“Life is too short to drink bad coffee” — IzyCoffee CEO, Bart Buyse

Founded in 2018, IzyCoffee is a 13-strong coffee chain based Izegem, Belgium. CEO Bart Buyse speaks to World Coffee Portal about championing higher quality coffee, doing business sustainably and aspiring to become one of Europe’s major coffee shop operators

Nestled between the economic powerhouses of France, Germany and the Netherlands, Belgium’s branded coffee chain segment is relatively small, with its 475-plus stores making it the 15th across Europe by outlets. However, with the market growing 6.3% over the last 12 months there is clearly strong demand premium café experiences in Belgium and IzyCoffee is seeking to raise the bar for quality, choice and sustainable business.

As well as championing elevated coffee experiences at home, IzyCoffee CEO Bart Buyse is also seeking to steer the Izegem-based coffee chain into international markets later this year as part of plans to reach 100 outlets by 2025.

What prompted you to launch IzyCoffee?

Following a 20-year airline career and a two-year world trip with my family to more than 100 countries, I realised Belgium did not really have a national coffee chain despite Belgians being the eighth largest per capita coffee drinkers in the world.

Additionally, I realised that specialty coffee in Belgium could only be found in the bigger cities at local, mainly single-entity, coffee shops. This led me to take a professional SCA barista course, to create an incredibly strong business plan and to start selling specialty coffee in smaller Flemish cities, where people had never really heard of specialty coffee.

Nearly five years after starting as a coffee-truck in front of the station of a small rural West-Flemish town called Izegem, IzyCoffee is the largest Belgian coffee chain with 13 locations, predominantly at triple A-locations in most of Flanders’ larger cities.

“We see big potential to internationalise, due to the favourable central location and relatively small size of Belgium”

How would you describe the current trading environment across your stores?

In Belgium, as in many neighbouring mainland Western-European nations, we’re currently recovering from numerous crises encountered during the last three years – health, energy, food costs – to name but a few.

Although we always continued to grow during this period, our growth has accelerated during the last six-months, and this encourages us to raise the bar further.We see big potential to internationalise, due to the favourable central location and relatively small size of Belgium, which is surrounded by some of the biggest economies in Europe.

How is IzyCoffee navigating the challenges of high inflation?

The inspirational storytelling skills of all IzyCoffee SCA-educated baristas is helping us to convince Belgians that specialty coffee is becoming a precious commodity. Life is too short to drink bad coffee.

Belgian high streets are flooded with low-quality coffee, but specialty coffee is the wine of the 21st century. Offering high-quality specialty coffee in an extremely professional way to the masses is something completely new in Belgium and post-pandemic consumers are willing to invest in exquisite coffee experiences.
How is IzyCoffee implementing sustainability across its operations?

We have a thorough sustainability strategy supported by six pillars. Our main contribution comes from our specialty coffee blend which has 100% transparency from seed to cup and guarantees the biggest margin goes to the first link in the coffee value chain, producers.

Since Earth Day in April 2022, we have completely shifted to plant-based milk – we could potentially be the largest European coffee chain doing so. All our pastry products are also fully plant-based.

We’ve stopped using china cups, glasses and other tableware since we don’t believe that washing one million cups in a dishwasher with detergent is very future-oriented. We offer a €1 discount each time customers use their IzyCoffee re-usable tumbler.

We are working on a big project to make our next generation re-usable tumbler completely circular, up-cycled from our own coffee grounds. This project could save approximately 50 tons of coffee grounds from waste disposal every year and we’re also striving to eliminate food waste food waste.

What are your short-term growth plans?

In 2023 IzyCoffee will grow to 25 outlets, including flagship sites in Flanders’ centre city locations as well as in Brussels and the bigger Walloon cities.

We will also open our first international IzyCoffee store in winter 2023, although we are keeping the location secret for now.

From 2024 we will predominantly concentrate on further growing the IzyCoffee brand abroad. The Netherlands, Germany and France are our main countries of interest.

By the end of 2025, we aim to become a European specialty coffee powerhouse with more than 100 outlets spread across five countries.

 

New research finds compounds which cause fruit flavours in fermented coffee – what could this mean?

For some years now, experimental processing techniques have been a hot topic in the specialty coffee sector. These processing methods tend to result in more complex and unique sensory profiles, which also have more fruity flavours. In turn, they are becoming more and more popular among coffee professionals and enthusiasts alike.

Fermentation in processing plays a key role to create these fruitier flavours. However, up until recently, little was known about how this happens.

Last month, Zurich University of Applied Sciences’ (ZHAW) Coffee Excellence Centre presented its study on fermented coffee flavours at the American Chemical Society Spring 2023 meeting. As part of its findings, ZHAW identified three chemical compounds which directly contribute to fruity flavours and aromas in fermented coffee.

Naturally, this raises a lot of questions. But one of the more prominent is how might this research influence coffee processing methods in the coming years?
WHY DOES FERMENTATION MAKE COFFEE TASTE MORE FRUITY?
As the specialty coffee market has grown and diversified over the past few years, so have processing methods, too. Recently, more and more farmers have started using controlled fermentation to enhance coffee quality and flavour.

Generally speaking, this is done in two main ways. These are anaerobic or aerobic fermentation (which are different due to the absence or presence of oxygen). The removal of or presence of oxygen triggers several chemical reactions which create various acids and alcohols.

As a result, the sugars in the fruit of the coffee will break down over a prolonged period of time. This means the coffee will taste much sweeter and more complex, with more fruity and “winey” aromas and flavours.

We know that using particular yeasts and strains of bacteria during coffee fermentation can create specific sensory profiles. However, so far, there has been a somewhat limited understanding of which particular chemical compounds are responsible for creating certain flavours and aromas.

