23/03/2021 10:5323/03/2021 10:53 APRIL 2021 APRIL www.teaandcoffee.net - - 1901 2021 1901 2021 years Economy 120

Soluble Sees Growth in Germany Growth Sees Soluble Coffee Coffee & Health Part I Coffee Iran is Struggling But Surviving Through Digitalisation Sustainability Expanding Japan’s Japan’s Expanding

Singular Green Tea Tea Green Singular Celebrating Celebrating

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T&C COVER APR21.indd 1T&C COVER APR21.indd 1 APRIL 2021 TEA & COFFEE TRADE JOURNAL MODERN PROCESS EQUIPMENT CORPORATION mpecoffee.com | +1 773.254.3929 | [email protected]

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CONTENTS April 2021 Vol. 193/No. 4

FEATURES 20 CONTACTS

Founding Editor William H Ukers (1873-1945) Expanding Japan’s Singular 20 Editorial Director Green Tea Economy Sarah McRitchie [email protected] By Barbara Dufrêne Editor Vanessa L Facenda 14 Iran: Surviving Amid Sanctions 26 [email protected] & Setbacks Specialties Editor By Vladimir Vorotnikov Donald N Schoenholt Art Editor 26 Emerging Trends in Tea Flavours Sue Burke [email protected] By Santosh Kumar Digital Editor Alex Rivers 29 Digitalisation: The Missing Piece in [email protected] the Sustainability Puzzle Contributing Writers By Anne-Marie Hardie 14 Mark Corey Barbara Dufrêne David Foxwell 35 Coffee & Health Series Part I Anne-Marie Hardie By Bill Murray & Mark Corey, PhD 29 Eugene Gerten Santosh Kumar Rachel Jones 38 Soluble Coffee Has a Chance for Aubrye McDonagh Leigh William ‘Bill’ Murray Growth in Germany Yumi Nakatsugawa By Eugene Gerten Vladimir Vorotnikov Group Sales Manager 42 Private Label Roasters Prepare for Mark Neilson [email protected] Recovery in OOH Consumption By David Foxwell Head of Sales Steve Crowhurst 38 42 [email protected] Assistant Events Manager DEPARTMENTS Kyra O’Sheen [email protected] 5 Editor’s Letter Accounts Payable 6 New & Notable Yee Yau (Miss) [email protected] 11 Sustaining the Chain Publishing Director Neil McRitchie 13 Calendar of Events [email protected]

46 Green Coffee Report Taiwan Sales Agent Worldwide Services Co Ltd 48 Company News 35 11F-B No 540, Wen Hsin Road, Section 1 50 Straight from the Cup Taichung 40848, Taiwan Rachel Jones, Group Head of Business Email: [email protected] Tel: +886 4 2325 1784 Development at Finlays Web: acw.com.tw

Tea & Coffee Trade Journal 2021 UKERS’ 66TH EDITION Editorial & Sales Office: www.teaandcoffee.net The Maltings, 57 Bath Street, Gravesend, Kent DA11 0DF, UK Tel: +44 1474 532202 Web: www.teaandcoffee.net GLOBAL DIRECTORY Designates a Designates a & BUYER’S GUIDE tea story coffee story

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120 Years Old & More Active Than Ever!

e are extremely proud to be celebrating Tea available to him at the time. What he accomplished is Vanessa L Facenda & Coffee Trade Journal’s 120th anniversary truly impressive. in 2021, especially in light of the challeng- If anyone has any old copies of T&CTJ (preferably Wing, odd, and unprecedented environment last year and the early part of the 20th century but the latter half will this year. While we have been sporting a new banner suffice), or any anecdotes, stories or old images to share, on our cover honouring this milestone, and although I please, please contact me (the address is listed below). alluded to “exciting plans” for this year in my February For any company looking to advertise in this special column, I did not disclose them. I happy to now be able celebratory issue, please contact Steve Crowhurst to reveal the many rollouts – beneficial to both our read- ([email protected]). ers and advertisers – we have scheduled for this year, one Last, but certainly not least, Tea & Coffee World of which has already launched. Cup is back — virtually, that is! Tea & Coffee World Marketplace is a new section on our website that Cup, The Virtual Show will take place on Wednesday, debuted in March – www.teaandcoffee.net/tea-cof- 8 September 2021. Our first digital event will be a fee-marketplace. It is a practical portal where compa- combination of presentations and skills sessions, as well nies may buy and sell equipment and parts or surplus as a virtual exhibition hall. We will continue to share products, and post job openings, but Marketplace is information on speakers and presentations as it becomes actually much more. Companies may also post news available so visit: www.tcworldcup.com or contact our about coffee and tea items that are beyond T&CTJ’s events manager, Kyra O’Sheen (kyra@bellpublishing. core coverage, such as dairy and non-dairy additives, tea com) for updates. For sponsorship details, please contact and coffee-flavoured edibles (ice cream, baked goods, Steve Crowhurst ([email protected]). liqueurs), accessories (tea pots, to-go cups) and book Of course, editorially, as always, we will continue to reviews, among many other things, for a nominal fee. offer new items such as our three-part coffee and health If you have any questions, please contact our Digital series, which launches this month in collaboration with Editor, Alex Rivers ([email protected]) or me the National Coffee Association. (see the address below). We look forward to celebrating this benchmark anni- To commemorate our 120th anniversary, we are plan- versary year with you, our subscribers, advertisers and ning a special issue for the July/August edition. It has readers, so please do not hesitate to contact me with any been entertaining and quite fascinating to research our questions, comments or ideas. As the Covid situation history and see the “important stories of the day” as well continues to positively progress, maybe we will be able as companies that existed at the time of the magazine’s to see each other beyond the confines of our computers, founding in 1901 – some of which, like us, are still tablets and smartphones some time before the end of the active today! I’m not sure how our founder, William H year. Until then, stay safe and be well! 1901 - Ukers, produced weekly or even monthly issues of such Vanessa L Facenda Editor 2021 substance, given the limited resources and capabilities [email protected] Celebrating 120 years FOR SUBSCRIPTION & CIRCULATION ENQUIRIES CONTACT: UKERS’ ANNUAL DIRECTORY & BUYERS’ GUIDE EDITORIAL [email protected] Each year, Tea & Coffee Trade Journal publishes the Ukers’ Tea Subscription Rates & Coffee Global Directory & Buyers’ Guide, a comprehensive ADVISORY BOARD UK: £110 (1 year), £198 (2 years) reference guide to the industry and its allied industries. Qualified MEMBERS Europe: £110 (1 year), £198 (2 years) companies are entitled to a free listing. Visit www.teaandcoffee. USA: $125 (1 year), $225 (2 years) net/ukers to complete a listing form or reserve your copy. Brett Anderhub Rest of World: $178 (1 year), $322 (2 years). Senior Vice President, Digital Only (1 year): £99/$125 TEA & COFFEE TRADE JOURNAL (ISSN 0040-0343 print; ISSN Rekerdres & Sons Insurance 2331-8546 online) is published monthly by Bell Publishing Ltd. Agency Published by Bell Publishing Ltd. No part of this publication may © Copyright 2021 by Bell Publishing Ltd. David De Candia be reproduced, stored in a retrieval system, or transmitted in any Printed in the UK by Buxton Press. Global Director of Tea, form or by any means without the prior written permission of The & Tea Leaf Bell Publishing Ltd. Stephen Hurst Celebrating 20 years of magazines and events, Bell Member: National Coffee Association, Green Coffee Association, Pacific Managing Director, Publishing Ltd, Gravesend, Kent, UK produces Coast Coffee Association, Coffee Association of Canada, Specialty Mercanta The Coffee Hunters Tea & Coffee Trade Journal, Dairy Industries Coffee Association, Specialty Tea Institute, Tea Association of USA, Massimiliano Pogliani International, Confectionery Production, Food & Tea Council of Canada. CEO, illycaffè Drink Technology, CanTech International and SweetsandSavourySnacksWorld.com as well as the Spencer Turer Ukers’ Tea & Coffee Global Directory & Buyers’ Guide. Vice President, Coffee Enterprises

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P.05 COMMENT√.indd 1 23/03/2021 10:56 NEW & NOTABLE

NEWTEA & COFFEE & REPORTS NOTABLE BREWING WORLDWIDE

NCA Virtual Convention Offered the Content & Feel of its In-Person Event The National Coffee Association benefits and fighting back against the “mother of all biases.” Once a be- (NCA) of the USA held its annual misinformation and stories crafted lief becomes part of your personal convention 3-5 March, but for the specifically to “attract eyeballs.” brand, that is how you see yourself, first time, it was a virtual event. In his keynote presentation, Tim- and “it becomes difficult to change Under the theme, “Together Toward othy Caulfield, the host and co-pro- your mind,” he said, adding that it is Tomorrow,” the virtual event felt ducer of the Netflix series A User’s easy to get pulled into a vortex of quite similar to the in-person con- Guide to Cheating Death and author conspiracy. vention with keynote presentations of Relax, Dammit!: A User’s Guide to According to Caulfield, the well- of an aspirational nature as well as the Age of Anxiety, broke down the ness industry is a multi-trillion-dol- breakout sessions focusing on var- decisions that stress consumers out lar industry and yet it is one that is ious aspects of the coffee industry, and the ample amount of misinfor- not based on scientific facts — many and attendees could even “e-meet” mation being disseminated today, are based on observational studies. at exhibitor booths. including that surrounding coffee. “Wellness brands are big factors in Attendees were able to view ses- Caulfield emphasised pushing creating and disseminating a lot of sions they missed immediately after back on the inordinate amount of misinformation — there needs to be the initial presentation took place. misinformation in the world. He some regulatory response to this.” Additionally, the NCA offered those postulated that the world is expe- Noting that it is an important interested the ability to register for riencing an ‘infodemic’ — people are time to be countering misinforma- the virtual event after it had con- bombarded with so much informa- tion on social media, in the news, cluded as attendees are able to re- tion on a daily basis, and a lot of this Caulfield stressed that “misinterpre- play all keynote and breakout ses- is negative, that it is stressing us out, tation of risk must be highlighted. sions through 9 April. The NCA also creating fear-mongering and affect- Get on social media and actively announced that it would be con- ing the decisions we make every day debunk misinformation.” ducting two NCDT (National Coffee because people tend to remember NCA president and CEO Bill Drinking Trends) Studies this year, in bad or negative headlines. Murray and Melissa San Miguel, the spring and again in the fall. Coffee, said Caulfield, is one of the head of policy at Red Flag, in their While many sessions discussed biggest victims of misinformation joint presentation, “Coffee & Health: the impact of Covid-19 on the cof- and sensationalised headlines. He Advocacy in Action,” discussed the fee industry – both challenges and called ‘confirmation bias’ – the ten- NCA’s advocacy efforts on behalf benefits – there was a strong fo- dency to find/believe in things that of coffee, but also emphasised the cus on highlighting coffee’s health support your personal theories – importance of fighting back against

