Author: Qahwa World

Cold Snap Threatens Brazil’s 2026 Coffee Crop and Sends Ripples Through Global Markets

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Dubai, 16 August 2025 – (Qahwa World) – A light frost in Brazil’s Cerrado Mineiro region has raised new concerns for the country’s 2026 coffee crop. The event struck at a particularly delicate moment, with early flowering underway in several producing zones, leaving trees highly vulnerable to weather fluctuations.

Light but Significant Frost

In Patrocínio and surrounding areas of Cerrado Mineiro, temperatures dropped to around 1.9°C, causing frost that touched the tops of flowering trees. Gláucio de Castro, president of the Cerrado Coffee Growers’ Federation, confirmed:

“This frost was mostly a capote type affecting the canopy of trees… but it still has an impact.”

While local reports describe the damage as limited and patchy, farmers remain on high alert as any further cold fronts could magnify risks to the 2026 harvest.

2025 Harvest Nears Completion

According to Safras & Mercado, Brazil’s 2025/26 harvest was 94% complete as of August 6, with arabica at 91% and robusta at 99%. Cooxupé, Brazil’s largest cooperative, reported that about 80% of its members’ crops had been harvested by August 8. Despite the steady progress, agronomists noted during Cooxupé’s technical forum that “the yields this season are not very good,” underscoring the ongoing climatic pressures.

Market Reaction

Global coffee markets quickly responded to the frost news. On August 14, arabica futures in New York gained 1.4%, while robusta contracts in London jumped 4.7%, reaching a two-month high. At the same time, ICE-monitored arabica stocks fell to their lowest level in 15 months, signaling tightening supplies.

International Responses

  • Colombia: The Coffee Growers’ Committee of Caldas noted that “unusually low temperatures in Brazilian regions revived fears of late August frosts and contributed to heightened price volatility.”

  • Vietnam: Economic outlets and the Vietnam Coffee-Cocoa Association (VICOFA) linked the sharp rise in prices on August 14 directly to “frost reports from Brazil,” calling the event a key driver of the market rally.

Climate Meets Trade

The frost episode coincides with escalating trade tensions. Since early August, the United States has imposed a 50% tariff on Brazilian green coffee, prompting some importers to freeze orders while waiting for clarity. This policy move, combined with the weather shock, has intensified market volatility and raised questions about global supply security.

An Uncertain Outlook

Although the latest frost was described as light and localized, the flowering stage is highly sensitive, and even small temperature drops can jeopardize fruit set. Analysts stress that the coming days will be decisive: another cold front could significantly affect Brazil’s 2026 crop, altering the balance of global supply and demand at a time when inventories are already strained.

AFCA and ICO to Hold Webinar on EUDR Compliance in African Coffee Sector

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Dubai, August 16, 2025 (Qahwa World) – The African Fine Coffees Association (AFCA), in partnership with the International Coffee Organization (ICO) and with support from the project “Unlocking the Potential of African Coffee” funded by the Belgian Development Agency (ENABEL), announced an upcoming webinar on the European Union Deforestation Regulation (EUDR) and its implications for Africa’s coffee sector.

The 90-minute online session will take place on September 10, 2025, from 3:00 to 4:30 PM EAT. It will cover the new requirements of the EU regulation, supply chain responsibilities, digital traceability tools, and case studies from African countries that have begun implementing compliance measures. A live Q&A with trade, sustainability, and legal experts will also be included.

EUDR: A New Era for Coffee Trade

The EUDR entered into force in December 2024. From December 30, 2025, large operators must comply, followed by small and medium businesses from June 30, 2026. Coffee entering the EU must be:

  • Proven deforestation-free after December 31, 2020

  • Traceable with precise geolocation data (GPS)

  • Supported with production dates, volumes, and sub-regional origin

  • Covered by a due diligence statement

Non-compliance could lead to import bans, product confiscation, and fines of up to 4% of annual EU turnover.

Africa’s Reliance on the EU Market

Europe is the largest destination for African coffee, importing more than €2 billion annually. Recent figures show:

  • Uganda: 72% of exports went to the EU in 2024.

