Category: News

From America to Europe: Starbucks Continues Store Closures

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In less than two days, Starbucks’ downsizing plan has expanded from North America to Europe. After announcing yesterday the closure of hundreds of stores in the United States and Canada, the company today revealed further closures in the UK, Switzerland, and Austria, underscoring the challenges facing the world’s largest coffee chain.

Starbucks’ EMEA division confirmed that a review of its company-owned stores in Europe, the Middle East, and Africa has resulted in a decision to shutter outlets in three key European markets. The company did not disclose how many stores will close or the exact timeline but stressed the move is part of a broader strategy to align store formats with customer traffic and profitability.

This announcement comes just one day after the company said it would close around 400 stores in the U.S. and Canada and cut 900 non-retail jobs as part of a $1 billion restructuring plan. Read yesterday’s report here

Numbers Tell the Story

Starbucks currently operates nearly 5,000 stores across 42 countries in the EMEA region. The UK is its largest market, with 1,416 stores (521 company-owned). Switzerland has 49 company-owned outlets, while Austria operates 21.

The financial strain is evident in recent results: UK revenues fell 4% year-on-year to £525.6m ($668.9m) for the year ending September 2024, with a pre-tax loss of £35.2m ($44.8m). Across EMEA, revenues declined 9%, gross profit fell 5%, and operating profit dropped 16%.

“Back to Starbucks” Strategy

The closures form part of CEO Brian Niccol’s Back to Starbucks strategy, first launched in late 2024, which aims to return the brand to its “coffeehouse roots.” The strategy emphasizes simpler menus, stronger barista engagement, and encouraging customers to spend more time in stores.

Despite the retrenchment, Starbucks insists it remains committed to expansion. The company plans to open 80 new UK stores and 150 additional EMEA outlets by the end of the current fiscal year on 30 September 2025, with a pledge to return to net positive store growth across the region in 2026.

Nestlé Appoints Alfonso Gonzalez Loeschen as New Nespresso CEO

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Nestlé has named Alfonso Gonzalez Loeschen as the new CEO of Nespresso, effective 1 November 2025.

Loeschen, who has served as CEO of Nespresso North America since January 2020, succeeds Philipp Navratil. Earlier this month, Navratil was promoted to CEO of Nestlé Group following the dismissal of Laurent Freixe.

Since joining Nestlé in 1992, Loeschen has held multiple senior positions, including General Manager for Nestlé Puerto Rico (2012–2014) and Chief Marketing Officer at Nespresso (2015–2019). With his new role, he will also join Nestlé’s Executive Board.

Under his leadership in North America, Nespresso successfully expanded its Vertuo system across the US, Canada, and Mexico, achieving double-digit growth in both sales and volume. Nestlé praised Loeschen’s track record, citing his ability to drive performance and inspire teams.

“Alfonso’s extensive expertise and deep understanding of the portioned coffee category, along with his results-focused approach and talent to inspire teams, will enable him to drive performance and execution,” said Navratil.

Founded in 1985, Nespresso now operates in 81 markets and runs more than 800 retail boutiques across 76 countries.

The appointment is the latest in a series of leadership changes at Nestlé. In addition to Freixe’s dismissal and Navratil’s promotion, Nestlé announced that Pablo Isla will take over as Chairman on 1 October 2025—seven months earlier than planned—after Paul Bulcke agreed to step down following investor pressure over his leadership and decision-making.

Starbucks to Close Hundreds of Stores and Cut Thousands of Jobs in a $1bn Austerity Plan

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Starbucks is preparing to write off $1bn in costs and assets by closing hundreds of stores in North America and making further corporate layoffs.

Between June and the end of September, 400 US and Canada stores deemed unprofitable and unsuitable for refurbishment were closed or slated for closure. US store managers will find out this week if their outlet has been added to the list, extending cuts that have so far focused on takeaway-only stores.

However, in an open letter to employees, Starbucks CEO Brian Niccol announced that hundreds more sit-in stores deemed unsuitable for refurbishment under the Back to Starbucks strategy would also close. Starbucks has sought to move away from “overly transactional” takeaway stores and focus on longer dwell-time visits and more personalised service as part of a major strategy to reverse faltering sales in the US.