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misinformation surrounding coffee. sumer spending dropped. However, support will not likely last long Bad news is easier to fill ‘media Clemons said that the US regained after pandemic ends; part of the space’ because it is more appealing about 76 percent of what was lost market will remain concerned but and it makes good fodder for head- in the second quarter of 2020 (the for many, it will no longer be top of lines, said Murray, explaining that economy peaked in 4Q 2019) but mind. However, mental well-being is coffee has had such a difficult time that it will take a couple of more replacing immunity as the key func- overcoming negative stigmas be- quarters to recover. “We’re seeing tionality of the future. cause of decades of misinformation. inflationary pressures affecting And while premiumisation con- He and San Miguel shared that businesses but there is light at end tinues, the focus will be on home. recent surveys have found 61 per- of tunnel, most likely in the third “Coffee consumption does recov- cent [of people] think it’s important and fourth quarters of this year.” er post-pandemic,” said Barry, “but it to limit intake; 43 percent Matthew Barry, beverages con- moves into new locations.” have heard info about health bene- sultant, Euromonitor International, Breakout sessions included pres- fits of drinking coffee; and one-third in his presentation, “Simple, Premi- entations on the single serve mar- have heard ‘bad things’ about coffee um, Functional: The Post-Pandemic ket, packaging and labelling issues in the news. Landscape for US Coffee,” outlined for coffee, Covid-19 safety issues “There has been a concerted ef- three key coffee trends affecting for roasters, advances in decaf and fort (by the media) to cherry pick the the US, but which will likely be the processing, and high- positive health benefits of coffee,” same for many countries: coffee lights from the upcoming 2021 said San Miguel. However, both she patterns changing in post-pandemic NCDT Study. and Murray agree that there are op- world, polarisation of spending and Root Capital was named the 2021 portunities to counteract the misin- functionality. NCA Origin Charity of the Year Award formation and debunk the myths by Barry shared that there has been in recognition of its long-standing those in the coffee industry by pro- tremendous channel-shifting dur- work helping smallholder coffee moting positive aspects of coffee ing the pandemic, with one billion farmers thrive. The NCA also recog- through “repetition and simplicity.” litres of coffee shifted to home con- nised Enveritas Inc and Strategies They urged the coffee industry to: sumption. Some has shifted to retail for International Development (SID) but not all, he said, adding, “part of as Origin Charity of the Year finalists, 1. Help the science speak for itself the channel shifting will be perma- for their work in supporting global 2. Connect health to other values nent with people continuing to work environmental sustainability and (eg, drinking coffee helps coffee from home, maybe not all the time helping farmers across the globe farmers) but part of the time, which will have build successful businesses that 3. Correct misperceptions a huge impact on consumption, par- increase their income, respectively. 4. Participate in the conversation. ticularly a reduction in coffee shop The recipient of the Distinguished purchases.” Leadership of the Year Award, new In her keynote presentation, jour- Within foodservice, Barry said in 2021, was Jonathan Feuer of LMZ nalist Michele Norris, founder of the recovery will be splintered with Soluble Coffee. The Race Card Project™, discussed some focusing on efficiency and The NCA’s virtual convention also race, culture, and identity, and even others embracing human interac- offered “wellness breaks” such as touted the power of coffee. “Narra- tion. “Post pandemic there will be a yoga stretches designed for those tive has power, telling your story definite longing for the ‘human in- sitting and staring at computers all has power, but listening to some- teraction’ aspect.” day. Attendees even had the oppor- one else has power because it can He also explained that much tunity to interact with each other build a dialogue, a conversation, a of “what moves digital tends to live during Happy Hours on the 3rd relationship,” she said explaining stay digital,” hence, e-commerce is and 4th of March. that coffee can be that conversa- proving “sticky” and merchants are The 2022 NCA Annual Convention tion starter because “people come confident that “this new normal” will be take place in-person 10-12 together over coffee and often have will stay — not everyone will go March in Houston, Texas. the most meaningful conversations back to in-store shopping. Howev- over coffee.” er, to appeal to all consumers, there Vanessa L Facenda G Scott Clemons, partner and will be an increase in hybrid models chief investment strategist, Brown offering both the digital and physi- Bros Harriman, in his presentation, cal experience. “Looking Forward to Looking Back,” Barry pointed out that consumers said that while everything that is are looking for simplified shopping happening may feel unprecedented, experience so many retailers – like none of it is. Amazon – are focusing on fewer but And although the CARES Act [in bigger brands, including coffee. the United States] put a lot more With regard to functional coffee, money in people’s pockets, con- Barry said that interest in immune

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Japan Safely Hosted Two Live Trade Shows in 1Q 2021 Two major exhibitions in food and hospitality business, both with over 40 years of history, were actually conducted in person in February and March in Japan. The secretari- at of these exhibitions, the Japan Management Association (JMA), carefully implemented the required preventive measures against the pandemic. The JMA requested all visitors to register in advance not only for the trade shows, but also each seminar, stage event, presentation, and so on, in order not to exceed the individual limit on the number of participants. All visitors had their body temper- national representative. due to the rapid spread of Covid-19 ature measured when entering the However, the world competition infections in the world. More than venue. Wearing face masks and fre- has been postponed due to the 3,315 exhibitors participated in quent sterilisation of hands at every pandemic. Therefore, the SCAJ sus- Foodex 2019, with 80,426 attend- corner in the halls were compulsory. pended the art competition ees, whereas Foodex 2021 hosted Under such uneasy circumstances, this year, then conducted a one-day 1,313 exhibitors and 25,754 visitors. both events were attended by about stage event on 16 February. In the Sri Lanka Tea Board (SLTB) along one-third of visitors compared to morning session, they introduced with leading Ceylon tea export- the pre-Covid numbers. Despite aspects of the Coffee Master Train- ers are constant participants at these difficulties, they still showed ing Course, an educational program Foodex over the years. Unfortunate- the importance for the industry to to train coffee professionals which ly, no SLTB officials could appear at find and experience a wide range of SCAJ started in 1999. Four pairs of the Ceylon Tea Seminar on 9 March, new products as well as face to face coffee tasting cups were served for so three exporters’ booths were communication between exhibitors the audience, such as Arabica and looked after by their Japan-based and visitors. Canephora (Robusta) from Vietnam, agents. HCJ 2021, which took place Pacamara from Guatemala, and Gei- The first half of the seminar was 16-19 February at Tokyo Big Site, sha from Costa Rica. conducted by Samantha PK Wijese- was the combined exhibition of The lecture was followed by a kara, Minister (Commercial) at the the 48th Hoteres Japan, the 42nd forum with four renowned coffee Sri Lanka Embassy in Tokyo, who Caterex Japan and the 21st Japan businesspeople who understood discussed the history of the Sri Lan- Food Service Equipment Show. The the merit and benefit of the Cof- kan tea industry. The second half number of visitors recorded was fee Master course through their was presented by Jafferjee Brothers 67,171 in 2019, 40,255 in 2020, and own experiences. In the afternoon introducing their business profile. 24,196 in 2021. session, four winners of the Japan “The JMA limited the total num- The Specialty Coffee Association and world championships in var- ber of the seminar attendee to 30. of Japan (SCAJ) is one of the regular ious coffee brewing competitions We expected less than that. How- participants of the HCJ and organ- were invited on the stage for a dis- ever, the seats were fully booked ises the Japan Champion- cussion (one joined online). They for the seminar. I think one of the ship during the HCJ in recent years. talked about the future of specialty main reasons that Sri Lanka holds a The winner will typically proceed coffee and the restaurant business major share in the Japanese tea to the world championship as the and showed their resolutions to at- market is our long-term participa- tract customers by improving their tion at the Foodex fair. I believe the skills and hospitality. The closing majority of the tea traders who par- event served coffee brewed by the ticipate at Foodex on a regular ba- champions to the audience of 100 sis have secured good orders from prepared seats, which were placed Japan,” commented Wijesekara. with safe distancing. HCJ 2022 is planned for 15-18 Foodex Japan 2021 took place on February at Tokyo Big Site, and Foo- 9-12 March at Makuhari Messe. This dex 2022 from 8-11 March at Maku- 46th food and beverage trade show hari Messe — both are expected to has been known as one of the larg- be live events again. est food exhibitions in Asia. Howev- Yumi Nakatsugawa er, it was cancelled in March 2020

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SCA Cancels WOC in Athens, Adds Virtual Coffee Retail Summits The Specialty Coffee Association • The SCA is seeking alternative research, exploring topics focused (SCA) has cancelled the 2021 World solutions for the 2021 World Ba- on continuing to navigate the of Coffee (WOC) trade show, sched- rista Championship, World Brewers Covid-19 pandemic, the business of uled to take place in Athens, Greece Cup, World Cup Tasters Champion- coffee, and the changing consumer this June, due to the ongoing coro- ship, and Cezve/Ibrik Championship. experience. navirus pandemic. The SCA said it is More information to be announced. Launching alongside the free continuing to pursue an alternative The SCA also announced a new two-day virtual event is a new solution for the 2021 World Coffee Coffee Retail Summit, a free virtual online resource library filled with Championships (WCC), which were event and resource library for cof- valuable content. Here, visitors to take place at the WOC trade show. fee retail businesses. After a year will be able to find previously pay- The updated 2021-2023 trade of conducting Covid-19 community walled research alongside relevant show and world competitions impact snapshot research, gathering lectures, podcasts, presentations schedule is as follows: community insights and listening and compelling writing that will to better understand the needs of help coffee retail businesses face Specialty Coffee Expo the retail business community, the the challenges ahead. (North American trade show) • 30 September–3 October 2021: SCA said it can release its first-ever “The launch of Coffee Retail Sum- New Orleans, Louisiana, USA retailer-focused line of program- mit is particularly exciting for us as • 7-10 April 2022: Boston, Massa- ming, made freely available with it marks the release of yet another chusetts, USA the support of key partners. project we have spent the past year • 20-23 April 2023: Portland, Ore- Offered twice in its initial year, developing in response to what we gon, USA the Coffee Retail Summit will first have heard from our industry,” said take place from 13-14 April 2021 in Yannis Apostolopoulos, CEO of the World of Coffee the US Pacific time zone. SCA. “It puts the spotlight directly (European trade show) Over two days, the SCA will host on the coffee retail business sector, • 16-18 June 2022: Warsaw, Poland a series of live lectures and dis- a group that has faced increasing • 22-24 June 2023: Athens, Greece cussions aimed at giving coffee challenges even before the pandem- World Coffee Championships retail chains and coffee shops the ic hit.” • 19-22 November 2021: World information they need to manage To register or learn more about Latte Art Championship, –World T Cof- the myriad challenges facing their the Coffee Retail Summit, visit: fee in Good Spirits Championship, businesses today. These will gather retail.sca.coffee. and World Champi- the latest in community insights, onship – Taipei City, Taiwan scientific best practice and market Aubrye McDonagh Leigh Second World Tea Virtual Summit Touts Tea’s Varied Capabilities The second World Tea Conference & quickly so companies need to stay Other sessions such as How to Expo Virtual Summit, ‘Strategies for on top of what is going on. Turn Your Tea Passion Into a Busi- Success’ was held 15-16 March. She suggested people strength- ness and Perfectly Paired Scones Shabnam Weber, president of the en their business relationships. and Tea, were geared towards those Tea & Herbal Association of Canada, “Because people are less mobile, looking to start tea businesses and kicked off the summit with a State it is a good time to get more con- small business owners. of the Industry report, sharing that nected whether by phone, digitally Winners of Tea Tycoons, a new with consumers desiring immuni- like Zoom or through other types of program celebrating and honour- ty boosting and mental well-being online events,” said Tison. She noted ing emerging small businesses that teas during the pandemic, the tea that social media is vital “but you are producing innovative products industry has seen unprecedented need to decide how much time you for the global tea industry were growth. She added though that we can spare” and expressed the impor- announced. They included: Steeped will “probably not see this kind of tance of having a savvy person to Games in the Innovation Category; growth again.” Weber advised at- handle the social media activities. Langkloof Honeybush Co/Grounded tendees to “not write off 2020. We Rob McCaleb, president of the in the Green/Sustainability Catego- can’t forget about it as there are Herb Research Foundation, ex- ry; and Akova Teas in the Unique lots of lessons to be learned that plored the best immune stimulants, Customer Engagement Category. can help this industry grow.” antivirals and symptom-relief herbs Summit organiser Questex con- In “Keeping Your Business Im- that can help boost our defenses firmed that its World Tea Conference mune by Harnessing the Power of a in “Herbs in the Time of Covid.” He & Expo, scheduled for 14-16 July Different Approach,” Rona Tison, evp, stressed that although herbal med- 2021 in Denver, Colorado will be a corporate relations & PR at ITO EN icines have been used to ward off live/in person event. North America emphasised that the illnesses for thousands of years, business environment is changing “herbs will not cure Covid.” Vanessa L Facenda

April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 9

P.06-09 N&N√.indd 9 23/03/2021 14:53 Tailor-made technology, driven by innovation

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P.10-BRAMBATI Apr.indd 1 19/03/2021 14:33 SUSTAINING THE CHAIN Scientifically Tracing the Origin of Coffee The Alliance for Coffee Excellence is now able to trace the origin of coffee through a new partnership with Oritain.

he Alliance for Coffee Excel- a database of coffee from all over lence (ACE) announced that it the world that can then be used to T is now working with scientific prove the origin of coffee. traceability company, Oritain, to ver- Through their partnership, both ify the origin of coffee submitted for Oritain and the Alliance for Coffee auction in the global ‘Cup of Excel- aim to provide greater supply chain lence’ competition. verification, providing commercial With thousands of entries from opportunities for coffee farmers, competitors in more than ten differ- traders and other companies oper- ent countries, the Cup of Excellence ating in the coffee industry in the (COE) is the most respected coffee future. The ability for coffee farm- competition in the world, securing ers to prove the origin of their re- the highest value for its farmers spected coffee beans will allow and growers while identifying some them to recognise the true value of the world’s best . for their coffee, with buyers safe in Now, the competition is further the knowledge that the coffee they cementing its reputation for in- are paying for is exactly the same tegrity and transparency through coffee they receive.

a partnership with Dunedin, New ACE will be able to introduce Research Coffee Wolrd of Image courtesy Zealand-based Oritain, a scientific a traceability tool in the coffee egon that is dedicated to advanc- traceability company that has pre- industry to increase transparen- ing excellence in coffee. The Cup of viously conducted tracing for crops cy, demonstrate compliance with Excellence, a program which gives such as cotton. Oritain analyses sustainability and responsible out the most prestigious award in everything that is grown, reared or sourcing standards, manage risk coffee, has affected thousands of made, is a product of its environ- and strengthen the reputation of farmers. Its unmatched focus on ment, absorbing a unique ratio of high-level coffee origins. quality discovery, farmer premiums elements and nutrients depending ACE executive director, Darrin and transparency has changed the on where in the world it comes Daniel, said, “This partnership is specialty coffee industry. from. Using a combination of foren- at the cutting edge of verification For more information about sic science and statistics to accu- of origin, and we are delighted to membership, juries and to register rately verify the origin of products, begin this partnership as a service for the Cup of Excellence or na- Oritain’s services have been applied for our many stakeholders in the tional winning samples and their to increase transparency in global specialty coffee supply chain.” auctions log on to: alliancefor supply chain and, through scientific The Alliance for Coffee Excellence coffeeexcellence.org. verification of origin, to mitigate so- is a non-profit global membership For more information on Oritain, cial and environmental risks along organisation based in Portland, Or- visit: www.oritain.com. several products’ supply chains.