  • Kenya: 57.8% of exports were EU-bound in MY 2023/24.

  • Ethiopia: Over 30% of exports went to Germany, Belgium, and Italy.

  • Rwanda: Nearly 18% of exports went to EU countries including the Netherlands and Germany.

  • Burundi: At least 45% of exports in 2023 went to Europe, mainly Germany and Italy.

  • Tanzania: Italy and Germany purchased almost $98 million worth of coffee in 2023.

A Defining Moment for African Coffee

Experts note that while compliance poses challenges for millions of smallholder farmers, who produce over 70% of Africa’s coffee, it also represents an opportunity to enhance the reputation of African coffee globally and secure long-term access to premium markets.

Registration is open via AFCA’s official channels.

Coffee Prices Soar to New 2-Month Highs Amid Brazil Frost and Falling Exports

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Dubai, August 16, 2025 (Qahwa World) – Coffee prices surged to their highest levels in two months on Friday, driven by frost concerns in Brazil, declining exports, and tightening global inventories. The rally pushed September Arabica coffee (KCU25) up 4.64% to close at +15.15, while September Robusta coffee (RMU25) gained 2.86% at +117. Over the week, Arabica rose +10.4% and Robusta +18%, marking one of the strongest weekly rallies of the year.

Brazil Frost Sparks Market Tensions

Early this week, a light frost was reported in Cerrado Mineiro, one of Brazil’s key Arabica-producing regions. While crop damage was limited, the event renewed market fears over frost risks during Brazil’s winter season. Weather events in Brazil remain a critical factor in global coffee price volatility.

Sharp Decline in Brazilian Exports

Brazil, the world’s largest coffee exporter, reported a 20.4% year-on-year drop in July unroasted coffee exports to 161,000 MT, according to its Trade Ministry. Exporter group Cecafe confirmed a steep decline, with green coffee exports down 28% y/y to 2.4 million bags. Within this, Arabica exports fell -21%, while Robusta exports plunged -49%.
From January to July, Brazil shipped 22.2 million bags, down -21% compared with last year.

Inventories at Multi-Year Lows

Declining ICE warehouse stocks further fueled bullish momentum. Arabica inventories hit a 1.25-year low of 726,661 bags on Thursday before rebounding slightly to 731,739 on Friday. Robusta inventories fell to a three-week low of 6,907 lots, below the recent two-year high of 7,029 lots reached in late July.

U.S. Tariffs Add Uncertainty

The market is awaiting clarity on U.S. trade policy, as President Trump has yet to exempt coffee from the proposed 50% tariff on Brazilian exports. Such a move could raise domestic inventories in Brazil while reshaping global trade flows.

Weather and Harvest Update

Above-average rainfall in Minas Gerais, Brazil’s largest Arabica region, brought 4.8 mm of precipitation last week, or 109% of the historical average, easing dryness concerns but weighing slightly on prices.
Meanwhile, Brazil’s 2025/26 harvest is nearing completion. Safras & Mercado reported 94% progress as of August 6, ahead of last year’s 92%. Cooxupe, Brazil’s largest cooperative, said its members had completed 80.4% of the harvest by August 8.

Global Coffee Exports and Vietnam Outlook

On the supply side, the International Coffee Organization (ICO) noted that global coffee exports rose +7.3% y/y in June to 11.69 million bags. However, cumulative exports from October to June dipped slightly by -0.2% y/y at 104.14 million bags.

Vietnam, the world’s second-largest producer, continues to face challenges. The country’s 2023/24 output fell 20% y/y to 1.472 million MT, the lowest in four years, due to drought. Exports in 2024 dropped -17.1% to 1.35 million MT. However, from January to July 2025, Vietnam’s shipments rose 6.9% y/y to 1.05 million MT, offering partial recovery.

USDA and Volcafe Projections

The USDA’s Foreign Agriculture Service (FAS) expects world coffee production to hit a record 178.68 million bags in 2025/26, up 2.5% year-on-year. Robusta output is forecast to surge by +7.9% to 81.65 million bags, while Arabica is projected to decline -1.7% to 97.02 million bags.
Despite this, Volcafe projects a widening global Arabica deficit of -8.5 million bags for 2025/26 – the fifth straight year of supply shortfalls – compared with a -5.5 million bag deficit last season.

