22/04/2021 08:5222/04/2021 08:52 MAY 2021 MAY www.teaandcoffee.net - - ˜ 1901 2021 1901 2021

years 120

The New Version of Version The New Rewriting the Script: the Rewriting

Origin Asia Highlight: Central The Growing Dominance of Green Tea Green of The Growing Dominance Utilizing Coffee By-Products Utilizing Coffee Industry Tea the US of State Report: Special

Celebrating Celebrating

Foodservice and Hospitality Foodservice ˜ ˜ ˜ ˜

T&C COVER MAY21 v2.indd 1T&C COVER MAY21 v2.indd 1 MAY 2021 TEA & COFFEE TRADE JOURNAL 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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CONTENTS May 2021 Vol. 193/No. 5

FEATURES 12 CONTACTS

Founding Editor William H Ukers (1873-1945) Rewriting the Script: The New Version 12 Editorial Director of Foodservice and Hospitality Sarah McRitchie [email protected] By Anne-Marie Hardie Editor Vanessa L Facenda 16 State of the US Tea Industry [email protected] By Peter F Goggi Specialties Editor 16 Donald N Schoenholt 20 Coffee By-Product Valorisation Art Editor By Dr Laxman Neupane, Mahendra P Sue Burke Joshi, Mandu Thapa, Dr Steffen Schwarz, [email protected] Dr Dirk W Lachenmeier Digital Editor Alex Rivers [email protected] 27 Global Market Trends in Decaf Coffee By Nandini Roy Choudhury Contributing Writers 30 Nandini Roy Choudhury Samantha Des Jardins A New Era of Tea in Central Asia Peter F Goggi 30 Anne-Marie Hardie By Vladislav Vorotnikov Mahendra P Joshi Dr Dirk W Lachenmeier Aubrye McDonagh Leigh 34 A New Day For Green Tea Dr Laxman Neupane By Jason Walker Dr Steffen Schwarz Mandu Thapa Vladimir Vorotnikov Jason Walker

Group Sales Manager Mark Neilson 20 [email protected] Head of Sales DEPARTMENTS Steve Crowhurst [email protected] 5 Editor’s Letter Assistant Events Manager 6 New & Notable Kyra O’Sheen [email protected] 8 Sustaining the Chain Accounts Payable 11 Calendar of Events Yee Yau (Miss) [email protected] 36 Green Coffee Report Publishing Director 38 Company News 27 Neil McRitchie [email protected] 40 People News Taiwan Sales Agent Straight from the Cup Worldwide Services Co Ltd 42 11F-B No 540, Wen Hsin Road, Samantha Des Jardins, copywriter at Section 1 Datassential Taichung 40848, Taiwan Email: [email protected] Tel: +886 4 2325 1784 Web: acw.com.tw

2021 UKERS’ 66TH EDITION Tea & Coffee Trade Journal www.teaandcoffee.net Editorial & Sales Office: The Maltings, 57 Bath Street, 34 Gravesend, Kent DA11 0DF, UK Tel: +44 1474 532202 GLOBAL DIRECTORY Designates a Designates a & BUYER’S GUIDE tea story coffee story Web: www.teaandcoffee.net

May 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 3

P.03 CONTENTS√.indd 1 22/04/2021 08:54 No storm in a teacup.

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P.04ADV_Maisa_EC-15_T&C_TradeJ_July_2020.indd MAISA-tea cup.indd 1 1 22/04/202129/07/20 09:5310:46 FROM THE EDITOR’S DESK

It’s Still a “Wait and See” World

o say that Covid-19 decimated the global food- PMMI is also moving ahead with Pack Expo Las Vegas service and hospitality industries, is an under- in September, but the Swiss Coffee Trade Association statement. Some establishments have reopened (SCTA) said that its Gala and Forum (scheduled for Vanessa L Facenda Tin limited fashion, while others have closed permanently. October) will be virtual again this year, as will Sintercafé As lockdown measures have been lifted, many consum- (November). However, organisers for Host Milan seem ers have started to return to their favourite haunts, but confident that this year’s show (October) will go on as others are still wary of travel, dining or even taking out. planned. So, similar to 2020, all we can do is wait and And in many cities, there are still capacity limits, so both see what happens…(Refer to the Calendar of Events on industries continue to struggle. page 11 for full details on 2021 shows.) Yet, as vaccinations roll out around the world, as A couple stories in this issue touch upon the on- restrictions continue to be lifted and as consumers regain going impact of Covid, such as the State of the US Tea their confidence and feel safer, there is optimism that the Industry report, authored by the president of the Tea foodservice and hospitality industries’ recovery will also of Association of the USA, Peter F Goggi; as well as ramp up. However, as our cover story and Straight from the green tea feature that discusses the tea production, the Cup column detail, what this recovery will look like export and consumption situation in China. As coffee remains to be seen, but all agree it will not be “business producers continue to struggle amid volatile coffee pric- as usual” any time soon. es, coffee by-products (cascara, coffee leaf tea, alcohol The world of conferences, conventions and trade made from fermented coffee leaves) may be a new reve- shows also remains dubious. We intended to distrib- nue stream, as our story explains. Our Origin Highlight ute this issue at the National Restaurant Association explores the efforts to rebuild the tea industry in Central (NRA) Show in Chicago, Illinois in May, but as with Asia and the Caucasus, while our final feature reviews so many trade shows and large-scale events, it has been global trends in decaffeinated coffee. cancelled for the second year in row. Curiously, as we Just a quick reminder that Tea & Coffee World Cup, were going to press, Questex announced that its World The Virtual Show, will be held 8 September so be sure Tea Conference & Expo is moving from July (14-16) in to visit www.tcworldcup.com for more information and Denver, Colorado to 28-30 June in Las Vegas, Nevada to register, exhibit or sponsor. And lastly, make sure to and will be co-located with its Nightclub & Bar Show. check out the new Marketplace section on our website Coffee Fest organisers confirmed that the San Antonio (www.teaandcoffee.net/tea-coffee-marketplace) if you show (18-20 June) is still on track, but the New York are in need of buying or selling equipment, parts or (18-20 July) event has been cancelled – or relocated – as surplus products, or would like to post a job opening. there is now a Coffee Fest Atlanta scheduled for 15-16 And until we see each other again – perhaps at some July. The Specialty Coffee Association (SCA) already event in the third or fourth quarter this year – stay safe announced that it was cancelling the World of Coffee and be well! event that was to be held in Athens, Greece in June, 1901 - but for now the SCA Expo is still taking place in New Vanessa L Facenda Editor 2021 Orleans, Louisiana in September. [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 Coffee Bean & 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

May 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 5

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NEWTEA & COFFEE & REPORTS NOTABLE BREWING WORLDWIDE

The Coffee Retail Summit Emphasised Strengthening Connections with Consumers and Community The Coffee Retail Summit, hosted virtually by the Specialty Coffee As- sociation (SCA) 13-14 April, took a deep dive into both the challenges and opportunities in retail coffee. Focused on three pillars – nav- igating Covid-19, the business of coffee and brand building – the talks clearly demonstrated the links between strength, adaptation and community engagement. The tone of the event was immediately set with “Planning a Resilient Business,” by Vaughn Tan, assistant professor of strategy and entrepreneurship, University new age of customer loyalty, which and were way more likely to sur- College London’s School of Man- includes shifting the focus to the vive.” He noted that in the context agement. This practical talk empha- consumer’s needs that you are try- of Covid-19, the competitive advan- sised the value of creating a strong ing to solve. tage was no longer centred around business plan that is uniquely your The results from the SCA’s third education (telling customers how own. “It’s about figuring out what Community Impact of Covid-19 sur- good the coffee was), but instead, you are excited about first, and then vey highlighted that there is a sense listening to their customers and figuring out how to bring it forward of renewed optimism with more responding to them. as a business,” stressed Tan. than 50 percent of the respond- In his talk, Retail Reboot – Coffee Lara Marrero, retail leader and ents anticipating that they will be after Covid, Bill Murray, president principal, Gensler challenged the either at or above their pre-Covid and CEO of the National Coffee As- audience to consider the core as- sales. However, there is no question sociation of the US, echoed these pects that would allow their busi- that the past year presented and positive sentiments, while also ness to not just survive but thrive. continues to present unprecedent- sharing that two-thirds of coffee “Consistency is the death of inno- ed challenges and obstacles, in- shop customers are either back or vation, getting it to 80 percent of cluding unpredictable restrictions, anticipate returning to their shops finished and letting the communi- increased costs, supply shortages, in the future. ty finish the rest of it,” said Marre- and anticipating consumers’ expec- The key to regaining the con- ro. She stressed the importance of tations and behaviours. fidence with the remaining 30 making the community a part of Throughout the two days there percent, he stressed, is education, the business, not just in fostering was a clear message that communi- communication and building a rela- relationships, but by developing an ty engagement and adopting a spirit tionship with your customer. “When ecosystem that reflects the needs of of experimentation were consistent you talk to coffee drinkers, they tell the community. “People are looking elements that helped define those us that they miss coffee shops, they for community — spend the money retailers that not only survived but miss the experience and they want on the people who can represent even thrived. “There are some ad- to come back,” said Murray. your brand.” vantages with those businesses Full of informative and engag- The significance of fostering com- that have built nimbleness in their ing conversations, the SCA’s first munity connections was stressed DNA and want to be able to change retail-focused conference provided throughout several presentations. (prices, menu, service system), said the audience with insightful tools The focus of the second day was Peter Giuliano, chief research officer, and techniques – including real es- on external factors, beginning with SCA. “The businesses that were able tate and retail tech advice – to help Israel Serna’s and The Coffeetogra- to on the dime move from serving develop and strengthen the retail pher’s Chermelle Edwards discus- from a counter to serving from the coffee sector. sion about developing brand loyal- front door to serving on the curb ty. Serna emphasised that this is a were the ones that never closed Anne-Marie Hardie

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The GEI Creates Strategy to Ensure Women Benefit from Sustainability Initiatives The Gender Equity Index, devel- is why the UN’s Sustainable Devel- on our work over five years, the oped by the Partnership for Gender opment Goal 5 (SDG 5), supporting Gender Equity Index is a scalable Equity, offers the first-ever scala- global gender equity development, strategy that enlists extension and ble strategy to ensure that women is one of our priority sustainability other advisory service providers to benefit from global sustainability pillars for people and businesses.” adopt gender “best fit” practices in investments. The goal of the GEI is to over- the design and implementation of In February, the Partnership for come the gender barriers related their programs.” Gender Equity (PGE) announced that to technology and skill transfer at it received USD $105,000 from a origin regarding good agricultural group of coffee and cocoa partners practices (GAP) training, renovation to develop and launch a gender eq- and rehabilitation, post-harvest pro- uity indexing tool. The new Gender cessing, financial literacy training, Equity Index (GEI) will be used by quality assurance training, Q-grad- companies and organisations that ing, and other efforts designed to provide services to farmers and will increase the profitability and re- support their efforts to reach more silience of producers. For instance, women more effectively. details such as the time and loca- With the coffee industry spend- tion of a training can be barriers for ing USD $300-$400 million on sus- women trying to attain vital skills tainability efforts each year, the GEI and technologies. seeks to leverage this investment in “This is a very interesting ap- In April, the Washington, DC-based Image courtesy of Grazioso Pictures, support of the women who provide proach because it’s not about creat- PGE announced that it has assem- Inc for Root Capital between 40 percent to 80 percent ing a siloed gender equity project, bled an international panel of eco- of the pre- and post-harvest labour, but rather seeks to weave gender nomics and gender experts to assist including activities that are critical equity within existing strategies in the development of the GEI. The to product quality and yield, as well and investments,” said Alejandro expert advisory group is made up as the profitability of the family Cadena, CEO of Caravela Coffee. of leading gender researchers and farm. Current industry partners contrib- practitioners who will serve as a The GEI will evaluate the design, uting both personnel and finances sounding board and common point implementation, monitoring and to this effort include roasters, green for exchange of inputs on three evaluation and other program do- coffee suppliers, NGOs, and foun- primary aspects: mains that are the foundation to dations: Lavazza Coffee Company, • ensure the GEI Framework is achieving regionally relevant gen- Barrie House Coffee Roasters, Alle- sound and appropriate for the con- der equity “best fit” practices. Until gro Coffee Roasters, Paulig Group, text of a wide range of farmer train- now, there have been no common Jot, Caravela Coffee, EFICO Green ing initiatives; language, goals or objectives used Coffee, Lutheran World Relief/MOC- • provide input for continuous by the industry to ensure that exist- CA Program, and Women Forward improvement process of the GEI; ing gender inequities do not pres- International. • recommend key aspects of the ent a barrier to receiving effective Craig James, CEO at Barrie House validation of the GEI for regional training. Coffee Roasters said, “What I like application. The GEI diagnostic will offer rec- about this project is that it acknowl- The Partnership for Gender Equity ommendations and resources to edges gender equity is a journey, not is creating common tools and meth- assist service providers as they pri- a destination. What we are striving odologies to support the coffee and oritize action to address identified for is concrete evidence that our cocoa industries’ engagement and gaps. The tool will also provide a sustainability service partners at or- investment in gender equity across shared language about gender eq- igin have a robust plan, leveraged by the value chain. These tools will uitable capacity building at origin best practices, and that they achieve serve to improve the livelihoods of so that producers, roasters, brands positive progress year after year.” producers and enhance the sustain- and green suppliers can clarify spe- Kimberly Easson, CEO at PGE said, able supply of quality coffee. Its evi- cific goals and prioritize action. “This effort complements our ex- dence-based approach is comprised Rossi Veronica, sustainabili- isting portfolio of tools designed of three core elements: a validated ty manager at the Lavazza Group to support roasters working with set of tools, a common language for said, “It’s very important to Lavazza producer groups in their own supply gender equity and a platform for ac- Group that our sustainability invest- chains. These strategies to improve tion that supports scalable invest- ments are made gender equitably. gender equity among producers ments and action across the sector. We strongly believe that women’s with our ’Virtual Learning Journeys’ For more information, visit: www. empowerment is a key driver for and the transformative Gender Ac- genderincoffee.org. sustainable development and eco- tion Learning System (GALS) have nomic growth in every country. This proven its effectiveness. Building Aubrey McDonagh Leigh