“We have identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said in his letter.

Niccol forecasts that Starbucks will end its fiscal year with nearly 18,300 company-operated and licensed stores across North America, down from 18,734 at the end of its third quarter ended 30 June 2025. The Seattle-based coffee chain, which has posted six consecutive quarters of like-for-like sales decline in the US, plans to return to positive outlet growth across North America next year, as well as modernise more than 1,000 US stores — 10% of its company-owned US locations.

Niccol has also announced further layoffs, just seven months after announcing plans to cut 1,100 corporate jobs across its global business. Approximately 900 non-retail roles will be axed as the coffee chain seeks to prioritise investment in retail operations.

“These steps are to reinforce what we see is working and prioritise our resources against them. We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Niccol added.

In a separate SEC filing, Starbucks said $450m of the total $1bn costs will be allocated to exiting leases early, with a further $400m on the disposal of company-operated store assets. The remaining $150m will be allocated to severance and staff support packages.

In July 2025, Starbucks reported 2% year-on-year net revenue growth in North America to reach $6.9bn. However, the coffee chain saw third quarter like-for-like sales and comparable transactions both declined.

New Barista Training Center Launched in Dubai

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Raw Coffee Company, in collaboration with Milk Lab, inaugurated a new Barista Training Center on Thursday at Raw Coffee’s headquarters in Dubai’s Al Quoz Creative District. This step marks the beginning of a new chapter in barista education, where specialty coffee meets expertly crafted milk.

The opening ceremony, attended by officials, industry leaders, hospitality professionals, and specialized media, featured Kim Thompson, co-founder of Raw Coffee Company, who outlined the background of the initiative, saying: “We place great importance on collaboration between brands that share the same values. Recently, we began working with Sage, a manufacturer of excellent coffee machines. However, we noticed complaints from customers because the coffee being used was not always suitable. This highlights the importance of partnerships and the need for alignment between machines, coffee, and training. We also discovered Milk Lab, and it was not only about improving taste but also about their commitment to sustainability. Mr. Murad Jankat, Head of JAR Foods Middle East, proposed the idea of dedicating a training center to plant-based milks, and we welcomed this step. We believe that success lies in the person standing between the machine and the customer, who manages all the variables.”

For his part, Peter Brown, International Business Development Director at Milk Lab, emphasized that the brand, which will celebrate its 10th anniversary this October, was founded to solve a genuine problem: “When almond milk was introduced in Australian supermarkets in 2013, it became popular among health-conscious consumers. But it didn’t work well in coffee — it would curdle due to acidity. That’s why Milk Lab invested 12 to 18 months in research and development, involving experts from across the coffee sector — baristas, roasters, café owners, and Q-Graders — to create a product designed specifically for coffee.”

He added: “Since then, we have expanded to offer a variety of options including almond, soy, dairy, lactose-free, and others, while always keeping coffee as the hero. Our motto is Made for Baristas, and today we are present in more than 30 markets. In the Middle East, almond milk accounts for about 55% of the market. Our strategic partner JAR has played an important role in raising awareness of the brand across the GCC and Jordan. We are not trying to be everything to everyone; our focus is to be the leader in milk designed for specialty coffee, while continuing to invest in the professional community that supports this industry.”

From her side, Purity Kariuki from Raw Coffee Company said: “Training has always been at the heart of our business. Excellent equipment and great products mean nothing without well-trained people. Traditionally, training programs focused on dairy milk, as it is stable, easy to use, and does not overpower coffee flavors. Plant-based milks, however, often produced inconsistent results — almond could be overpowering, soy could curdle, and coconut could be watery. Our partnership with Milk Lab changed that. We began pairing specific coffees with specific milks: coconut with fruity Ethiopian coffees, oat with our house blend for its sweetness and creaminess, and almond as a balanced option. This led us to launch a dedicated training program — starting with our B2B partners and later opened to a wider audience — to share this knowledge and raise coffee quality standards.”

