GROWING THE FUTURE

2017 ANNUAL REPORT A PROGRAM OF HANNS R. NEUMANN STIFTUNG NORTH AMERICA

TABLE OF CONTENTS 2 Introduction 11 Jorge's Story

Prisca's Story Partner in Focus: 3 12 Peet's & Tea

The Coffee Kids International + National 4 Approach 13 Coffee Day

Front cover: Young coffee farmers like the Tanzanian woman featured on the cover Outcomes of Rural Supporter are the future of coffee. 8 Business Workshops 14 Testimonials Above: An agronomist holding a seedling in Marsella, Colombia. Coffee Kids has been proudly operating as a Coffee Kids at a program of Hanns R. Spotlight on Neumann Stiftung, 10 Glance 15 Supporters Circle North America since 2015. 2 The future of coffee begins with young farmers

What a year! The Coffee Kids community is To keep that idea front and center in people’s growing and thriving. This community includes our minds, we’ve also added several new team team in New York and the regional Hanns R. members (including me!) who are working to Neumann Stiftung staff across the globe, the spread the Coffee Kids message online, at the young farmers we work with, and the supporters major coffee and sustainability conferences, and who generously give their time and resources to through in-person conversations. These are just a make our work possible. Together we are creating few of the exciting things we have accomplished new opportunities to empower young coffee in the two years since we began operating as a farmers. There is a palpable energy at our new program of Hanns R. Neumann Stiftung, North office in Brooklyn, a sense of excitement that America. We hope you've noticed; we’d love to comes from knowing that we’re building hear from you! something powerful and purpose-driven. It’s impossible to capture in words and pictures all the This community is nothing without you. We are so exciting developments from the past year. This is grateful for your involvement in Coffee Kids (and an attempt to bring you a bit of the scale and the farmers we work with say the same!), because scope of our growth. There’s so much more to we know that there are plenty ways you could share when we meet next. spend your time and money. And we are hopeful that you will help us continue to grow, both by Coffee is so important, both culturally and maintaining your own involvement and by sharing economically. Across the world, people drink more our work with friends and loved ones who care than two billion cups of it per day, but it's easy to about the future of coffee. forget that there’s a farmer behind every cup. Whether through our work on International and After all, without young farmers there will be no National Coffee Day described later in this report, our new partnership with Airbnb to share our in- coffee! depth coffee knowledge with interested travelers Let’s grab a coffee soon, from around the world, or the young farmers who newly join our program every day, Coffee Kids is Joanna Furgiuele putting those farmers first. Fundraising & Program Manager

Coffee Kids Fundraising & Program Manager, Joanna Furgiuele, HRNS NA General Manager, Jan von Enden, and Social Responsibility Manager of Peet's Coffee, Matt Broscio, with a group of young farmers in La Celia, Colombia. 3

MARUANGO VILLAGE, NORTHERN TANZANIA PRISCA'S STORY

I LIKE TO SHARE MY KNOWLEDGE AND EXPERIENCES ON WITH MY CHILDREN THAT THEY WILL CONTINUE TO GROW COFFEE IN THE FUTURE.

Prisca is a young Tanzanian farmer whose family has worked in coffee for generations. Before she became involved in Coffee Kids, she faced a gut-wrenching decision: stay in Maruango with her family and friends, tending a crop that is in her blood, or move to the country capital of Dar es Salaam, one of the largest cities in the world, and see where her intelligence and ambition could take her.

When Coffee Kids came to her village, though, suddenly the choice became simple. Through our Rural Business Workshops, she has learned how to optimize her coffee production, and has also developed a business plan for a side business that gives her a steady year-round income to supplement her annual coffee income. Now, she is focusing her skills and determination on work that benefits her local community.

Today, Prisca says, “Planting coffee is my priority for the future. Although people say that coffee is not good, I want to focus on my coffee plantation in the future...I like to share my knowledge and experiences on coffee production with my children that they Prisca Koinage, Age 27, will continue to grow coffee in the future." is from Maruango Village in Northern Tanzania. 4

THE COFFEE KIDS APPROACH RURAL BUSINESS WORKSHOPS

Coffee Kids collaborates with the up-and-coming generation of coffee farmers to help them realize their full potential as part of the global coffee community. Our Rural Business Workshops use training, mentorship, and micro-financing to help young farmers see themselves as entrepreneurs, develop the skills to launch their own businesses, and connect to the global coffee industry. The workshops are offered in Tanzania, Colombia, and Trifinio (the tri-border area of Guatemala, Honduras, and El Salvador).