Looking at different processing methods
In its recent research, ZHAW outlined how it identified three distinct chemical compounds which create “the intense fruity flavour and the raspberry scent of a fermented coffee”.

Sasa Sestic is the founder and CEO of Project Origin in Australia, which helped to fund the research project. He also provided the coffee for the study: a green tip Gesha from Iris Estate in Panama, which Sasa co-owns with Jamison Savage.

“If we can understand how volatile compounds are formed at farm level, then we can understand how to highlight them through processing methods,” he says. “We unlock the potential to emphasise terroir with the support of science.”

A team led by Dr. Chahan Yeretzian, Head of the Coffee Excellence Centre, and Dr. Samo Smrke, Head of Coffee Transformation at the Coffee Excellence Centre, sorted the coffee into three different categories. These were according to processing method:

Washed processing (producers remove all flesh and mucilage from the beans before drying)
Pulped natural carbonic maceration processing (producers remove skin of the fruit while pulp is left intact)
Natural carbonic maceration
Similar to processes used in wine making, carbonic maceration has become more prominent in specialty coffee. For example, Sasa used a carbonic macerated Sudan Rume variety in his winning 2015 World Barista Championship routine.

The process involves placing cherries in sealed tanks and flushing them with carbon dioxide to remove any residual oxygen. Like other fermentation processing methods, carbonic maceration often results in more bright, wine-like, and fruity flavours.
Analysing different coffees
As part of the study, each coffee was brewed the same way. In order to analyse the aroma of all samples, ZHAW used a process known as gas chromatography-olfactometry (GC-O).

This is when scientists uses a gas chromatograph to separate individual components of a mixture or substance. They then pass through a mass spectrometer to identify each individual component.

Following this, human assessors were then asked to describe any aromas they could pick up on.

Chahan and Samo explain why this type of analysis was also used in conjunction with gas chromatography.

“We saw descriptors, such as ‘extremely sweet’, ‘crazy like strawberry’, and ‘artificially sweet’,” they say. “All the panellists were able to point out this characteristic in the carbonic macerated coffee.

“However, when examining the mass spectrometry data of the same coffee, at the exact same time and position in the chromatogram as panellists detected this unique and strong aroma, we were not able to detect compounds that could be attributed to those flavours,” they add.

“This confirms what flavour scientists have known since long: our nose outperforms even the best instrument on some of these low-threshold aro

ma active compounds that are so important to our understanding of the flavours we perceive,” Chahan and Samo continue.
COULD RESEARCH INFLUENCE MORE PRODUCERS TO STANDARDISE PROCESSING TECHNIQUES?
The results of ZHAW’s study concluded that six chemical compounds are responsible for fruity aromas and flavours in fermented coffee. However, the researchers stated that they were only able to identify three of them:

2-methylpropanal
3-methylbutanal
Ethyl 3-methylbutanoate
“One very intense fruity smelling compound, ethyl 3-methylbutanoate, stood out in the natural carbonic macerated coffee,” Chahan and Samo say. “It was found to be 125-times more abundant than in the washed coffee.”

It’s important to note scientists involved in the study emphasise that further research is necessary to identify the other three compounds. Moreover, we also need to know how these compounds are formed in the first place.

Farmers have been using particular yeasts, bacteria, and microorganisms during processing to control and enhance coffee flavour for some time now. But at the same time, this is clear evidence that specific chemical compounds result in the more characteristic fruity flavours we associate with experimentally processed coffees.

Ultimately, this leads us to several important questions. Arguably, however, the most important is if we know which compounds cause certain flavours, what does this mean for farmers?

Could producers develop and use more standardised processing methods? And would this be especially apparent with processing methods that result in more targeted and specific flavour profiles?

A question of value addition
Once producers know which specific compounds cause certain flavours, they can potentially process coffee with more intent and control. In turn, they can target particular sensory profiles. Eventually, this could lead to producing experimentally processed coffee on a larger scale – potentially allowing producers to add more value to their coffee.

“We first need to know how much potential a coffee has in the first place, in terms of flavour profile and volatile compounds,” Sasa says. “Then, through processing, we can determine how the amount of more desirable volatile compounds can be increased, so we can experience new flavours and aromas.”

Chahan and Samo agree, saying: “The practical implication of our study is that it provides farmers with new ways to improve the quality and quantity of fruity notes through post-harvest processing.

“This may eventually also help producers in a fast-growing market of fermented coffee to take more informed positions, as allegations on coffees ‘infused’ with fruit are surfacing,” they add.

The other side of the coin
However, with this in mind, we also need to acknowledge that not all coffee farmers have the ability to try fermentation and other experimental processing methods. These processing techniques often require significant upfront investment and specialist equipment which some producers may not have access to.

Moreover, for many smallholder farmers, the risks of such experimental processing methods may outweigh the benefits. Although these coffees can sometimes result in higher prices, they are typically more expensive to produce than more “traditional” processed coffees.

Similarly, without proper quality control protocols in place, producers may end up creating less desirable sensory profiles of fermented coffee – such as sour, overly fermented, or rancid flavours.
Although experimentally processed coffees are certainly becoming more popular, they only represent a fraction of the wider coffee market.

However, that’s not to say that research like this doesn’t benefit farmers who produce these kinds of coffees. In fact, with further studies conducted in the future, it could be possible to create more “accessible” experimental processing methods – just as long as farmers have access to the right infrastructure and support.

Do specialty coffee consumers actually want to be more connected to farmers?

It’s fair to say that many specialty coffee brands base their marketing strategies around the idea that coffee consumers want to be more connected to farmers. These branding techniques largely revolve around disseminating more information about where coffee comes from, including the farmers who grow it.