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P.06-07 N&N VLF FINAL.indd 7 22/04/2021 08:56 SUSTAINING THE CHAIN Starbucks Releases Coffee- Specific Environmental Goals In 2020, Starbucks committed to a resource-positive future, formalising environmental goals to cut its carbon, water and waste footprints by half. Therefore, the company has committed to achieving carbon neutral green coffee and to conserving water usage in green coffee processing by 50 percent, both by 2030.

tarbucks Coffee aspires to be a resource positive company, to Stake less and give more to the planet in every aspect of its busi- ness – including coffee. Starbucks purchases coffee from more than 400,000 farmers in 30 countries around the world and is committed to a sustainable future for coffee. To protect the resiliency of this supply chain, the people who make it possible, and the planet, the Seattle, Washington-based company set goals to achieve carbon neutral green coffee and conserve water Starbucks’ coffee plantatation, Hacienda Alsacia in usage in green coffee processing by Costa Rica, is used for R&D purposes. 50 percent by 2030. “As we celebrate 50 years of Star- ing water, “we can help farmers be in coffee before the rest of the cof- bucks, we are looking ahead at ways more productive while we are also fee value chain (like transportation, we can re-imagine the future and contributing to a better planet and roasting or packaging). continue to inspire and nurture the bringing coffee to customers in a human spirit,” said Michelle Burns, sustainable way.” Carbon Neutral Green Coffee svp of global coffee, tea and cocoa Starbucks will work to meet its at Starbucks. “For farmers and their Accelerating Eco Initiatives 2030 target of carbon neutral green communities, we know it is criti- From the beginning, Starbucks has coffee – reducing greenhouse gas cal we work together to address sourced coffee responsibly. These (GHG) emissions in coffee at origin the challenges they face associat- coffee-specific environmental goals then compensating for any remain- ed with climate change which are are an extension of work underway ing emissions – by deploying three making it increasingly difficult to with C.A.F.E. (coffee and farmer primary strategies: grow high-quality coffee. equity) Practices. Evidence shows She added that by reducing 1. Decreasing carbon emissions in that farmers participating in the carbon emissions and conserv- Starbucks supply chain by equip- program have higher productivity ping farmers with precision agron- Part of Starbucks’ than the country averages, which omy tools. efforts to accelerate has helped Starbucks create a long- Through Starbucks Farmer Support sustainable coffee term supply of high quality coffee Centers and a new soil scanning includes distributing while positively impacting the lives mobile app, the company is help- climate-resistant of farmers and their communities. ing farmers understand the specific varietals. Now, in support of the company’s nutrients and fertiliser needed to path to a Planet Positive future, increase farm productivity. In fact, Starbucks is focusing on its carbon more than 11,500 soil and foliar and water footprints at origin – or samples have been collected to what Starbucks refers to as “the first date. With these custom, farm-spe- ten feet” (farm to port). cific solutions, farmers can target With this focus on on-farm activi- and decrease fertiliser use – which All images courtesy ties and land use change, Starbucks helps to decrease carbon emissions of Josh Trujillo for is addressing its largest source of on their farms – and increase farm Starbucks Coffee greenhouse gas (GHG) emissions productivity.

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investing in new ecological wet climate-resistant coffee seedlings mills (eco-mills) for C.A.F.E. Practice to replace unproductive trees. farms. This project and partnership with Over the last year, Starbucks pur- Starbucks will help farmers increase chased nearly 600 eco-mills that their productivity, quality and profit- have been distributed to coffee ability while decreasing the envi- farms in Guatemala, Mexico, Peru, ronmental footprint generated from Kenya, and Rwanda. The result has coffee growing and processing. been up to 80 percent water savings in coffee processing where installed. Measuring & Scaling Work • Investing to make current water The most pressing issues in coffee processing technology and machin- cannot be solved by one company ery even more efficient. alone, and the best solutions re- Through Starbucks Tryer Center, the quire everyone coming together to company is working with suppliers collaborate in providing a better to explore improvements to exist- future for farmers. • Promoting and distributing ing water processing machinery and Therefore, Starbucks is working climate-resistant tree varietals. technology. Through Farmer Sup- with Conservation International With Starbucks’ open-source agron- port Centers, the company is con- and others, to advise and evolve its omy approach, the company shares ducting research and gathering in- carbon neutral coffee roadmap and research, seeds and seedlings with sights from farmers to inform future measurement methodology. It will farmers all around the world, help- machine design and operations. share learnings to help the entire industry. ing farmers to adapt to climate • Developing water replenishment Starbucks has also joined the UN change. These climate-resistant projects in coffee communities. Global Compact CEO Water Man- varietals are rust-resistant and en- As part of Starbucks’ long-term date, a CEO-led coalition, as well able farmers to grow more coffee water strategy, the company will de- as the Water Resilience Coalition to on the same amount of land, which velop water replenishment projects elevate its corporate water agen- then helps to reduce overall carbon at origin, with a focus on communi- da and partner with other leading emissions. ties and basins with high water risk. • Protecting and restoring at-risk companies on collective action pro- jects in key basins around the world. forests in key coffee landscapes. Work in Action Starbucks will continue to meas- Land use change and deforestation Over the last year, Starbucks ure its overall carbon and water are the greatest climate risks facing launched programs in Guatemala, footprint and share progress an- the coffee industry. Working in part- Mexico, Peru, Rwanda and Kenya to nually in its Global Environmental nership with Conservation Interna- test its carbon and water strategies Social Impact Report. The company tional, Starbucks will invest in forest impacting more than 92,000 farms. is also working with the Science and landscape protection and resto- In addition to investing in new, Based Targets initiative (SBTi) to ration programs in coffee producing water-conserving wet mills, Star- validate the 2030 corporate sus- countries, starting in Colombia and bucks worked with farmers to gath- tainability goals, inclusive of green Peru. These agroforestry efforts will er more than 11,500 soil and foliar coffee. New programs are not only remove carbon and sup- samples to inform soil health. For more information on Starbucks’ giving farmers port the carbon neutral pathway, Based on the success of these environmental goals, visit: stories. hands-on support, but also will benefit freshwater eco- initial pilots, the program is being starbucks.com/stories/2021. and new equipment systems and coffee communities. expanded to Colombia and a new, and facilities. holistic sustainability project will Water Conservation at Origin be launched with 100 smallholder Traditional coffee processing is farmers in Nariño, Colombia. Over a water intensive. With 200,000 wet five-year period, the Nariño project mills in Starbucks C.A.F.E. Practice will combine the best of Starbucks’ supply chain, Starbucks has an op- knowledge and resources on regen- portunity to conserve water by en- erative agriculture, precision agron- suring farmers have access to more omy and farm economics. environmentally friendly machines, Farmers will receive hands-on which also standardises quality and support including customised, in- increases processing efficiency for depth agricultural and business ed- farmers. ucation and training to best manage Starbucks will achieve 50 per- their crops and land. They will also cent conservation in water usage by receive new equipment and facili- 2030 by: ties to optimise for reduced water • Conserving water by directly use and carbon emissions and new,

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P.08-09 STC√.indd 13 22/04/2021 08:59 Database SDB CLIENT / SERVER ARCHITECTURE Scolari Engineering

System for Integrated AAutomation in green, roasted bean and ground area

P.10 SCOLARI-Database.indd 1 22/04/2021 10:43 CALENDAR OF EVENTS

MAY 2021 AUGUST 2021 New York, New York Virtual Re:co Symposium 10th Annual Los Angeles Tea www.specialtyfood.com 12 – 13 Festival Pack Expo Las Vegas www.recosymposium.org 14 – 15 27 – 29 Los Angeles, California International Tea Day Las Vegas, Nevada 21 www.teafestivalla.com www.packexpolasvegas.com Natural Products Expo West Coffee Fest Anaheim North American Tea Conference (In-Person & Virtual Event) 22 – 24 28 – 30 24 – 27 Anaheim, California Queens Landing, Ontario, Anaheim, California www.coffeefest.com Canada www.expowest.com www.tea.ca SEPTEMBER 2021 National Restaurant Association BevTech Europe Tea & Coffee World Cup, (NRA) Show CANCELLED 30 The Virtual Show Chicago, Illinois Amsterdam, Netherlands 8 www.nationalrestaurantshow.com www.isbt.com/upcom- www.tcworldcup.com ing-events.asp Melbourne International Coffee JUNE 2021 SCA Expo Expo (MICE) ISBT at ProPack Asia 2021* 9 – 11 30 September – 3 October 16 – 19 Melbourne, Australia New Orleans, Louisiana Bangkok, Thailand www.internationalcoffeeexpo.com www.sca.coffee www.isbt.com/upcom- ing-events.asp Anuga OCTOBER 2021 Coffee Fest San Antonio* 9 – 13 New York Coffee Festival 18 – 19 Cologne, Germany 8 – 10 San Antonio, Texas www.anuga.com New York, New York www.coffeefest.com Le Paris Café Festival www.newyorkcoffeefestival.com World Tea Conference & Expo* 18 – 20 (Rescheduled from March) SCTA (Swiss Coffee Trade Associ- 28 – 30 Paris, France ation) Virtual Forum Las Vegas, Nevada www.pariscafefestival.com 14 – 15 www.worldteaexpo.com www.sc-ta.ch Specialty Coffee Association (SCA) Canadian Coffee & Tea Show World of Coffee CANCELLED 19 – 20 NOVEMBER 2021 Athens, Greece Toronto, Ontario, Canada Coffee Fest PNW www.worldofcoffee.org www.coffeeteashow.ca 5 – 6 Natural Products Expo East Portland, Oregon JULY 2021 (In-Person & Virtual Event) www.coffeefest.com Hotelex Chengdu* 22 – 25 8 – 10 Philadelphia, Pennsylvania Amsterdam Coffee Festival Chengdu, China www.expoeast.com 5 – 7 Amsterdam, Netherlands www.hotelex.cn/en London Coffee Festival www.amsterdamcoffeefestival. Natural Products Expo Spark 23 – 26 (Rescheduled from com Change (Virtual Event) April) 14 London, England 50th Kona Coffee Cultural www.npevirtual.com www.londoncoffeefestival.com Festival 5 – 14 Coffee Fest Atlanta Hotelex Tianjin Kona, Hawaii 15 – 16 24 – 26 www.konacoffeefest.com Atlanta, Georgia Tianjin, China *Still scheduled www.coffeefest.com www.hotelex.cn/en Gulfood Manufacturing to take place 7 – 9 at press time. Coffee Fest New York Fancy Food Show Dubai, United Arab Emirates 18 – 20 CANCELLED (Rescheduled from June) Get the latest updates www.gulfoodmanufacturing. New York, New York 27 – 29 at www.teaandcoffee. com www.coffeefest.com net/events/

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P.11 CALENDAR√.indd 11 22/04/2021 09:01 FOODSERVICE & HOSPITALITY