Tracing COE Coffee Oritain will analyse the natural properties found in coffee and use the data to create an “origin fin- gerprint” for that particular coffee bean. Once established, this finger- print will be used to verify the au- thenticity of that coffee as it moves throughout the supply chain, all the way up to the shop floor. For ACE, Oritain will analyse coffee from

the Cup of Excellence and build ACE of Image courtesy

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P.11 STC√.indd 11 23/03/2021 10:57 Ukers 2020 Section 1 √.indd 12 12/08/2020 16:14 CALENDAR OF EVENTS

APRIL 2021 JULY 2021 Natural Products Expo East (In-Person & Virtual Event) Hotelex Shanghai Hotelex Chengdu 22 – 25 29 March – 1 April 8 – 10 Philadelphia, Pennsylvania Shanghai, China Chengdu, China www.expoeast.com www.hotelex.cn/en www.hotelex.cn/en London Coffee Festival Specialty Coffee Association (SCA) Natural Products Expo Spark 23 – 26 (rescheduled from Coffee Retail Summit (Virtual) Change (Virtual Event) April) 13 – 14 14 London, England retail.sca.coffee www.npevirtual.com www.londoncoffeefestival.com ISBT BevTech 68th Annual Meet- World Tea Conference & Expo* Hotelex Tianjin ing – Virtual Event 14 – 16 24 – 26 26 & 30 (Expo) Denver, Colorado Tianjin, China 27 – 29 (General Session) www.worldteaexpo.com www.hotelex.cn/en Orlando, Florida Coffee Fest New York www.bevtech.org Fancy Food Show 18 – 20 (rescheduled from June) New York, New York MAY 2021 27 – 29 www.coffeefest.com US Re:co Symposium (Virtual) New York, New York 12 – 13 AUGUST 2021 www.specialtyfood.com www.recosymposium.org 10th Annual Los Angeles Tea Pack Expo Las Vegas Natural Products Expo West Festival 27 – 29 (In-Person & Virtual Event) 14 – 15 Las Vegas, Nevada 24 – 27 Los Angeles, California www.packexpolasvegas.com Anaheim, California www.teafestivalla.com North American Tea Conference www.expowest.com Coffee Fest Anaheim 28 – 30 National Restaurant Association 22 – 24 Queens Landing, Ontario (NRA) Show CANCELLED Anaheim, California www.tea.ca Chicago, Illinois www.coffeefest.com BevTech Europe www.nationalrestaurantshow. com 30 SEPTEMBER 2021 Amsterdam, Netherlands Tea & Coffee World Cup, www.isbt.com/upcom- JUNE 2021 The Virtual Show ing-events.asp Coffee Shop Innovations Expo* 8 SCA Expo 15 – 16 www.tcworldcup.com London, England 30 September – 3 October Melbourne International Coffee www.coffeeshopexpo.co.uk Expo (MICE) New Orleans, Louisiana BevTech Asia Pacific* 9 – 11 www.sca.coffee 17 Melbourne, Australia Bangkok, Thailand www.internationalcoffeeexpo.com OCTOBER 2021 www.isbt.com/upcom- Anuga New York Coffee Festival ing-events.asp 9 – 13 8 – 10 Coffee Fest San Antonio* Cologne, Germany New York, New York 18 – 19 www.anuga.com www.newyorkcoffeefestival.com San Antonio, Texas Le Paris Café Festival SCTA Swiss Coffee Trade Asso- www.coffeefest.com ciation Gala & Forum (TBD if 18 – 20 (rescheduled from virtual or in person) Europe Re:co Symposium (Vir- March) 14 – 15 tual) Paris, France Basel, Switzerland Dates TBA www.pariscafefestival.com www.recosymposium.org www.sc-ta.ch Canadian Coffee & Tea Show SCA World of Coffee CANCELLED 19 – 20 Get the latest updates Athens, Greece Toronto, Ontario *Still scheduled to take place at www.teaandcoffee. www.worldofcoffee.org www.coffeeteashow.ca at press time. net/events/

April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 13

P.13 CALENDAR√.indd 11 23/03/2021 10:59 SPOTLIGHT: IRAN

Iran’s tea industry is hampered by many sanctions. Iran: Surviving Amid Sanctions & Setbacks Iran managed to avoid major turbulence on the domestic tea market last year, despite floods, national currency depreciation and the coronavirus pandemic. The world’s fifth-largest tea importer may further expand domestic production in order to ramp up export, but more importantly, become more self-sufficient in tea, as there are no guarantees that Western sanctions will be lifted soon. By Vladimir Vorotnikov All images courtesy of Vladimir Vorotnikov

n the current year, tea production in Iran is year, ending on 22 March 2021 (it is the year expected to climb by 10 percent to 30,000 1399 according to the Persian calendar), the tonnes, Habib Jahansaz, chairman of the country imported 45,000 tonnes of tea, the ITehran-based Iran Tea Organisation (ITO) same as the previous year. Export is anticipated said recently during a press conference. The to total 5,000 tonnes, and if this is the case, country projects to harvest 130,000 tonnes Jahansaz said it will bring USD $10 million of of fresh tea leaves, also above last year’s foreign currency to the Iranian national budget. level. Currently, the domestic production meets Iran is a nation of 80 million tea lovers. The roughly 30 percent of the internal demand, country is ranked fourth in the world in terms Jahansaz estimated. of per capita tea consumption. On average, During the first nine months of the Iranian Iranians consume 1.5 kg of tea per person per

14 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net April 2021

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year, making Iran the biggest tea market in the including India, Uzbekistan, Tajikistan, Middle East. Turkmenistan, Afghanistan, Iraq, Canada, Today, a lot of families depend on tea Australia, Spain, the Czech Republic, business. More than 55,000 households grow Azerbaijan and Georgia. tea over 28,000 hectares of farmland in the When it comes to both import and export, two provinces, accounting for 90 percent of the main problem is that Iran is not allowed to the country’s total tea production, official trade in dollars. Furthermore, all companies statistical data showed. trading with Iran could be subjected to so-called secondary sanctions, which has proven to scare The Sting of Sanctions away numerous businesses from buying or The Iranian tea market was severely hit in 2018, selling anything to Iran. For this reason, in when former President of the United States, 2019, Kenya’s Tea Development Agency said Donald Trump, re-imposed the full panoply that earnings from tea export had dropped 17 of sanctions against Iran that had been waived percent in part due to financial restrictions under the Joint Comprehensive Plan of Action reinstated on Iran in November 2018. The two nuclear agreement, targeting its oil sales, its countries’ inability to trade in dollars led to a wider energy industry, shipping, banking, surplus greater than the Kenyan market could insurance, and so forth. absorb, the agency said. For the tea industry, the main problem The East African Tea Traders Association of the sanctions lies in the field of currency told the Business Diary that the sanctions had exchange. Since January 2018, the Iranian rial cut demand since traders are scared to transact depreciated enormously against the US dollar with Iran for fear of not getting paid as banks by nearly 450 percent, from 42,880 rials to one shy away from remitting money to the country. US dollar to 318,560 rials on 18 October 2020. On 17 December 2020, the Indian Tea While this is the market rate, major imports are Association also voiced concerns over problems financed by the official rate, which is fixed at with exporting tea to Iran. “The export system 42,000 rials per dollar from March 2019. was severely affected when the USA imposed As explained by Dr Jalaleddin Mirfakhrai, further restrictions on Iran, and oil import was Iran: Surviving Amid director of the Tehran-based major importer, stopped after May 2019. All payments were JM Vet Group, being short of foreign currency, delayed for a long time. Exporters shipped the authorities technically banned the import millions of kilograms of tea, and their money of some products, particularly foreign pet was not released. As a result, tea exports came Sanctions & Setbacks food. Otherwise, the national treasury would down drastically. No bank was ready to be shortly deplete, as the government must bear associated with Iran payments. Payments for substantial costs maintaining a fixed rate on already exported tea are pending for months, imported goods, including tea. and exporters are extremely hesitant to make Iran exports tea to a long list of countries, further contracts,” Sujit Patra, secretary of the

Iran exports tea despite being dependent on imports. ∆

April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 15

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SPOTLIGHT: IRAN

Iran is ranked fourth in the world in per capita tea con- sumption.

Indian Tea Association, said in a statement. amounts to 35,000 tomans ($8.30) per kg, Market participants expressed hopes that while the price for premium tea reaches 65,000 with Joseph Biden winning the 2020 US tomans ($14) per kg. presidential elections, the sanctions could be However, the processing segment has its eased if not lifted. Those hopes may be destined own issues. The production subsidy that all to come true, as the Biden administration has processing factories in the country are subjected recently decided to join European partners in to has been recently cut from 35 percent to 20 offering to begin talks with the Iranians for the percent. The relatively low purchasing price first time in four years. pushes some farmers to consider abandoning tea and switching to other, more expensive Farmers Discouraged by Unfair agricultural commodities. “Although tea leaves Trade Rules are less expensive than other agricultural However, the main problem constraining the products, the positive side is that its purchase is Iranian tea industry development is not the guaranteed. However, given that all rural lands sanctions but the relatively low purchase prices are becoming more expensive, tea growers are for tea leaves. As explained by local tea farms certainly not satisfied with their incomes,” said supervisor Abbas Abdolmaleki, all tea in the Abdolmaleki. country is purchased in Iran at a guaranteed Some farmers are even selling their price, which, on the one hand, means there is agricultural land, taking advantage of the rising no need to worry about the demand. On the prices. According to Abdolmaleki, from 1,000 other, this price leaves a lot to be desired, and square meters of tea bushes under the best-case besides, farmers are discouraged that other scenario, farmers could earn up to 10 million businesses are making money at their expense. tomans (USD $2,369) per year. In contrast, “One of the main concerns is the difference for example, even in the most remote village between the guaranteed purchase price of tea of Mazandaran, the price for a square meter leaves and the price of dry tea at the market. of agricultural land now stands at 1.5 million The guaranteed purchase price in the best tomans ($355). case is 4,600 tomans (a unit of currency in Given the situation, numerous farmers Iran) per kilo (USD $1.09), while the price for are getting increasingly dissatisfied over the dry black tea in the market is approximately disparities existing in the Iranian tea industry, 70,000 tomans per kilo (USD $16.50),” said resulting in some of them leaving the business. Abdolmaleki, adding that despite such a huge In addition, it turns out that the government is gap, farmers are often paid after long delays. willing to pay importers more than domestic The official data, however, shows that the farmers. Jahansaz noted that each kilogram purchasing price for tea leaves and the retail of foreign tea is imported in Iran for USD $5 price for packed tea is narrower. Jahansaz per kg, a price that includes exchange rate and

estimated that the lowest domestic tea price packaging costs. ∆

April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 17

P.14-15,17,19 F1 IRAN√.indd 17 23/03/2021 11:03 TETRAEDRAL EATELAED RECLOALE PLLO TEAA ENELOPE CARTON

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EX_ADV_CT11_04.indd 2 27/07/20 09:53 SPOTLIGHT: IRAN

Market and Industry an exception, the official government data Prospects indicates. Despite all challenges, the The Iranian tea industry’s future is rather Iranian tea industry has been vague, since local tea is reportedly not steadily growing. During the competitive with imports when it comes to past five years, domestic tea production costs. Iranian tea brands are of leaf production has doubled. poorer quality compared to imports, said a According to the International source who preferred to remain anonymous. Tea Organisation, currently, The taste properties are not fit to compete with 162 tea processing factories those supplied by Kenyan or Indian importers, are operating in Iran, with 28 and for this reason, Iranian tea is always new factories launched during attributed with the budget segment. the past decade. There are “It is, in fact, a big overestimation saying good chances the industry that the sanctions have hampered the would continue growing at development of the Iranian tea industry. the same pace in the coming Domestic production expanded at the expense five years. of sanctions. I would not know what would Local analysts are confident that the Iranian happen if the economic restrictions end tea market has bright growth prospects. tomorrow, the exchange rate stabilised, and Currently, millions of citizens have spare money people’s income recovered. Would they still opt to spend on food, as the average consumption for Iranian tea then?” the source asked. of many food staples such as bread, milk, and red meat has decreased between 30 percent Vladislav Vorotnikov is Moscow-based multimedia B2B freelance and 50 percent over the past ten years. As journalist. He has been writing about the tea and coffee industry its overall sales dropped by 15 percent to 20 since 2012. percent during the past ten years, tea is not

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April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 19

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Matcha, which trans- lates as “powder of tea,” is made from finely, ground processed leaf.

