showed an interest in pulped and sun-dried coffees, which have a good body and positive fruity characteristics, give caramelised sweetness after roasting, and add a special taste to coffee blends.

India’s specialty coffee is finding a good market in Australia.

Basavaraj says that popularity and demand is growing for Indian coffees unique flavour characteristics.

“In Australia we had three Indian specialties for visitors to sample, including a Mysore Nuggets, Robusta Kaapi Royale and a Monsooned Malabar, all of which were really positively received,” says Basavaraj.

As well as promoting Indian coffee to an overseas market, the

58

G C R | J U LY / A U G U S T 2 014

Coffee Board of India is launching a new program to encourage domestic consumption and to ensure the preparation of these specialties matches the quality of the bean.

To be launched in July, the Barista Training Program will offer aspiring baristas tips and advice on the various aspects of coffee making.

Participants will have a chance to study the different types of coffee beans, the best procedure for roasting, how to grind coffee, and the chemistry behind a good coffee.

“Youngsters, especially those who have stayed abroad and have imbibed the global work culture, are drawn to coffee in a significant way. Many see coffee making as a trendy thing to do. With coffee being affordable we want to create more interest in coffee making at home,” Coffee Board of India Chairman Jawaid Akhtar told the Indian press.

The Indian Coffee Board’s Barista Training Program will allow aspiring coffee makers to train at its headquarters in Bangalore and the coffee board will send qualified staff to conduct group classes across the country.

“Indian coffee beans like Robusta and Arabica have earned fame the world over but very little is known about them in the Indian market. Consumers in cities like Mumbai, Delhi, Chandigarh and other parts consume soluble or instant coffee and presume it to be the real drink,” says Akhtar.

The Barista Training Program follows that of similar initiatives seen in emerging markets like China, Brazil, Russia and South Korea, where coffee consumption has grown significantly in recent times.

Although the CBI’s research indicates that tea is still the preferred beverage The Coffee Board of in the local market, recent studies India is introducing a have shown that coffee consumption is Barista ­Training Program growing in popularity. to ­promote coffee culture Through the CBI’s ongoing work, within its own borders. the domestic and international market can continue to develop its taste for the unique flavours of Indian coffee. GCR

LOCAL TALENT

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

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

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

Trên nền sáng

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

Move coffee and tea gently, efficiently, dust-free with FLEXI-DISC™ Tubular Cable Conveyors Gently slide coffee and tea through smooth stainless tubing horizontally, vertically or at any angle, to single or multiple discharge points

System can be fed from virtually any new or existing storage vessel or process equipment (Drum Dumper and Bulk Bag Discharger shown), and discharge at a single point, or selectively at multiple points.

FLEXI-DISC™ Tubular Cable Conveyors deliver unsurpassed efficiency, extreme durability and ultra-gentle product handling. Low friction, tight-tolerance, high strength polymer discs glide within smooth stainless steel tubing, evacuating virtually all material and allowing easy cleaning.

• Gentle, dust-free, energy-efficient conveying of fragile coffee and tea with no separation of blends • Single or multiple inlets and outlets allow a wide range of layout configurations • Comprehensive range of components • 4 and 6 in. (100 and 150 mm) diameter Discs on Galvanized or 304/316 Stainless Cable • Sanitary Systems including Nylon-coated or Uncoated Stainless Cable, and CIP accessories

Rugged cable/disc assemblies in 4 and 6 in. (100 and 150 mm) diameters offered in sanitary and industrial designs.

Offered as stand-alone conveyors, or as engineered, fully automated systems integrated with new or existing process equipment

USA sales@flexicon.com 1 888 FLEXICON

CHILE UK AUSTRALIA SINGAPORE SOUTH AFRICA

+56 +44 +61 +65 +27

CC-0530

Ideally suited to gently convey green, roasted and ground coffees, and all forms of tea and tea blends, FLEXI-DISC Tubular Cable Conveyors are fully enclosed, preventing dust and product contamination.

2 2415 1286 (0)1227 374710 (0)7 3879 4180 6778 9225 (0)41 453 1871

See the full range of fast-payback equipment at flexicon.com: Flexible Screw Conveyors, Tubular Cable Conveyors, Pneumatic Conveying Systems, Bulk Bag Unloaders, Bulk Bag Conditioners, Bulk Bag Fillers, Bag Dump Stations, Drum/Box/Container Dumpers, Weigh Batching and Blending Systems, and Automated Plant-Wide Bulk Handling Systems ©2014 Flexicon Corporation. Flexicon Corporation has registrations and pending applications for the trademark FLEXICON throughout the world.