Côte d’Ivoire Coffee Week Showcases Africa’s Shift to Sustainable, Value-Added Coffee

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The International Trade Centre (ITC) and the International Coffee Organization (ICO) reaffirmed their commitment to inclusivity and sustainability during Coffee Week in Abidjan, Côte d’Ivoire.

Historically, with the exception of Ethiopia, much of Africa has viewed coffee primarily as an export commodity rather than a drink enjoyed locally. Coffee culture has remained limited in many countries, with minimal value addition or internal trade. However, this is changing. A new movement is emerging across the continent, where African countries are reclaiming ownership of coffee—adding value at origin, trading regionally, and cultivating domestic appreciation and consumption.

Côte d’Ivoire’s Coffee Week symbolizes this transformation, signaling Africa’s rise as both a producer and a dynamic coffee market.

As part of their ongoing collaboration under the Alliances for Action initiative, ITC and ICO co-hosted activities to strengthen value chains, promote investment, and build technical capacity—particularly in robusta-producing regions. The event was organized in partnership with Côte d’Ivoire’s Conseil Café-Cacao, the Robusta Coffee Agency of Africa and Madagascar (ACRAM), the Specialty Coffee Association (SCA), and other partners.

Key activities included:

  • Barista and cupper training aligned with SCA standards, training 25 entrepreneurs in professional tasting and preparation techniques.

  • International seminar on coffee genetic resources with Crop Trust and the National Centre for Agronomic Research (CNRA), attended by 29 participants from 16 countries.

  • Press conference featuring leaders from ITC, ICO, Crop Trust, and Côte d’Ivoire’s Permanent Representative for Commodities, Ambassador Aly Touré.

  • Launch of ITC’s Agribusiness Investment Promotion Approach, with a workshop introducing 40 participants to ITC’s agro-investment methodology and providing targeted training to 15 attendees on investment readiness.

“This is about giving producing countries the tools, knowledge, and platforms to lead coffee transformation on their own terms,” said ICO Executive Director Vanusia Nogueira. “We’re here to make quality coffee education more accessible—especially in robusta-producing countries.”

Sahande Mamadou, Director of Elima Torréfaction, noted the value of the training: “This deepened my understanding of sensory analysis and specialty coffee cupping. We now see the importance of improving roasting techniques and sampling for our clients.”

ITC’s Côte d’Ivoire Coffee Coordinator, Mory Diawara, emphasized the importance of value addition and regional markets, saying it would bring greater returns to local producers and processors.

The week also reinforced the ICO–ITC–SCA partnership to professionalize African youth in the coffee sector, in line with the DACBA initiative (Drink African Coffee, Build Africa) led by the Inter-African Coffee Organization.

Côte d’Ivoire’s Minister of Agriculture, ICO’s Executive Director, and Ambassador Aly Touré participated in high-level discussions, highlighting the sector’s strategic importance. The event concluded with calls for expanded capacity building and equipment support to strengthen the sector further.

The investment readiness workshop, supported by ITC’s Alliances for Action, provided a platform for small businesses to engage with financial service providers, understand investor requirements, and explore opportunities—focusing on unlocking investments and increasing domestic value addition for long-term resilience.

Through inclusive partnerships, technical training, and investment facilitation, ITC and ICO aim to position producing countries not only as exporters but also as global leaders in shaping the future of sustainable coffee.

About the Project:
The ACP Business-Friendly Programme is funded by the European Union and the Organisation of African, Caribbean and Pacific States (OACPS) and jointly implemented by ITC’s Alliances for Action, the World Bank, and UNIDO. It supports agribusiness competitiveness in ACP countries, promoting inclusive and sustainable value chains that benefit all stakeholders.

Online Sensory Training Reshapes Coffee Tasting Skills

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2023 study reveals a 15% improvement in aroma recognition among coffee professionals in just six weeks

A landmark 2023 peer-reviewed study by the University of Copenhagen, in collaboration with CoffeeMind Academy, has demonstrated that an innovative online training program—combining sensory exercises, cognitive tasks, and gamification—can significantly enhance the aroma recognition skills of coffee professionals.