Operators are optimistic about the recovery of the foodservice sector with the global rollout of vaccines, though they are aware it will not be business as usual. (Pictured, an illy Caffè pre-Covid) Image courtesy of illycaffè Image Rewriting the Script: The New Version of Foodservice and Hospitality he pandemic has rewritten the way consumers experience their out-of-home The Covid-19 pandemic has devastated the coffee. According to food and beverage foodservice and hospitality industries. While Tmarket research firm, Datassentials, 10.2 business is starting to return, many estab- percent of restaurant operators are permanently lishments were forced to shutter operations closed, with quick service restaurants (QSRs) faring slightly better (10 percent) than medium- permanently, while others have had to learn sized chains (16 percent closure rate). In the to adapt to the new normal where consumers United States, Washington, DC had the largest expect more from brands and where many are numbers of permanent closures at 15 percent, still wary of dining out, and even taking out. while New York was at a 12 percent closure rate, equating to 52,000 restaurants. By Anne-Marie Hardie “Week after week we are seeing the closure rate slow down, we anticipate an increase of spend being down 56.7 percent last year, with operating spending by about seven percent, anticipation that this number will increase by with QSRs getting to nearly 11 percent,” about 10.3 percent this year, which is still far said Mike Kostyo, trendologist, Datassentials, from normal. Chicago, Illinois. The hospitality and travel In his presentation at the National Coffee industries were the hardest hit, with operator Association (NCA) Virtual Convention in

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March, Matthew Barry, beverages consultant for through technology are finding new and exciting Euromonitor International, said global coffee ways to bring coffee and tea to consumers.” shop sales declined by 14 percent in 2020 due Despite these changes, consumers are still to lockdown measures, lost consumer spending looking for beverage experiences that will both and social distancing. “The importance of excite and delight them. This is why education wider socioeconomic developments to coffee continues to be a critical component to a shops will continue to be a key component successful out-of-home experience. “Making a of post-pandemic recovery,” he explained. great cup of tea is quick and easy but it’s also “The Covid-19 pandemic will push coffee easy to spoil a cup by over-infusing or using shops into one of two directions. One path the wrong water temperature,” said Catherine is to emphasise digitalisation, efficiency and Archer, CEO, Jing Tea, London, England. “At personalisation, while the other will focus on the same time, the premiumisation of tea has human connection and prioritise creativity and shown an increasing shifting to loose leaf and a sense of community.” offering a variety of tea types and origins on Michele Waits, vice president of marketing their menu.” and commercial support for New York-based It is about understanding the limitations and illy North America, said that in the past year, requirements of a vast number of foodservice the entire industry had to pivot to meet the levels. This includes reducing the learning needs of their foodservice and hospitality curve for the operator by providing them customers. “For illy, we quickly transitioned solutions that can consistently deliver a to offer important resources, like videos for quality cup. “We specifically designed [our] remote barista training, and touchless or single single-serve to meet and exceed foodservice serve-systems and products, like our in-room operators need for ease of service,” said Jill iperEspresso machines and ready-to-drink cold Portman, founder and co-CEO, GoodPharma, brew cans.” San Anselmo, California. “At the time we As consumers move back into the out-of- committed to this pre-portioned pour over home spaces, operators need to be prepared for delivery method, Covid wasn’t yet a thing. Now a slightly different guest. “We are optimistic our system has become more relevant as we Rewriting the Script: the hospitality and foodservice industry will know operators need pre-portioned solutions come back strong, and coffee will continue to for both consistency and ease of delivery.” be a focus with consumer-facing innovation Tea and coffee manufacturers can assist As Peet’s Coffee on preparation and drink options, including their wholesale clients by demonstrating both began reopen- The New Version of with spirits and new cold coffee formats,” said preparation methods and the potential in ing its coffee Waits. bars, consumers beverage offerings so that retailers can elevate could order These customers want innovation, but, when the out-of-home experience. “The majority of ahead via the Foodservice and Hospitality they [walk through] the door, they may also be consumers are willing to pay more for high- mobile app and bringing with them a heightened concern for quality, sustainable coffee that delivers an pick up at the entrance, but safety. amazing experience,” said Waits. This includes could not enter “Consumers are feeling torn, they miss focusing on the quality and the sustainability the store. social engagements with friends and family and can’t wait to go out to restaurants,” said Kostyo. “On the other hand, some of these safety reverberations will have lingering effects for years. People are simply aware of safety in a way that they weren’t previously before.” So even if operators have been opened for months, stressed Kostyo, it is important to remember that consumers are still looking for reassurance. “The challenges presented now and into the future will be around the safety aspect of beverage programs and finding ways to minimise or altogether eliminate touches,” said Chuck McMillian, senior vice president, sales and marketing, Pod Pack International,

Baton Rouge, Louisiana. “The equipment ∆

manufacturers have responded quickly and Coffee courtesy of Peet’s Image

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that they can develop the best model for their area.” It is about being creative and finding innovative ways to offer the tea or coffee experience within evolving parameters. This includes delivering memorable experiences that also address safety concerns, including delivering products outdoors, self-serve options and even using food trucks for that minimal contact experience. “Consumers are telling us they are bored right now, they just want to see something new

Image courtesy of Jing Tea Image and exciting,” said Kostyo. He recommends that operators lean into those things that only Coffee and elements as these are two factors that continue you can do, like creating specialty beverages, tea products to resonate with today’s consumers. and then call out the options that you have. have been in high demand “Today’s consumers want to know that “The sooner the foodservice and hospitality throughout the coffee they are drinking was responsibly industry realises the importance of what’s in Covid, with con- sourced and that it is manufactured and the cup of tea they serve, the better it will be sumers desiring both indulgent packaged in an environmentally friendly way,” in rehabilitating their credibility, trust and and functional said McMillan. faith in consumers of what they provide,” said items. Aneta Aslakhanova, global marketing director, Creating Experiences for Consumers Newby Tea, London, England. “There are “It is important to understand that fundamentally, opportunities for those who are willing to coffee and tea are products are in high demand,” challenge the current status quo and take the said Portman. “At the same time, operators need steps towards providing consumers with a cup to consider what the delivery limitations are so of exceptional quality.”

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Operators would benefit by developing beverages that connect with the top two consumers trends: indulgence and functionality. These consumers are looking to the out-of- home experience for innovative and healthy beverages that they cannot easily make at home. “Now, more than ever, people are seeking out functional food to assist with both their physical and mental health,” said Portman. “Tea and coffee have always been a ‘go- to’ support for these issues, but today, these functional ingredients have become increasingly important.” Turmeric, goji berries, chaga and matcha continue to pique consumers’ curiosities

as they seek out innovative offerings. courtesy of @LaTeef Image “Tea is like a bridge that brings people home and bagged coffee so that customers Jing Tea has together. It helps get a conversation started worked with which may lead you to form a bond with could enjoy their blends at home. A few partners like the person you are talking to,” said Chen restaurants invested in making their coffee with Brown’s Hotel Chaw Chang, chief commercial officer, BOH bean-to-cup machines to limit the amount of to recreate high waste. “It was clear, at least in Canada, that tea experiences Plantations, Kuala Lumpar, Malaysia. “With at home. the global rollout of Covid-19 vaccines, we customers do like drinking their restaurant are optimistic of a recovery in the foodservice/ brands (the Tim Hortons and the Starbucks hospitality sector, this includes changing the of the world) at home, and they do see them way they travel, opting for nearby locations as the authority which is great,” said Dave instead of long-distance destinations in the McQuillin, assistant vice president, Club immediate term.” Coffee, Etobicoke, Canada. “But it does not For food operators, it is about seeking help the vast majority of independent operators opportunities to engage in the tea and coffee and those where coffee is a part of the menu, experience, whether in-house or at their own but not a primary focus.” home. Jing Tea, for example, has worked with “The US markets seemed to make more several partners, including The Savoy and shifts, including restaurants moving into a Brown’s Hotel, to recreate high tea experiences variety of channels (grocery and take home) at home via afternoon tea delivery boxes. with plans to stick with these new offerings,” said McQuillin. “They have also bounced back Learning to Adapt Quickly relatively quickly in most of the markets.” “During the pandemic, one of the major shifts Flavour variations in cold brew, flavour we have seen is that self-serve options like infusions and single-serve coffee-based drinks tea or coffee have been moved behind the bar, continue to grow in popularity. or restaurant line to be served by foodservice Despite the challenges and setbacks that staff,” said Mary Dusenbury, senior director these sectors have experienced, there is still a channel development at Peet’s Coffee, based significant place for the evolving category of tea in Emeryville, California. “As [consumers] and coffee. “I think the most critical things to get back out into the world and are making address will be continuing to innovate and keep more purchases away from home – they will beverage offerings relevant to today’s consumer be looking to purchase specialty beverages who wants both wellness and indulgence, while that they don’t have the time, ingredients also making them operationally easy,” said or equipment to make at home – like lattes, Dusenbury. “It won’t be enough to just offer blended beverages with added functional drip coffee, but we need to make sure that ingredients, cold brew lattes and more.” making great crafted beverages can be done By pulling these products from the bar, efficiently. The right balance of innovation and it presents the foodservice operators with an simplicity will be key.” opportunity to enhance the menu with premium options that would be challenging to recreate at Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@ home. gmail.com. In Canada, restaurants expanded their take

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State of the US Tea Industry

020 began with a somewhat upbeat feeling. We had just finished a challenging 2019, The global tea industry was impacted in which the imposition of tariffs on teas 2from China by the Trump administration, while by Covid-19, and while many of the reduced from 15 percent to 7.5 percent, were still effects were negative, there were also in force. Rumours of a potentially dangerous virus positive ones. Peter F Goggi, president first seen in Wuhan, China was in the news but was really just an afterthought for most of us here of the Tea Association of the USA, in the USA. By the middle of March, we were reviews the US tea market in 2020 and experiencing government-enforced lockdowns; offers an outlook for 2021. hospitals and emergency rooms were overrun with patients and the death toll continued to rise. The remainder of the year was one that we wish we could just forget! others have not met their commitments. We The businesses of many of our members have met these challenges by reducing our own are operating under completely different rules costs: suspending or delaying non-essential work; and regulations, or in some cases, not at all. successfully negotiating our rent down by some The tea business, like many others, is operating 30 percent; and squeezing every dollar that we across an unknown divide, with retail brands and receive. Associations such as ours were not product sales booming while foodservice, OCS eligible for any government relief funds. (office coffee service) and out-of-home sales are However, even during this horrible storm, there struggling. were some clouds with silver linings, particularly Associations are struggling as well, as we around tea consumption. compete for your support in the form of both The specialty tea sector is one in which the human resources, committees and financial pandemic spurred growth. Qualitative research support, through membership dues. Our budget indicates that consumers are turning to tea in has been negatively impacted, as some member these difficult times. Tea is seen as an enabler companies have not paid their 2020 dues and for de-stressing and helping consumers achieve