In Maruango Village in Northern Tanzania, Rural Business Workshops take place like "a business school under the trees." 5

TRAINING Coffee Kids training sessions help young men and women apply their creativity and ideas to develop productive enterprises in coffee within their communities. Topics include a broad business focus, such as managing the financial side of the operation and writing a business plan, 1 to coffee-specific information, such as how to implement techniques to adapt Above: A local trainer demonstrates agricultural to climate change and increase yield practices in Trifinio during a Rural Business and coffee quality. Workshop training session. 6

MENTORSHIP We are linking young coffee farmers to successful local and international coffee entrepreneurs, exposing them to the breadth of opportunities that exist within the sector and helping them understand how to reach those positions. The exchange increases farmers’ understanding of different 2 players in the supply chain, and helps professionals understand how new Above: Somi Nanyaro, age 25, fine-tunes his dynamics within the industry are business plan with his trainer and mentor in playing out on the ground. Maruango Village, Tanzania. 7

MICRO- FINANCING By providing micro-financing, Coffee Kids simultaneously helps get community businesses off the ground and gives young farmers collaborative decision making power over financial investments.The revolving fund is 3 replenished as businesses grow, Above: Two brothers pose with their mother giving young farmers a sense of how after a ceremony awarding financing to thriving businesses can lift up the Rural Business Workshop graduates in La Celia, entire community. Colombia. 8

OUTCOMES OF

Alejandro Antonio García Aguillón, age 21, a graduate of the Rural RURAL BUSINESS Business Workshops stands in the doorway of the cafe he was able to open with the help of Coffee Kids' micro- WORKSHOPS financing.

1. KEEPING COFFEE CLOSE TO HOME 2. ADAPTING TO CLIMATE CHANGE In Iowa, corn on the cob is on the table all summer Global agriculture, and coffee in particular, are at long. In India, nearly every meal is served with rice. grave risk of climate change effects like extreme Most Spanish meals begin with olives, and are shifts in rainfall patterns, increasing prevalence of cooked in a healthy splash of extra virgin olive oil. pests and diseases, and a decrease in suitable These crops never leave the area--they are farmland. According to the Costa Rican Coffee served, fresh and flavorful, right where they were Institute, phenomena such as El Niño have already grown. And yet, in many coffee-growing resulted in global coffee production losses of 2-3% communities, very few people actually drink coffee. in some years, with research suggesting that climate change will halve the area suitable for This doesn’t just mean that people miss out on a coffee production in the coming decades. Leaf rust, morning pick-me-up, though. It also means that for example, is a fungal disease that is exploding these communities miss out on one more benefit of as a result of warmer climates, and it cost farmers the global coffee chain: the economic and social and the industry nearly $2.5 billion from 2011 to value of coffee shops and other coffee-focused 2016. businesses. Climate change has the potential to endanger the Through rural business workshops, Coffee Kids livelihood of hundreds of millions of people helps young farmers realize their full potential as worldwide who earn a living from coffee. The part of the global coffee community, including already thin profit margins become thinner each starting small businesses. The training sessions season, as the techniques that farmers learned provide a space where young men and women from their families become increasingly outdated. learn how to apply their creativity and ideas to develop productive enterprises, learning everything At Coffee Kids, we teach young farmers a set of from life skills to financial management. The result simple agricultural techniques that simultaneously is that many of our participants start their own improve their crops’ resilience, and reduce their coffee shops and bars, making coffee a crop that is carbon footprint. As a result of this work, they feel not simply from the community, but also of the confident that they will be able to earn a living in community. coffee not only next year and the year after that, but throughout their lives. 9

3. IMPROVING FOOD SECURITY In coffee farming, nothing is certain except uncertainty. Prices fluctuate, tastes evolve, the weather changes, and new pests can take over an ecosystem, to name a few areas of instability. But while larger industry players can diversify and trade futures to mitigate risk, smallholder farmers do not have that flexibility--they are largely stuck selling the crop they can grow for the price they can get. Most of these farmers receive the overwhelming majority of their revenues when they sell their beans, and those proceeds must carry them through the rest of the year to buy their farming inputs and support their families.