The majority of specialty coffee professionals want to know as much information about origin as possible. This includes processing method, variety, altitude, and terroir. And while many coffee businesses believe that consumers also want to know the same information, is this really an accurate assumption?

To learn more, I spoke to Kosta Kallivrousis of Algrano, Marianella Baez Jost of Café con Amor, and Pedro Miguel Echavarría of Pergamino Coffee. Read on to learn their insights on whether consumers want to be more connected to origin.
THE ROLE OF FARMERS IN SPECIALTY COFFEE MARKETING
If you walk into almost any specialty coffee shop in any country around the world, you’re likely to see some kind of recognition of or homage to coffee farmers. This can range from photos of pickers on farms on the walls to detailed information about producers and co-operatives on coffee packaging.

In light of this, it certainly rings true that specialty coffee shops and roasters want to make sure that their products are connected to producers in some way. But why is this?

Forging connection to origin: a specialty “special”
One of the main selling points of specialty coffee is that it is more sustainable, traceable, and transparent than commodity-grade coffee. Therefore, it’s essential that roasters and coffee shops are able to bridge the gap between producers and consumers in order to communicate these attributes more effectively.

Kosta Kallivrousis is the Sales Manager at Algrano in the US. He tells me when specialty coffee brands seek to set themselves apart from competitors, marketing plays an instrumental role.

“A lot of specialty coffee branding and marketing is about showcasing what makes you distinctive,” he says. “It’s an industry that was born from marketing, rather than consumer demand.”

Marianella is the co-founder of Farmers Project Specialty Coffee and a producer at Café con Amor in Costa Rica. She agrees, saying that specialty coffee brands tell the stories of producers as a way of differentiating themselves from commodity-grade coffee companies.

“It demonstrates that you have a direct relationship with suppliers, which means as a brand you have more knowledge and your coffee is more traceable,” she tells me. “This helps to elevate the quality perception of your coffee, and shows that you’re going the extra mile [when sourcing].”

Demonstrating sustainable practices effectively
Displaying photos of coffee farms in shops or on websites, as well as providing information about a coffee’s origin, allows roasters and other coffee businesses to indicate that they have good relationships with their producers.

Pedro is the General Manager at Pergamino Coffee in Colombia. He explains that most specialty coffee brands want to demonstrate that they source and purchase their products fairly and sustainably.

“Translating the complexities associated with this into a simple marketing tactic is incredibly difficult – even for the most knowledgeable and educated consumers,” he says.

In recent years, a growing number of specialty coffee consumers do want to be reassured that the brands they buy from are complying with good environmental and ethical practices. At the same time, however, it’s fair to assume that some of these consumers aren’t familiar with what these practices really entail so communicating them effectively can be a challenge.

Romanticism and fetishisation
There’s no doubt that providing consumers with more information about origin is a valuable way for farmers to receive worthy credit for their hard work. However, it can quickly turn into “romanticism” if not carried out effectively. This leads some consumers to have idealised views of coffee farmers. Ultimately, a coffee farm is a business, and consumers should view them that way, too.

“Marketing can present a very blurry picture of the reality which producers face,” Marianella explains. “It’s difficult for consumers to discern between what is real and what is smoke and mirrors.”

She tells me that she once saw pictures of her farm on a brand’s website. However, she had never worked with them, and wasn’t even aware of them. Marianella explains that when she emailed them, they stated that they didn’t always know where their photos came from.

“This means some companies can make false claims by telling a story, but they have never even visited that country,” she adds.

Moreover, the use of certain images can perpetuate the idea of the “impoverished” or “exotic” coffee farmer. While some smallholders across the Bean Belt certainly live below the poverty line, this isn’t the case for all producers. Pushing narratives like this, as well as the idea that Western consumers are “saviours”, often creates widespread false perceptions about coffee producers –resulting in their fetishisation.

“The majority of people in the specialty coffee industry want to make a difference and do some good,” Kosta says. “However, the ways of doing so can be complicated.

“Is there consent from farmers to use their images and stories?” he posits. “They need to actually add value to producers, so they should be compensated, or at the very least, they should create these marketing strategies in partnership with farmers.”
WHAT DO SPECIALTY COFFEE CONSUMERS REALLY WANT?
In line with being more connected to origin, there are a number of purchasing factors which specialty coffee consumers tend to value the most.

First quality, then sustainability
The National Coffee Association’s 2022 National Coffee Data Trends Specialty Coffee Report report states that:

Around 69% of specialty coffee consumers say they are more likely to buy coffee because it’s fresh
An estimated 64% of respondents stated that paying farmers a fair price is important
Some 57% said proper treatment of farm workers influences their purchasing decisions
Kosta, meanwhile, tells me that he thinks consumers’ interest in paying producers a higher price could be inherently linked to alleviating guilt regarding economic and social inequity between themselves and producers.

“Maybe buying some coffee to address that, even in a small way, helps to absolve some of that guilt,” he says.

Building trust
Pedro believes that rather than explaining complex issues, such as the volatility of the C price, consumers want reassurance that the brands they buy from have ethical business practices.

Ultimately, this widens the gap between consumers and producers, rather than closing it. Consumers aren’t able to know the full extent of challenges which producers face in origin countries. And given the geographical distance between the two – and potential wide economic disparity – this is understandable.

“I don’t think that coffee consumers want to be more connected to farmers, per say,” Marianella says. “However, they do want to be more knowledgeable about the product: where it comes from, how it’s produced, and whether it was grown and sourced ethically.”