Published in the Journal of Sensory Studies and led by researcher Ida Steen, the study involved 44 coffee professionals aged 22–52 in a 12-week crossover trial. The program consisted of six weeks of intensive online training using the Le Nez du Café aroma set—standard in SCA and CQI certifications—paired with memory games, focus exercises, and mindfulness breathing, followed by a six-week control period with simple weekly sensory activities.

Key Findings

  • 15% average improvement in aroma recognition.

  • Over 30% improvement in detecting coffee pulp, toast, roasted peanuts, green peas, clove, cooked beef, straw, and pepper.

  • Persistent difficulty with aromas like rubber, roasted coffee, medicinal, and blackcurrant.

  • Skills retained after the training period ended.

Industry Implications

The detailed aroma-by-aroma mapping challenges existing certification kits, showing some aromas are too easy (like lemon) or too difficult (like medicinal) to be reliable indicators of sensory skill. These findings may prompt organizations like SCA and CQI to review their training and exam materials.

The Cognitive Edge

The program leveraged neuroplasticity—the brain’s ability to form new neural pathways through practice—by combining aroma recognition with cognitive training to strengthen working memory, focus, and decision-making during evaluations. Participants who completed all six daily tasks achieved the greatest improvements, underscoring the value of structured, disciplined training.

Beyond Coffee

This model can be applied to wine, chocolate, and other sensory fields, and even adapted for smell rehabilitation programs, such as for post-COVID patients.

Conclusion

By proving that online, gamified, and cognitive-enhanced training can deliver measurable, lasting improvements, the study offers a scalable and engaging alternative to traditional, in-person sensory training—reshaping professional coffee education worldwide.

Iron-Fortified Coffee Breakthroughs Aim to Tackle Global Malnutrition Without Changing Taste

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Dubai, 14 August 2025 (Qahwa World) – Two major research efforts on opposite sides of the globe are redefining how iron — one of the most essential yet deficient nutrients worldwide — can be seamlessly integrated into coffee and other foods without altering their taste or quality.

A Global Health Problem

Around 2 billion people suffer from iron deficiency, which can lead to anemia, impaired brain development in children, reduced immunity, chronic fatigue, and higher infant mortality rates. Traditional food fortification programs have been successful but face persistent challenges: iron often reacts with food components, causing metallic flavors, reduced bioavailability, and degradation during storage or cooking.

MIT’s Breakthrough: Iron and Iodine in a Single Microparticle

Researchers at the Massachusetts Institute of Technology (MIT) have developed metal–organic framework (MOF) microparticles — tiny crystalline cages made from iron and a food-safe ligand (fumaric acid) — capable of delivering iron without unwanted chemical interactions.

  • Particle size: 10–100 µm, small enough to disperse invisibly in food or drink without affecting texture.

  • Key innovation: MOFs prevent iron from reacting with polyphenols in coffee and tea — compounds that typically reduce iron absorption.

  • Dual fortification: The same particles, branded “NuMOFs,” can also carry iodine without either nutrient degrading, enabling “double-fortified” foods.

  • Adaptability: Platform can potentially deliver other nutrients like zinc, calcium, magnesium, or vitamin A.

Ana Jaklenec, principal investigator at MIT’s Koch Institute, said:

“We wanted a fortification approach that could be used globally without having to reformulate for each country’s staple foods — whether that’s bread, rice, coffee, or tea.”

The MOFs remain stable under long-term storage, high heat and humidity, and even boiling. They only release their payload when exposed to stomach acidity, ensuring maximum bioavailability.

In animal trials, both iron and iodine were detected in the bloodstream within hours of consumption, with radioactive iodine later localizing in the thyroid and clearing via the kidneys.

The research, led by postdoc Xin Yang and Dr. Linzixuan (Rhoda) Zhang, was published in Matter and partially funded by the J-WAFS Fellowships for Water and Food Solutions, with ongoing development supported by the Bill & Melinda Gates Foundation.

