Gelato 2022 Issue

THIS MONTH: CEO INSIGHTS & SCA WINNERS

GELATO ISSUE 2022 | Vol. XXXV No.3

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CONTENTS GELATO ISSUE 2022

08

MAKE ROOM FOR GELATO

Why this Frozen Delight is Growing Up JAKE LEONTI

10

THE FRICTIONLESS EXPERIENCE

Trends that will Shape the Coffee Shop in 2022 SANJIV RAZDAN

14 THE VIEW SCA Takeaway JAKE LEONTI

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06

A QUICK WORD with Gerry Ford of Caffé Nero JAKE LEONTI

SCA WINNERS The 2022 Expo Highlights

14

JAKE LEONTI

COFFEETALK MAGAZINE

Advertisers { INDEX } Add A Scoop / Juice Bar Solutions Inc (415) 382-6535 | ADDASCOOP.COM

11

Cablevey Conveyors

(641) 673-8451 | CABLEVEY.COM

3

Costellini's

(877) 889-1866 | COSTELLINIS.COM

11

Fres-co System USA Inc.

(215) 721-4600 | FRESCO.COM

9

General Packaging Equipment Co.

(713) 686-4331 | GENERALPACKAGING.COM

7

Grounds for Health

(802) 876-7835 | GROUNDSFORHEALTH.ORG

2

Java Jacket

(800) 208-4128 | JAVAJACKET.COM

11

Texpak Inc | Scolari Engineering

(856) 988-5533 | SCOLARIENG.NET

16

Torque Coffee

(619) 786-5779 | TORQUECOFFEES.COM

15

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THE VIEW { SCA Takeaway }

JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK MAGAZINE CoffeeTalk Magazine

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-41.2710849,173.2836756

T

he Specialty Coffee Association Expo event is always the most significant coffee event in the US; this year was no exception. The show was in no way lacking sponsorship, exhibitors or attendees, with over ten thousand attendees.

It was our first event or mass gathering for many of us since the pandemic started in March of 2020. The show was a homecoming of sorts and had an odd sense of symmetry, given that the 2019 show was also in Boston. What made this show, the 2022 show, memorable was seeing for the first time the pivots and evolutions that companies have made since 2020.

All the rumors of the trends created by the pandemic seem to be ringing true when you witness the products and marketing direction of many coffee businesses. More consumer-focused products and integrations were available. FAEMA introduced their FAEMINA prosumer home espresso machine, which features the ability to brew filter coffee and espresso on the same machine. Breville provided a sneak peek into their next home espresso innovation but, more interestingly, promoted their new online store beanz.com. Beanz.com offers a variety of coffees from roasters around the country. Additionally, you can leave it to the Barista's Choice program

to choose your coffee for you or take a quiz to select a coffee for you based on your flavor preferences. This type of vertical integration of offering the equipment and the coffee to put inside was utilized by other companies, including Ikawa with their consumer small-batch roaster and Bellwether.

More companies are trying to close the gap between them and the end-user. The pandemic brought to light the inefficiencies of the value chain and spurred innovation to connect with customers directly and offer added value to them, including education and additional products.

The irony of all this innovation and development is that many of these products are not currently available even if you want them. Bunn has been back-ordered for brewers with a six-month waiting list. Cimbali and FAEMA are in the same boat with a ton of orders backed up due to constraints in running with reduced

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staff, supply chain issues for necessary materials and, of course, shipping delays. Nevertheless, there were beautiful new machines and new ideas that you will just have to wait a little longer to utilize in your business.

We also witnessed the effects of the "great resignation", as it has been deemed. Many friends and contacts have shuffled around and found new homes with different companies or have left the coffee industry altogether.

There were fresh faces from other industries excited to join the ranks and get plugged into the coffee business.

The combination of new and innovative equipment and business strategies, joined with the changing positions and changing faces, made for a rather fulfilling show. There was definitely a sense of excitement and energy and satisfaction in being caught up on what was current—these elements combined for a great show and a keen curiosity for 2023.