Meanwhile, Matt Toogood, CEO of Raw Coffee Company, stressed the complexity of the market, saying: “The coffee market in Dubai and the Middle East is crowded and complex, and consumers are often confused about what specialty coffee truly means. This is why the idea of a School of Milk was created — to raise standards, provide clarity, and strengthen the sector as a whole. This collaboration is not only about combining coffee with milk; it is a practical step to advance the industry, making it clearer, more sustainable, and higher in quality for everyone.”

For his part, Murad Jankat, Head of JAR Foods Middle East, noted that Milk Lab adapts its products to the preferences of different regions — including Levantine consumers frequenting Dubai cafés — to ensure the best alignment between milk styles and local coffee offerings. Raw Coffee Company, led by Purity and her team, will manage the training programs and oversee the new center in line with the needs of the regional market.

US Congress Moves to Exempt Coffee from Tariffs

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A bipartisan bill titled the “No Coffee Tax Act” has been introduced to the United States Congress, aiming to repeal tariffs placed on coffee imports under the Trump administration.

The United States is the largest coffee importer in the world, with production limited only to Hawaii and Puerto Rico. Yet, tariffs currently affect major exporting nations. Goods from Brazil face a 50% tariff, Vietnam 20%, India 50%, Mexico 25%, and Indonesia 19%, all above the administration’s base rate of 10%.

The bill, sponsored by Nebraska Representative Don Bacon and California Representative Ro Khanna, has already drawn support from Virginia’s Don Beyer and New Hampshire’s Maggie Goodlander.

Bacon emphasised that taxing a crop not grown at scale in the US is harmful to consumers: “Families across America are already paying 21% more for coffee. Tariffs on a product we cannot produce commercially only make things worse. They are simply a tax on consumers, raising costs without creating jobs.”

He further highlighted that Congress, under Article One of the Constitution, holds tariff-setting authority, and this legislation reasserts that power.

If passed, the bill would exempt coffee—green, roasted, decaffeinated, husks, skins, and substitutes containing coffee—from any tariffs imposed after January 19, 2025.

The US coffee industry has strongly supported the measure, arguing that coffee cannot be grown at a scale sufficient to meet demand. A petition launched by roaster Coffee Bros in April 2025 has already gathered nearly 15,000 signatures.

Khanna compared the tariffs to Britain’s tax on tea before the American Revolution: “Americans started a revolution over a tax on tea. Today, US coffee prices have surged in part due to these tariffs. Our bipartisan bill is simple—it removes Trump’s tariffs on coffee to bring down costs.”

According to Reuters, the legislation is expected to be formally introduced on Friday. Bacon expressed optimism that the measure would not only reduce prices for consumers but also prompt a wider debate on Congress reclaiming its constitutional role in tariff policy.

U.S. Top 100 Coffee Shops for 2025

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Yelp has unveiled its Top 100 Coffee Shops in America for 2025, ranking the most celebrated cafés across the nation. The list reflects the depth of U.S. coffee culture, highlighting everything from innovative roasteries to family-owned shops known for unique drinks and warm community spirit.

At number one, Yaw Farm Coffee Roaster in Las Vegas earned the crown as the best coffee shop in America. Owned by Jillian and Ian, this small but mighty roastery focuses on careful bean sourcing, expert pour-over techniques, and creative syrups such as its signature blackberry blend. Despite offering no seating or Wi-Fi, it has built a devoted fanbase, with 95% of its Yelp reviews rated five stars.

Coffee Trends on the Rise

The 2025 ranking highlights how American coffee drinkers are increasingly embracing creative drinks. Searches for “banana bread latte” surged by more than 6,000% this summer, giving Cassel Earth Coffee in Irvine, California, national attention for its banana latte. Viennese-style einspanners, topped with sweet cream, are also rising in popularity, featured at cafés such as Markario Coffee Roasters in Everett, Washington.

“More than ever, people want coffee that blends flavor, quality, and a sense of connection,” said Tara Lewis, Yelp’s trend expert. “It’s about making the daily ritual something special.”