Expanding Japan’s Singular Green Tea Economy

The mix of high tech for fields and factories with traditional trading methods, together with a country-specific official quality assessment system, creates a unique market pattern for Japan’s many exquisite green teas, with a strong focus on attracting affluent Western consumers. By Barbara Dufrêne All images courtesy of Barbara Dufrêne unless noted

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he Japanese tea economy is unique in that to-drink (RTD) tea drinkers – in fact, ITO EN, its many singular ways make Japanese tea Japan’s leading tea company, marketed the first growing, harvesting, processing, refining, canned -free oolong tea in 1980 and the first Ttasting and trading practices vastly different from canned green tea in 1985. This market segment those applied in other tea producing countries. continues to expand, supported also by the world’s The reasons for this singularity may well greatest density of vending machines. have their roots in Japan’s insularity, its more According to the Japan Tea Exporters Council, than millennial tea traditions with the ancestral the three main tea-producing areas of Shizuoka, heritage links to feudal rituals, and the huge Kagoshima and Kyoto currently generate around incentive generated by demand from the United 65 percent of the production volume. Together States in the second half of the 19th century. Since with 12 smaller tea-growing areas, Japan had an the early years of the new millennium there has output of 76,000 metric tonnes (mt) in 2020, a been a growing awareness of the increasingly total that is gradually decreasing after a peak of difficult fit of delicately brewed cups with the 105,500 mt in 1975, according to figures from the continuous growth of the urban population in the London-based International Tea Committee. country, with growing disposable income but no leisure for teatime. Urban dwellings are sprawling USA Demand Sparked Growth and encroaching on arable lands, which creates For many centuries, the Japanese daily drink of strong pressure for motivating younger farmers to ordinary green tea consisted of pan-fried leaves replace the ageing rural population, and preserve yielding brownish cups for the local people. agriculture and the well-groomed tea gardens. The green premium cups of matcha in particular A constitutional monarchy, Japan’s GDP were made with leaves from shaded tea bushes, a ranked three in the world in 2020, with less process restricted to the Kyoto area and reserved than two percent earned by agriculture. Rice is for the court, the monasteries and the wealthy. In the most protected homegrown crop, while tea 1738, the invention of the steaming process by continues to be geared towards a high added-value Nagatani Soen created a new tea category: sencha, export market. An atypical profile from the start which allowed the brewing of smooth, fragrant with great wealth and giant high-tech industries, and attractive green cups. More refinement came Japan has a highly sophisticated infrastructure in along with the introduction of the Gyokuro tea the huge port cities on one side and on the other, process in 1835. volcanic slopes with terraced farming plots and The arrival of US Navy Commodore Perry remote scenic valleys running from the barren and his Black Ships in 1854, asking politely mountainous centre of the archipelago’s main for permission to get access to Japan’s ports, islands towards the sea. eventually triggered the Meiji Restoration from Japan’s con- 1868 onwards. The Meiji emperor opted for sumers are the Main Tea-Producing Regions developing trade, which resulted in the signing world’s leading The tea gardens are scattered all over the three of commercial treaties between Japan and the RTD tea drinkers. main islands of Honshu, Kyushu and Shikoku, USA, generating huge economic progress and ∆ reaching as far south as Okinawa island. When modernisation. It soon took only 18 days to ship tea was first introduced to Japan from mainland China some 1,200 years ago, the gardens were centred around the Imperial City of Kyoto and then gradually spread from there. Thus, the warm and humid climate of the hills between Mt Fuji and the surroundings of Suruga Bay opening on to the Pacific Ocean have attracted many tea farmers from the 14th century onwards, and the Shizuoka area rapidly became, and is still today, Japan’s biggest tea-growing region, with a whole range of distinct tea terroirs. By the 1980s, extensive tea planting was carried out in Kyushu, and the flat plains of the Kagoshima prefecture saw the establishment of big tea estates, ideal for high tech equipment which supplies the thriving tea extracts manufacturing companies.

Japan’s consumers are the world’s leading ready- EN courtesy of ITO Image

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from Yokohama to San Francisco, California and Tea Instructors Association was launched, to train very rapidly the delicate and refined Japanese and educate tea teachers for the home market, green teas were keenly appreciated in the USA. and tea selections and tea competitions were Thus, green tea soon ranked just after silk as a organised in export markets. Private operators revenue-earning export crop, and these monies have also invested in promoting new lifestyle and immensely boosted the modernising of the tea convenience cups from Japan, which resulted in economy and the processing factories. the matcha boom all over the Western markets. Unfortunately, the turmoil of World War I put There are more and more attractive premium an end to this favourable development, generating leaf and RTD teas from Japan launched in the US heavy pressure to search for new customers for market, in particular by ITO EN’s North American tea exports. The dilemma came from rivalling subsidy, which was set up in New York in 2001. green tea producers, namely China and later on However, a lot of effort is still needed to make also from Taiwan, and the fact that with its highly Western consumers understand, appreciate and industrialised economy and soaring production effectively buy these exquisite and rather costly costs, Japan simply could no longer compete. cups, and to learn how to brew and to share them. On the verge of collapsing, the tea industry finally turned to its home market, where consumers Japan’s Green Teas are Delicious, had become more and more affluent. Brighter Delicate and Refined times allowed for the renewal of a booming tea Apart from the large industrial tea estates in the industry, which was fully geared to the domestic great plains of Kagoshima, Japanese tea gardens market beginning in the 1960s. are small and mostly family run. Although the lush and straight flushing Yabukita cultivar remains the Coffee Challenges Tea Consumption leading producer by yielding around 70 percent While producing their delicate teas with great of tea output, there are about 100 other registered dedication, the Japanese tea industry may not have cultivars, that have been selected and crossbred undertaken the best efforts to maintain awareness over the past 60 years or so, for specific flavour in the domestic market about the country’s many notes, high theanine content, intense reaction famous cups. Rushing around with bottled and to shading, leaf colour, early flushing, pest and canned teas and fascinated by the “new beverage” disease resistance, as well as good yield. For in coffee shops, many Japanese millennials premium teas, tea producers work with premium reportedly do not even own a tea pot for brewing cultivars in order to achieve the best result with a a cup at home. given manufacturing process. While tea farmers are ageing, awareness is The best teas are harvested in the spring, called growing that tea production and the refined ways new tea or shincha, and many will undergo a of tea drinking are an intrinsic part of Japanese period of shading, from six days up to three weeks, culture and heritage and must be preserved by all to make the leaf softer and lushly green, for silky, means. The government, therefore, took action savoury and fragrant cups. through the Ministry for Agriculture and Food with Most Japanese green teas are made by applying the aim to promote tea education, by fostering tea the steaming process to stop enzyme activities, knowledge and the appropriate skills for assessing while Chinese green teas use dry heat for that and preparing excellent cups. In 1999, the Nihon purpose. The biggest product category is the

(Right) Sayama Tea Field. Although Japan has many large, industrial tea estates, most are small, fam- ily-owned tea gardens. ∆

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steaming, the leaf is not rolled but dried in flat pieces, called tencha, which are then ground into a fine powder, either by traditional stone mills or by modern high-tech machinery. In Western markets, the quality grades are generally named culinary matcha, for cooking and pastries mainly, and ceremonial matcha, for preparing an elegant “three sips” cup by whisking the ground tea in warm water with a matcha Calibrating, classic sencha, with its finely rolled leaves yielding whip. There is also a wide range of RTD matcha grading and translucent pale green cups. In recent years, the tea drinks, which one may wonder if some of refining green deep steamed or fukamushi sencha subcategory the recipes are not based on ordinary green tea teas. has been trending – brewing its opaque dark green powder. cups fast, in 45 to 50 seconds – with a munchy Since matcha has become so popular in mouthfeel due to the many small particles flaking Western markets, competition is soaring and off the brittle leaves. attempts have been made to introduce quality Then comes gyokuro, or ‘jade dew’, made criteria, to create a level playing field for all the from the shaded and flat steamed leaf particles stakeholders. According to Hiroshi Nishikawa that are also used to make matcha. These cups are from the World Green Tea Association, Shizuoka, silky smooth, deep green and delightfully umami, Japan, the matter is of such complexity that the requiring very soft water cooled down to about work by a newly-created expert group within the 70°F for brewing. International Standards Organisation (ISO) TC 34 Finally comes matcha, which translates as SC 8 “Tea” has not been resumed since the first ‘powder of tea’ and which is manufactured by meeting more than three years ago. finely grinding the processed leaf. It is highly Florent Weugue, a certified Nihon Tea attractive and becoming more and more popular, instructor since 2009, who has run a premium though still not always well understood. By tea shop in Tokyo’s historical quarter since 2018, drinking matcha in the cup, one ingests the full explained that most of the Japanese green teas are leaf material, and not only the molecules extracted sold by tea producers to government-certified tea by hot water during brewing. Matcha has several refiners and wholesalers. These intermediary tea grades of quality. All genuine matcha, whichever professionals usually proceed with the final drying quality grade, is made from processed tea leaves, down from five percent to three percent humidity, harvested after a long period of shading. After then the sieving, calibrating and homogenising of

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leaf, stems and smaller particles. Single origin terroir green Afterwards they usually blend these now refined teas are becom- or finished teas in line with customer requests ing increasingly before putting the products into cold stores and popular. releasing them upon demand to go to the retail market. It is important to note that all Japanese teas are vacuum packed to maintain colour and fragrance fully intact, therefore such teas should never be displayed for retail in the traditional tea containers that are opened and closed many times during the day. cultivars, has a perfect fit with the Japanese Outlook and New Trends fine teas. Weugue, who has been working for The Japan Tea Exporters Association continues several years with less traditional, younger tea to promote fine green teas in affluent Western farmers, agrees. These farmers have successfully markets through a network of tea retailers and tea launched single-origin terroir teas that they make experts. The stringent shelf-life requirements are available to customised buyers. This new trend is a draw back on one side, but also underline the expected to expand and to attract more foreign premium quality. buyers of premium cups, as well as strengthen With a strategy that targets the gourmet and farmer and buyer relationships, and offer a better fine food environment, there is a growing trend to insight into Japanese ways. promote new, single-origin terroir teas, in addition to the premium blends. It seems that the well- Barbara Dufrêne is the former Secretary General of the European Tea established ‘wine sommelier’ approach, which is Committee and editor of La Nouvelle du Thé. She may be reached at: based on limited and well-defined production b-dufrê[email protected]. areas, called terroir, and on the use of identified

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Emerging Trends in Tea Flavours

Whether to satiate taste or to meet health and wellbeing needs, the ability of the industry to fulfill consumer demand lies at the centre of the flavoured tea market’s growth. By Santosh Kumar

Increasing penetration of flavoured teas has been a dominant trend across most tea segments. However, the trend has historically been slightly better observed in green teas. This is also due to the fact that green tea has been the fastest-growing segment in the recent past since the leading demographic for black tea drinkers is seniors. This trend is expected to continue in the coming years as the green tea segment is expected to grow at a meteoric CAGR of neatly 10 percent over the next decade, while the overall tea market grows at strong but more modest CAGR of 6.5 percent over the same time period.

Image courtesy of The Tea Spot courtesy of The Tea Image Covid Has Effected Changes in Flavoured Tea Trends he popularity of tea is grounded in its While the Covid-19 pandemic has wreaked havoc ability to be a versatile beverage. While in global tea supply chains, it has also brought tea remains popular in its relatively more about changes in demand patterns for flavoured Tstandardised forms in countries like China and tea that now appear irreversible. Flavour trends India, the developed western world has been keener in the global tea market had so far remained to experiment and allow the beverage to expand its fairly constant, though growth trends within potential scope and market. Flavour trends in teas certain segments showed variations. Traditionally, are a derivative of this experimentation and are the lifestyle concern that drove demand for one of the key factors responsible for the current flavoured teas was health issues such as ageing, global tea market reaching a value of close to USD cardiovascular health and obesity. However, in $55.5 billion with volumes topping 6.5 million the post-pandemic world, it is likely that newer tonnes. lifestyle-related concerns such as immunity against While the western world has been at the diseases and mental health will be major drivers of forefront of experimentation in flavoured teas, tea flavour demand. flavoured teas do exist and prosper in developing A greater demand for flavoured teas with countries as well. This means that the flavoured immunity boosting properties and properties that tea market remains popular globally, albeit with can mitigate mental health concerns like anxiety has a few nuances. For example, flavoured teas are already been witnessed. The flavoured tea market highly popular in China and Southeast Asia (which is segmented mainly into herbs, fruits and spices. is speculated to be the fastest-growing market for The herbal segment has traditionally dominated flavoured teas in the years to come), but the range the market through flavours like hibiscus, jasmine of flavours offered in most retail stores in these and rose due its ability to induce weight loss and countries does not compare with the range offered induce relaxation. The fruit segment has followed in North America and Western Europe. Yet, this is due to its ability to bring character to the tea, while also the reason why these regional segments offer the spice segment is popular in black teas, but has huge potential for the market. found limited traction in faster growing segments.