MAKE ROOM FOR GELATO { Why this Frozen Delight is Growing Up }

JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK / CEO F+B THERAPY

{

I

f you are anything like me, Gelato and espresso are the best parts of visiting Italy. Each gelato parlor is better than the last. The artful presentation of long shallow pans adorned with natural fruit, nuts or coffee beans attracts the eye and whets the appetite. The daily visit to the gelateria was a personal requirement after lunch and often after dinner. Whether I was in a small town outside of Florence or strolling around the Trevi Fountain in Rome, the quality was always excellent.

When I was eighteen, this first pilgrimage to Italy led to my love and obsession

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with Gelato and ice cream. Later that year, I worked with one of the greatest Italian American ice cream makers in the US, Gus Rancatore of Toscanini's.

Toscanini's has been voted best in Boston too many times to count and has been written about by every magazine over the last thirty years. Toscanini's refined my love here, and I learned the most about our beloved frozen desserts.

The United States has the world's largest consumption of frozen desserts, including ice cream, frozen yogurt, sorbet, and of course, Gelato. Gelato and ice cream account for about forty percent of a fifty-seven-billion-dollar market (according to Grand View

Research). Italy also sees the US as the most significant opportunity for exports as the market continues double-digit growth year after year.

Gelato is unique from ice cream for several reasons. First, ice cream is required by law to contain a minimum of ten percent butterfat, with some brands using up to twenty-five percent butterfat. In contrast, Gelato typically contains between four and nine percent butterfat, which allows it to maintain a more elastic quality and not freeze as solid.

Gelato is perceived to have a more intense flavor, partially due to the lower

COFFEETALK MAGAZINE

fat content coating the palate. Another contributor to this effect is that Gelato is kept at a warmer temperature. As foods warm-up, more volatile aromatics and flavors are released and more easily perceived on the palate.

market; however, non-dairy options are growing, and innovations making oat milk gelato, and other non-dairy flavors broaden gelatos appeal.

Recently I found myself in Italy again for the first time in two years. I was there to learn the art of Gelato making from a Maestri Gelatieri Italiani.

Reconnecting with one of my passions and learning a new craft on such an in-depth level made me want to pursue it even further. Gelato is something that is a natural complement to espresso and coffee. Therefore, it makes perfect sense to offer Gelato or ice cream in a café and indulge in the infinite flavor combinations and menu options that can be created between the two.

Affogato is only the tip of the iceberg.

Ice cream also has considerably more air turned into the mixture. This added air is part of how it achieves a creamy texture even while being more solidly frozen. On the other hand, Gelato has less air, maintaining a creamy, silky texture even though it uses less cream than milk and contains less fat.

Gelato accounts for a smaller portion of the market; however, it has the most growth potential. According to the USDA, ice cream consumption has explicitly been going down since 2000. Meanwhile, low-fat options have remained steady. Gelato would fit into the low-fat option category and could be marketed in this way. Dairy desserts still account for eighty percent of the

I look forward to offering gelato making classes and integrating Gelato and ice cream into café concepts for customers looking for another revenue driver with zero wastage and a romantic story.

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Technology and Innovation

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GELATO ISSUE | 2022

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THE FRICTIONLESS EXPERIENCE { Trends that will Shape the Coffee Shop in 2022 }

SANJIV RAZDAN | PRESIDENT, COFFEE BEAN AND TEA LEAF, AMERICAS AND INDIA

{

W

hen we look back over the last 12 months and even further since the pandemic first took hold, our industry, like so many others, experienced a seismic shift. While this shift presented challenges, it also created significant opportunities.

As a result, there is now a fundamental coffee store evolution underway, which will strengthen the industry overall, but most importantly, better meet the demands of today’s consumers.

It’s not your imagination; coffee shops feel a little different than they did a year or so ago. The familiar ritual of picking up a coffee on the way to work is not the same for many who have not returned to the traditional office environment. Office setups have changed and so too have consumer behaviors. The good news is, the brew goes on, and The Coffee Bean & Tea Leaf has adeptly evolved to meet these new behaviors and provide coffee and tea lovers with their favorite beverages - just how they want them, where they want them, and at their convenience.