The Full Top 100 Coffee Shops in the U.S. for 2025

  1. Yaw Farm Coffee Roaster – Las Vegas, Nevada
  2. 1022 Cafe & Gelateria – Oceanside, California
  3. Rainbeau Jo’s – Lihue, Kauai, Hawaii
  4. Mate Conmigo – Los Angeles, California
  5. Makua Banana Bread – Oahu, Hawaii
  6. Cassel Earth Coffee – Irvine, California
  7. Pangolin Café – Reno, Nevada
  8. Makario Coffee Roasters – Everett, Washington
  9. St. Pat’s Coffeehouse – New Orleans, Louisiana
  10. A.T. Oasis Coffee & Tea Shop – Phoenix, Arizona
  11. Classy Hippie Tea – Sacramento, California
  12. Mission Blue – San Francisco, California
  13. Tatiana’s Coffee and Tea – Ventura, California
  14. Elevated Coffee and Confections – Lemon Grove, California
  15. Window Coffee Bar – Phoenix, Arizona
  16. Pursue Coffee – Redondo Beach, California
  17. Acurrucame Cafe – Los Angeles, California
  18. Wolfe Club Coffee Roasters – Tacoma, Washington
  19. Family Cafe – Beaverton, Oregon
  20. The Horn – Nashville, Tennessee
  21. Tim Is Making Great Coffee – San Juan Capistrano, California
  22. Nic and Luc – Longwood, Florida
  23. Medieno Coffee Shop and Roaster – Danville, California
  24. Blue Corn Cafe and Bakery – Glendale, Arizona
  25. Castle Coffee – Albuquerque, New Mexico
  26. Hot ‘n’ Sweet Coffee and Donut Shop – Page, Arizona
  27. Sweet Oven Bakery – Sacramento, California
  28. Koana – Mountain View, Hawaii (Big Island)
  29. Uptown Cafe – Chantilly, Virginia
  30. Afro Joe’s Coffee and Tea – Chicago, Illinois
  31. Mr. Bee’s Coffee and Teas – Santa Rosa, New Mexico
  32. Enderly Coffee Co. – Charlotte, North Carolina
  33. Resurrection Cup Coffee – Fort Lauderdale, Florida
  34. Howlin Hounds Coffee – Omaha, Nebraska
  35. Kaffe Crepe – Reno, Nevada
  36. Jake’s Ice Cream on Siesta Key – Sarasota, Florida
  37. Whistle and Fizz – New York City, New York
  38. Rocklin Donuts and Cinnamon – Rocklin, California
  39. The Early Bird Cafe East Meadow – East Meadow, New York
  40. Dolce Vita – Oxnard, California
  41. Desta Ethiopian Cafe – Oakland, California
  42. Slow Rush – Paso Robles, California
  43. Cinnamon’s Bakery – Estes Park, Colorado
  44. Macadon’s – Renton, Washington
  45. Mad Dogs and Englishmen – Carmel-by-the-Sea, California
  46. Convo Coffee House – Las Vegas, Nevada
  47. Rock Stop – Orderville, Utah
  48. Dog Bar – Brunswick, Maine
  49. Local Coffee – Montclair, New Jersey
  50. Theory Coffee Company – San Antonio, Texas
  51. The Foundry Bakery – Maryland Heights, Missouri
  52. Gathered Grounds Surprise – Surprise, Arizona
  53. K Dessert Cafe – Tampa Bay, Florida
  54. Cafe Porche and Snowbar – New Orleans, Louisiana
  55. Duck Donuts – Irvine, California
  56. Mr. Burro Cafe – Fairplay, Colorado
  57. Matt Robbs Biscuits – Knoxville, Tennessee
  58. J Presso – Atlanta, Georgia
  59. Ginger Beard Coffee – Tampa, Florida
  60. Butteriffic Bakery and Cafe – Memphis, Tennessee
  61. Cutbow Coffee Roastology – Albuquerque, New Mexico
  62. La Perlita – Portland, Oregon
  63. Cafe Zio – Edison, New Jersey
  64. Deltina Coffee Roasters – Oceano, California
  65. Red Captain Coffee Company – Tucson, Arizona
  66. Hole Hot Doughnuts and Fresh Coffee – Asheville, North Carolina
  67. The Red Bud Cafe – Daytona Beach, Florida
  68. Dig It Coffee – Las Vegas, Nevada
  69. Joyful Noise Coffee – Menifee, California
  70. Fraise Cafe – Fullerton, California
  71. Tokyo Premium Bakery – Denver, Colorado
  72. Cream Sugar Coffeehouse – Cincinnati, Ohio
  73. A Special Blend – Greensboro, North Carolina
  74. ICI Macarons and Cafe – Philadelphia, Pennsylvania
  75. Neil’s Donuts – Wallingford, Connecticut
  76. The Bull Shack Coffee and Smoothies – Livingston, Texas
  77. Haan Coffee – Orlando, Florida
  78. White Duck Espresso – New Port Richey, Florida
  79. Recreo Coffee and Roasterie – West Roxbury, Massachusetts
  80. Billie Joe Coffee – Grand Prairie, Texas
  81. Voila French Cafe – Greer, South Carolina
  82. Elephantine Bakery – Portsmouth, New Hampshire
  83. Cali Coffee – Hollywood, Florida
  84. Out There Coffee – Cape May, New Jersey
  85. First Wave Coffee – Maui, Hawaii
  86. Bitty and Beau’s Coffee – Savannah, Georgia
  87. Side Track Coffee – Opelika, Alabama
  88. Roastd Coffee – Fort Lee, New Jersey
  89. Black Coffee Lounge – Cincinnati, Ohio
  90. Amarin Coffee USA – Chincoteague, Virginia
  91. Esteamed Coffee – Cary, North Carolina
  92. Dawn Donuts – Houston, Texas
  93. Hidden Grounds Coffee – Wilmington, North Carolina
  94. Coffee Cove – Hauula, Honolulu, Hawaii
  95. Canon Coffee – Apopka, Florida
  96. The Baker – New Bedford, Massachusetts
  97. Homage Coffee House – Glendale, Arizona
  98. Polcaris Coffee – Boston, Massachusetts
  99. Greenwell Farms – Kealakekua, Hawaii (Big Island)
  100. Cafe Flore – Fort Myers, Florida