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After the outbreak of Covid-19, the demand for regards to the post-pandemic demands either. This flavours in the spice segment shot up across the ability of the industry to fulfill consumer demand various types of teas as consumers realised that lies at the crux of the flavoured tea market’s flavourers like turmeric and cardamom hold the growth. potential to boost immunity. This trend has since However, the market’s potential to grow can be remained and spice teas, especially turmeric, are amplified. Tea consumption patterns show a top- seeing a rapid rise in demand. Similarly, in the fruit down approach in terms of socio-economic patterns segment, a shift to vitamin C-rich citric flavours of consumers. These patterns are starker in niche has been observed in recent months. Another key tea segments, which includes flavoured teas. The trend being witnessed is the rise of superblends market can expedite these patterns if manufacturers where different herbs, fruits and spices are used play a more proactive role in marketing the health in combination as flavouring, coupled with added benefits of their products. vitamins and minerals. With bodily immunity and mental health taking centre stage in the pandemic world, the opportunity Future of the Flavoured Tea Market to do so has increased manifold. Such health Tea consumption gains traction from the numerous benefits-based marketing has always been a trend health benefits in the aforementioned areas that it in the global tea market; however, the potential is offers. The anti-oxidation, anti-ageing, immunity- now greater than ever. boosting and relaxing properties of tea are well known and have contributed to the market’s Santosh Kumar is a senior research analyst at London-based phenomenal growth in recent years. However, now Fact.MR. With experience in market research and consulting, he has consumers are seeking these health benefits from been working closely on the food and beverages vertical of Fact. flavours used in teas as well. Part of the reason MR. Kumar is currently the lead consultant for product position- ing, competitive analysis, new market segment exploration and for this consumer expectation is the tea industry’s sourcing strategies. These insights are based on a report on the tea ability to deliver a wide range of products and infusion market by Fact.MR. the industry has not disappointed consumers with

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P.26-27 F3 FLAVOURED TEAS√.indd 35 23/03/2021 11:29 We excel in “ PROFILE ROASTING&INTEGRATED program” for dumping and tracking of green coffee, roaster control, roasted inventory, computerized grinding and degassing control

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Control station for Bühler’s InfinityRoast Image courtesy of Bühler AG Image Digitalisation: The Missing Piece in the Sustainability Puzzle ustainability has been a critical conversation in the tea and coffee sectors for the past few Integrating digitalisation throughout the supply decades. Strategically integrating digitalisation chain could increase transparency, productivity, Sthroughout all levels of the supply chain could increase consumer engagement, identify challenges and transparency, productivity, and identify sustainable opportunities, reduce waste, and create solutions. These tools could help break down barriers, strengthen connections, identify problems and in turn sustainable solutions. discover the solutions. “When you have data, you can By Anne-Marie Hardie make sure that your value chain is more effective, productive and inclusive, and this process needs to start from origin,” said Elisa Criscione, founder and Technology can also be integrated to provide CEO, Digital Coffee Future, Milan, Italy. farmers with a digital identity and in turn, lend itself Blockchain technology can be used to not only trace to financial transactions. “About 13.5 million coffee the supply chain but identify specific sustainability farmers are living in the coffee belt (coffee-producing schemes including carbon emissions and social countries), with 90 percent being smallholder farmers. initiatives. “Having traceable data potentially allows Most live on less than €2 a day and many do not own farmers to receive a better price for their coffee a bank account. This means most coffee farmers get because it is no longer about trusting the farmer word paid in cash,” said Killian Stokes, co-founder, Moyee that the coffee is grown environmentally friendly,” said Coffee, Dublin Ireland. To help shift this, Moyee ∆ Criscione. “The data can now prove that statement.” Coffee is digitally recording the plot sizes of the

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execution. For large complex installations, the (Left & Below) Bellwether Coffee company creates a digital twin of the installation, focused on reducing enabling all the specialists (designers, layout emissions during the planners, electricians) to work off the same source of roasting process as information. well as along the sup- ply chain when devel- Bühler also has a partnership with Microsoft for oping their electric cloud solutions and a data analytics team. “We really roasting machine. see the great opportunity that digitalisation not only provides today but for the future, including helping define and establish best practices,” said Dr Stefan Schenker, managing director, business unit, coffee, Bühler Group, Uzwil, Switzerland. Integrating digitalisation can help identify both opportunities and challenges along the supply chain. Bühler’s InfinityRoast roaster is an illustration of

Image courtesy of Bellwether Coffee courtesy of Bellwether Image how incorporating digitalisation into equipment farmers, placing the data on Google maps, and then can help achieve both economic and environmental providing farmers with a digital ID on their Fairchain sustainability. “The entire roasting process is blockchain platform so that they can be paid digitally controlled by the system, ensuring that the master when they deliver the coffee cherries. roaster’s profile is followed with a very high degree There is no shortage of digital solutions that of precision,” said Schenker. “When you can control producers could choose to integrate into their your roasting process with this type of precision, your operations. However, there is still a fairly slow quality at the end is extremely consistent. This in itself adoption rate, partially because the applications often reduces waste.” fail to consider the end user. “There are a lot of IMA SpA, based in Bologna, Italy is another company that has deeply invested in digitalisation. applications that are being developed right now for ∆ farmers, producers and farmer organisations, but Recognising the challenges that end users may have not all of them are user-centred,” said Criscione. “Sometimes the missing piece is how can I make sure that the technology is really created for the end user?” Having a user-centred solution lends itself to higher adoption rates. Consumer engagement is a critical part of developing a sustainable supply chain. Blockchain technology presents an opportunity to connect consumers along the supply chain. This increased transparency can help respond to consumers inquiries about the growing practices and the overall value of the product. Pluck Tea, Toronto, Canada, is in the process of launching a new product that supports the Rwandan mountain tea farmers, an integral part of this new product is that it will include the entire chain of custody. “There’s a great part to play in terms of transparency and chain of custody when we think about blockchain, and I think brands that figured that out and get on board with it will have a leg up,” said Jennifer Commins, founder, Pluck Tea. “That being said, we are still dealing with farmers who are accustomed to a traditional way of life, and so it may be a long road until they get fully entrenched with that.”

Decreasing the Carbon Footprint Digitalisation runs through all of Bühler’s systems

starting with innovation, machine design and project Coffee courtesy of Bellweaher Image

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with keeping up with the evolving technological opportunity to increase efficiencies. Integrating platforms, IMA launched IMA Digital to help fulfill sensors into equipment are allowing you to do this. those gaps. IMA Digital includes a comprehensive It’s not just about looking at the carbon footprint suite of advanced and enhanced services all focused of the packaging but the entire process,” said Jorge on increasing efficiencies and reducing waste. Its Izquierdo, vice president of market development at services, including IMA Sentinel, IMA Virtual Mock- PMMI, The Association for Packaging & Processing up, and the IMA Control Room, integrate preventative Technologies, based in Herndon, Virginia. analysis to reduce energy and product waste, while One of the barriers to integrating sustainable and IMA Remote Assistance and IMA Virtual Trainings recycled materials has been that the variances in the are solutions that help increase productivity and recycled content (porosity, density etc) can impact the reduce transportation emissions by being able to production process. The integration of smart sensors conduct training and service remotely. into packaging machinery has helped equipment Bellwether Coffee, Berkeley, California had also efficiently adapt to the variances in materials. “Many identified the amount of waste that was generated in of the machines are now being designed to be more the coffee supply chain. When designing its roaster flexible and adaptive, including being equipped with platform, the company focused on how to minimise sensors can identify and respond to challenges,” said emissions both within the roasting process and along Izquierdo. “It recognises the problem, it addresses the the supply chain. The solution was an electric roaster problem, and then it is able to keep working.” that was fully equipped with digital profiles. “You don’t need to ship roasted coffee to your shops in Fortifying Connections with End-Users Australia [or other countries] anymore,” said Nathan From the consumer standpoint, digitalisation has Gilliland, CEO, Bellwether Coffee. “Now you can provided them with peace of mind as they can create your roast recipes here in the United States and now access their favourite coffee or tea product then digitally push them to your locations in Australia with minimal contact. This includes the expansion [or elsewhere].” of mobile applications and integrating automated This access to digital profiles reduces the need to machinery into self-serve locations. ship roasted coffee across the globe. “You can literally Although the expense has been a barrier to adopting push a roast profile anywhere in the world and know these digital systems, the pandemic has increased with a high degree of certainty that it will be executed awareness of the importance of integrating automation perfectly – the entire process is really compelling for into operations. Another benefit of offering automated our customers,” he said. and digitalised systems is that they are self-contained and minimise waste. Franke Coffee Systems, for The Role of Packaging in Digitalisation example, has integrated an automated cleaning system Packaging is also a key factor to consider when it providing consumers with the reassurance of the comes to reducing the environmental footprint. This cleanliness of the system, while also increasing the includes a reduction in carbon emissions, sustainable overall confidence in being able to obtain a high- materials, minimising waste and ensuring that the quality coffee with minimal touchpoints. Automated systems entire production line functions efficiently. “Most “We have a brew on-demand system so that such as Franke Coffee’s, are self contained and operations are pretty efficient, but there is still an you are only producing exactly what the consumer minimise waste. wants, eliminating the cycle of throwing out coffee, truly only producing what the consumer uses,” said Deetricha Younger, senior director of marketing, Franke Coffee Systems, which is headquartered in Aarburg, Switzerland. “That is what digitalisation has been able to bring to both coffee retailers and the end user. And from the consumer standpoint, they are still getting the high-quality experience which means they will continue using the machine.” As a direct result of the pandemic, Pluck Tea found itself expanding its consumer outreach, which required a major update to the digital platform. Now, the company is considering what other platforms it should become engaged with as these digital communications tools have not only increased sales

Image courtesy of Franke Coffee Systems courtesy of Franke Image but lent themselves towards developing a stronger

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relationship with the consumer. “The one thing that these digital platforms do really well, which is ironic considering it is digital, is bringing the customer closer to you,” said Commins.

Pivoting to the World of Digitalisation Digitalisation and innovative technology have been in development for a while; however, the adoption rate has remained fairly slow. The pandemic, which reduced mobility and increased health and safety requirements, quickly moved these solutions into the forefront. “Several operational shifts that Covid-

19 presented created the opportunity for remote Coffee courtesy of Trace Image access to significantly grow,” said Izquierdo. “And now companies investing in new equipment are Digitalisation in requesting remote access as one of the must-haves.” this well and improve it,” said Criscione. “Using the coffee roasting and tea manufacturing He anticipates that certain aspects, like allowing technology is not going to make the industry facilities can cre- service individuals into plants, will return; however, sustainable just like that, the process behind it is ate sustainability the increased confidence and savings discovered extremely important.” throughout the supply chain back in using these technologies will see the continued to the producers. integration of these solutions. “I think that the digital Anne-Marie Hardie is a freelance writer, professor transformation in coffee and other value chains, tea and speaker based in Barrie, Ontario. She may be being one of those, is the future,” he said. reached at: [email protected]. “This is an opportunity to discover if we are doing

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Coffee Chemistry from Bean

A new three-part series from the to Cup National Coffee Association written exclusively for T&CTJ will explore the coffee science and the healthy benefits associated with coffee. This article bout two-thirds of Americans drink coffee every day, making coffee the examines chemical compounds in green single most popular beverage in America. coffee – what they do and how they AAround the world, millions – if not billions – of change when they are roasted, brewed, people enjoy the scent, taste, and experience of their favourite brew each day. and finally poured into the cup. But what makes a great cup of coffee? It is By Bill Murray & Mark Corey, PhD incredibly complicated. Experts – coffee professionals, scientists, and trained tasters – have a hard time pinpointing of biological and chemical variations that create exactly what makes a great cup of coffee. There coffee. are numerous naturally occurring compounds in It is not an exaggeration to say that understanding every bean, the composition and number of which all the variables that go into a great brew could change at every step along coffee’s long journey take multiple lifetimes. This article will explore from bean to cup. what we know (and what we don’t) about the These steps, including where and how coffee chemistry of coffee from bean to cup. Future is grown, to fermentation and drying at origin, pieces in this three-part series will examine the to roasting, grinding and brewing, all make a science and magic that influence taste and how difference. Roasting alone can contribute hundreds coffee affects health. of compounds to coffee. Ultimately, every person’s own body chemistry, Coffee Chemistry preferences and taste also play a huge role in what To understand the chemistry and biology of makes great coffee. In fact, the coffee drinker is coffee, we must start at the beginning, with the

the last stop in a very complex and fickle chain coffee plants themselves. There are more than ∆