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‘centeredness’. This complements tea’s perception to be strong in most tea categories and across all as a healthful drink, consumed for its variety of demographics. benefits, rooted in its high flavonoid content. In Qualitative research done at the end of 2020 fact, new research published in 2020 illustrated clearly indicated that the health benefits of Camellia tea’s extraordinary ability to act as a booster of sinensis helped to increase tea consumption human immune systems, something much needed throughout Covid. Gen Zers and millennials found State of the in times of Covid. tea consumption to be very helpful, using terms such as ‘calming’, ‘de-stressing’, ‘centering’ and Regulatory Efforts Continue ‘relaxing’ as key reasons for consuming tea and Our efforts to increase the number of tea tolerances helping them deal with the pandemic. US Tea continued in 2020 with an additional three new tolerances established by the Environmental Unprecedented Channel Growth Protection Agency (EPA). The Tea Association The foodservice market was hugely impacted by was again successful acting as registrant for Covid and its accompanying stay-at-home orders, Industry Hexythiazox; the other two tolerances established prohibition of indoor dining and social distancing were for Permethrin and Difenoconazole. Work requirements. The entire restaurant, hotel and continues on this important initiative on behalf of event categories of businesses, along with the the industry. airline industry, kept people not only close to Our work in Washington, DC continued with home, but in their homes. Sales of tea products the Tea Association communicating our positions through this channel came to a virtual standstill. on behalf of the industry in the areas of tariffs, Total decline in 2020 is estimated to be between labelling (country of origin and nutritional), 50 and 70 percent, although some bounce-back dietary guidelines and port congestion issues. occurred towards the end of the year as state Other topics in which we acted on behalf of the governments eased restrictions. industry were: heavy metals; HTIS classifications Specialty tea continues its rise in both pounds and modifications; sustainability issues and nano- and dollars, bolstered by growth in at-home plastics in tea bags. The nano-plastic issue is delivery and in-home consumption of tea. still in play and we are working with the Tea & Consumers across all demographics, though led Herbal Association of Canada and the UK Tea & by millennials and Gen Z, continued to consume Infusions Association in this area. tea for its variety of options and flavours. Tea It was clear that Covid impacted much of our generates interest in terroirs, flavours, origins, industry, surprisingly in both negative and positive bush to brand and sustainability, particularly in ways. Import volumes into the USA were lower these high quality, higher priced teas. Artisanal in 2020 vs 2019. Both green and black volumes teas remain of high interest and continue to grow dropped 10.7 percent and 8.6 percent, respectively. at a fast clip. The limited good news is that imports rebounded Consumers are becoming more engaged with from very low levels in the middle of the year their teas and want to learn more and more and total imports made a small comeback in the about where their teas come from; how they are Consumption fourth quarter. Green tea showed slight year-on- of both green harvested and manufactured; how the product and black year growth vs 2019, remaining at ~15 percent of supports the livelihoods of those making it; and, tea rose total imports. how friendly the product is to the environment. in the US While overall tea imports were weaker in Specialty tea buyers seek to engage with their during the pandemic. 2020, consumption of tea in the US continues products of choice. They want to know that the dollars they spend are going to support the grower, tea workers and the “brand” as a reward for a job well done in manufacturing quality products. The ready-to-drink (RTD) tea category continued to grow. Estimates are that 2020 exhibited circa three to five percent growth. Challenges for RTD remain clear: competition across other categories, eg health, refreshment and hydration, will challenge this category’s ability to innovate and compete in order to continue volume and dollar growth. While more expensive than bagged tea on a per-serving basis, consumers ∆ Image courtesy of Yumi Nakatsugawa courtesy of Yumi Image continue to reach for RTD teas for their flexibility,

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US tea market size estimates Graph courtesy of the Tea Association Tea courtesy of the Graph USA of the

convenience and as a healthier alternative to 1. Support immunity sugary beverages. We continue to see separation 2. Are affordable and value-based and segmentation between premium, high quality 3. Promote comfort and emotional well-being. RTDs and the value, CSD replacement segment. Tea not only benefitted from Covid in 2020, but The big winners in 2020 were teas sold through it also hits the bullseye of these drivers by being the Grocery/DMM (Drug/Mass Merchandisers) beneficial to our immune system; readily available channels. Preliminary numbers indicate that tea and of good value; and an enabler in achieving bag sales grew over 18 percent, an unprecedented emotional well-being. Tea will continue to be one increase. Clearly, stay-at-home orders coupled of the go-to products in 2021. Further, WebMD with consumers seeking a ‘calm within the continues to list tea as one of its 10 superfoods pandemic storm’ turned to tea. Consumers not offering ‘super health protection’ as do dietitians only were trying tea, but tea consumers drank and nutritionists. more of the beverage they love. The trend of Covid helped highlight the ‘power of tea’ to the increased per capita consumption is expected to important millennial and Gen Z demographics. continue going forward. Whole leaf teas and naturally flavoured teas are not As an industry, we are challenged to continue only continuing to increase in popularity among educating the consumer in the difference between consumers, especially millennials, but across all true teas (Camellia sinensis) from herbals and demographics. Consumers who are looking for other botanicals, neither of which have the same the “story” behind their favourite products have level of antioxidants or overall healthful qualities. a treasure trove of history, terroir and tradition to Tea growing continues its expansion in the investigate with tea. US, serving both to answer the call of locally Cardiovascular health, immune boosting grown and farm-to-table trends as well as properties and improvement of mood are the most providing alternate, sustainable crops for growers. popular reasons why people drink tea, according Internationally, producer countries of origin are to a qualitative survey by Seton Hall University. also protecting and advertising their teas through Green tea continues to drive consumer interest. geographic designations and trademarking their Americans appreciate this beverage for doing unique terroirs. something good for their body, specifically: emotional/mental health, when feeling sick (such Covid-19 Transformed the Way as a sore throat or stomach ache), and stress relief. Consumers Eat and View Food Black tea is beginning to emerge from under The 2021 Pollock Communications and Today’s the shadow of green tea’s health aura and its Dietitian ‘What’s Trending in Nutrition’ survey, properties associated with improving physical with 1,165 registered dietitian nutritionists health, satisfying thirst/hunger and being a pick- (RDNs) responding, provided an in-depth look me-up are emerging. at how dietitians believe consumers’ diets have changed due to Covid-19. Looking Ahead As a result of the pandemic, 78 percent of Foodservice will make a comeback but will not RDNs believe that consumer eating habits are approach 2019 levels until the end of 2021. shifting away from the traditional three meals a Consumers will continue to enjoy tea and the new day to more frequent snacking. In addition, with levels of tea consumption will be maintained, anxiety about health, wellness and the challenging bolstering Grocery/DMM sales, and RTD will economy looming in consumers’ minds, RDNs continue to grow, albeit at lower levels. predict the top purchase drivers of 2021 will be The tea market will continue to face the foods and beverages that: following challenges in 2021:

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1. Supply and Demand Supply continues to outstrip demand and history has proven that if tea prices rise, the producers will manufacture more tea to take advantage of the higher prices. Producers, by skipping pruning cycles or plucking a little further down on the bush, have an almost immediate ability to turn on a volume tap of 20 percent more tea. The result of higher availability and poorer quality: lower prices. Escaping the clutches of this boom/bust cycle will be one of the keys to the long-term survival of the business. There are only two solutions: drive

consumption or reduce production. Note that these Spot courtesy of The Tea Image solutions are not exclusive and should be done in consumed by everyone! Yet, we continue to battle The health ben- tandem. those negative articles on tea which are based efits associated 2. Free and Unencumbered Trade with tea continue on false assumptions or purported ‘facts’. This International trade is becoming much more of a to drive demand. ‘clickbait culture’ serves only those who want to challenge to the entire supply chain. attract attention and encourage visitors to click a. Lack of harmonisation of crop chemical on their link or their web page. Further, we see tolerances recycled stories from years ago, that have long b. Political vs science-based regulatory decisions been disproven, continue to make their way into (eg glyphosate) the news cycle. This attitude of whoever gets c. Country of origin labelling there first, or whoever publishes first, drives d. Tariffs. inaccuracies, and turns the news reporter into We cannot fully return to economic growth newsmakers. This cannot continue. Tea needs to and stability without free trade. The industry must be celebrated for its healthful properties, not used work together to address these issues. as ammunition in some idiotic arsenal. 3. Sustainability So, while we continue to face these challenges, The Tea Association of the USA sees sustainability I remain wholly optimistic. The tea supply chain as a three-pronged strategy: is resilient; producers generally want to produce a. Ecological/environmental good product and consumers want to receive good b. Social value. c. Economic. These are not conflicting goals. A great model I submit that tea has demonstrated a strong to use is that of specialty tea: quality, uniqueness, commitment to ecological sustainability, and it terroir ‘stories’ and price/margin make this a great is the latter two that need action. The absence business. The challenge is how to adapt this model of economic sustainability is the biggest threat. across the entire tea supply chain. Fundamentally, Producers (generally) are not making money. The we need to set expectations with consumers, realised prices of tea have not moved since the demand fair return for all in the supply chain, 1950s, when taking inflation into account. This and continue to shout from the rooftops about marginalises workers at origin and allows for the goodness of tea, both for our world and our unsustainable economic models, impacting the health. means for people to maintain the social fabric in I look forward to an exciting year…And don’t the towns and villages where they live. forget that the 2nd International Tea Day, as Meanwhile, large retailers advertise and speak designated by the United Nations, is 21 May. about sustainability, yet do nothing about allowing the price of the product in their stores to rise, disallowing the opportunity for the producers to Peter F Goggi began his career at Unilever and spent over 30 years realize a reasonable margin. The time has come working with Lipton Tea as part of Royal Estates Tea Co, and even- to put pressure on retailers to ensure that every tually served as president. During those years, he was responsible player in the supply chain receives fair value for for all teas purchased for Unilever’s tea businesses in North and the work they do. South America and oversaw all blend formulations and tea quality 4. The Goodness of Tea assurance. Goggi was the first American-born tea taster in the his- The number of positive attributes regarding tory of TJ Lipton/Unilever. In 2011, he retired from Unilever after 32 years and joined the New York-based Tea Association of the USA as tea continues to be buttressed by research and president. demonstrates why this great product should be

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Coffee flowers Coffee By-Product Valorisation

Coffee by-products such as cascara, coffee leaves or alcohol made from fermented coffee materials, have been traditionally used in some coffee-producing countries. While he most well-known coffee by-product is the beans have been the major commodity, cáscara cascara, from the Spanish word , by-products have not typically reached the meaning husk, which are the dried importing countries and often need regulatory Tcherries from which the seeds (coffee beans) have been removed. Interestingly, despite the Spanish approval. Coffee by-products may be an inter- word being commonly used worldwide for coffee esting addition to the value chain. husk or its derived beverage, the authors have not observed any traditional use of cascara in Latin By Dr Laxman Neupane, Mahendra P Joshi, America, but it has been commonly consumed Mandu Thapa, Dr Steffen Schwoarz, Dr Dirk W in Yemen (called qishr) and Ethiopia (called Lachenmeier hashara), per A Review of Coffee By-Products All images courtesy of Dr Dirk W Lachenmeier and Including Leaf, Flower, Cherry, Husk, Silver Skin, Dr Steffen Schwarz and Spent Grounds as Novel Foods within the European Union, Foods 2020, 9, 665. (https://doi. org/10.3390/foods9050665). This article focuses commonly recognised in local terms as Kodo ko on the lesser-known by-products with food uses, Rakshi (alcohol made from millet). The spirits including spirits (alcoholic distillates) and tea-like have an important part of local culture, religious drinks. ceremonies, rituals, festivals and daily life. Despite some alcohol-related problems, positive Novel Spirits with Coffee impacts of alcohol production may be linked with By-Products: Observations in Nepal women’s economic empowerment. It provides Sindhupalchok, Nepal is a beautiful hill region on solid cash earning opportunities for women as they the foothills of Jugal Mountain with an elevation are the ones who are directly engaged in sorting, ranging from 300 meters to 7,080 meters, felicitous fermenting and production while their male for coffee farming. To promote coffee farming, a counterparts engage in other work for sustaining coffee cooperative was established in 2013, which their livelihoods. now has more than 2,400 active smallholder farmer Socioeconomic research was conducted with members and groups. Almost all the members smallholder farmers from Karki Tar village of have their own coffee plants ranging from five to Sindhupalchok, Nepal. Making alcohol using 500 plants. coffee cherry by-products is a new practice Interestingly in recent times, some of the adapted during recent times. The research team members of the coffee cooperatives are also had four group discussions and observations of engaged in making artisanal spirits – more making such alcohol.