Indian Study Identifies Optimal Iron Compounds for Coffee

Meanwhile, in India, a team from the CSIR-Central Food Technological Research Institute (CSIR-CFTRI) in Mysuru systematically evaluated seven different iron compounds for fortifying Arabica coffee:

  • Ferric sodium EDTA (FSE) – Highest solubility (>90%), iron retention of 4.702 mg/100 mL brewed coffee, minimal interaction with coffee polyphenols, negligible flavor change.

  • Ferrous bisglycinate (FB) – Good solubility and sensory profile.

  • Ferrous sulfate (FS) and Ferrous gluconate (FG) – Acceptable results but lower iron retention.

  • Ferrous fumarate (FF) and Electrolytic iron (EI) – Stability issues and undesirable metallic or astringent flavors.

  • Ferric pyrophosphate (FPP) – Poor solubility and limited absorption potential.

Sensory testing confirmed that FSE-fortified coffee maintained desirable aroma, flavor, and mouthfeel, while chemical analyses (ATR-FTIR and GC–MS) showed minimal impact on key volatile compounds.

Lead author B.S. Yashwanth emphasized the public health potential:

“Coffee is one of the most widely consumed beverages globally. Choosing the right iron fortificant can turn it into a functional food that addresses micronutrient deficiencies without sacrificing consumer enjoyment.”

Commercial and Scientific Outlook

  • Color challenge: MOFs currently appear brown, and researchers are working to adapt the color for integration into light-colored foods like salt.

  • Cost control: For applications like double-fortified salt, the added cost must remain low to be viable in developing countries (e.g., salt sells for just $0.20–$1/kg).

  • Industry readiness: MIT’s team is launching a spin-off company to develop iron- and iodine-fortified coffee, tea, and other beverages, while the Indian research offers an immediate pathway for large-scale adoption of iron fortification in coffee production.

Experts suggest the combined insights from these two studies could pave the way for region-specific fortification strategies — using MOF-based delivery where dual micronutrient stability is key, and using optimized compounds like FSE for direct coffee fortification where production and consumer acceptance are priorities.

Bottom line: With billions still affected by iron deficiency, these innovations signal a new era where your morning coffee could do more than wake you up — it could help close one of the most persistent nutrition gaps in the world.

Reborn Coffee Secures $1 Million Deal to Launch in South Korea

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Dubai, 14 August 2025 – (Qahwa World) – U.S.-based specialty coffee chain Reborn Coffee Inc. (NASDAQ: REBN) has signed a $1 million exclusive licensing agreement with Reborn Korea Co., Ltd. to establish and operate branded coffee shops across South Korea, marking the company’s official entry into one of the world’s most dynamic coffee markets.

Under the agreement, Reborn Korea will lead store development, operations, and brand growth in the country, bringing the company’s signature cold brew, sprouted coffee, and artisanal bakery offerings to local consumers. Menus will be adapted to suit South Korean tastes and café culture.

Flagship Store in Central Seoul

The first location is set to open this autumn in Gwanghwamun, directly opposite the main gate of Gyeongbokgung Palace, a major historical landmark. The three-story flagship headquarters at 24 Yulgok-ro will combine:

  • Ground floor: spacious café and bakery corner

  • Second floor: roasting research lab and interactive sprouted coffee zone

  • Third floor: training facilities for baristas and bakers, plus administrative offices
    Guests will also have access to panoramic rooftop and terrace views of Gwanghwamun and Bugaksan mountain.

A company representative described the venue as “a new landmark where premium coffee meets artisan baking, offering a full 4th Wave coffee experience in the heart of Seoul.”

Nationwide Rollout Planned

Following the flagship launch, Reborn Korea plans to open directly operated outlets in Gwangjin, Nami Island, and Bundang, before expanding to other key cities by the end of the year. The strategy aims to create a nationwide retail network and attract potential franchisees.

Why South Korea?

South Korea ranks third globally in per capita coffee consumption, driven by a vibrant café scene and strong demand for high-quality coffee. This makes it a strategic target for Reborn Coffee’s global expansion.

Part of a Wider Global Push

This move follows the company’s recent licensing agreements in the Middle East, China’s Guangdong and Liaoning provinces, and new market entries in Georgia and Armenia.