She tells me that Café con Amor runs a number of initiatives which directly benefit the local farming community. Marianella explains that she uses social media to show her customers how the programmes are impacting communities. She says this helps to build more trust with the consumer.

Smaller roasters with shorter supply chains tend to be able to do this more effectively than larger brands. Generally speaking, this is because they are in direct contact with producers. In turn, this can create more of a connection with consumers.

Traceability
In recent years, it’s become increasingly apparent that more and more consumers want to know where their coffee comes from.

“We need real traceability,” Marianella says. “Customers don’t need certifications and seals that tell them their coffee is sustainable. They want more concrete information that’s practical, honest, and specific.”

Pedro agrees saying: “There’s a big percentage of our loyal customers who really care, and ask about origin, farmers, our sourcing strategy, and how we pay premiums for certain coffees.

“Other people, however, may not have this level of knowledge about coffee, nor the time or interest to dig deeper,” he adds.

Pedro also points out that it’s presumptuous to believe that every consumer will have an in-depth knowledge of the coffee industry and how it operates.

“If we’re going to measure every consumer by that standard, then we should also do the same with ourselves,” he says. “Do we also know everything about the coffees we source? It’s hypocritical in a way.”
HOW CAN SPECIALTY COFFEE BRANDS LEVERAGE CONSUMER BEHAVIOUR TO CREATE REAL IMPACT FOR FARMERS?
There seems to be somewhat of a disconnect between what coffee consumers really want and what the specialty coffee sector would like them to want.

I asked Kosta, Marianella, and Pedro how brands can create real impact at origin through their marketing strategies.

Commitment and accountability
“What the specialty coffee industry suffers from the most is the relentless search for innovation – the latest roast profile, variety, or processing technique, for instance,” Kosta says. “But the thing that’s missing is commitment.

“The reality is that the coffee industry steers the ship,” he adds. “So we have a big responsibility to remain accountable and stay true to our social and environmental commitments.”

Technology and traceability
“Technology helps to resolve a lack of traceability by connecting roasters to origin,” Marianella explains. “For example, we can connect through mobile apps and connect from our farm with roasters all over the world.

“The possibilities of having face-to-face conversations, albeit online, add another layer of forging a direct relationship with origin,” she adds.

Pedro advises roasters to build their sourcing models around how they want to integrate sustainability into their business model. They can then create marketing strategies around that – not the other way round.

He also urges consumers to make sure that the coffees they buy (particularly blends) are sourced ethically.

“For example, there’s a lot more work that needs to be done in terms of transparency when it comes to blends than microlots,” he says.

Forging more trust
“For any business, trust is one of the hardest things to achieve and one of the easiest things to lose,” Pedro says. “You add real value when consumers trust the brand they’re buying from.

“Every roaster has to look within and ask themselves if they feel good about their buying practices – and communicate that,” he adds. “In an era of information, if there are any malpractices in your supply chain, this trust can be jeopardised.”

On a similar note, Kosta explains that portraying an “imaginary” connection with origin can be a form of fetishising. In turn, it can be a betrayal of consumers’ trust.

“Ultimately, if a marketing strategy ends up benefiting the company and not the communities it promotes, it becomes false advertising and is an abuse of customer trust,” he says.
The issues are complex and difficult to break down. However, it remains unclear whether the specialty coffee industry’s social and environmental goals are a response to consumer demand, or whether they emerged to influence it.

Either way, it’s clear that the majority of specialty coffee drinkers do want to know where their coffee came from, who grew it, and if they are being treated fairly.

Moving forward, specialty coffee brands need to make sure that their marketing strategies remain honest, ethical, and fair. For consumers, demanding more traceability and transparency from brands is the best way to play a role.

The London Coffee Festival is back 20-23 April 2023

Ever wondered how to create the perfect pour? The London Coffee Festival returns to The Truman Brewery for four days of sensory experiences, interactive sessions, competitions, coffee tasting, cocktails and more…

The 2023 London Coffee Festival sees the return of Latte Art Live showcasing the world’s best baristas in an interactive zone dedicated to the highly admired skill. Expect a series of throw downs, showcases and hands-on workshops at the legendary Modbar.

Then head over to the Smirnoff Cocktail Bar for freshly shaken Espresso Martinis and an exclusive LCF signature Coffee Cocktail created by coffee legend Will Pitts and top mixologist La’Mel Clarke.

The legendary Coffee Masters tournament will take place once again, judged by a panel of industry experts and hosted by coffee pros Celeste Wong and James Wise.

This fast-paced knockout battle format sees 16 baristas showcase their skills head-to-head across a broad range of disciplines to see who has the best pour and whose signature drink stands out amongst the rest.

With a prize of £5,000 on the bar, and prestigious title of Coffee Master, the pressure is on in this caffeine-fuelled event.

Get into the nitty gritty details of the coffee industry with exciting sessions at The Lab to stimulate thought, which have been hand-chosen for all baristas, café owners, hospitality professionals, entrepreneurs and straight up coffee fanatics.

From sustainability to inspiring women leaders to the data behind what makes the coffee consumer tick, the sessions will cover the emerging trends and important topics impacting the coffee industry.

Thailand’s Café Amazon seeking to open 400 stores globally in 2023

PTT Oil and Retail Business (PTTOR) has earmarked nearly half of its annual $900m investment budget to scale Café Amazon across Thailand and international markets this year

Thailand’s PTT Oil and Retail Business (PTTOR) will invest $412m to expand its Café Amazon footprint in 2023.

The Bangkok-based oil and retail operator said it will focus on ‘synergising’ its petrol and ‘lifestyle businesses’ to open 400 new Café Amazon outlets globally, alongside 122 PTT petrol stations and 500 electric vehicle charging stations.