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The cooperative members saw potential for after heating with boiling water collected in bata. improvement of the flavour and taste of spirits This is when the alcohol in tiny droplets, in local using dried skins of coffee cherries (cascara terms dubbed as pashina (translation: sweat) including some residues of parchment from gets collected in nani. Once the mixture is fully natural processing). Cascara is now popular for evaporated, water is instantly replaced. tea preparation, as well. Talking to women who This is how the alcoholic strength is controlled. were engaged in making alcohol, insights on the The less water is replaced, the higher is the strength process of making millet or rice spirits and adding of the alcohol. The first collection of alcohol, coffee by-products were obtained. After cleaning which consists of just tiny droplets (around 100 the grains, they need to be well cooked, similar to ml) are potent enough to ignite fire and have a a standard rice preparation. After cooling down, burning hot taste. For a standard level, the water the boiled cascara is added and then left for some is changed six times, giving it the name six pane. time so that the flavour transfers into the cooked Some people even demand tin pane (water replace grain millet or rice. three times) as the alcohol level is more highly Another important material is marcha (made concentrated – making it more valuable in the with herbal plants and works like yeast), which is market. Due to the addition of coffee by-products, used for fermentation. Boiled cascara with cooked it has a unique taste; some people also claim millet or rice is kept for up to a week, and then it certain medicinal properties such as alleviating is ready to distill the alcohol. The utensils play bodily pain and seasonal flu, coughs or colds. an important role in this process, which are bata The demand for this spirit has increased, and (deep utensil for holding water), petashi that holds even at a governmental level, the exploitation nani for collecting alcohol and foshi, which is for international marketing is currently being directly exposed with heat and holds the fermented considered. mixture. In this process, fire plays an important role, as the millet or rice mixed marcha needs to Traditional Uses of Coffee Leaves be cooked for a long time, and the water needs to The leaves of the coffee plant have been used for be boiled several times. The total time starts from a long time to prepare tea-like drinks. In West three hours at least, and even more depending on Sumatra, Ethiopia, Yemen, Jamaica, India, Java the potency of the alcohol. and South Sudan, the infusion is consumed as a The fire is lit, and foshi is kept on it, which holds traditional food. Before preparing the drink, there millet or rice mixed coffee flavoured marcha. On are different processing methods to obtain coffee its open end, petashi is tightly fitted with the help leaf tea. Most of them include leaf steaming, of wet cloths. Inside petashi, remains nani (used rolling and drying. for collecting alcohol). On top, bata, which is filled However, some manufacturers work under with water, is installed airtight. With the exposure a protective gas atmosphere to preserve the ∆ to heat, the millet or rice mixed marcha evaporates ingredients from oxidation. Alternatively, the Coffee husks

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leaves can also be fermented. In some production market in the EU. Traditional foods from a third methods, the drying process is supplemented country are also considered novel foods. In the by a roasting process. To produce a drink, the Implementing regulation (EU) 2020/917 of the tea must be extracted with water according to Commission of 1 July 2020, the placing on the the aforementioned article, A Review of Coffee market of infusion from coffee leaves of Coffea By-Products Including Leaf, Flower, Cherry, arabica L and/or Coffea canephora Pierre ex A Husk, Silver Skin, and Spent Grounds as Novel Froehner as a traditional food from a third country Foods within the European Union. was authorised as the first coffee by-products. The European Food Safety Authority Novel Food Regulations in the (EFSA) had set a maximum level of 700 mg European Union epigallocatechin gallate (EGCG) per litre infusion According to Regulation (EU) 2015/2283, only prior to approval but had not expressed any other novel foods that have been approved and included safety concerns (see Technical Report on the on the European Union list may be placed on the Notification of Infusion from Coffee Leaves [Coffea

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Arabica L and/or Coffea Canephora Pierre ex (Top) Tea A Froehner] as a Traditional Food from a Third made from coffee flowers. Country Pursuant to Article 14 of Regulation (Bottom) Cof- (EU) 2015/2283; EFSA Supporting Publications; fee leaf tea EFSA: Parma, Italy, 2020; Volume 17, EN-1783. https://dx.doi.org/10.2903/sp.efsa.2020.EN-1783.) The following conditions, among others, were attached to the approval: the designation of the novel food on the labelling of the foodstuffs containing it shall be ‘Infusion from coffee leaves of Coffea arabica and/or Coffea canephora.’ The traditional food is prepared by mixing a maximum of 20g of dried leaves from Coffea arabica L and/ or Coffea canephora Pierre ex A Froehner with one litre of hot water. Leaves are removed and the infusion is then subjected to pasteurisation (at least 71°C for 15 seconds). Maximum contents are among others: Chlorogenic acid (5-CQA): < 100 mg/L, caffeine: < 80 mg/L, epigallocatechin gallate (EGCG): < 700 mg/L (see the Commission Implementing Regulation (EU) 2020/917 of 1 July 2020 authorising the placing on the market of infusion from coffee leaves of Coffea arabica L and/ or Coffea canephora Pierre ex A Froehner as a traditional food from a third country under Regulation (EU) 2015/2283 of the European Parliament and of the Council and amending Implementing Regulation (EU) 2017/2470. OJ L 209, 2.7.2020, pages 10–13, https://eur-lex. europa.eu/eli/reg_impl/2020/917/oj, for complete Approval procedures for other coffee by-products specifications). such as cascara (coffee cherry) are still ongoing No systematic data of chemical composition of or have yet to be initiated (for blossom and pulp, spirits made from coffee by-products is currently as well as for coffee cherry-based alcohol, refer to available. Concerns were raised about a comparably A Review of Coffee By-Products Including Leaf, high methanol content of pure coffee cherry spirits Flower, Cherry, Husk, Silver Skin, and Spent (Blumenthal, P; Steger, MC; Einfalt, D; Rieke- Grounds as Novel Foods within the European Zapp, J; Quintanilla Bellucci, A; Sommerfeld, Union). K; Schwarz, S; Lachenmeier, DW Methanol The coffee cherry spirits concept has been Mitigation During Manufacturing of Fruit Spirits tested and seen initial proofs-of-concept in various With Special Consideration of Novel Coffee Cherry parts of the world. Though the millet spirit with Spirits. Preprints 2021, 2021030731, https://doi. cascara flavour is a mixed product only partially org/10.20944/preprints202103.0731.v1.) based on coffee by-products, it is likely to provide However, in the case of the spirits from Nepal, a unique taste, with potential to be distinguished this problem appears already mitigated by the from other kinds of spirits. admixture of grain materials, which are low in Exposure and branding are what is needed to methanol formation capability. give it an international space.

Conclusions Authored by: Mahendra P Joshi, writer and development profes- Especially against the background of the economic sional from Nepal; Dr Dirk W Lachenmeier, director of the Official crisis caused by Covid-19, it is very welcome that Coffee Control Laboratory at CVUA Karlsruhe, Germany; Dr Laxman coffee leaf tea is now the first coffee by-product Neupane, a resource economist from Nepal; Dr Steffen Schwarz, to receive EU approval. An increase in the added founder of Coffee Consulate, Mannheim, Germany, an independent value of the coffee plant could increase the social coffee training and research centre; and Mandu Thapa, chair- woman of Coffee Cooperatie Union, Sindhupalchok District and and economic prosperity in poorer coffee-growing Social Entrepreneur, Nepal. areas and counteract decreasing coffee prices.

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P.20-21,24-25 F3 COFFEE BY PRODUCTS√.indd 25 22/04/2021 09:30 made in ITALY Giuliana Naso Baiez - Trieste

• Head QUARTERS • Via Caboto, 31 • 34147 Trieste • Italy Tel. +39 040 280 858 • ANALYSIS LABORATORIES • Via Querini, 6 • 34147 Trieste • Italy Tel. +39 040 064 4180 [email protected] www.demus.it

Accredited laboratory Arabica DNA Water ISO 17025:2018 fingerprinting decaffeination

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P.26- DEMUS.indd 1 20/04/2021 12:58 DECAFFEINATED COFFEE

Global Market Trends in Decaf Coffee

lot has been said about the way coffee has been consumed. It can be Sales may ebb and flow, but decaf coffee a hot beverage or a cold beverage, remains a stable performer, with potential Aand yet it is a comfort beverage for numerous for growth as long as quality and innovation individuals across the world. Every year, new continue to be prioritised. types or methodologies to prepare coffee go By Nandini Roy Choudhury mainstream, and the millennial populace goes No Fun Jo Decaf has gaga over it. Covid-enforced lockdowns saw been experie- the trend of Dalgona coffee, and it was picked to that of the regular coffee, which boosts its menting with up across various parts of the world. Although popularity. new flavours it turned out to be more of a fad than a such as sweet In the western diet, coffee is an integral part blueberry. trend as the novelty of preparing Dalgona to staying alert and focused at work. However, coffee disappeared almost as if we go by its contents, it is loaded with quickly as it appeared. antioxidants, magnesium, niacin, potassium, Decaf coffee has seen and vitamin B3, which makes it healthy as mixed traction in recent well. In the Eastern part of the world, tea is the times but has the potential default beverage. However, given the influence for future growth. It of social media, coffee trends are being fast was fast adopted by replicated in various parts of Asia Pacific. many individuals who Several studies have been conducted on perceived the caffeine in decaf coffee, and it was found that it has linked coffee as risky to their with the reduced risk of liver disorder, Type health or could not handle 2 diabetes, as well as premature death. In the caffeine but liked the addition, it has been found that decaf coffee taste of coffee, while protects the neurons present in the brain, which others are now choosing could help prevent the effects of Parkinson’s decaf as a way to limit and Alzheimer’s disease. The chlorogenic acid their daily caffeine present in the decaffeinated coffee other than intake. Besides the the caffeine is responsible for the healthy removal of caffeine, the growth of the human cells. taste and the nutritional Furthermore, individuals have reported that ∆ value remains identical the symptoms of heartburn and rectal cancer

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have been reduced thanks to the consumption of decaf coffee. With the influence of social media and advertisements, the benefits of decaf coffee are being disseminated to consumers. Hence, the placement of decaf coffee as a health drink is a successful marketing strategy for the companies operating in the decaf coffee market. Certified coffees are also playing a greater role in decaf. “We noticed an increase in Rainforest and UTZ decaf interest during this last pandemic period,” said Massimiliano Fabian, CEO of Trieste, Italy-based decaf processing company, Demus SpA.

Millennials and Seniors are Primary Consumers Millennials, as well as the geriatric populace present in the Asia Pacific, are the main consumers of decaf coffee. In a developed country like Japan, decaf coffee products showed steady yet small sales. However, NEWNEW manufacturers in the region are optimistic about the growing popularity of decaffeinated REFIININING GREAT COFFEE coffee in the region. The imports of the decaf beans in the year WITH WWATATER 2000 equalled 594 tonnes and soared to 3,023 tons in the year 2016, which shows the rising demand for the decaf coffee in the region. Japan is a key decaf coffee market in Asia Pacific, and pregnant women, millennial populace, and elderly consumers rely on the decaf coffee to maintain their well-being. Furthermore, being a hub for global business, foreign visitors and tourists also make up a large decaf coffee-consuming segment. In 2021, the CC WATER DECAF Tokyo Olympics will take place between mid- July through early August, which would bring Coffein Compagnie is your reliable partner numerous foreign visitors to the event, thereby boosting the demand for the decaf coffee. for the decaffeination of green coffee. Try our new process: CC Water Decaf. Top Players are Expanding their Choose the decaffeinated coffee that is Product Lines right for you. There are many decaf coffees on the market. Several popular ones include: Volcanica Coffee Costa Rica Tarrazu Decaf, LifeBoost Decaf, Café Don Pablo Colombia Supremo Decaf, YOURYOUR DECAF CHOICCEE Koffeekult, Peet’s, Kicking Horse Coffee, coffein-compaggnie.nie.com Royal Kona and No Fun Jo Decaf. Manufacturers are taking unconventional approaches to market their specialty coffee brands. For instance, No Fun Jo Decaf, took it to the online channel by partnering with the top e-commerce platforms to broaden its reach across overseas territories and improve its sales potential. In addition, the company has been

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Decaf coffee marketers are testing new fla- vours and roast levels to appeal to younger demographics.

experimenting with different flavours such as and India are likely to remain the top consumers sweet blueberry and milk chocolate as per the of decaf coffee. preference of consumers. Millennials are showing proclivity towards Impact of Covid-19 on Decaf sustainably grown and organic coffee beans, The decaf coffee market witnessed a slowdown which has been encouraging manufacturers induced by the influence of the Covid-19 to focus on the organic batch of decaf coffee. pandemic. Since decaf coffee in particular, and Moreover, the soft aroma is a key criterion coffee in general, is often consumed as a means of purchasing decaf coffee, which is pushing to socialise, lockdowns imposed during the manufacturers to come up with new flavours pandemic slumped the otherwise steady sales. and roast levels to push the sales of decaf Since coffee houses, cafés and restaurants coffee, particularly in the Asia Pacific region. play a prominent role in boosting decaf coffee Another trend found among consumers of this sales, the temporary shutdown of eateries region is to roast their decaf coffee at home, and cafés has impacted the demand for decaf which is increasing the sales of raw, green and coffee. unroasted decaf coffee beans. It is anticipated that compared to western countries, where the offline channel is the most Nandini Roy heads the food & beverage popular distribution of decaf coffee, online is research division at London-based Future likely to remain a key distribution channel for Market Insights, an ESOMAR-certified market the sales in the Asia Pacific region. Among the research and consulting firm. other countries in the region, Japan, Indonesia

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A New Era of Tea in Central Asia

A number of post-Soviet countries are planning to launch or expand industrial tea production but face many challenges – from tough weather conditions and productivity issues, to bad memories of poor quality and flavour from previous attempts. By Vladislav Vorotnikov All images are courtesy of Vladislav Vorotnikov