Jollibee’s Coffee & Tea Chains Boost Record Q2 Sales to ₱114.5 Billion

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Dubai, 14 August 2025 – (Qahwa World) – The Jollibee Group has posted its strongest second-quarter results on record, driven by surging sales in its coffee and tea portfolio, which now accounts for more than half of the company’s global outlets.

For the quarter ending 30 June 2025, the Filipino foodservice giant reported system-wide sales (SWS) of ₱114.5 billion ($2 billion), marking a 19.6% increase year-on-year. Net income attributable to the group rose 5.6% to ₱3.21 billion ($54.4 million), while total net income grew 7.2% to ₱3.42 billion. Operating income reached ₱6.04 billion, a 19.1% rise, with margins improving to 7.8%.

Coffee & Tea: The Growth Engine

International sales were the standout performer, climbing 32.6% year-on-year, largely fuelled by a 68.8% surge in the Coffee & Tea segment. The group’s store network grew by 45–46% compared to the same period last year, reaching 10,119 outlets worldwide, 69% of which are franchised. Of these, 5,312 stores are coffee or tea chains, underscoring the category’s central role in Jollibee’s expansion strategy.

Key brands in the portfolio delivered solid mid-single-digit sales growth:

  • Compose Coffee – Acquired 70% in July 2024 for $238 million, the South Korean chain now operates 2,809 stores and is on track to surpass 3,000 locations in 2025. It is projected to deliver a 36% return on invested capital (ROIC) this year and accounted for 56.6% of Coffee & Tea segment growth.

  • The Coffee Bean & Tea Leaf (CBTL) – Bought in 2019 for $350 million, the Singapore-headquartered brand runs 1,261 outlets in more than 20 countries, including 200 in the US and strong representation in Indonesia, Malaysia, and India.

  • Highlands Coffee – With 896 stores in Vietnam, the chain is targeting 1,000 outlets by year-end, expanding through kiosks, drive-thru, and hotel partnerships.

  • Milksha – The Taiwan-based bubble tea and ice cream brand operates 346 stores locally and in markets such as Australia, Canada, Hong Kong, the Philippines, and the UK.

Strategic Strengths and Gaps

CEO Ernesto Tanmantiong credited the quarter’s momentum to the combined strength of the Coffee & Tea segment, sustained contributions from the Philippine business, and the performance of international operations. He highlighted the company’s multi-brand, multi-market approach as a key factor in its growth trajectory.

However, China remains a critical market to conquer. Jollibee currently operates 547 restaurants there under the Tim Ho Wan, Yonghe King, and Hong Zhuang Yuan brands but has lacked a branded coffee chain presence since CBTL exited in 2018.

Outlook

With coffee and tea brands now at the heart of Jollibee’s expansion strategy, the company is positioned to strengthen its foothold in high-growth beverage markets worldwide. The challenge ahead will be translating its success in South Korea, Vietnam, and Taiwan into competitive advantage in China, the world’s second-largest economy.

Why Buying Coffee with Bitcoin Remains Rare in 2025?

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Dubai, 14 August 2025 (Qahwa World) – For over a decade, cryptocurrency advocates have promised a revolution in daily transactions—one where you could pay for your morning coffee as easily with Bitcoin as with cash or card. Yet, despite the infrastructure and hype, a closer look reveals that in most cafés around the world, this vision remains firmly out of reach.

Infrastructure Exists — But Usage Is Minimal

Global chains like Starbucks, Whole Foods, Home Depot, Microsoft, and Gucci now technically accept cryptocurrency through payment processors such as Flexa, BitPay, and Coinbase Commerce. These solutions, along with crypto debit cards and gift card platforms, make it possible to pay for coffee—or even a car—using digital assets. El Salvador remains the most notable national experiment, where Bitcoin is legal tender.

Yet in reality, most “crypto payments” aren’t direct transfers on the blockchain. They’re instant conversions from Bitcoin or other tokens into local currency at the point of sale. Merchants still receive dollars, euros, or dirhams—not cryptocurrency.