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of Coffee and Its Analysis by Hemraj Sharma, March 2020]. Caffeine is a salt component of chlorogenic acids (CGA), which can constitute up to 14 percent of compounds in a green coffee bean and have a pivotal effect on the eventual flavour and acidity of coffee. Chlorogenic acids also have antioxidant and anti-inflammatory properties, which may mean they play a role in coffee’s health benefits down the line. Processing methods for green coffee vary, but broadly speaking there are two common processing methods: dry and wet. Each method has the same goal – to remove the outer husk and fruit, and to then clean and dry the coffee bean. Wet processing generally produces a “clean” final cup, leaving little to no residue on the beans, but this processing method requires large amounts of water. In dry (or “natural”) processing, by contrast, green coffee beans are laid out on a drying table that allows air to circulate on all sides until the

Image courtesy of Larry’s Coffee courtesy of Larry’s Image beans are dry and then stripped of their fruit by hand, which is thought to help the beans retain Roasting is 120 individual species in the plant family known more body and aroma. one stage in as coffee. The two most common species used in Each processing method involves some the trans- formation today are arabica (about fermentation, which creates yeasts and bacteria of raw, 60 percent of the world’s coffee) and Coffea that also play a role in the chemistry of the unprocessed canephora, commonly known as Robusta coffee dried bean. While coffee beans can be stored for green coffee into aromat- (about 40 percent). extended periods of time, variations in how long ic, flavourful Both species have unique biological and it takes to process coffee and then roast it also beans. chemical distinctions, most notably that Robusta impact the chemical content and composition of is generally a more productive plant in terms of the beans. yield, has higher caffeine content (containing as Already, we can see the hundreds or even much as 40-50 percent more caffeine), and is more thousands of variations that can change a coffee tolerant to higher temperatures and humidity. bean’s chemistry from the moment the seeds Regardless of species, the chemistry and are planted. Once harvested and processed, the biology of every coffee bean is first affected by chemistry continues. Roasting is the next stage where and how it is grown. Similar to terroir in the physical and chemical transformation of for wine, the land, rainfall, sun exposure, soil raw, unprocessed green coffee into the aromatic, and elevation can all influence the quality and flavourful beans that are the basis for coffee’s final yield of the plants. For example, higher quality journey – preparation. coffees are generally grown between 2,000 and 6,000 feet above sea level. Coffees grown at high Roasting Affects Coffee’s Density altitudes are known for maturing more slowly, Roasting adds heat to the equation, transforming which creates more complex and flavours. green coffee beans into the dark beans coffee This can contribute notes of nutty, citrus or even drinkers know and love. Many coffee drinkers berry flavours in the final cup. Soil health and have never seen coffee roasting in action, but the composition also affect the chemical compounds everyday coffee drinker can compare the process and nutrients that end up in a given plant and to what they see when caramelising an onion. its seeds (which we know and love as coffee Roasting, generally at temperatures between beans). 370° and 540°Fahrenheit (circa 188° and 222° The main constituents found in coffee beans Celsius), removes any remaining remnants of the are caffeine (2-3 percent), tannin (3-5 percent), bean’s husk and breaks down natural sugars in the oil (10-15 percent), carbohydrates (6-7 percent), coffee bean, darkening the colour and bringing out and proteins (13 percent) [per A Detail Chemistry sweet flavours.

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The best-known chemical reaction that occurs If you have made it this far, you may feel you during roasting is known as the Maillard reaction, are ready to earn a PhD in coffee science. Not so which is actually a multitude of simultaneous fast – now that we have followed the beans all the reactions. The Maillard reaction transforms way through roasting, grinding and brewing bring dozens of compounds found in green coffee beans, so much more science (and art!). turning them into hundreds or even thousands In our next article, we will follow the beans of new compounds that each have an impact on through different grinding and preparation aroma and flavour. How exactly these chemical methods, exploring the chemical and physical transformations play out can vary depending on reactions all along the way to see how they affect the exact roasting temperature, time, and the a cup of coffee. rotation of the beans.

Image courtesy of Image One common question is how roasting affects caffeine content. Pure caffeine (part of a group of compounds known as trimethylxanthines) melts at William “Bill” Murray is president and chief executive officer of 460°F (238°C) and is highly soluble in hot water. the National Coffee Association of the USA (NCA), a role he has held since June 2014. Prior to joining NCA, Murray was CEO of the The primary influence on caffeine content, as Public Relations Society of America (PRSA) and spent 20 years in mentioned earlier, is the species of the coffee bean. Hollywood, including as executive vice president and co-chief oper- Caffeine content stays relatively constant during ating officer at the Motion Picture Association of America (MPAA). the roasting process, but at high temperatures Mark Corey is director of scientific and government affairs of the small amounts of caffeine become more volatile NCA. Prior to joining the NCA in February 2018, Corey worked in and are released with the roaster exhaust. research and development roles in the coffee industry for ten years Roasting creates other physical changes, like and was volunteer chairperson of the NCA’s Scientific Leadership reducing moisture and puffing the beans, meaning Council for five years. roasted beans are less dense than green beans. The For information about the NCA, visit: www.ncausa.org. If you’re not a longer and darker the roast, the more chemical and member but could benefit from access to this research or other key physical changes occur, so darker roast beans are industry resources, explore your Membership options. less dense than lighter roasts. Tea & Coffee Marketplace

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Soluble Coffee Has a Chance for Growth in Germany types of coffee among German consumers, the Although not a preferred style among German demand for soluble coffee has been steadily consumers, soluble coffee has seen growth in growing in the country since the 2010s. the last few years and the pandemic has Holger Preibisch, CEO of the German Coffee Association, in a recent exclusive interview created opportunity for continued growth. with Tea & Coffee Trade Journal, confirmed th By Eugene Gerten this, noting that currently, around every 12 cup of coffee drunk in Germany is made with soluble coffee. “Soluble coffee has enjoyed he Covid-19 pandemic has not resulted increasing popularity in the German market for in the decline of coffee consumption in the last several years, which is confirmed by Germany, but it has led to some changes statistics, according to which its sales increased Tin preferences of local customers, according to by 15 percent from 2009 to 2019,” he said, recent statements made by some leading local adding, “Preliminary figures for 2020 indicate coffee manufacturers and analysts. a further growth in soluble coffee. That means One change is the growth in demand for soluble coffee has a significant growth potential soluble coffee. While never one of the favourite in the German market.”

Around every 12th cup of coffee in Germany is soluble coffee. Image courtesy of the German courtesy of the Coffee Association Image

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In the meantime, almost the same position consumers drink almost three is shared by some independent analysts cups per day at home,” said in the coffee industry. Linda Lichtmess, a Nora Bartha-Hecking, an senior analyst at global market research firm official spokesman of Produkte Euromonitor International, commented, “In & Marken department of Nestlé Germany, instant coffee has somewhat an old- Deutschland AG. “We expect that fashioned image of having (at best) an average increased coffee consumption taste but being convenient. The pandemic, at home will continue in the however, has led to stockpiling effects where medium term. For consumers, consumers bought essential goods en masse. this is about creating special As cafés remained closed and faced a severe moments of enjoyment at home decline of 29 percent, consumers turned and rewarding themselves. In towards home solutions for preparing their general, we are also seeing a own coffee at home, including soluble coffee.” great deal of interest in trend She added that in 2020, Dalgona coffee beverages that are typical of gained popularity as consumers stayed at home coffee shops.” and spent more time investigating new recipes Despite the growth of online and via social media, as coffee is a much interest for soluble coffee in beloved and missed specialty for consumers the domestic market, Nestlé, who seek new taste experiences. however, is placing its hopes There are several types of soluble coffee on more typical products in its available in the German market. According to German coffee portfolio this year. Euromonitor, currently more than half of the According to Bartha-Hecking, soluble coffee market in Germany is dominated at Home will remain a by instant standard coffee, although instant major growth driver in Nestlé’s coffee mixes are popular too – especially German coffee range this year. or . The mixed She also added that in Germany, formats, however, have come under scrutiny the company offers coffee capsules for containing too much sugar. with Starbucks at Home, which are Lichtmess said while overall, the instant compatible with the Nespresso and coffee market has reached a certain level Dolce Gusto systems. of maturity, there is room for innovation. “Improving the taste of instant coffee and Looking Ahead offering premium solutions that enable With regard to overall coffee consumers to have a better coffee experience consumption in the German market, at home or preparing their own -style most analysts expect this will coffee could boost the market and lead to a remain on the same level as in 2020, new dynamic.” although much will depend on the In addition, she said that the offer- Covid situation in the country and ing of or Fairtrade-certified on the measures that taken by the coffee has yet to be extended, which leaves government to deal with it. room for new brands to emerge. “One example GCA analysts said that if is the German start-up Blaek from Hamburg public life continues to be limited by further Consumers that offers specialty instant coffee that promises started stock- lockdowns, out-of-home consumption of coffee piling items, a better taste yet being convenient.” will certainly remain in the negative range. At including German Coffee Association (GCA) analysts, the same time the lifting of quarantine measures instant coffee, together with coffee manufacturers, said the in the country and the associated opening of during the pandemic resulted in a significant increase of Covid out- cafés, coffee shops, bakeries, restaurants etc, break. home consumption of coffee in Germany, and will lead to the recovery of the local segment this trend will continue to be observed in the of out-of-home consumption. local market within the next several years. Preibisch expects coffee consumption in “Before the Covid pandemic, consumers Germany in 2021 will certainly differ from 2019, in Germany consumed an average of 2.5 noting that the ongoing change of consumer cups of coffee at home. Since the start of habits may provide additional opportunities for the coronavirus situation, there has been an producers. He explained that at the beginning ∆ increase in consumption at home. Today, of the pandemic in spring 2020, the total coffee

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consumption in Germany increased by three percent while the consumption out-of-home and at the workplace decreased. Currently, coffee consumption is back to 2019 levels. In the meantime, analysts with global market research firm Mintel believe the increase of demand for soluble coffee in Germany is part of a bigger trend of diversification and expansion of local range. They said that coffee drinkers in Germany have a relatively limited range of coffee types they drink, although consumers in the younger age range drink a bigger variety of types. According to Mintel’s predictions, to attract younger German consumers to drink more coffee, brands will need to put a big emphasis on new flavours of specialty instant coffees/ coffee mixes and ready-to-drink coffee. This is needed to cater to younger coffee drinkers’ greater interest in trying new coffees and being more likely to see themselves as coffee connoisseurs. Brands can also look for ways to expand usage occasions for drinking different carbonated soft drinks are being seen.” To attract young- er consumers, types of coffee to attract younger consumers, Preibisch said that as the demand for soluble instant coffee including when they need to focus, as an energy coffee in Germany grows, some local specialty brands need to boost, or after meals. roasters (along with foreign players, operating stay on top of in the local market) have expanded their ranges flavour trends. Category Blurring by offering soluble coffee made from specialty “In recent years, coffee shops/coffee bars in coffee. He, along with other GCA analysts, Germany have seen continuous growth, with believe there is a possibility that such a niche sales estimated at €3 billion in 2019 and will develop into a large market trend already predicted to continue to grow over the next five within the next several years, especially taking years. This compares with a retail market value into account the ever-growing coffee of €4.5 billion in 2019,” said Annika Janicke, consumption at home. a food and beverage research analyst at Mintel. Eugene Gerden is an international free-lance “There is also evidence of category blurring writer, who specialises on covering of global across drinks that extend to the coffee market. coffee, tea and agricultural industry. He has For example, in cold brew coffee, which is worked for several industry titles and can be gaining momentum in Germany, fruity and reached at [email protected]. sparkling innovations that align coffee with

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Private Label a Manger courtesy of Prèt Image Roasters Prepare for Recovery in OOH Consumption

Foodservice establishments continue to struggle during the pandemic.