A Nation of Coffee Lovers

From creative latte art in California to traditional Ethiopian coffee in Oakland, the 2025 rankings highlight just how diverse and dynamic America’s café scene has become. With demand for unique drinks and community-focused spaces continuing to rise, coffee in the U.S. is more than a beverage — it’s a cultural movement.

International Coffee Day: How It Started and Why the World Celebrates

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The International Coffee Organization (ICO) has launched its global campaign to celebrate International Coffee Day (ICD), observed every year on October 1. The theme for 2025 is “Embracing Collaboration More Than Ever.” The ICO emphasized that this celebration is an opportunity to underline the vital role of collaboration across the coffee value chain — from farmers and cooperatives to traders, roasters, baristas, and consumers — ensuring sustainable livelihoods, shared prosperity, and resilient communities.

Vanúsia Nogueira, Executive Director of the ICO, stated: “Coffee is a product of many hands and many hearts. When farmers, cooperatives, researchers, roasters, traders, baristas and consumers work together, we create opportunities for income, resilience and environmental stewardship. This year’s campaign calls for practical collaboration that delivers real benefits along the whole chain.”

On this occasion, Qahwa World has prepared a comprehensive research report on International Coffee Day — its origins, history, economic and cultural significance, and its importance for the global coffee industry. This research is presented to highlight why this day is not just a celebration of a beverage, but a recognition of coffee’s role as a cultural, social, and economic force worldwide.

Origins and Establishment of International Coffee Day

International Coffee Day was officially established in 2014 during the International Coffee Council meeting in Milan, aligned with Expo 2015. The first official ICD celebration was held on October 1, 2015.

Objectives of the Day:

To unite coffee lovers around the world.

To honor and recognize coffee farmers whose livelihoods depend on this crop.

To raise global awareness about sustainability, fair trade, and challenges in the coffee sector.

To strengthen the sense of community among all participants in the coffee chain.

Historical Roots of Coffee

The history of coffee stretches back centuries, connecting continents and cultures:

Ethiopia: Coffee’s origins are often traced to Ethiopia, where wild coffee plants grew in the forests of Kaffa. Legends suggest its stimulating effects were first observed there.