In a press release accompanying its 2022 financial results, PPTOR added that 16% of its investment budget will focus on expanding Café Amazon and PTT Station internationally, including potential new markets.

Founded in 2002, Café Amazon is Thailand’s largest branded coffee chain with 3,900 stores predominantly located inside and alongside PTTOR’s PTT Station footprint. The chain is also present in shopping centres and Bangkok’s MRT and BTS transit networks.

PTTOR also operates more than 350 Café Amazon outlets across Cambodia, China, Japan, Laos, Malaysia, Myanmar, Oman, the Philippines, Saudi Arabia and Vietnam.

In October 2021, Café Amazon announced plans to reach 1,000 international stores by 2025.
PTTOR reported 54% group sales growth in 2022 to reach $22.8bn, following the strong recovery of post-pandemic domestic tourism.

The oil and retail operator’s Lifestyle division, which comprises Café Amazon, fast food chain Texas Chicken, convenience store chain Jiffy and bubble tea franchise Pearly Tea, achieved annual sales of $612m.

PTTOR’s Global division, which includes Café Amazon’s international stores alongside the company’s non-domestic petrol station sites, reported revenues of $1.5bn.

A third of Gen Z will ‘never drink instant coffee again’

INSTANT COFFEE could soon be a thing of the past and takeaway orders will drive the future of the sector, according to a new survey of the British coffee industry.

The research, commissioned by Cairngorm Coffee, a UK specialty roaster, explored the lasting impact of Covid-19 on coffee consumers and their purchasing habits.

It found that one in three of those aged 25 and under – known as Gen Z – will “never drink instant coffee again”, while 43% of millennials said they are drinking “more coffee than ever” since the pandemic.

Takeaway coffees have also remained popular after months-long lockdowns between March 2020 and early 2022 meant they were the only way for consumers to drink coffee out-of-home. According to the survey, around a third of Gen Z respondents would now class a takeaway coffee as a necessity, rather than a luxury.

Robi Lambie, who found Cairngorm Coffee in 2014, says the data shows a significant behavioural change among younger audiences as a result of Covid-19.

“We know anecdotally that a lot of our customers really commenced their coffee journey back at the start of lockdown,” he explains. “The data from this survey backs up the fact that Gen Z and millennials, in particular, have really run with this trend over the last few years.

“From the survey, we’ve seen that 18% of Gen Zers have upped their at-home coffee game as a result of lockdown, and we’ve seen these trends play out with more and more customers opting to pick up a bag of our freshly-roasted speciality coffee to enjoy at home – it seems clear these trends are here to stay.”

The rise of the coffee shop office

When the first national lockdown was declared on March 23, 2020, offices were among those forced to close, leaving employees with no choice but to work from home.

As restrictions eased, a full-scale return to office working was slow to materialise. For many businesses, home-working became ingrained into company policy, while others adopted a hybrid system of “flexible working”.

Coffee shops have played a key role in fostering this new culture. With plug sockets, wifi connection, and a ready supply of hot drinks, they offer a space away from home that people increasingly see as an office-like space.

This is reflected by Cairngorm’s study, which indicates that almost half (48%) of respondents from Gen Z are now likely to work from a coffee shop. And, according to Robi, this means long-held views about the use of laptops in coffee shops are starting to change.

“There used to be a bit of a taboo surrounding laptops in cafés and it’s one thing we definitely had to consider,” he says.

“We’ve seen friends throughout the industry take a stand and ban laptops or work meetings – but for us it’s all about being respectful, not outstaying your welcome when others are desperate for a seat, and ensuring you continue to order coffee while working. There’s a balance in there somewhere which works for both parties.”

The end of instant coffee?

Instant coffee has undergone something of a makeover over the last few years. Blue Bottle Coffee unveiled its “craft instant” last year, while Nescafé teamed up with specialty roasters Perky Blenders and Grindsmith to launch its own products in the space.

Some industry observers suggest it is a response to the growing demand for convenience that gathered pace during the Covid-19 outbreak. However, as the research suggests, instant coffee doesn’t make the quality cut when it comes to younger consumers, with 33% reportedly switching it out in favour of specialty coffee.

Instead, Robi says millennials and Gen Zers are increasingly “leaning into” conscious buying – and, whichever way it is positioned by companies, instant coffee pales in comparison to specialty coffee wherever this is concerned.

He adds: “Rather than opting for mass-produced, ethically questionable sources for their morning cup, they’re increasingly moving towards the artisanal, small-batch approach that represents the farmers and producers we work with.”

 

The 2023 SCA Sustainability Award Winners

Ahead of its flagship North American event next month in Portland, Oregon, the Specialty Coffee Association (SCA) has announced the winners of its annual sustainability awards.

Awards are given in three categories:

  • business model
  • program
  • individual

Guatemala-focused green coffee trading company Primavera Green Coffee is the recipient of this year’s award in the business model category.

The RENACER Coffee Training School by Catholic Relief Services (CRS) is the winner in the program category.

Meanwhile, this year has two winners in the individual category following a score tie in the judging process: Sustainable Harvest Founder David Griswold; and Origin Coffee Lab (OCL) Founder and CEO José Rivera.

The winners will be formally recognized for the award at the Re:co Symposium, taking place April 19-20, ahead of the SCA 2023 Expo in Portland.

“The projects, business models and individuals receiving these awards are dedicated to rewiring mindsets and shaping behaviors to create a thriving coffee sector,” SCA Sustainability Director Andrés Montenegro said in an announcement from the group.

“This year’s Sustainability Award winners remind us that the coffee sector’s sustainability journey is collaborative, and also that sustainability is not a goal, but a way of thinking and behaving for the common good, to make coffee better, for all.”