One particularly troubling side effect of that uncertainty is los meses flacos (the thin months). Even in a good year, the revenues from a farmer’s harvest usually only last until the beginning of the next year’s growing season. Just when a farmer needs energy for long, hard days, and when he or she needs to invest in Manuel Andres Duque, inputs, the money from last year is age 30, raises chickens to running out. supplement his income and improve food security in La Celia, Colombia. 10 COFFEE KIDS $133,000 AT A IN DONATIONS IN 2017 GLANCE 313 OF young farmers 100% DONATIONS SINCE 2015 directly to the field

EMPOWERING YOUNG FARMERS AGES 5 TO 13 34 IN COUNTRIES

$37,000 FOR thriving IN MICROFINANCING 54 FARMER BUSINESSES 11

LA CELIA, COLOMBIA JORGE'S STORY

When Jorge Suarez arrived at the first Coffee Kids Rural Business Workshop in Summer 2016, he really was not sure what to expect. But he was excited to try something new. Jorge was 24 at the time and he had recently spent 2 years away from his family and out of his community, serving in the Colombian military. Once he had the opportunity to return home he was happy to be back in his hometown of La Celia, Colombia and truly did not want to have to leave again.

Jorge wanted to follow his family in coffee and he had many ideas about what that could look like, but he wasn’t sure where to start. Coffee Kids provided a path for him to develop his own identity as a young entrepreneur in coffee. Jorge took the lessons from the agronomist trainers in Coffee Kids and learned how to processes his coffee in a variety of ways. He also took the skills he learned in networking to find local people who could roast and package his coffee. And then he took his marketing skills to local fairs where he could sell his coffee, eventually opening his own coffee shop where he serves his own coffee and shares different ways to brew coffee with his community. Jorge Euclice Suarez Motato, age 25, is a Rural Business Workshops graduate from La Celia, (Continued on next page) Colombia. 12

(Continued from previous page) Jorge was selected for this trip after submitting a proposal for how he could use the skills he learned Looking to expand his knowledge and leadership to increase opportunities for other youth in skills, Jorge attended the SCA Avance Conference Colombia. The experience culminated with a visit in Guatemala City and visited youth businesses in to the headquarters of Peet’s Coffee in Emoryville, Trifinio. During this travel, Jorge talked about how California. Through our partnership with Peet’s, he used to be very timid, unwilling to speak his Jorge was able to learn about cupping and quality, mind, and unsure what he could do with his life. But large-scale roasting, and skills in a US through the course of the workshops he developed coffee shop. The staff at Peet’s describes Jorge self-confidence, found his voice, learned how to as, “focused, passionate, and driven” and “eager dream into the future. and excited” to ask questions, engage with staff, and learn as much as possible. And Jorge is passionate about coffee! Every morning, whether at the hotel or on the road Through the course of this one year journey, Jorge traveling, Jorge found a way to prepare his coffee is now at a place where he realizes his own which he grows and roasts under his label, “The capability to be a mentor to other youth in his own Alps.” community, that he can be a leader for his peers in Colombia.

SUPPORTER IN FOCUS: PEET'S COFFEE & TEA

For nearly 30 years, Coffee Kids and Peet’s Coffee & Tea have partnered to expand opportunity for young farmers in coffee-growing communities. As one of the most forward-looking and community- focused companies in the industry, Coffee Kids is proud to have Peet’s as a supporter, partner, and ally.