Yemen: In the 15th century, coffee cultivation spread to Yemen. Sufi monks began preparing coffee as a beverage to help them stay awake during prayers, making Yemen the cradle of coffee culture.

Arab World: By the 16th century, coffee spread throughout Mecca, Cairo, Damascus, and Istanbul. Coffeehouses (qahveh khaneh) became centers of social, cultural, and intellectual life.

Europe: Coffee reached Venice in the early 17th century. It spread rapidly through Europe despite religious controversies and bans. Coffeehouses in London, known as “penny universities,” became hubs of debate and knowledge.

Asia and the Americas: By the 18th century, colonial powers introduced coffee cultivation to Asia (notably Indonesia) and Latin America (notably Brazil and the Caribbean), shaping the global coffee industry we know today.

Technological and Industrial Evolution

In the 19th century, industrialization revolutionized coffee. The invention of large-scale roasting machines and improved grinders allowed for mass production and consistent quality.

In the 20th century, new innovations such as soluble (instant) coffee emerged, led by companies like Nestlé in the 1930s. This changed global consumption patterns and made coffee more accessible.

Today, technological advances extend to specialty coffee roasting, precision brewing methods, and sustainable farming practices, reflecting the balance between tradition and innovation in the coffee world.

Celebration Dates Worldwide

Although October 1 is the official ICO date, different countries observe coffee days at varying times:

October 1: International Coffee Day (official ICO recognition, celebrated globally).

September 29: National Coffee Day in the USA, Canada, Austria, and a few other countries.

Other Coffee Days in the USA:

November 8: National Cappuccino Day

November 23: National Espresso Day

February 11: National Latte Day

These variations highlight the universal love for coffee across cultures.

Traditions and Activities

International Coffee Day is marked by a variety of events and initiatives:

ICO Campaigns: Every year, the ICO sets a central theme. In 2025, the focus is collaboration.

Coffeehouses and Roasters: Businesses worldwide host tastings, workshops, and awareness campaigns.

Social Media: Hashtags like #InternationalCoffeeDay and #ICD2025 amplify global participation, encouraging people to share their coffee experiences.

Awareness Programs: NGOs, cooperatives, and coffee associations use ICD to shed light on sustainability, fair income for farmers, and climate-related challenges.

Economic Impact of Coffee

Coffee is not just a cultural icon but also an economic powerhouse:

Consumption: Over 3 billion cups are consumed daily worldwide.

Production (2023, ICO): Approximately 170 million 60-kg bags of coffee are produced annually.

Top Producers (2023):

Brazil – 37% of global production

Vietnam – 17%

Colombia – 8%

Indonesia – 7%

Ethiopia – 5%

The Coffee Belt: Coffee production is concentrated in a tropical zone known as the Coffee Belt, spanning Latin America, Africa, and Asia-Pacific.

Trade Value: Coffee is the second most traded commodity globally after crude oil.

Social and Environmental Dimensions

The day also highlights the challenges and responsibilities facing the global coffee community:

Farmer Livelihoods: Coffee supports the livelihoods of over 125 million people worldwide, including around 25 million smallholder farmers directly dependent on it. Yet many live below the poverty line due to fluctuating prices and market instability.

Climate Change: Rising temperatures, pests such as coffee leaf rust, and deforestation threaten production worldwide.

Sustainability Efforts: Certifications such as Fairtrade, Rainforest Alliance, and organic standards are promoted during ICD to encourage responsible production and consumption.

Cultural and Social Significance

Coffee has always been more than a drink — it has been a catalyst for culture and community:

In the Arab world, early cafés became places for music, chess, storytelling, and poetry.

In Europe, coffeehouses were breeding grounds for intellectual movements, journalism, and political debate.

Today, cafés remain spaces for creativity, networking, and cultural exchange.

Interesting Facts About Coffee

Coffee trees can live up to 100 years, though their most productive years are between 7 and 20.

Coffee faced multiple bans in history — in Mecca, Istanbul, and even in 18th-century Prussia — but it always returned stronger.