Three Barriers Brewing Resistance

  1. Tax Complexity
    In many countries, every crypto transaction triggers a taxable event for capital gains. That means buying a cappuccino requires calculating and reporting potential profits or losses on that fraction of your holdings—a deterrent for casual use.

  2. The “Digital Gold” Mentality
    Bitcoin is increasingly seen as a store of value, not a spendable currency. Investors prefer to hold it long-term, spending depreciating fiat currency instead.

  3. Volatility and Fees
    Price swings make merchants wary of direct acceptance. While fees have dropped, payment processors often still charge 1–2%, similar to credit cards.

The Lightning Network and Stablecoin Promise

The Lightning Network—a layer-2 technology—offers fast, low-cost Bitcoin payments, already in use for coffee transactions in places like El Zonte in El Salvador and small towns in Brazil. Meanwhile, stablecoins such as USDC and USDT, pegged to the U.S. dollar, bypass volatility and are gaining traction for retail and cross-border transactions.

Coffee Industry Implications

For the specialty coffee world, crypto could one day mean faster, cheaper international payments to producers, especially in regions underserved by traditional banking. However, until tax regimes adapt, volatility eases, and stablecoin adoption grows, most baristas will keep ringing up your espresso in local currency.

Final Sip

Cryptocurrency’s promise for coffee payments is alive, but for now, it remains more of a future brew than today’s reality. Stablecoins and the Lightning Network might finally make paying for your latte in crypto as smooth as the crema on top—but not quite yet.

Singapore’s Prefer Expands Overseas with Partnerships in Thailand and Australia to Produce Beanless Coffee

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Singapore, 14 August 2025 (Qahwa World)  – Singapore-based start-up Prefer, which develops coffee and cocoa products without using coffee beans, has announced its first international commercial partnerships alongside the close of a US$4.2 million funding round.

What is beanless coffee?

Beanless coffee is an alternative to conventional coffee that’s made without coffee beans. Instead, it uses upcycled food industry byproducts such as rice and soy, which are transformed through a proprietary fermentation and roasting process to replicate the taste, aroma, and functional qualities of traditional coffee. This approach aims to reduce environmental impact and production costs while maintaining a familiar coffee experience.

Strategic international partnerships

  • Thailand: Prefer will collaborate with Ajinomoto Co., (Thailand) Ltd., the Thai subsidiary of Japan’s Ajinomoto Co., Ltd., one of the largest food and beverage companies in Japan. The partnership will focus on developing sustainable coffee drink innovations for the Thai market. Specific product details have not been disclosed, and launch timing will depend on manufacturing readiness and regulatory approvals.

  • Australia and New Zealand: Prefer has licensed its proprietary fermentation technology to The Coffee Ferm, which will manufacture and distribute Prefer products locally in these markets.

Funding and production scale-up

The funding round was led by At One Ventures and Chancery Hill Capital, with participation from existing investor Forge Ventures, bringing Prefer’s total raised to US$6.2 million since its founding in 2022. The capital will be used to scale production capacity to 500 tonnes annually through third-party manufacturers across Asia-Pacific, and to expand cocoa production at its Singapore pilot facility before moving to larger-scale outsourced manufacturing.

New product launches

In addition to its ready-to-drink (RTD) beanless coffee latte already sold in the region, Prefer has launched soluble coffee and cocoa powders for sampling by major food and beverage companies across the Asia-Pacific region. These products are aimed at integration into other brands’ portfolios.

Lower cost and footprint

According to Prefer’s own life cycle analysis, its beanless coffee can have up to 85% lower greenhouse gas emissions and be around 50% more affordable compared to current Arabica market prices. (These figures are company claims; no independent verification has been provided.)

Urgent Recall in 48 U.S. States of Clover Valley Instant Coffee Over Dangerous Glass Fragments

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Dubai, 14 August 2025 (Qahwa World) – Dollar General Corporation has announced a recall of its Clover Valley Instant Coffee (8-ounce containers) following concerns that certain packages may contain glass fragments, according to information released by the U.S. Food and Drug Administration (FDA).

The recalled coffee was sold in Dollar General stores nationwide from 9 July to 21 July 2025, reaching 48 U.S. states. The affected areas include major markets such as California, Texas, Florida, New York, Illinois, and many others.