In 2017 Peet’s released an anniversary blend in support of Coffee Kids, dedicating 25¢ from each bag to projects that empower young coffee farmers. With the help of Coffee Kids and Peet’s, we are helping young farmers develop small businesses that supplement their coffee-growing income and run their farming operations more efficiently. 13 SPOTLIGHT ON INTERNATIONAL + NATIONAL COFFEE DAY

At Coffee Kids, we have seen our community grow exponentially, and we are so grateful to everyone who is committing their time, talent, and resources to our work. To cite just one example, on National Coffee Day (Sept. 29) and International Coffee Day (Oct. 1), 23 businesses asked their customers to get involved with Coffee Kids, and the response was overwhelming. We raised more than $15,000 to create opportunity for young farmers that weekend alone and, just as important, we reached thousands of coffee drinkers with a message about how they can get involved.

Together we’re growing something truly special. We’re dreaming big, building a community for everyone who believes coffee can be a positive force in the communities where it is grown, and putting young farmers first. The result is excitement, commitment, In covering the day, Metro (a newspaper with 1.5 million daily readers and a foundation for long-term success, all of in New York) put it nicely, “With National Coffee Day proceeds, Coffee Kids brews opportunities for next-gen growers.” which we have achieved in our second year operating as a program of Hanns R. Neumann Stiftung, North America.

INTERNATIONAL + NATIONAL COFFEE DAY PARTNERS

Thanks to Blank Slate Coffee + Kitchen, Café Victoria Dallas, Banana Dang, Coffee Roboto, Flying M Coffeegarage, Flying M , Ogawa Coffee USA, Vigilante Coffee Co., Anthology Coffee, Cups an Café, Red Rock Roasters, Nobletree Coffee, InterAmerican Coffee, Travel Pioneers, Rothfos Corporation, Cafe Grumpy, Brownville Roasters, Irving Farm Coffee Roasters, Joe Coffee Company, Oren's Daily Roast, Shake Shack, Zaro's Family Bakery, Nate's Coffee, Financier Patisserie, and Grand Central Terminal for the beautiful event space in Vanderbilt Hall for participating.

We’re grateful to you and your customers who focused the attention of these coffee days on the farmers who bring us our daily cup. 14

SUPPORTER TESTIMONIALS

"Coffee Kids has always been one of my favorite organizations in the CARIBOU industry and I was thrilled to see it still doing such valuable work in coffee growing communities. When my good COFFEE friends at InterAmerican Coffee offered me a coffee that directly supported the Youth Empowerment BRETT STRUWE, SR. Project it was a no-brainer. Knowing how important these young farmers DIRECTOR COFFEE and growers are to the future of Specialty Coffee, I wanted to do my SOURCING & OPERATIONS part to support this coffee and Coffee Kids." "Supporting Coffee Kids was a logical decision for our team, because their PATRICK MALONEY, commitment to empowering the next generation of coffee FOUNDER AND PRESIDENT farmers and focus on the community aligns perfectly with our vision for the future BLUE FIRE of coffee and the many ways we believe we can Do Good." COFFEE ROASTERS 15

SPOTLIGHT ON COFFEE KIDS SUPPORTERS CIRCLE Coffee Kids created the Supporters Circle so that every member of our community can find a way to participate. We encourage Coffee Lovers to become monthly donors and read our updates from the field. For Coffee Shops, participation in Coffee Kids gives a simple and cost-effective way to meaningfully contribute to sustainability, and to inform customers about the importance of this work. For Businesses who want Coffee Kids to be a major part of their social and environmental sustainability strategies, we can tailor a partnership to reach the outcomes and audiences you care about.

Each of us has our own reasons for caring about young coffee farmers. Drinkers may think about savoring that first cup of the day and remember the hard work that went into it. Coffee shop owners may consider the role that they play in keeping the neighborhood connected, and want to ensure that young farmers have those same social bonds. Businesses at all stages of trading, roasting, and selling coffee may realize that their bottom line is dependent on the well-being of farmers. And for all of us, it’s simply the right thing to do!