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ovid-19 has had a profound effect on the coffee industry in many ways, not least in Private label roasters have seen demand from the private label market, where demand for the out-of-home market fall steeply in the last Cout-of-home coffee has experienced a massive hit. 12 months, because of changing workplace pat- But private label roasters and analysts believe the market will re-balance quickly once vaccination terns and consumer concerns about Covid-19. programmes get on top of the virus and lockdowns By David Foxwell are loosened. Speaking to Tea & Coffee Trade Journal, Andy Fawkes, managing director at Masteroast, a governments have provided support packages for UK-based private label roaster, said demand from companies. Workers have been furloughed, turning the foodservice market had been running at about them from office coffee consumers into at-home 30 percent of its usual level since the pandemic consumers. In contrast, in Eastern Europe, there has began. In contrast, he explained, private label been much less financial support and employees roasters specialising in the retail market had been have had to remain in the workplaces, so the effect busy throughout the pandemic as consumers drank on consumption has not been as great. more coffee at home. “In the office-based coffee segment, Covid- Fawkes said he hoped demand for private label 19 caused the bottom to drop out of the market,” coffee for the foodservice sector might ‘kick off’ Smith said. “Catering venues have also taken a around Easter as countries come out of lockdown huge knock.” and consumer confidence in eating out and visiting Rovers said demand from the government sector food service outlets grows as more and more and from corporates has also been badly affected. people are vaccinated. Both agreed with Fawkes that when demand “We are anticipating that demand from cafés and returns, the hospitality sector will not be the same. pubs will rebound at that point,” he said, noting that “Retail will change too,” said Mr Smith. “I think companies are already ‘prepping,’ making sure that we’re going to see a lot more consumer focus on they would have sufficient stock, although some sustainability and on ethical consumption.” remain cautious about carrying too much stock. Whether the private label office coffee market will Retail PL Coffee Spikes During Covid return to former levels is less clear, he believes, All of those interviewed for this article agreed given that many employees who have successfully that, in contrast to the hospitality sector, private worked from home for the last 12 months may label coffee for the retail market has seen an uplift Retail coffee, including continue to do so. private label, has seen in sales, mainly because so many consumers have a surge in sales during Pelican Coffee Roasters’ global export director been working from home. In fact, Smith said the Covid-19 outbreak. ∆ Jankees Rovers, who is based in The Netherlands, demand for retail coffee had seen “incredible and UCC Coffee’s head of category & insight, Phil Smith, based in the UK, agreed with Fawkes’ assessment of the market. Rovers said demand for private label coffee for out-of-home consumption had seen a “huge decline” because of lockdowns and staff being furloughed. “Covid-19 has had a massive effect on catering services,” he explained. “Much of the demand will undoubtedly come back, although possibly in new formats.” Rovers told T&CTJ that because governments in Europe have not adopted a uniform approach to Covid-19, the effect on the private label market has not been uniform either. In Western Europe, Image courtesy of Walmart Stores

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Image courtesy of Waitrose

growth” at times during the pandemic. need to be flexible, and they need to be creative.” And there have been other changes too: He suggested they would also need to have scale because more coffee is being drunk at to enable them to respond to sharp increases in home, consumers want quick, convenient demand, as may take place later this year when the solutions, so single-serve solutions have hospitality market picks up. been boosted. “Private label roasters that were able to transfer “The capsule market is flying,” production from hospitality to the grocery sector Smith said. “It was a growth market have thrived in recent months,” Turer explained, before the pandemic, but Covid-19 has but he knows of several smaller private label accelerated that trend.” roasters that have struggled as demand dipped as For any private label roaster, Smith the out-of-home market declined. and Rovers noted that the key to Turer said he knew of a number of smaller success is meeting the needs of your private label roasters that were for sale, and others clients and ensuring consistent quality, that have been forced to collaborate because which will further boost single serve. they no longer had enough volume. “They are Coffee Enterprises vice president working together and sharing resources,” he said. Spencer Turer said the situation in “Fortunately, coffee tends to be a collaborative the US was similar to other countries business in which to work. but with some important differences. “The pandemic has really reinforced how private “Overall, private label is still a growth label roasters need a portfolio of services if they PL roasters are smart market,” he explained, “mainly because are to thrive and survive downturns in the market,” to keep up with con- large retail and foodservice brands don’t want to Turer pointed out. But whereas in Western Europe sumer demands like have to invest in roasting and packaging coffee lockdowns have had a fairly uniform effect on the single origin or organic coffee. themselves.” market across countries, the decentralised nature He said that “above all, private label roasters of the US has meant that some roasters have been

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Image courtesy of Waitrose shielded from the effect of Covid-19 while others doing it themselves. Some have been have felt its full force. successful, others struggled and some “Some states never closed, and private label have failed,” he said. roasters that work in hospitality weren’t too badly “There has been a surge in new affected,” Turer said, noting that the decentralised brands, all jostling for market share. nature of the market in the US also means that the Capacity has grown by around 20 emergence from the downturn in the hospitality percent, but demand growth is barely market will take place at different rates in different four percent year-on-year. states. In some states, people still want to go out, in “In the last two years, the dominant others, in-store dining will take a while to recover. supermarkets in Australia have been Turer said he was also hopeful that locked in a coffee price war, selling consumers’ experience with grocery coffee – and private label at razor thin margins. It’s experimentation with better quality coffee whilst a well-known strategy to have loss- forced to consume their favourite beverage at home leaders that increase footfall in stores. – will feed through into the hospitality market and You have three big players flexing quality will go up as a result. their muscles in the supermarkets, but But not everyone agrees that the private label they are pushing poor quality coffee market will easily ride out Covid-19, or the effects and it’s only a matter of time before of other industry trends. Jeff Carlin at Carlini Coffee the speciality segment has to adapt to and mycuppa.com.au said the private label market tighter margins too.” in Australia is “definitely shrinking” and there is a transition from outsourcing coffee roasting to ‘in-sourcing.’ David Foxwell was editor of Coffee & Cocoa International for 18 years. He has “There are many examples of large players in edited numerous trade magazines over the last 25 years and writes about Australia taking back private label services and commodities, shipping and renewable energy. FAIR AND

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April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 45

P.42-45 F7 PRIVATE LABEL√.indd 45 23/03/2021 11:40 GREEN COFFEE REPORT

February 2021 Green Coffee Report Image courtesy of Digital Coffee Future Digital Coffee of Image courtesy

The International Coffee Organ- ruary. However, in the final week cent to 176.96 US cents/lb, and the isation (ICO) announced that in of the month, prices rose sharply average price for Other Milds grew February 2021, the ICO compos- and reached a high of 128.34 US by 3.6 percent to 166.43 US cents/ ite indicator continued its upward cents/lb on 25 February. lb. As a result, the differential be- trend as prices for all group indi- Prices in February were support- tween Colombian Milds and Other cators rose. Global exports in Jan- ed by tightening supplies and ex- Milds fell by 17.3 percent to 10.53 uary 2021 slipped slightly versus pectations of a deficit in the next US cents/lb. The average price for the prior-year period. Green coffee season due to high temperatures Brazilian Naturals reached 120.06 exports from Brazil, Mexico and and low rainfall in Brazil. Com- US cents/lb, 2.9 percent higher Tanzania grew by double digits, modities, by and large, have been than in January 2021. while many other coffee-produc- rallying as markets continue to The average arbitrage in Febru- ing countries reported declines. factor in vaccine-related optimism ary, as measured on the New York The monthly average of the and recent container shortages. and London futures markets, de- ICO composite indicator rose by Prices for all group indicators creased by 0.6 percent to 66.62 US 3.1 percent to 119.35 US cents/ rose in February 2021. Prices for cents/lb. Stocks of certified Arabi- lb in February 2021, representing Robusta coffee experienced the ca declined by 3.4 percent to 1.69 the fourth consecutive month of largest increase, rising by 3.8 per- million bags in February 2021, af- increase. The daily composite indi- cent to 73.37 US cents/lb, which is ter increasing in the previous four cator remained stable in the first the highest monthly average since months. Certified Robusta stocks half of the month, reaching a low July 2019. The average price for amounted to 2.41 million bags; of 115.07 US cents/lb on 15 Feb- Colombian Milds rose by two per- 0.4 percent higher than in January. The volatility of the ICO com- Green Exports (October-January) posite indicator price decreased by 1.2 percentage points to 5.8 per- cent as the volatility for all indica- tors decreased, a further reduction from January 2021 when volatili- ty was seven percent. In February 2021, the volatility for Colombian Milds and Other Milds both fell by 1.2 percentage points to 5.5 per- cent and 5.9 percent, respectively. The volatility for Brazilian Natu- rals decreased by 1.3 percentage

46 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net April 2021

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points to eight percent while the volatility for Robusta prices was Total Export Volume (October-January) 6.4 percent, 1.3 percentage points lower than in January 2021.

Global Production Grows In coffee year 2020-21, global pro- duction is estimated to rise by 1.9 percent to 171.9 million bags with Arabica production growing by 5.2 percent to 101.88 million bags. Global exports in January 2021 totalled 10.21 million bags, com- pared with 10.59 million bags in Graphs courtesy of the International Coffee Organisation the International Coffee of Graphs courtesy January 2020. Exports in the first four months of coffee year 2020- due to delays in the current crop’s green Arabica coffee grew by 61.5 21 increased by 3.7 percent to harvest and competition from oth- percent to 415,000 bags. 41.88 million bags compared to er Robusta producers. However, In- In October 2020 to January 40.38 million bags during the donesia’s shipments increased by 2021, South America’s exports in- same period in 2019-20. In Octo- 24.2 percent to 2.47 million bags, creased by 15.5 percent to 23.26 ber 2020 to January 2021, ship- as a 39.7 percent increase in its million bags. During this period, ments of Other Milds decreased by shipments of green Robusta offset shipments from Brazil rose by 11.9 percent to 5.84 million bags, losses in green Arabica. Addition- 24.3 percent to 16.77 million bags. Colombian Milds by 3.4 percent to ally, its exports of soluble coffee Brazil is nearing the end of its 5.1 million bags, and Robusta by rose by 13.8 percent to 623,000 2020-21 crop year, which was an 2.6 percent to 14.88 million bags. bags during the first four months on-year for its Arabica production. Exports of Brazilian Naturals grew of the coffee year. Brazil’s exports of green Arabica by 21.8 percent to 16.06 million Exports from India, the region’s increased by 26.9 percent to 14.03 bags during this period. third largest producer, decreased million bags, and its green Robus- Exports from Africa in the first by 7.1 percent to 1.31 million ta shipments grew by 26.1 percent four months of coffee year 2020- bags. Much of this decline was to 1.43 million bags. 21 decreased by 13 percent to due to a decrease of 13.9 percent, Exports from Colombia fell 2.9 3.81 million bags as shipments to 591,000 bags, in its shipments percent to 4.69 million bags while from three of the region’s five of processed coffee. its output, as estimated by the largest producers declined. Ugan- National Federation of Coffee da was the largest regional ex- Mexico’s Exports Surge Growers of Colombia, has de- porter, shipping 1.73 million bags, Compared to the first four months creased by 3.2 percent to around an increase of 6.8 percent on the of coffee year 2019-20, exports 5.43 million bags during the first first four months of coffee year from Mexico and Central America four months of coffee year 2020- 2019-20, as an increase of green fell by 17.5 percent to 2.62 million 21. Although its shipments of Robusta shipments offset reduced bags as parts of the region were green Arabica coffee decreased by exports of Arabica coffee, which is severely affected by hurricanes 3.2 percent to 4.35 million bags, in the off year of its biennial cycle. Iota and Eta. its exports of processed coffee In contrast, shipments from Notably, shipments from rose by 1.1 percent to 332,000 Ethiopia fell by 31.6 percent to Honduras, the region’s largest bags. 798,000 bags, from Côte d’Ivoire producer, decreased by 40 percent by 56.2 percent to 245,000 bags to 744,000 bags, while those from Supply Exceeds Demand and from Kenya by 13.1 percent Nicaragua fell by 20.2 percent to World coffee consumption is pro- to 185,000 bags, due in part to 450,000 bags. Guatemala’s ex- jected to increase by 1.3 percent the lower prices in the past few ports declined by 15.7 percent to to 166.63 million bags in 2020- years. However, Tanzania’s ex- 461,000 bags. 21 as social distancing measures ports increased by 16.5 percent In contrast, Mexico’s exports be- remain in place, limiting out-of- to 458,000 bags due to improved tween October 2020 and January home consumption, and the global export procedures. 2021 increased by 22.8 percent to economy recovers at a slow pace. Asia and Oceania’s coffee ex- 798,000 bags, partially in response Coffee year 2020-21 is project- ports declined by 3.9 percent to to the greater availability of coffee ed to end with a surplus of 5.27 12.19 million bags in October 2020 compared to other countries in the million bags as growth in supply to January 2021. Vietnam’s exports region. While Mexico’s shipments outpaces demand. during this period declined by of processed coffee remained sta- For the full report, visit: www.ico. 10.4 percent to 7.88 million bags, ble at 347,000 bags, its exports of org.