A few trends for 2022 that are fueling our company innovation and the industry:

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BEYOND THE “THIRD PLACE”

The so-called third place used to be an integral part of everyday life, but the pandemic has minimized that need. More people than ever before are working remotely and not making the previously customary coffee shop visits. As a result, customization, and hyper convenient ways of accessing consumers’ favorite coffee have become much more critical. At The Coffee Bean & Tea Leaf, we’ve been building prototypes that implement faster service, along with doubling down on technology to offer frictionless purchasing experiences. To cater to this new normal, in 2022, we will open many more drive-thru and walk-up locations, where all orders are made digitally and ready for grab-and-go.

BRING IT TO ME

While App-based delivery had been growing in importance, the pandemic significantly propelled this into the future as tens of millions of people in lockdown ordered food & beverages online for delivery, some for the first time. As a result, customers have become more accustomed to instant convenience. At The Coffee Bean & Tea Leaf, we have seen a massive surge in sales now

coming through delivery, a number growing by the day. Consequently, we have been investing heavily in our native delivery program, including convenience for consumers through their favorite delivery platforms: Uber Eats, DoorDash, Postmates, and GrubHub. We have also seen an uptick in consumers eager to replicate their coffee experience at home through their brewing and preparation. As a result, consumers are purchasing more coffees and teas at the eCommerce and retail level and more machines to help with their coffee preparation.

UBER CUSTOMIZATION

One area that has also taken off, and will continue to grow, is the hyper-personalization of coffee beverages. No other consumer product allows one to create a specific order with hundreds of variations.

Today’s consumers can decide on the caffeine level, origins of their coffee beans or tea, roasting type, flavoring, sweetness, dairy. The list is endless.

We have built this into our product innovation, team members’ training, the development of new stores, and how we connect with our consumers across multiple touchpoints. The intense level of customization is what COFFEETALK MAGAZINE

consumers demand, and we are creating seamless experiences to deliver that customization.

A few other areas to watch and consider in 2022 include the continued growth in cold beverages over hot (3 out of 4 beverages ordered today in our industry are cold); people’s desire for easy to attain daily indulgences or escapes vis-a-vis a cup of their favorite coffee; navigating worldwide supply chain issues and environmental impact, which has affected everything from the cups to the actual beans; and labor shortages.

We have accepted the challenges and seized the opportunities.

So stay tuned as our coffee evolution continues and our relentless focus on meeting our customers where they are with what they want continues.

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GELATO ISSUE | 2022

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A QUICK WORD { with Gerry Ford of Caffé Nero }

JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK / CEO F+B THERAPY

{

C

affé Nero is the largest independent coffee brand in Europe, including 36 stores in New England.

Gerry Ford is Chairman and Group Chief Executive of The Caffe Nero Group. The Group owns and manages four brands and 1100 stores across 11 countries with 9,000+ employees.

Caffe Nero was a start-up in 1997 and was later listed on the London Stock Exchange (LSE) in 2001-2007.

In 2005, Dr. Ford was named the UK's Entrepreneur of the Year by the Financial Times and The London Stock Exchange. In 2007, he took Caffe Nero private and today remains the company's majority shareholder. Dr. Ford has a BA from Stanford University, an MBA from INSEAD, and a Ph.D. from Oxford University. He sits on the boards of several consumer goods businesses throughout Europe and the USA. He is a frequent speaker internationally on Entrepreneurship and how to develop a leading consumer brand.

Jake Leonti: What adaptations has Caffé Nero made to the supply chain during the pandemic, and what implications has it meant for your business?

Gerry Ford: we have had to switch our primary distributor because they were unable to deliver with the same frequency and were forced to raise prices. We managed to consolidate our distribution with minimal disruption. However, this

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was a painful experience. It wasn't the distributor's fault, as they are under wage inflation and staff shortages. It has meant we have had to consolidate our product range and live with less frequent deliveries for the time being.

It has not changed our offering too much but certainly has meant a lot of work behind the scenes to adjust.

JL: what are you doing about staff shortages, and how are you encouraging staff to come to work and stay?