 

Fairtrade International Makes Historic Raise to Coffee Prices

Responding to widespread poverty in the global coffee sector, Fairtrade International is raising its minimum prices for certified arabica and robusta coffee.

The new Fairtrade minimum price for washed arabica coffee, which represents more than 80% of the Fairtrade coffee sold, is $1.80 per pound, an increase of 40 cents over the current price.

The Fairtrade price for natural robusta is increasing by 19 cents to $1.20 per pound. Additionally, the guaranteed premium for coffee sold as both Fairtrade and USDA Organic (FTO) is increasing from 30 cents to 40 cents per pound.

Since its inception in the de-regulated market era, the Fairtrade price has existed, in part, to ensure a baseline price for certified coffee even when the “C price” — or the commodity futures price — fluctuates downward.

Despite the recent spikes in global coffee prices, coffee farmers are struggling with inflation, skyrocketing production costs, and crop loss due to the effects of climate change,” Senior Manager for Coffee at Fairtrade International said in an announcement from the international nonprofit today. “Coffee farmers are abandoning their farms in search of opportunities elsewhere and young people today in coffee-growing communities struggle to see a future in coffee. The fact that farmers cannot make a living in coffee is a tragic commentary for the industry and a huge risk for the future of the global coffee sector as a whole.”

The new Fairtrade prices are slated to come into effect for contracts on Aug. 1, 2023. Fairtrade last raised its prices in 2011, at a time when, like now, commodity coffee prices were relatively high. The previous increase moved washed arabica minimums from $1.25 to $1.40.

Coffee remains one of the largest products certified under the Fairtrade scheme, which also provides guaranteed premiums to producers that are assigned to community-level projects as determined by participating producers.

According to Fairtrade, there are nearly 900,000 coffee farmers in more than 650 producer organizations spanning 31 countries with Fairtrade certification. One of Fairtrade’s most challenging tasks, historically, has been to grow the demand for certified coffees so that they are sold as such, and the associated premiums can actually reach farming communities.

In today’s announcement, Fairtrade said that rapidly increasing costs of production and increasing pressures from climate change demand further action on global coffee prices.

“The future of coffee is one where fair pricing is the norm,” Firl stated. “It is not acceptable for coffee farmers to continue to subsidize the multi-billion dollar coffee industry, while also taking on the hard work of sustainable transition.”

As this breaking news is likely to bring dramatic reverberations to the green coffee market, DCN will be providing numerous follow-up reports.

Three quarters of European branded coffee shop markets grew over the last 12 months

Three quarters of European branded coffee shop markets grew over the last 12 months

  • Project Café Europe 2023 shows the total European branded coffee shop market grew 3.3% over the last 12 months to reach 42,804 outlets 
  • 31 out of the largest 40 European markets by outlets expanded by outlets over the past 12 months 
  • Europe’s 20 largest branded coffee chains continue to dominate the market, accounting for 48% of all stores 
  • 48% of European industry leaders surveyed believe trading conditions will improve over the next 12 months, down from 60% 12 months ago

 

Project Café Europe 2023, World Coffee Portal’s comprehensive analysis of the European branded coffee shop segment, reveals the total market grew 3.3% over the last 12 months to reach 42,804 outlets, with 76% of operators surveyed reporting sales growth.
With virtually all Covid-19 trading restrictions lifted, European industry leaders surveyed broadly discuss the market in post-pandemic terms and are now focused on navigating high inflation, the rising cost of living and economic fallout from the war in Ukraine.
Majority of European branded coffee shop markets achieve outlet growth
Thirty-one out of Europe’s 40 largest branded coffee shop markets added outlets over the last 12 months. The UK remains Europe’s largest market, growing 4.4% to reach 9,885 outlets, ahead of Germany, which experienced a 1.3% contraction to 6,798 stores, and Russia, which grew 2.2% to reach 4,479 outlets.
Collectively, the UK, Germany and Russia contain 49% of all European branded coffee shop outlets.

Romania is the fastest growing market in Europe by outlets, expanding 29% over the last 12 months, with domestic brand 5 to go the fastest growing coffee chain, with 181 net new stores. However, prominent Scandinavian markets, Sweden, Norway, and Finland, contracted by 1.7%, 0.8% and 1.6% respectively.

Major branded coffee chains still dominate Europe, with the 20 largest operators holding a 48% share of the total market and 62% of total outlets belonging to multi-national operators.

 

UK-based Costa Coffee remains Europe’s largest coffee chain with 3,122 outlets across 18 markets, opening its first stores in Georgia and Austria in 2022 – but exiting Russia and Slovakia. Starbucks opened 89 net new outlets over the last 12 months to become the region’s second largest operator with 3,075 stores, overtaking McCafé, which closed net 90 stores and now operates 2,923 outlets.

Alongside outlet growth, 76% of European operators surveyed reported increased sales over the last 12 months, with half achieving a sales uplift of over 5%.

 

War in Ukraine and cost of living crisis create difficult trading conditions following the pandemic

 

Following the profound disruption of the pandemic, European operators now face new headwinds, including high inflation, supply chain disruption and soaring energy costs exacerbated by the war in Ukraine.
Two-thirds of industry leaders surveyed by World Coffee Portal agree the rising cost of living has negatively impacted their business, with just 13% disagreeing.
Additionally, price consciousness and economic uncertainty were cited as the most important consumer trends facing Europe’s branded coffee shop markets.

Prior to Russia’s invasion, Ukraine had been the fastest growing branded coffee shop market in Europe. However, a remarkable number of Ukrainian branded coffee shops continue to trade, with the market contracting by net 24 stores over the last 12 months to stand at 257 outlets.