Product Identification

  • Brand & Product: Clover Valley Instant Coffee (8 oz.)

  • UPC Code: 876941004069

  • Lot Numbers: L-5163, L-5164, L-5165

  • Best-Before Dates: 13 December 2026 – 14 December 2026

Health Risks and Investigation

The recall was initiated after a customer reported a potential contamination. The FDA warns that swallowing glass fragments could cause serious harm, including broken teeth, cuts in the mouth or throat, and damage to the digestive tract. As of 12 August 2025, no injuries or illnesses related to the recalled coffee have been reported.

Consumer Guidance

Shoppers who purchased the product should stop consuming it immediately and return it to any Dollar General store for a full refund.

This incident follows a series of food recalls in the U.S. in recent months, many linked to contamination concerns involving physical materials in packaged products.

Coffee Prices Rise on Light Frost in Brazil and Sharp Decline in Robusta Exports

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Dubai, 13 August 2025 (Qahwa World) – Coffee futures gained on Wednesday, supported by reports of light frost in Brazil’s Cerrado Mineiro region and a significant drop in the country’s robusta exports.

September arabica coffee (KCU25) closed up +4.45 cents (+1.41%), while September ICE robusta coffee (RMU25) surged +206 points (+5.53%) to reach a two-month high.

Weather Impact

Light frost earlier this week in Cerrado Mineiro, one of Brazil’s key arabica-producing areas, prompted concerns in the market, although initial assessments suggest damage is minimal. Above-average rainfall in Minas Gerais last week (4.8 mm, or 109% of the historical average) eased dryness concerns, potentially limiting upward price pressure.

Exports Driving the Rally

According to exporter group Cecafe, Brazil’s July green coffee exports fell -28% year-on-year to 2.4 million bags. Arabica exports declined -21%, while robusta exports plunged -49%. Total July coffee exports dropped -28% to 2.7 million bags, with January–July shipments down -21% to 22.2 million bags.

The sharp decline in robusta exports, combined with short-covering after previous market losses, was a major factor behind robusta’s price surge. Brazil’s July unroasted coffee exports also fell -20.4% y/y to 161,000 metric tons.

Falling Inventories

ICE-monitored arabica inventories fell to a 1.25-year low of 736,411 bags on Wednesday. Robusta inventories dropped to a two-week low of 6,928 lots, slightly below the one-year high recorded at the end of July.

Harvest Progress

Safras & Mercado reported that Brazil’s 2025/26 coffee harvest was 94% complete as of August 6, ahead of last year’s 92% at the same time. Robusta harvest is 99% finished, while arabica is 91% complete. Cooxupé, Brazil’s largest coffee cooperative and exporter, said its members had harvested 80.4% of their crop by August 8.

Trade Policy Concerns

Market attention is also on U.S. trade policy, as President Trump has yet to exempt coffee from a proposed 50% tariff on Brazilian exports, a move that could impact sales to the U.S. and increase domestic inventories in Brazil.

Global Supply Picture

The International Coffee Organization (ICO) reported global coffee exports in June rose +7.3% y/y to 11.69 million bags, though cumulative October–June exports slipped -0.2% to 104.14 million bags.

The USDA’s June forecast projects global 2025/26 coffee production will rise +2.5% y/y to a record 178.68 million bags, with arabica output down -1.7% to 97.02 million bags and robusta production up +7.9% to 81.66 million bags. Ending stocks are expected to increase +4.9% to 22.82 million bags.

Vietnam’s Role in Robusta Supply

Vietnam’s 2023/24 coffee production fell -20% y/y to 1.472 million metric tons due to drought—the smallest crop in four years. The Vietnam Coffee and Cocoa Association has lowered its 2024/25 production forecast to 26.5 million bags, down from December’s estimate of 28 million bags. However, Vietnam’s Jan–July 2025 exports rose +6.9% y/y to 1.05 million metric tons.

Deficit Outlook

Despite higher overall global production, Volcafe forecasts a -8.5 million bag global arabica deficit in 2025/26—wider than the -5.5 million bag shortfall in 2024/25—marking the fifth consecutive year of deficits.