GF: we are facing staff shortages all around the world. There is the combination of employees going off work during the depths of the pandemic and not coming back, and then pay inflation has been extensive everywhere. Nonetheless, relative to most

other hospitality businesses, we have faired well. Many of our employees have stayed with us throughout the pandemic, wages have been increased, and we have started to look at other practices such as retention bonuses. In our organization, employees have the ability to move up fairly rapidly, and that is helpful. We believe in internal promotion, so a barista can move to an assistant store manager within six months if they work at it. They can even move to a store manager within 12-18 months if they are committed and good. Further, we are coming out of this crisis ready to grow again, opening stores and moving forward with our Coffee at Home products.

Gerry Ford, Chairman & Chief Executive of Caffe Nero Group plc

So there will be more opportunities in the days ahead for employees.

JL: what do you see happening next in the industry in 2022?

GF: During the pandemic, there was a movement toward convenience and coffee products consumed at home.

Again, this occurred to various degrees around the world. If and when the pandemic subsidies, I don't see this trend going away. People will still visit coffee houses, but they will also consume at home more often. More people are working from home, and more customers have started ordering coffee products online. Technology emphasizing convenience, from a click of a button getting the customer home delivery to having their product ready in-store, will continue to grow. Coffee at home products will be more available and accessible than ever before with more choice. Amazon or others delivering coffee products to your house will increase. I think there will also be a bit of a flight to quality. With more product accessibility will come a desire to have higher quality products as long as they are not too expensive.

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SCA WINNERS { The 2022 Expo Highlights }

JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK / CEO F+B THERAPY

{

B

oston, Massachusetts, was battered by the pandemic.

Many businesses suffered tremendous losses with a very prudent and strict policy regarding facial coverings and indoor dining rules. Many businesses never came back. As hard as the last two years have been for Beantown, you wouldn’t have known it if

you were in town celebrating the thirty-third annual Specialty Coffee Expo. The Expo was full of life, excitement, and people!

Thousands of people, four hundred twenty companies exhibiting from forty countries worldwide.

People laughed, hugged, and heartily slurped coffee as if the pandemic had never happened.

Here are some of the highlights of who won at SCA 2022.

{ Coffee Accessories } Unifilter Unibody 58mm Portafilter

by Weber Workshops

{ Consumer Coffee Preparation & Serving (Non-Electrical) } Clara French Press by Fellow

{ Specialty Coffee Beverage Additive } White Chocolate Café Powder by Hollander Chocolate Company

{ Commercial Coffee Preparation & Serving } Victoria Arduino - Black Eagle Maverick Espresso Machine by Simonelli Group

{ Open Class } Numilk Pro Countertop Fresh Plant-Based Milk Machine

by Plant Tap/Numilk

{ Specialty Non-Coffee Beverage Standalone } 1883 Ginger Beer Syrup by 1883 Maison Routin

{ Consumer Coffee Preparation & Serving (Electrical) } POUR’D by Marco Beverage Systems

{ Roasting Equipment & Tools } ROEST L100 by ROEST

{ Technology } Ember Mug² by Ember

{ Branding } Colectivo Coffee

{ Packaging } Roast Runner

The 2022 U.S. Coffee Championships took place in the Activities Hall and featured six competitions across the three days. Here are the six new U.S. Coffee Champions:

Elika Liftee U.S. Brewers Cup Champion

Nick Berardi U.S. Roasting Champion

Alexandra Hager U.S. Coffee in Good Spirits Champion

Piyapat (Flook) Lapteerawut U.S. Latte Art Champion

Morgan Eckroth U.S. Barista Champion

Julien Langevin U.S. Cup Tasters Champion

It was an intense weekend of reuniting old friends and colleagues, competition, and exalted jubilation for all the potential that Spring brings.

First winner, Boston! The Seaport district was at capacity with convention visitors, tourists and locals enjoying the topsy turvy weather (it hailed one day, and temperatures hit the seventies the next), refreshing ocean air and great local foods.

BEST NEW PRODUCTS AWARD WINNERS:

WINNERS FOR COFFEE DESIGN AWARDS:

{ Spaces } Tropicália Coffee 2022 U.S. COFFEE CHAMPIONSHIPS:

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