The Russian branded coffee shop market grew 2.2% over the last 12 months, despite the exit of 12 prominent coffee chains, including McCafé, Starbucks and Costa Coffee which closed 154, 130 and 26 stores respectively. However, domestic operators acquired the assets of the former two chains, launching the loosely branded Vkusno i Tochka and Stars Coffee.

 

Consumer surveys reveal Irish, Italian and Scandinavian coffee shop insights

 

World Coffee Portal surveyed over 6,000 coffee consumers across the Irish, Italian and Scandinavian branded coffee shop markets. In Italy, where there is a strong independent café culture, consumers were the most likely to drink hot coffee every day and favour engaging baristas in conversation.

 

Reflecting the Scandinavian concepts of hygge and fika, consumers across Denmark, Norway and Sweden predominantly order coffee after midday (72%) in contrast to those surveyed in Italy, where 72% of consumers surveyed order in the morning, and Ireland, where orders are split 50% before midday and 50% after.

 

European branded coffee shop market expected to grow despite economic uncertainty
Although 58% of industry leaders surveyed believe the current trading environment for coffee shops in their country is positive, sustained macro-economic pressures are beginning to take their toll.
Less than half of industry leaders surveyed expect trading conditions to improve over the next year, 12% fewer than in 2022. A further 17% expect trading to deteriorate.

World Coffee Portal forecasts the European branded coffee shop market will exceed 44,100 outlets by March 2024 and 49,600 outlets by March 2028, representing five-year growth of 3.0% CAGR. The coffee-focused segment is expected to lead growth and exceed 29,900 outlets, at 3.5% CAGR.

Commenting on the report findings, Allegra Group Founder and CEO, Jeffrey Young said:
“European coffee shop operators are facing a convergence of economic headwinds, including high inflation, energy, labour costs, instability generated by the war in Ukraine and the risk of a wider global downturn.

“Nevertheless, with most European branded coffee shop markets achieving outlet growth over the last 12 months, there is clearly strong demand for coffee shops across the continent, with consumers reluctant to give up their daily coffee ritual despite a tougher economic outlook.

“We expect most European branded coffee shop markets to weather the current instability and maintain steady growth in the years ahead.”

 

Vitamins and coffee – do they mix?

Would you try ‘wellness’ coffee? Adding vitamins to your morning brew is the new ritual

When it comes to new health buzzwords, wellness coffee is one that we can get on board with.

After all, who wouldn’t want a daily vitamin boost that’s as easy as sipping on your morning brew?

Coffee company Rokit has released a buzzworthy little product, the Mind Boost Pods and Immunity Boost Pods, that they claim to be the UK’s first coffee pods with added vitamins, minerals, and botanicals which aim to boost your overall health.

The Mind Boost pods contain 100% Arabica coffee that has been enriched with vitamins B2, B3, B5, B6 and B12, which the brand claims will support your nervous system and contribute to better mental performance.

While the Immunity Boost pods are also made from 100% Arabica coffee, and enriched with vitamins B6, B12, D and Zinc to support a healthy immune system.

The good news is that the pods are easy to use, compatible with Nespresso machines, 100% recyclable, available in Tesco and they’ll be on sale this month, down to £3 from £4 (sale runs from March 22 to April 11, FYI).

That’s all well and good, but can taking our vitamins along with coffee actually benefit our health, and is it an effective combo? We take a closer look.

Should caffeine and vitamins mix?
There’s no easy answer, but according to registered nutritionist Uta Boellinger, founder of Cannelle Nutrition, it can be a good option for those who aren’t getting the right vitamins from their diet.

She tells us: ‘On the one hand, if someone is unwilling and unable to make any dietary changes and won’t take any supplements in other forms then perhaps having them in their coffee is the best option.’

Be that as it may, BANT registered nutritionist Eva Humphries explains that we need to be wary of the type of nutrients added to our coffee so we can be realistic about the effect.

Humphries explains: ‘It is also worth noting that synthetic nutrients, such as those typically added to coffee, may not be in the right form for us to fully absorb. So, we could end up in a scenario where we think we are getting 100% of our daily recommended intake of a specific vitamin from that enrich-coffee, but we may only actually absorb 10% of that nutrient.’

It’s also worth noting that caffeine isn’t a positive thing for everybody, as Boellinger continues: ‘As a nutritionist I almost always recommend people reduce their caffeine intake and if they come to see me for anything stress-related we usually remove it completely.’

How useful are supplements for our health?
According to Boellinger, supplements are a useful tool for boosting our overall health: ‘In my clinic I always go for a food-first approach but supplements are not only necessary when there is a deficiency, but can help us see results more quickly as they may be more highly concentrated and easier to include than certain foods.’

They go on to advise, however, that instead of looking at it as a ‘one-size fits all’ approach, ‘I would recommend speaking to a nutritionist if you want to take anything other than Vitamin D or a multivitamin to find out what works for you,’ and added: ‘It’s also important to ensure they don’t interfere with any medication you may be on.’

Humphries adds: ‘As a nutritionist, I suggest supplements to my clients for shorter periods of time if there is a very specific need for them. For example, an athlete will likely have nutrient needs so high that it may be a struggle to meet those needs through food alone. In this context, supplements may be useful. On a more general level, it would be more advantageous to get the vitamins we need from food.’

Starbucks Introduces Olive Oil-Infused Coffee in Italy

Starbucks has launched its Oleato range in Italy, blending Partanna extra virgin olive oil with espresso and milk to create a “velvety, buttery flavour” that lingers on the palate.