Young farmers in We pride ourselves on creating true partnerships, Northern Tanzania stroll though the rocky where every donor feels like a part of the paths of the foothills of community and contributes more than just Mt. Kilimanjaro. resources. If you’re not yet involved in the work of Coffee Kids, we hope you’ll be in touch! 16 2017 supporters circle

Actual Coffee Coffee by Storm Gregory Miller Mart Roosimagi Airbnb Coffee Express Gunther Schroer Martin Hall-May Allison Geerts Coffee Roasters Hanns R. Neumann Mary Callagy Allyson & Peter Coffee Roboto Stiftung Mary Reusz Sawtell Coffee Productions Harold King & Co. Matt Broscio Alyssa Pritchard Common Good Heidi Bernhard Megan Reusz Amy Chance Coffee Roasters Ian Eales Michael Opitz Andrea Hoffman Coprocafe Iberica IFBI Michelle Young Anh Dinh Cups: an espresso Impact Assets Michelly Martinez Anne Smith cafe InterAmerican Mimi Rena Anthology Coffee Daniel Morris Coffee Europe Mountain Market & Ashley Trick Dankoff Coffee InterAmerican Cafe Ashley Yuckenberg Specialist Coffee USA Nancy & Mike Bagels & Beans Darrel Burns Irving Farm Coffee Anderson Banana Dang Denise Cagara Roasters Nicholas Lundgaard Beanstock Coffee Desert Rose Press James Dykstra Nick Law Festival Douglas Charipper James Gauch Nobletree Coffee Benjamin Frey & Karen Botkin Jamie Rempel Ogawa Coffee USA Beth Martin Drew Bierman Jan von Enden Olesya Brizhak Blank Slate Coffee Eduardo Huerta Jayme Ellis Oren's Daily Roast + Kitchen Eversys Jeannie Stewart Orient Blue Fire Coffee Fire Mountain Jennifer Reusz Congregational Roasters Coffee Jerome Harris Church, UCC Bob Fahringer Firestation Jerome & Phyllis Ousamequin Club Brown Dog Coffee Roasters Cohen Paragon Coffee Brownsville Flying M Jonathan Rubin Trading Roasters Coffeegarage Juan Carlos Baizan Patrick Neal Bunna & Bike Flying M Junior Pena Paul Hegland Cafe Grumpy Coffeehouse Keanu Pires PAYCHEX Cafe Victoria Dallas Foglifter Coffee Kelly Heim PayPal Giving Fund Calvert Foundation Fort Findlay Coffee Kevin Li Tripp Camrin Edwards Freehold Lanny Huang Peet's Coffee & Tea Caribou Coffee Fresh Roasted Lee Ellison Peter Elkins Charter Coffee Coffee Lisa Pelo Petra Deane Chiasso Coffee Garald Clark Lori Luken Philip White Child Aid USA George Howell Marge Titcomb Pigtails and Coffee Mariella Esposito Ladyslippers

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Portland Roasting Sarina Potgieter Tom Lukic In-Kind Supporters Rachel Langer Shake Shack Tom Sharpe Rafidah Rashid Software Polish Tracey-Li Walker Baratza Red Rock Roasters Soha Yassine Travel Pioneers Café Grumpy Rick Trant Superior Coffee twohundredº City of Saints Rick Fortuin Roasting Company Tyler de Caussin Coffee & Tea Ripinsky Roasters Susanne Defoe University of Festival Robert Grauberger Sweet Maria's Dayton Fresh Cup Magazine Robert Austin Coffee Roastery Urnex Brands Gimme! Coffee Robert McGinley The Conservatory Vigilante Coffee HotDog Ideas Robert Fan for Coffee, Tea and Volcanic Red Irving Farm Rock City Coffee Cocoa Premium Sea Monster Studios Roasters The Emerson Wayne E. Harbert Ross Mudrick School Wicked Joe Coffee Rothfos Thomas Morrison Corporation Tibor Dekany Samia El- Tim Lee Moslimany Tim Bengsund San Diego Coffee TK Coffee & Training Institute Commodities Sara Keller TNT

thank you! From the Coffee Kids team in New York and the regional Hanns R. Neumann Stiftung staff across the globe, thank you for making our work possible! The challenges faced by young coffee farmers, and our ambitions in addressing them, are too great for us to tackle alone!

Without young farmers like the ones here in Colombia, there will be no coffee! Coffee Kids c/o Hanns R. Neumann Stiftung, North America 42 West Street, Suite 201 Brooklyn, NY 11222 coffeekids.org [email protected]