One of the most expensive coffees in the world is Ospina (Colombia), valued at $1,700 per pound in 2024.

The term “penny university” reflected the role of 17th-century English coffeehouses, where intellectual discussion was accessible for the price of a cup.

Conclusion

International Coffee Day is not simply about celebrating a beloved beverage — it is about recognizing the centuries-long journey of coffee from Ethiopia and Yemen to the rest of the world, and the millions of people whose lives are intertwined with it.

By establishing ICD in 2014, the ICO created a platform for uniting coffee lovers, supporting farmers, and promoting sustainability. In 2025, under the theme “Embracing Collaboration More Than Ever,” the ICO reminds us that coffee is more than a drink — it is a shared commitment to resilience, sustainability, and global cooperation.

EU Confirms Delay to Deforestation Regulation

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The European Commission has confirmed a further one-year delay to the European Union Deforestation Regulation (EUDR), citing IT system capacity issues and risks of disruption to supply chains.

The regulation, which entered into force in June 2023, sets strict due diligence requirements for commodities including palm oil, cattle, soy, coffee, cocoa, timber, rubber, and derived products such as beef, furniture, and chocolate. Originally scheduled for application from December 30, 2024, implementation was already postponed once to December 2025. The new proposal extends the deadline by an additional 12 months.

“While our simplification efforts have been substantial, we have concluded that we cannot meet the original deadline without causing disruptions to our businesses and supply chains,” said European Commission trade spokesperson Olof Gill. He added that the IT platform designed to handle compliance documentation faces “serious capacity concerns given the projected load.”

Environment Commissioner Jessika Roswall stressed that the delay provides “the necessary time to get the IT system capacity that we need.” She also rejected suggestions that the decision was linked to ongoing trade talks with the United States or Indonesia, noting that the U.S. has already been recognized as posing “negligible risk” to global deforestation.

The proposal must now be approved by EU member states and the European Parliament.

The delay was welcomed by the European People’s Party (EPP), parliament’s largest group, which has long argued the regulation placed disproportionate burdens on small and medium-sized businesses, including coffee roasters, foresters, and farmers. “If the deforestation regulation had entered into force unchanged on 1 January, it would have caused unsolvable problems,” said EPP environment spokesperson Peter Liese.

Christine Schneider, the parliament’s lead negotiator on EUDR, called for a “zero-risk category” to exempt commodities and regions with no deforestation link from additional documentation requirements.

However, environmental organizations sharply criticized the move. The WWF described the delay as “a massive embarrassment for President von der Leyen and her Commission,” warning it reflects a lack of political will to ensure timely enforcement. The Greens’ agriculture coordinator Thomas Waitz called it “a dark day for global forest protection,” accusing the Commission of bowing to pressure from the agricultural and sawmill lobbies.

The Commission’s decision underscores a broader trend of prioritizing industrial competitiveness over environmental regulation. Earlier this year, a majority of EU members had already urged postponement. Critics fear that repeated delays undermine the EU’s credibility as a leader in global climate and forest protection efforts.

The debate also resonates with global commodity markets, from agriculture and biofuels to biomass and petrochemicals, where compliance costs, supply chain transparency, and IT readiness remain pressing concerns.

Coffee Helps You Stay Persistent Under Stress

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Coffee is already famous for keeping people awake and alert, but new research suggests it may do more than that. A study published in the journal Human Psychopharmacology: Clinical and Experimental reveals that caffeine can boost persistence in the face of complex or even unsolvable tasks, particularly when individuals are under stress.

The experiments, conducted by researchers at Amherst College in the United States, involved 329 student participants. Each was asked to perform tasks deliberately designed with unsolvable elements. In the first experiment, a low dose of caffeine amounting to 40 milligrams, roughly half a cup of coffee, had no measurable effect. In the second, a higher dose of 100 milligrams — about the same as a standard cup of coffee — encouraged participants to continue longer in a visual search task, although the effect did not carry over to a verbal task.

The strongest outcome came in the third experiment, which introduced mild stress through a cold-water immersion test. Students who experienced stress and consumed 100 milligrams of caffeine persisted significantly longer than the control group. By contrast, participants who had not been exposed to stress showed a slight decline in persistence after drinking caffeine.