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everal post-Soviet countries have declared plans to begin or expand industrial tea production in the next Sfew years. Although the tea-growing industry will be granted substantial state aid, it is yet to be seen whether those ambitious plans are destined to come true, given the numerous obstacles they would have to encounter. Establishing domestic tea production was an idée fixe for Soviet scientists, who put a lot of effort into succeeding with this venture. Soviet tea production reached its peak of 150,000 tonnes in the 1970s, when most tea was manufactured outside Russia, including in Georgia, Azerbaijan, Ukraine, Uzbekistan and Countries in they ran studies on a territory of three hectares the region all Kazakhstan. The country managed to export (ha), which already brought some results,” want to replace tea across almost the entire socialist bloc Abdulaev said. tea imports in to Poland, Germany, Hungary, Afghanistan, Uzbekozikovcatholding, Bay Tea Group the domestic market. Syria, Mongolia and other countries. and another Chinese company, MB Trade However, the tea types developed by Russian Group, have also agreed to jointly establish the scientists to survive the harsh conditions of country’s first research and scientific centre for the northern latitudes had problems with tea production development, which is expected productivity and taste, so they failed to endure to help farmers import seeds, as well as buy all the conditions of the market economy. In the raw tea, to further process and sell it. 1990s, almost the entire tea industry in the By 2025, the Uzbek government targets Soviet splintered and ceased to exist. the use of 283 ha of agricultural land in four Now, several countries in the region are regions to produce 327 tonnes of tea leaf per attempting to launch an industrial tea prod- year. “The highest quality products will be uction, taking advantage of new technologies, destined for export to Europe,” Abdulaev said, new types of tea, and most importantly, global adding that productivity is expected to range warming, which effectively made the climate between three and five tonnes per ha. in some parts of the northern hemisphere a bit The authorities claimed that although more suitable for tea bushes. the planned production performance would not be enough to impact the current import- Uzbekistan and Kazakhstan Look to dependence level, it would let the country Establish Tea Industries establish its first tea brands. The Uzbek government laid out plans to In neighbouring Kazakhstan, the establish a domestic tea industry in 2018 after government has been considering adopting a several studies confirmed that the country’s similar program for several years. The country climate has become more favourable for this of 18 million people imports around 30,000 purpose. With a population of 33 million, tonnes of tea per year, for USD $100 million, Uzbekistan imports 30,000 tonnes of tea on the Customs Service estimated. Kazakhstan is average per year, and the ultimate goal of the world’s third largest tea-consuming country the project is to curb the domestic market’s per capita and among the top ten tea importers. dependence on imports, said Akmal Abdulaev, “Global warming could aid the Kazakh tea deputy chairman of Tashkent-based food production and let the country establish its company Uzbekozikovcatholding. domestic industry,” Almaty-based consulting Uzbekistan has studied the experience that agency Kazakhs Zerno said, citing local foreign countries, primarily neighbouring scientists. China, have had developing tea industries, The scientists stressed that tea is still grown Abdulaev said. The Uzbek authorities achieved in around 1,500 ha of Krasnodar Krai, Russia, an agreement with the Chinese Bay Tea Group and that the Kazakh farmers could use the to analyse opportunities for tea growing in the experience of the Russian companies. country. “It is believed that a tea bush does not like “The Chinese specialists have chosen the frost. However, on the Russian plantations, the ∆ Navbakhorsky area of Navoy region, where temperature often drops to minus 16 degrees,

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adopted a tea industry development program due to political issues. The country is a member of the Russia-led trade block Eurasian Economic Union (EEU), in which countries share a common customs space. “In Russia, tea production is [granted] substantial state aid, so they could successfully compete with imports. Here, we must compete with the Russian suppliers of packed tea, who are very efficient and competitive. Substantial state aid is needed to give the industry an impetus for development, but currently, the national budget has a lot of more pressing issues to address,” commented a source on the local market.

In Soviet and snow covers the tea bushes completely, Caucasus Tea Grows in Popularity times, tea had simple but this does not harm the tea plantations. In Georgia, the tea industry has been steadily packaging, Moreover, during winter, all pests on the tea recovering, with production reaching 3,000 poor quality bush die, so there is no need to use chemicals. tonnes in 2020. This figure has doubled over and a bad Therefore, northern tea is considered the most taste. the past few years, and yet it comprises only environmentally friendly in the world. There two percent of the peak production achieved in is no doubt that the outskirts of Almaty are the Soviet era. suitable for growing tea because our southern Just as in Central Asia, tea production in capital is located two degrees south of the Caucasus has certain advantages when Krasnodar,” Kazakhs Zerno stated. compared with tropical countries, according It is believed that so far, Kazakhstan has not to Miina Saak, a founder of the Tbilisi-based

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tea growing company Renegade Tea Estate. “If compared with tropical countries, where tea bushes needed to be protected from insects, it is way easier to produce organic tea in Georgia. Here, tea has no natural enemies like parasites and bacteria, as winter frosts are killing them,” Saak added. However, the revival of the Georgian tea industry is still constrained by the bad Soviet heritage, as the taste of old Georgian tea left a lot to be desired, and back then, people were consuming it in the absence of any alternative. “We tried to establish export supplies to the Russian market, but the old memories about Georgian tea are so horrifying that nobody is even willing to hear about it again,” Saak estimated. The domestic production last year Old packaging of tea from admitted. was limited to 900 tonnes. Georgia However, production has been growing Under this program, farmers could count in Georgia in the past few years, driven by on some state aid. Yet, so far, the program has domestic consumption and export to countries failed to bring any real results. where bad memories are not obstacles. “Tea plantations have been expanding in For instance, the Tbilisi-based tea producer Azerbaijan in the past few years, but their Lazy, exports 80 percent of its tea to China, average productivity is declining,” said local and the rest to the Central Asian countries, expert Vagid Magerramov, adding that as of according to the company’s founder, Gonery today, the local tea has good taste properties Saliya. and yet it is not competitive. “The breakeven point for our company was Big companies are primarily interested in in 2017-18 when Chinese investors visited our importing and packing cheap tea, a part of plantations, and it turned out that our types of which goes to the domestic market, and a tea were in short supply in their market,” Saliya part is exported, Magerramov said. Farmers explained, adding that China appeared to be an are poorly educated, and some legal obstacles outstanding export market. in the agricultural industry still hamper the Currently, the season change carries no development of the domestic tea industry. substantial risks for tea producers in Georgia, International analysts, however, believe the making growing tea a forecastable business, he Caucasus tea may have bright opportunities added. Tea plantations now occupy 8,000 ha of in the coming years. Natalya Zhukova, agricultural land in Georgia, of which nearly director of agribusiness at the European half are deteriorated or abandoned. However, Bank for Reconstruction and Development all market participants express confidence that (EBRD), recently told the Food & Agriculture the production is set to grow, given that in the Organisation (FAO) of the United Nations that global arena, Georgian tea brands perform the advantage of Georgia and Azerbaijan lies beyond expectations. in their proximity to large and discerning tea markets like the European Union and former Azerbaijan Has Ambitions That Soviet Union countries. Have Yet to be Realised “The international tea market continues to Azerbaijan has embarked on a development evolve, with trends showing a thirst for different program aimed at ramping up domestic tea quality tea products, like oolong or white tea production by a factor of eleven times by 2027 leaf. By improving quality and efficiency along compared with 2018, to 8,500 tonnes. If this the entire supply chain and diversifying, happens, Azerbaijan will become the region’s Georgia and Azerbaijan have a lot to offer the biggest tea producer and the country with the tea world, and we stand ready to support highest self-sufficiency rate on tea in the entire industry growth,” Zhukova said. post-Soviet space. In January-December of 2020, Azerbaijan Vladislav Vorotnikov is Moscow-based multimedia B2B freelance imported 12,200 tonnes of tea for USD journalist writing about the tea and coffee industry since 2012. $50 million, the State Customs Committee

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Green tea exports from China were impacted in 2020 due to Covid, but not to the extent of some other teas.

A New Day For Green Tea Green tea’s reputation as a health- focused beverage and its improving awareness as a great-tasting drink are lthough black tea has had the spotlight leading to its growing for decades, the tea world is looking popularity in western markets and greener by the day. Just a decade helping to expand production in China. Aago, green tea accounted for less than 25 percent of global tea production. Estimates now By Jason Walker have green tea accounting for about one third. All images and graphs courtesy of Firsd Tea While green tea production is expanding in several countries, China will continue to be the dominant force in green tea for years to come. considering the significant drop in demand for foodservice teas (which are largely black Green’s Resilience teas), and the increased potential for at-home, The global Covid-19 pandemic did disrupt single serve formats that can incorporate more overall tea trade, including green tea. China, green teas. for example, saw a four percent decline in total Consumer preferences for health were also 2020 exports – the first such decline since 2014. likely a factor. The two types of Chinese teas Total 2020 China tea exports totalled 349,000 that best weathered the storm were green tea metric tonnes, of which about 84 percent was and dark (pu’er) teas. Pu’er teas, though in green tea. Green tea exports were impacted, much smaller total quantities than green tea, but not to the extent of some other teas. Green saw an overall 27 percent increase in exports tea saw an annual decline of 3.5 percent, while for the year. China’s green tea exports saw black tea exports dropped by about 18 percent. gains in volume in the latter half of 2020, This variance is more understandable when suggesting a potential recovery, or possible future expansion in green tea consumption. Green tea prices have remained relatively stable and competitive compared with other tea categories as well. Green tea averaged USD $4.34 per kg in 2019, compared to black tea at $9.92 per kg and an overall average of China teas at $5.51 per kg. These prices reflect a seven percent increase above the previous year’s green prices, and a 16 percent rise for black teas. Average export prices on Chinese tea for 2020 rose six percent versus the previous year to $5.84 per kg.

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Boosts To Green Production China drives the lion’s share of green tea production. About two-thirds of the nation’s tea production is green tea. In 2019, China’s total green tea production reached 1.77 million metric tonnes. No other tea-producing country comes close to China’s total or green tea production. India is the closest and produces about half the total tea of China. All others fall by the wayside. Even Vietnam, where green tea production now accounts for over half of the country’s production, produces approximately 95,000 metric tonnes of green tea. As global tea consumers seek more green Looking within China reveals how green tea tea, it will increasingly originate from relatively shapes production across the country. The top obscure and developing areas. China continues nine tea-producing provinces can be roughly to expand its tea fields, particularly into new divided in three regions of East, Central, and rural areas. Many of these new tea fields are in West. While Eastern provinces (Anhui, Fujian China’s central and western provinces. Guizhou and Zhejiang) have their names tied to some province, for example, went from ranking fifth historically popular teas, it is the Western in 2010 for total tea field area by province to Belt (Guizhou, Sichuan and Yunnan provinces) ranking second in 2019. It now boasts over that makes the biggest contributions to green 465,000 hectares in tea. tea. Each of these provinces delivers between The Chinese government views the 11 percent and 15 percent of the nation’s development of the tea industry in these green tea, for a combined total of over 40 areas as a means of sustainable economic percent. The Eastern Belt is the next closest, development for many of China’s rural poor. contributing 25 percent, and the Central Belt Green and white teas are proving to be the (Shaanxi, Hubei, Hunan) produces another 18 teas of choice in these newly established percent of the total. regions, as processing of green and white teas To illustrate this scope: over 85 percent doesn’t require the technical skills needed for of Anhui Province’s production is green tea, controlled oxidation like black and wulong teas yet 45 percent of Yunnan Province’s is green do. New tea areas can turn out green and white and eclipses Anhui teas that require less technique and processing greens by about 50,000 time, and (potentially) expand their offerings as metric tonnes. Production their expertise and capabilities improve. in the Western Belt is prodigious. This means Future Trends most of the world’s green Indications point to the growing strength of tea comes from China, green tea. Production and exports appear and it comes from areas relatively stable, with further potential for that Western consumers growth. Green tea continues to hold its position are largely unfamiliar as a health-focused beverage while also with. becoming more popular as a great tasting drink. It also continues to gain market share as a base for successful tea blends, and the diversity of green teas coming out of China and elsewhere allows for a diverse array of green teas with unique flavour characteristics of their own.

Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. He may be reached at: [email protected].