The concept was inspired by Starbucks CEO Howard Schultz’s visit to Sicily, where he developed a habit of adding a spoonful of olive oil to his morning coffee. Schultz, who often cites Italy’s coffee culture as a major influence on Starbucks, describes the Oleato drinks as a fusion of tradition and innovation.

The range includes three beverages featuring olive oil: an iced shaken espresso, an oat milk latte, and a cold brew.

Reactions from the coffee community have been mixed. Starbucks faced criticism when it entered Italy in 2018, with some seeing its presence as an attempt to alter the country’s deeply rooted coffee culture. The new olive oil-infused drinks are viewed by critics as another differentiation strategy, similar to Domino’s recent withdrawal from the Italian pizza market due to fierce competition.

Industry experts, however, see potential. Emanuel Krantz, senior director of Customer Experience & Innovation at Publicis Sapient, explains that the Oleato range aligns with the global trend of “good fats” in beverages, like bulletproof coffee, while also appealing to Italian tastes.

Partnering with Partanna, a century-old Sicilian olive oil company, adds authenticity and credibility, helping Starbucks reassure customers of the quality and nutritional value of the new drinks. Krantz notes that combining olive oil with coffee taps into an existing Italian wellness practice, creating a product that is both locally relevant and scalable to other markets.

Starbucks aims to expand the Oleato range beyond Italy, targeting markets including Japan, the US, the UK, and the Middle East later this year. Schultz has described the launch as the most exciting innovation of his four-decade career at Starbucks.

Still, not everyone is convinced. Matteo Pavoni, the current Italian Barista Champion, expressed skepticism, saying, “I’m sure when Starbucks does something new there will be discussion and maybe other companies will take inspiration, but I don’t think it’s my type of drink.”

Whether the Oleato range will become a staple in Italy or abroad remains uncertain, but Starbucks is clearly betting on a blend of tradition, innovation, and global trends to capture consumer interest.

Is Luckin Coffee’s ousted CEO plotting revenge?

Cotti Coffee launched its first store in October 2022 and plans to open 10,000 more by 2025
The chain’s owners oversaw the crash and burn of Luckin Coffee in 2020
Its low-priced coffees are more in competition with K Coffee than Luckin

OF ALL the adjectives that could be thrown at China’s coffee sector, boring isn’t one of them. While it may not enjoy the size or influence of America’s, its pace of change is lightning-quick. And it’s certainly not lacking in characters.

Two of the most well-known are former Luckin Coffee executives Charles Lu and Jenny Qian. After overseeing the explosive growth of the Chinese coffee chain and its humiliating Nasdaq delisting in 2020, they were finally ousted with Luckin facing a class action lawsuit and their reputations in tatters.

Now, the pair are back with a new coffee chain that already has echoes of their doomed Luckin venture. Cotti Coffee was launched last October in Fuzhou, a city in eastern China. Just five months later, the chain has expanded across the country with plans for a total of 2,500 branches by the end of the year.

Believed to be backed by a $100m war chest, Cotti Coffee has already sponsored the Argentinian national football team, which won the World Cup in December, and the 2022 Chengdu Marathon. In a bid to woo customers, its coffee is priced relatively low at around $1.4-2 per cup – the average at Starbucks is $4.30 – and food is also cheap, with hotdogs and small cakes priced at $1.30.

For many onlookers, the arrival of Cotti Coffee signals a direct challenge to the supremacy of Luckin in the Chinese coffee market, which is set to grow to a valuation of $30bn by 2025. “This new brand almost seems like a ‘revenge move’ in response to Lu and Qian not being involved with Luckin Coffee anymore,” says Felipe Cabrera, a coffee consultant based in Shanghai.

cotti coffee china, luckin coffee rival

Is this just Luckin Coffee 2.0?

Luckin Coffee’s turnaround since Qian and Lu left has been nothing short of miraculous. In 2020, it was delisted from Nasdaq and filed for bankruptcy in the US after fabricating its sales figures. In its attempts to win the battle for coffee shop dominance with Starbucks, it had burned through investor cash and failed to turn a profit in its four years since launch.

Now, under new CEO Jinyi Guo, Luckin is not only China’s largest coffee chain, but it is profitable too. In 2022, the coffee chain’s full-year profits reached 1.1bn yuan ($167m) despite intermittent lockdowns. It is once again looking to expand abroad, but this time with its sights set on the Southeast Asian market, including Indonesia, Singapore, and Thailand.

For ousted Luckin Coffee executives, Qian and Lu, this must sting. Although their tenor ended in acrimony, they are largely credited with kickstarting a serious challenge to the dominance of US coffee chains in China.

Cotti Coffee’s model of small locations with quick, convenient service and low-cost coffee served from automatic machines appears to be Luckin 2.0. Most of the stores are small – around 40 sq metres – and menus are littered with discounts and the chance to win prizes – hallmarks of Luckin’s initial launch.

However, while there are certainly similarities between the two, Cotti Coffee might not be the direct competition that it first seems. Not only does it have a strong focus on serving products outside of coffee, including Italian desserts, its drinks in general are also considerably cheaper than Luckin’s – the latter of which now prides itself on selling pricier single origin Yunnan coffees.

“Cotti’s coffee per cup prices are already low – you can’t really go much lower,” Felipe explains. “So at the moment, their range of prices is competing against K Coffee or Family Mart coffee prices, rather than Luckin. Current coffee economics also don’t favour Cotti to push for a price war.”

Whether this changes remains to be seen. For now, Luckin Coffee will undoubtedly be keeping a close eye on the movements of its former execs. If Cotti does hit its target of 10,000 stores in the next three years, then it won’t be the only coffee chain with something to worry about. Perhaps, behind closed doors, the big market players hope Luckin’s former owners will make the same mistakes they did in 2020.