April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 47

P.46-47 GREEN COFFEE REPORT√.indd 47 23/03/2021 11:41 (2 images) COMPANY NEWS

European Speciality Tea Association and Danish Tea Association to Merge (1 logo) The Danish Tea Association, which has been promoting speciality tea in Denmark through education and competitions for five years, is Flavorchem Celebrates 50 Years merging with the London-based European Speciality Tea Association. The flavour and fragrance indus- establishments. The modest oper- advantages of working with a Over 50 members will have their membership transferred over to European Speciality Tea Association (ESTA) and they will then become try has seen several recent merg- ation run out of a small building mid-sized supplier who can meet the Danish chapter of ESTA. The Danish Tea Association (DTA) will cease to exist, however, David Veal, executive director of ESTA, said the ers and acquisitions as the world’s in Bellwood, Illinois, relocated to their global requirements, yet of- association may give the DTA name some visibility for heritage purposes. top suppliers seek opportunities Downers Grove in 1982, where fer a more boutique and custom The purpose of an ESTA chapter is to provide a platform whereby local members can work together in their own community to network, to expand their capabilities and the global headquarters current- experience. hold events and competitions, education workshops and other activities whilst being an integral part of the larger European association customer base. De- ly reside. Shortly after opening “An organisation is only as great and community and derive benefits from that too. Whilst members of chapters are members of ESTA, the chapters function with a degree spite the ongoing in Downers Grove, Flavorchem as its people, and we recognize of independence, and elect their own board every two years. consolidations, one expanded into fragrance develop- our achievements are only the “We have been considering this move for some time but the fact that we have such a good reputation around the world, especially in Chicago-area based ment and manufacturing with its result of combined efforts from Southeast Asia, has made us cautious about taking this important decision,” said Alexis Kaae, vice president and head of education for ESTA supplier is com- fragrance division Orchidia Fra- every employee at Flavorchem and chairperson of the Danish Tea Association. “However, we are totally confident that our good work of the past will continue in Denmark mitted to keeping grances. Now with fragrance and and Orchidia,” said Phil Sprovieri, but within the wider community which is being grown by ESTA.” the business in the flavour manufacturing in China co-founder and vp of sales & mar- David Veal, executive director of ESTA, added, “This is a good and positive move for both associations, members in Denmark will still have family. Founded in and Europe, Flavorchem became keting. “We are proud to celebrate the opportunity to work in their local community to promote speciality tea, but they will also be able to network with the wider global 1971 by brothers a significant player in the global this anniversary with the people speciality tea community in many ways.” Salvatore and Phil- marketplace. that made 50 years possible.” For more information or to join European Speciality Tea Association, visit the website: www.specialityteaeurope.com. lip Sprovieri, Fla- From humble beginnings, Fla- In honour of this milestone, a vorchem remains vorchem has grown to incorpo- commemorative book was creat- family owned as rate two business divisions and ed to capture the company’s rich the corporation four global campuses. Today, the history and achievements. To learn (1 image) proudly celebrates family-owned enterprise man- more about Flavorchem and Or- 50 years of busi- ufactures over 5,000 flavours, chidia Fragrances – or to request ness this year. fragrances and private-label food a digital copy of The Sweet Taste of The compa- products annually. Its customers, Success, 50th Anniversary Commem- ny was founded with a focus on brands well recognised through- orative Book – email: contact@ custom flavour creation for local out the world, understand the flavorchem.com. Caffè Corsini Becomes First Italian Distributor of Ahmad Tea Caffè Corsini is the new official said Ahmad Tea. The company’s botanical products, enhance the Italian distributor for Ahmad Tea, results are recognised at an inter- “Natural Benefits” herbal teas and the Hampshire-based English tea national level, bringing Ahmad Tea infusions line, designed specif- company, which offers some of the to over 80 countries worldwide, ically for wellness, to help con- best traditional varieties of teas with total consumption of over 30 sumers throughout their daily and infusions. The company is one million cups of tea every day. life. Fore example, the Beauty of the world’s leading tea produc- Caffè Corsini offers a vast se- blend combines aloe vera with ers and shares with Caffè Corsini lection of Ahmad Tea products an infusion of green nettle leaves many values centred on research consisting of refined and unique and lemon verbena and the fruity and selection of the best blends, teas and infusions, available im- taste of peach. The Energy blend to create an exceptional product mediately. The range comprises combines vitamin B6 with the to be enjoyed by everybody. a total of 16 different tea blends energising, exotic and citrusy Ahmad Tea’s history begins 35 and 14 herbal teas and infusion notes of guarana, cinnamon and years ago in England, when a blends, from the classic black grapefruit. young tea merchant understood teas such as English Breakfast Ahmad Tea has both the ISO the consumers’ growing need for or Earl Grey, originating from 9001 and the ISO 14001 certif- a unique and refined infusion to China and India and with an icates, and boasts some of the be drunk throughout the day. The added hint of bergamot essence, highest quality, health, safety and company maintains stable rela- available also in a decaf version, environmental standards. tionships with trusted countries to the more sophisticated Jasmine Founded in Arezzo in 1950 by of origin: China, India, Kenya, and Romance Green Tea, aromatised Corsino Corsini as a small arti- Sri Lanka – some of the principal with jasmine flowers, and the re- sanal coffee processing lab, Caffè producers of refined teas. fined Darjeeling. Corsini promotes safeguarding The different blends heighten There is also a wide range of of the producing areas, and pro- the taste, aroma, colour, strength fruit teas, from spiced Chai Tea tection of both the environment and uniformity characteristics of (ginger and cinnamon) to the and the local population working the various tea varieties originat- refreshing Raspberry and Pome- in the coffee fields. The compa- ing from different plantations to granate green tea. ny is particularly careful to focus obtain a balanced end product, Natural ingredients, combin- on environmental sustainability, which is in line with the most de- ing herbs, fruits and flowers with using renewable energies and manding consumers’ expectations, added vitamin strengtheners and compostable capsules.

48 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net April 2021

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illycaffè Named One of the 2021 World’s Most Ethical Companies For the ninth consecutive time, vironmentally sustainable now nities they serve. ” illycaffè SpA has been recognised and for generations to come,” said illycaffè is the only Italian com- by Ethisphere as one of the 2021 Andrea , chairman of illycaffè pany to receive this honour and is World’s Most Ethical Companies. SpA. “A current major focus [for us] one of only six recipients in the The recognition honours compa- is reducing our environmental im- food, beverage and agriculture nies that lead, make hard but val- pact throughout the entire supply category. In total, 135 honourees ues-based decisions, and demon- chain, one meaningful, measura- were recognised spanning 22 strate an overall commitment to ble step at a time, with the goal countries and 47 industries for integrity. to be carbon neutral by 2033. We 2021. illycaffè regards upholding are proud to be recognised by the Grounded in Ethisphere’s pro- the highest ethical standards as Ethisphere Institute for our stew- prietary Ethics Quotient®, the fundamental to its operations. ardship and commitment to eth- World’s Most Ethical Companies The Trieste, Italy-based company ical business practices and thank assessment process includes more maintains a long-standing com- them for their continued role in than 200 questions on culture, en- mitment to improving the qual- inspiring companies to be and do vironmental and social practices, ity of life for all its stakeholders, their best for the world.” ethics and compliance activities, from farmers to consumers. Rec- “While addressing the tough governance, diversity and initi- ognition by Ethisphere as one challenges of 2020, we saw com- atives to support a strong value of the 2021 World’s Most Ethical panies lead – above all other in- chain. The process serves as an Companies strongly validates il- stitutions – on earning the trust operating framework to capture lycaffè’s efforts to help create a of stakeholders through resilience and codify the leading practices more sustainable world for many and a commitment to ethics and of organizations across industries generations to come. integrity,” said Timothy Erblich, and around the globe. “Maintaining and promot- CEO of Ethisphere, which defines This year, the process was ing strong ethics and values are and advances the standards of streamlined, and the question set essential to affecting positive ethical business practices. “The expanded to gauge how appli- change throughout our glob- World’s Most Ethical Companies cants are adapting and respond- al society, as is recognising the honourees continue to demon- ing to the global health pandemic, private sector’s essential role strate an unwavering commit- environmental, social and govern- in creating a world that is more ment to the highest values and ance factors, safety, equity and in- socially, economically and en- positively impacting the commu- clusion and social justice.

TC Transcontinental Packaging Wins FPA Sustainability Award TC Transcontinental Packaging ised, sustainable packaging solu- inventive and in- has won the Gold Award for Sus- tions, and is one of many recog- novative solutions, tainability in the 2021 Flexible nitions for our work in this space says the compa- Packaging Achievement Awards including the award-winning ny. The packaging Competition, for the Maxwell recycle-ready pouch for loose tea, features a circular House Canada 100 percent com- compostable structure for closed- design with re- postable coffee pod lidding and loop collection, and compostable newable inputs mother bag films. whole bean packaging for coffee. into the materials These breakthrough sustain- It is gratifying to see how our val- and a no-separation pod design able films are certified BPI (Bi- ues of performance, teamwork and that ensures easy consumer dis- odegradable Products Institute) innovation have culminated in the posal through the growing num- industrial compostable which development of such an outstand- ber of local food waste collection leaves zero waste, provides an ing array of sustainable products,” programmes. environmentally friendly solution said Thomas Morin, president of As signatories of the Ellen to the popular single serve pod, TC Transcontinental Packaging. MacArthur foundation’s New and responds to the demand for This product results from TC’s Plastics Economy Global Commit- sustainable packaging without partnership with Club Coffee, a ment, this award-winning product sacrificing product freshness, per- leading innovator in the rapidly shows TC Transcontinental Pack- formance and convenience expanding single-serve hot bev- aging’s commitment to develop- “At TC Transcontinental, the de- erage market and the creator of ing sustainable packaging where velopment of sustainable prod- PŭrPod100TM, and Kraft Heinz plastic never becomes waste ucts is firmly rooted in our long Canada. It demonstrates how and reaching the company goals history of social responsibility. This collaboration can bring break- whereby, by 2025, all products are award underscores our leadership through packaging to life and 100 percent recyclable, composta- position in crafting commercial- divert waste from landfills with ble or re-usable.

April 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 49

P.48-49 COMPANY NEWS√.indd 45 23/03/2021 11:44 STRAIGHT FROM THE CUP The Forgotten Nutraceutical f all the trends in the beverage space at the is why at Finlays, we refer to tea as the “forgotten moment, health and well-being is one of the nutraceutical.” most exciting. This global megatrend has The growth opportunities for tea in this space are Oseen the ‘wellness economy’ grow twice as quickly exciting. According to GlobalData (2020), over the as the global economy to be worth USD $4.2 trillion. last five years the functional beverage market, with Within that, healthy and functional products are now tea as a base, has grown with eight percent CAGR. worth $700 billion a year (both figures per the Global This is compared to category growth of Ready-to- Wellness Institute, 2018) Drink (RTD)/Iced Tea, at 1.5 percent CAGR. At a time when our lives have become more hectic The future growth of tea as a functional ingredient, than ever, it is perhaps no surprise that humans crave forecast at 10 percent CAGR between 2020 and 2025, wellness. Wellness is the aspirational lifestyle which will be driven by our ever-evolving understanding of acts, for many, as the counterbalance to life in the this wonderful plant and the bioactive and antioxidant modern age. The impact of Covid-19 also cannot be compounds – such as catechins – it harnesses. underestimated in driving attitudes towards healthy But truly, not all tea is created equal. When brands living. It is this gap between the reality of modern day are considering tea as a wellness or functional ingre- living and the aspiration for wellness, which is driv- dient, they should consider natural and sustainability ing the growth of “functional” food and beverages. credentials just as carefully. After all, nearly seven Functional beverages can be described as those in ten global consumers equate the concept of “nat- which allude to, or claim to, have a positive impact ural” with the concept of “health.” (According to on the body or mind. At Finlays, we are seeing that GlobalData, 2017) consumers are increasingly seeking products which As we expand our agricultural research to grow tea – whether physically or psychologically – make us for maximum functional benefits, and importantly, feel good about ourselves. In short, consumers want then extract those compounds for human benefit, the products that offer a taste of a wellness lifestyle, if growth of tea as a category is set to expand into ever only for a moment. more exciting new spaces. So functional beverages can help consumers tap And if tea ingredients can be sourced that are rich into their desire to live a more healthy, balanced and in bioactive compounds, naturally produced without energetic lifestyle. But critically, they want it in a nat- pesticide or chemical and done in a sustainable way ural and sustainable way. In a recent study conducted so that you have a positive impact in the world on by GlobalData, 90 percent of global consumers said purchase, you will be a step closer to living a life of that they actively look for natural ingredients when well-being. choosing a beverage. This desire for naturally functional products, Rachel Jones is group head of business develop- which fit easily in our day-to-day life, has given rise ment at Finlays where she is responsible for the group’s tea ingredient strategy and the commer- to the trend of ‘plant power’ and ‘prevention not cial expansion of the business. Working closely cure.’ Both terms refer to plant compounds being har- in markets across Asia, USA, Africa and Europe, nessed in a format for consumers to enjoy daily, while she leads efforts to understand global consumer positively contributing to their wellness goals. Those trends and behaviours, to project movements in goals could be increasing energy levels, better sleep, the market today, and in the future. Finlays, part of more brainpower, a faster metabolism, the ability to London-based Swire Group, is a leading indepen- dent B2B supplier of tea, cof- relax or the benefits brought by antioxidants. To meet fee and botanical solutions to these needs, the beverage industry is rapidly looking beverage brand owners world- to natural plant-based ingredients. wide. Founded in 1750, Finlays One of these ingredients is the noble tea leaf. has been sourcing tea since Consumed in China as a medicine for thousands of 1817 and producing it since the 1870s. For more information years, the nutraceutical properties of tea are also visit www.finlays.net. increasingly being realised in Western markets. That Views expressed in Straight from the Cup (SFTC) are not necessarily those of Tea & Coffee Trade Journal or Bell Publishing Ltd. If interested in authoring an SFTC column, please contact Vanessa L Facenda for full details or questions concerning submissions: [email protected]. Articles must discuss or analyse a relevant issue, trend or event within the coffee or tea industry, not promote a company or its products.

50 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net April 2021

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