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March 2021 Green Coffee Report The International Coffee Organi- sation reported that coffee prices inched up in March, confirming an upward trend over the last five months. This is the highest month- ly average since coffee year 2017- 18. However, this upward trend re- versed, and prices weakened in the final days of the month, recording their lowest levels in the last two days of the month. World con- sumption for coffee year 2020-21 is projected to an increase slightly over coffee year 2019-20. The monthly average of the ICO composite indicator rose by 0.8 percent to 120.36 US cents/lb in March 2021, representing the fifth consecutive month of increase

and the highest monthly average Cooperu of Image courtesy since September 2017. In March, the daily composite indicator US cents/lb recorded in July 2019. Certified stocks of Arabica for fluctuated between 115.42 and Average prices for Colombian New York Futures Exchange were 125.30 US cents/lb. Uncertainty Milds rose by 0.3 percent to 177.49 1.97 million bags and certified of regular supply to the market US cents/lb and the average price stocks of Robusta coffee for the due to various restriction as a re- for Other Milds grew by 0.4 per- London Futures Exchange were sult of the ongoing pandemic and cent to 167.05 US cents/lb. As a 2.50 million bags in March, repre- climactic events seems to support result, the differential between senting an increase by three per- coffee prices while increasing the Colombian Milds and Other Milds cent and two percent, respectively. volatility of the uptrend. fell slightly by 0.9 percent to 10.44 The volatility of the ICO com- Prices for all group indicators US cents/lb. posite indicator price increased observed an upward trend in The differential between Co- from 5.8 percent in February to March. Prices for Brazilian Naturals lombian Milds and Brazilian Natu- 7.7 percent in March. The volatil- increased 1.7 percent to 122.16 rals fell by 2.8 percent and the dif- ity for all indicators increased in US cents/lb, which is the highest ferential between Other Milds and March after decreasing over the monthly average since January Brazilian Naturals decreased by last two months. The highest vola- 2018. The average price for Ro- 3.2 percent. The average arbitrage tility in March was recorded by the busta coffee rose by 0.7 percent in March, as measured on the New Brazilian Naturals at 9.7 percent, to 73.86 US cents/lb, the highest York and London futures markets, followed by Robusta coffee at 8.2 monthly average of the last 21 increased by 1.8 percent to 67.82 percent. The volatility of the fu- months since the mark of 73.93 US cents/lb. tures markets also rose by 9.3 per- cent and 9.1 percent respectively for New York and London. Consumption in Coffee Year In coffee year 2020-21, global production is estimated to rise by 1.9 percent to 171.89 million bags with Arabica production growing by 5.2 percent to 101.88 million bags. The production of Robusta coffee is expected to decrease by 2.6 percent to 70.02 million bags. At regional level, a slight decrease of 0.8 percent is expected for Africa at 18.5 million bags in coffee year 2020-21 in compari- All graphs courtesy of the International Coffee son with 18.7 million bags in the Organisation previous coffee year.

36 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net May 2021

P.36-37 GREEN COFFEE REPORT√.indd 36 22/04/2021 09:37 GREEN COFFEE REPORT

Production for Asia and Ocean- ia is forecast to fall by 0.4 percent Green Coffee Exports (October-February) from 49.5 million bags in 2019-20 to 49.3 million in 2020-21. Pro- duction for Mexico and Central America is expected to remain at the level of 19.5 million bags recorded in coffee year 2019-20. An increase of 4.4 percent in pro- duction is expected from South America at 84.53 million bags compared with 80.97 million bags in 2019-20. Total Exports (October-February) Mixed Results for Exports Global exports in February 2021 totalled 10.47 million bags, com- pared with 11.16 million bags in February 2020. Exports in the first five months of coffee year 2020- 21 increased by 2.5 percent to 52.81 million bags versus 51.53 million bags during the same peri- od in 2019-20. More specifically, the four groups of coffee experienced mixed per- formance in green coffee exports exports from Mexico and Central Exports from Colombia increased over the first five months of coffee America fell by 17.4 percent to 4.2 by 1.1 percent to six million bags. year 2020-21. Green exports of the million bags as parts of the region Its shipments of green Arabica cof- Brazilian Naturals increased by have not yet recovered from the fee slightly inched up 0.9 percent 18.2 percent. Colombian Milds re- severe impact of hurricanes Iota to 5.5 million bags. corded an increase of only 0.3 per- and Eta. Notably, shipments from cent. Green exports of Other Milds Honduras, the region’s largest pro- At-Home Consumption decreased by 12.3 percent and ducer, decreased by 30.7 percent Offsets OOH Consumption green Robusta exports decreased to 1.4 million bags while those The ICO projects world coffee by 5.6 percent. from Nicaragua fell by 14.5 per- consumption to grow 1.3 percent Exports of all forms of coffee cent to 750,000 bags. Guatemala’s to 166.6 million bags in 2020- from Africa in the first five months exports dropped 14.4 percent to 21 versus coffee year 2019-20 as of coffee year 2020-21 decreased 761,352 bags. at-home consumption is increas- by 12.2 percent to 4.9 million In contrast, Mexico’s exports be- ing, offsetting the reduction of bags as shipments from Ethiopia, tween October 2020 and February out-of-home consumption caused Côte d’Ivoire and Kenya declined 2021 increased by 20.8 percent to by social distancing measures by 31.6, 54.1 and 10.8 percent one million bags, partially in re- while global economy recovers at a respectively. Uganda, the largest sponse to the greater availability slow pace. Consumption in import- regional exporter, grew 9.6 per- of coffee compared to other coun- ing countries and domestic con- cent to 2.3 million bags. tries in the region. sumption in exporting countries is Asia and Oceania’s coffee ex- From October 2020 to Febru- expected to be 115.96 million ports declined by 9.4 percent to ary 2021, South America’s exports bags and 50.66 million bags, 15.4 million bags in October 2020 increased by 16.6 percent to 28.4 respectively. to February 2021. Vietnam’s ex- million bags. During this peri- Consumption in Africa is ports during this period declined od, exports of all forms of coffee expected to grow 1.8 percent to by 16.4 percent to 9.8 million from Brazil rose by 24.2 percent to 12.2 million bags, and by 1.4 per- bags while Indonesia’s shipments 20.5 million bags. Brazil is nearing cent in Asia and Oceania, to 36.5 increased by 20.5 percent to 3.1 the end of its 2020-21 crop year, million bags. million bags. Exports from India, which was an on-year for its Ara- The ICO projects coffee year the region’s third largest produc- bica production. Brazil’s exports 2020-21 to end with a surplus of er, decreased by 4.6 percent to 1.9 of green Arabica increased by 26.7 5.3 million bags, as total produc- million bags. percent to 17.1 million bags, and tion outpaces demand by 3.1 per- Compared with the first five its green Robusta shipments rose cent. For the full report, visit: www. months of coffee year 2019-20, 28.8 percent to 1.7 million bags. ico.org

May 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 37

P.36-37 GREEN COFFEE REPORT√.indd 47 22/04/2021 09:37 COMPANY NEWS (1 image) Harris Tea Acquires Tetley Harris Food Group from Tata Consumer Products Harris Tea Company is acquiring As a leading tea and allied bev- brands portfolio. The Moorestown, (1 image) Tetley Harris Food Group from erage provider, Harris Tea brings New Jersey-based company’s goal Tata Consumer Products Com- over 40 years of experience in in a rapidly changing post-Covid pany. For the last 18 years, Har- both private label and branded world is to provide restaurants ris Tea was a part owner of the beverage offerings. The compa- and distributors the support and (1 image) Tetley Harris Food ny’s responsiveness, global tea innovation required for success. Group with a focus sourcing expertise, continued in- Ray Borooah, Harris Tea’s CEO on global sourcing, vestments in innovation, rigorous stated, “This acquisition will ac- innovation, and quality standards and modern US celerate our efforts to provide Dabin Coffee Debuts Coffee “Caviar” (1 image) manufacturing of manufacturing facilities allow it competitive tea and allied bev- beverage products to provide integrated beverage erage products for the recovering for the foodservice solutions. foodservice industry, as customers industry. Harris Tea offers a full-range of seek immediate and innovative (1 image) With this acqui- teas and other on-trend beverag- solutions.” sition of the remaining shares, es. In addition, the company has In addition to Tetley and Good Harris Tea will provide end-to-end been adept at driving traffic and Earth, Harris Tea Foodservice will services to foodservice customers increasing sales tailored to the offer brands such as Southern with continued focus on innova- cuisine, format and region of the Breeze, Ready Sweet, Newman’s tive products, consistent quality foodservice purveyor. Own Organics, Red Rose, Salada, and service. The name of the new Harris Tea Foodservice will pro- Tea India, Chai Moments, Won- organisation will be Harris Tea vide beverage solutions through der Drink Kombucha and Secret Foodservice. its private label and specialty Squirrel Coffee.

Portland Coffee Roasters Celebrates 25 Years Portland Coffee Roast- Market and Zupan’s Market stores, of 2,000 people in Tanzania, and ers is celebrating its plus selection locations of Market numerous other projects. Portland 25th anniversary this of Choice and Fred Meyer. Coffee Roasters also produces an year. It began in 1996 “Over the last 25 years Port- annual holiday blend with a por- as Portland Roasting land has become an epicenter tion of sales supporting people in and is now the city’s for specialty coffee roasters, and coffee-growing communities. largest independent we’re proud to have been one of “Nothing has been more gratify- roaster. For 25 years, the early leaders,” said Mark Stell, ing than our deep and long-stand- it has been dedicated co-founder and managing partner. ing relationships with our coffee to creating positive “The 25th Anniversary Roast not growers and their families,” said human connections only celebrates our long-standing Stell. through coffee by relationships with our farmers, but “We are committed to helping building a socially responsible it is a tribute to all of our partners make the world a better place, business. all along the coffee chain, and to and it’s wonderful that something To celebrate Portland Cof- our customers who enabled us to as ubiquitous and loved as a cup fee Roasters’ 25 years of “doing keep growing.” of coffee can do that.” good and making good coffee,” At the heart of Portland Coffee Portland Coffee Roasters also it has just released a limited Roasters is its ongoing commit- centres sustainable practices edition 25th Anniversary Roast. This ment to its global coffee commu- across its operations. The compa- medium roast is a unique blend nity, and to improving the lives of ny is certified with the Sustaina- of washed and natural processed the people it works with through bility at Work programme through coffee from La Hilda Estate in impactful projects around the the City of Portland and has Costa Rica — which has been a world. Every year, the company received Gold Certification three Portland Coffee Roasters partner commits resources to coffee com- times in a row. for 25 years — and it balances the munities in need. Its headquarters and other bright citrus flavours of this grow- Community project highlights buildings are supplied by 100 ing region with deeper chocolate include a daycare centre for the percent renewable energy. Oth- notes. children of its farmers’ migrant er efforts to stay green include It is available now through Sep- workers in Costa Rica, installing composting organic waste, doing tember at portlandcoffeeroasters. and renovating a wastewater col- zero-emission deliveries for local com, and at its café locations: one lection system for more than 600 customers via B-Line tricycle de- in Southeast Portland and three coffee growers and their fami- livery, and donating used burlap at Portland International Airport. lies in Colombia, bringing drink- coffee bags to local farmers and It will also be at all New Seasons ing water closer to the homes gardeners.

38 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net May 2021

P.38-39 COMPANY NEWS√.indd 38 22/04/2021 09:38 COMPANY NEWS

SCA and NCA to Collaborate on Market Research for the NCDT Study The Specialty Coffee Association espresso-based beverages. The Apostolopoulos, CEO of the SCA. (SCA) and the US National Coffee NCDT provides the longest avail- “NCA is thrilled to join with the Association (NCA) announced a able statistical series on coffee SCA to further expand the core re- new collaborative effort support- consumer trends and behaviour, search pioneered in the National ing the NCA’s biannual National offering demographic insights by Coffee Data Trends Market Re- Coffee Data Trends (NCDT) report. gender, ethnicity and age groups, search Series,” said William “Bill” In addition to the biannual re- and showing the popularity of Murray, president and CEO of the ports released by the NCA, this specific drinks and preparation NCA. “By working together to de- partnership agreement will result methods. velop a supplemental report fo- in the publication of a special re- “This agreement signals the cusing on specialty coffee, we’re port focusing on data related to growing relevance of specialty bringing actionable business specialty coffee — made available coffee at a time when at-home insights to more coffee profes- at no cost to all coffee profession- consumption has grown expo- sionals than ever before at a time als and businesses. nentially with savvy consumers when they need it most.” The NCDT, commissioned an- around the world. There are many The Spring 2021 NCDT report nually by the NCA since 1950 things to celebrate about this col- was released on 1 April, and the and biannually since 2020, is laboration, but we are particular- NCDT Fall Update will be present- a survey of Americans regard- ly excited about the prospect of ed at the SCA’s Specialty Coffee ing their consumption of coffee bringing analysis on specialty cof- Expo, which takes place in New and, since 1993, their habits and fee data to members of the com- Orleans, Louisiana from 30 Sep- practices related to espresso and munity, free of charge,” said Yannis tember to 3 October this year. Swiss Water Decaffeinated Coffee Opens New Production Facility Swiss Water Decaffeinated Coffee icals,” said Swiss Water’s CEO, Inc has opened a new state-of- Frank Dennis. “Decaf consumption the-art production facility in Delta, in the US and Europe, two of the British Columbia. The new 82,000 world’s largest coffee-consuming square foot space will allow the regions, has experienced long- company to meet the growing term growth,” says Dennis – with global demand for best-quality, specialty decaf at the forefront. chemical-free decaf. The new Greater Vancouver Area “Health-conscious coffee con- facility, located at 7750 Beedie ue to be top priority for the com- sumers and the industry at large Way in Delta, expands Swiss Wa- pany, it says. are placing more value than ever ter’s decaffeination capacity, en- Swiss Water will continue to in clean decaffeination methods, abling the company to serve the operate its original decaffeination like the Swiss Water Process, that needs of customers even better. plant at 3131 Lake City Way in avoid introducing added chem- Quality of production will contin- nearby Burnaby. Dabin Coffee Debuts Limited Edition “Coffee Caviar” The everlasting lockdowns are such [high] prices for coffee,” said coffee lover who trav- pushing entrepreneurs outside Dabin, who founded Dabin Coffee els the world looking their comfort zones, which has seven years ago in Brussels. for artisanal coffees, spurred creativity and innovation. Dabin achieved his goal with and taste and ethics To this end, artisan roaster, Em- the creation of a “coffee caviar” are his motto. Dabin manuel Dabin, who has been in — the new Bourbon Pointu cof- also favours beans that the coffee business for 35 years, fee — a limited-edition coffee he are organically grown is further expanding his premium developed with the micro-lots and ethically produced coffee offering. of a few kilos on auction, with from the beginning of “I was trained by masters of the preference for beans from very the harvest, as it liber- world of coffee, such as Ernesto small plantations located in the ates the best aromas. Illy, Roger Roblain and Señor Eu- Indian Ocean region. For the Dabin coffees are sold in Bel- sebio Jorba. In 1996, working as moment, this exclusive coffee is gian organic shops and on the coffee master for a major upmar- sold only locally at the price of company’s website, and are de- ket European retailer, I wanted €50 for 50g. livered around Brussels by bike. to launch an exceptional range Emmanuel Dabin’s great grand- For more information on Bourbon of Arabica, but my boss believed father planted the first Arabicas Pointu coffee or Dabin Coffee, no sensible customer would pay in the Congo. He is a passionate visit: www.emmanueldabin.be.

May 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 39

P.38-39 COMPANY NEWS√.indd 39 22/04/2021 09:38 PEOPLE NEWS

Jack Edwards Appointed eral successful new innovations President of illy North America and drove significant growth on illycaffè, the parent company of brands including Bulleit Bourbon illy North America, has named and Ciroc Vodka, and his teams Jack Edwards president of its New delivered best in class execution York-based North American busi- across the entire Diageo portfolio. ness, effective 19 April. He suc- Prior to joining Diageo, he was ceeds Barry Shelton, who decided an auditor at KPMG. Edwards holds to return to his native West Coast an MBA from the Kellogg Business School at Northwestern University. after 18 years with the company. Jack Edwards Edwards spent nearly two dec- ades with Diageo, where he most expansion among coffee lovers Port of NOLA Elects William H recently served as svp of sales across all channels,” said Massi- Langenstein Chairman and national accounts for The Di- miliano Pogliani, CEO of illycaffè. The Board of Commissioners of ageo Beer Company USA, one of “His extensive experience, com- the Port of New Orleans select- three divisions of Diageo’s USD bined with his sharp leadership ed new officers with the election $6 billion North American busi- acumen, are aligned to success- of William H Langenstein, III as ness. There, he led a team of 115 fully realise illy’s long-term plans.” chairman, Charles H Ponstein as people and a distributor network Edwards’ career at Diageo start- responsible for Guinness, Smirnoff ed in Chicago, Illinois in finance, Ice and other major brands. before moving into cross-func- “Jack’s broad and deep skillset, tional positions spanning port- commitment to excellence, com- folio planning, marketing and prehensive understanding of con- sales. He transferred to the Nor- sumers, knowledge of the premi- walk, Connecticut headquarters in um beverage industry and record 2005, where he managed regional of leading strategic growth are sales teams and earned addition- ideally suited to our North Amer- al responsibilities. During this William Langenstein ican business, which is poised for time, Edwards helped launch sev- Tea & Coffee Marketplace

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P.40-41 PEOPLE NEWS√.indd 40 22/04/2021 09:41 PEOPLE NEWS

vice chairman and Jack C Jensen, Jr Coffee with responsibility for Paul Keating as secretary-treasurer. physical supply, logistics, quality Langenstein succeeds Darryl D assurance and risk management. Berger whose term as chairman At the time of his retirement expired in March. Berger will con- in 2017, Bill held the position of tinue to serve on the board as a vice president, green coffee and commissioner until his five-year supply chain projects. He was a term ends in 2022. past member of the Green Coffee Langenstein joined the board in Association (GCA) board of direc- 2018 when Gov John Bel Edwards tors, volunteering on many of the appointed him. Port Commission- Association’s committees, and was ers also serve on the New Orleans also a past member of the Na- Public Belt Railroad Commission. tional Coffee Association board of Paul began his long and illustri- Therefore, Langenstein will serve directors. Bill had many positive im- ous career in the coffee industry as chairman, Ponstein as vice pacts on the coffee industry in his when he joined General Foods chairman and Berger as secre- affiliation with these associations. Corporation moving through var- tary-treasurer. “Upon his retirement, Bill and ious positions. At the time of his Nancy spent much time trav- retirement, Paul held the position IN MEMORIAM elling the world and spending of vice president and director of time with all those he met and green coffee operations for the William “Bill” Cortner friended throughout his long and entire Maxwell House/General William “Bill” Cortner, 62, passed illustrious career. Bill will most Foods Corporation. away on 17 March 2021. be remembered for his integrity, He also supported the US Gov- Bill was born on 24 January huge smile, infectious laugh, and ernment in international com- 1959 in Albertville, Alabama. Bill his many pranks. He never met a modity trade negotiations which was a graduate of Albertville High stranger in his life,” read a state- earned him many trade, national School and went on to study busi- ment issued by the GCA. and international accolades. ness and finance at Loyola Univer- Bill is survived by Nancy, his Paul was bestowed Honorary sity in New Orleans, Louisiana. It is beloved wife of 39 years, son Membership by the Green Coffee there that he met the love of his Matthew and daughter Katherine. Association (GCA) in recognition life, Nancy, who he married on 16 Bill is also survived by his father, of his long-time support and January 1982. Bill proudly served William, III, his sister and brother- participation in many different in the United States Army as a in-law, Karen and Mark Lang, as capacities of the Association’s Company Commander. well as many nieces and nephews. committees and events. Many will He began his career at Proc- A public memorial is planned remember Paul for his prowess tor and Gamble (P&G) in 1988 for a later date. Donations may be on the tennis courts at the GCA as the associate director, chemi- made in Bill’s memory to: Annual Golf and Tennis Outings. cals which took him to China and Akron-Canton Regional Foodbank In his retired life Paul enjoyed Switzerland before returning to 350 Opportunity Parkway, Akron, volunteering at Saint Mary’s par- the US in September 2002 to as- Ohio 44307-2234, USA. ish, working on the parish finan- sume the position of associate di- http://akroncantonfoodbank.org cial council, starting the adult rector, coffee trading. funeral mass server’s program In 2008, with the sale of P&G’s Paul Keating as well as helping the Phoenix coffee business to The JM Smuck- Paul Keating, 94, passed away on Center establish their operations. er Company, Bill moved with the 19 February 2021. Paul is predeceased by his be- coffee team to become vp, green Paul was born on 17 August loved wife Betty and son Paul coffee where he was responsible 1926 in Hartford, Connecticut. He Jr. He is survived by his children, for green coffee trading and sup- grew up in Belleville, New Jersey Thomas Keating and wife Jane, ply chain for Folgers and Millstone and was a graduate of Belleville Timothy Keating and wife Jacque- High School. As an active member line, and Eileen Saar and husband of St Peter’s parish, Paul met Eliz- Dan. He also leaves his grandchil- abeth (Betty) Nygard, to whom he dren, Kathryn Rucki, Alexander, was married for 69 years. Alyssa, Shannon, Collin and Evan He proudly served in the Unit- Keating, Valerie and Lauren Saar ed States Army in South Korea and great granddaughter, Quinn and Japan from 1945-46. After Rucki. his honourable discharge, Paul Donations may be made in attended and graduated from Paul’s Memory to: St Mary’s Church, Seton Hall University with a Bach- 17 Monsignor Owens Place, Nutley, Bill Cortner elor’s degree in accounting. NJ 07110, USA.

May 2021 www. teaandcoffee.net | TEA & COFFEE TRADE JOURNAL 41

P.40-41 PEOPLE NEWS√.indd 41 22/04/2021 09:41 STRAIGHT FROM THE CUP

Health + Innovation = Success

t’s been a long, hard Covid road for restaurateurs Nitro’s growth is followed by fresh ways to enjoy and foodservice operators, and despite pockets globally inspired espresso-based beverages, including of increasing cases around the country, the first the affogato and flat white, which are the next fast- Iopportunities for recovery are just around the corner. est-growing coffee preparations. Next in line in terms Monitoring and translating food and beverage of growth is cold brew, which has also seen its popu- trends have always been a constant focus for our larity soar as a refreshing, less-acidic replacement for team at Datassential but understanding consumer traditional iced coffee. The cortado, which features behaviour and insights over the last year has been an even split of coffee and milk, has shown strong especially critical in analysing where the public growth as well – it leads the overall hot beverage cat- wants foodservice to go next. One thing is for sure: egory in menu growth. Still, it’s a relatively unknown consumers are tired of being – and eating – at home. drink for many consumers, which could make it a Enjoying food at restaurants or other foodservice good option for operators looking for a particularly establishments is one of the top activities that con- unique espresso preparation to introduce. sumers are looking forward to most when they feel The second-fastest growing item in that general comfortable venturing out. category (hot beverage and milk) is chai, which A focus on health is critical to consumers this highlights the strong ascent of tea-influenced drinks year, after a year of less activity and more com- in the broader beverage space and is a popular option fort food and alcohol. But along with a craving for for consumers that satisfies the dominant health and healthy ingredients and functional foods and bever- wellness influences. Americanos and macchiatos ages, Datassential also forecasts the evolution of food have also seen their popularity grow in this overall trends will speed up due to pent-up demand from category as well, by about 30 percent each over four eager returning diners, keen on finding new and inno- years, while Vietnamese coffee also leads the pack of vative spins on food and drink, and even some daring fastest-growing hot beverages, growing by 24.4 per- choices that they previously may not have considered. cent on menus in four years, offering lovers of Thai That’s why this year, perhaps more than any other, is coffee a sweeter option. the year of innovation. Tea more easily lends itself to this growing hyper How is this focus on health and demand for rapid focus on health, and that’s evident by the fastest innovation hitting the coffee and tea segments? growing options in the space. Consumers crave global flavours and menu items Growth in the hot tea category is led by turmeric that support health in a new way, whether they boost teas; their presence more than tripling on menus in immunity, improve gut health, or offer alternatives in the last four years. Turmeric is followed by matcha, the fast-growing plant-based milk space. another beneficiary of the hyper focus on health in In the United States, the coffee flavours seeing the tea space. Tea lattes and milk teas are the stron- the strongest four-year growth include those with gest growing forms of the hot beverage, while floral perceived health benefits, and nods to global spices and citrus flavours like lavender, lemongrass and rose and citrus. Orange-flavoured options have seen the are also leading evolution in the space. biggest jump in coffee menus, seeing a 127 percent In iced tea, kombucha leads the pack in terms of growth on menus in the last four years. And it’s four-year menu growth, followed by matcha and no wonder – consumers say citrus is the ingredient hibiscus. Despite kombucha’s strong growth, it is still they believe has the most immune-boosting benefits, new to many consumers and could be a great option according to our research. Next-strongest in terms of for innovative operators looking to offer a strong growth is ginger, a flavour that has nearly doubled health-focused option. on menus in the same time frame. Also growing in Samantha Des Jardins is a copy- coffee drinks are flavours like almond (+91 percent), writer at Datassential, a leading pumpkin (+87 percent), and cinnamon (+70 percent). market research agency helping In terms of coffee preparations, nitro drinks con- food and beverage companies of tinue to see explosive growth on menus, rocketing up all sizes and segments innovate, by ninefold on menus in the last four years. Of those sell and plan for the future. For more information, visit www. consumers who have sampled a nitro coffee, 61 per- datassential.com. cent like it or love it, per Datassential’s Flavor tool. 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.

42 TEA & COFFEE TRADE JOURNAL | www. teaandcoffee.net May 2021

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