Researchers believe the effect may be linked to the way caffeine stimulates neurotransmitters such as dopamine, norepinephrine, and adenosine, which are tied to motivation and attention. Stress hormones, particularly cortisol, appear to amplify this response, enhancing the brain’s receptivity to stimulants. A summary of the findings published by PsyPost noted that persistence in the visual task rose from 38 percent to 52 percent of the allotted time when caffeine was combined with stress, underlining the importance of context in determining the outcome.

The authors of the study caution that these findings are preliminary and highlight several limitations. Some participants reached the maximum time limit for the tasks, potentially affecting the results, and differences in regular caffeine use among individuals were not fully accounted for. They recommend further studies using physiological measures and brain imaging techniques to clarify the mechanisms behind the effect.

Caffeine is the most widely consumed psychoactive substance in the world, and billions rely on it every day to stay focused and productive. This study suggests its benefits may go beyond alertness, potentially helping people push through challenges in stressful situations. While more evidence is needed, the research adds to the growing body of knowledge about how coffee shapes not only our energy but also our resilience.

Coffee Prices Mixed as Robusta Surges and Arabica Faces U.S. Tariff Pressure

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Coffee futures ended Monday in mixed territory as robusta prices climbed on concerns over heavy rains in Vietnam, while arabica remained under pressure from uncertainty surrounding U.S. tariff policy and ongoing harvest progress in Brazil. December arabica (KCZ25) fluctuated during the session and ultimately closed down -1.50 (-0.41%), while November robusta (RMX25) gained +121 (+2.93%).

The sharp rise in robusta was fueled by forecasts of heavy rainfall across Vietnam’s Central Highlands, the country’s key growing area, which could damage cherries entering their final stage of development before harvest. Vietnam, the world’s largest producer of robusta, continues to play a decisive role in global market movements. Despite the short-term weather risks, the country is still expected to deliver a bumper crop, with 2025/26 production projected to climb 6% year-on-year to 1.76 million metric tons, or 29.4 million bags, the highest level in four years. Export momentum remains strong as well, with shipments from January to August up 7.8% compared with the previous year, reaching 1.141 million metric tons.

Arabica, meanwhile, faced renewed selling pressure linked to the policy debate in Washington, where lawmakers are considering a bill that would exempt coffee imports from tariffs. The United States currently maintains a 50% tariff on Brazilian imports, a measure that has disrupted traditional trade flows and forced buyers to cancel contracts. This has tightened U.S. supplies significantly, with ICE-monitored arabica inventories falling to a 17-month low of 643,341 bags. Robusta inventories also dropped to a 1.75-month low of 6,464 lots. The trade impact is considerable, since Brazil accounts for roughly one-third of America’s unroasted coffee imports.

While tariffs weigh on demand for arabica, supply-side pressures in Brazil are offering a degree of support. Somar Meteorologia reported that Minas Gerais, Brazil’s largest arabica-producing state, received only 10.5 millimeters of rain during the week ending September 20, representing just 73% of the historical average. September is a critical flowering month for coffee trees, and any shortage of rain could compromise the next crop cycle. Earlier this month, Brazil’s crop agency Conab cut its forecast for the 2025 arabica harvest by 4.9% to 35.2 million bags and lowered total coffee production to 55.2 million bags, reinforcing concerns about supply.

Globally, the balance remains tight despite expectations of record output. The USDA’s Foreign Agriculture Service projects that world coffee production will increase by 2.5% in 2025/26 to reach 178.68 million bags. Arabica output, however, is forecast to decline 1.7% to 97 million bags, while robusta is expected to rise by nearly 8% to 81.6 million bags. This uneven growth underlines the structural imbalance in the market. Commodity trader Volcafe has warned that the arabica deficit will widen to 8.5 million bags in 2025/26, compared with 5.5 million bags in the previous cycle, marking the fifth consecutive year of shortfalls.

Export figures add further weight to bullish sentiment. The International Coffee Organization reported earlier this month that global shipments in July fell 1.6% year-on-year to 11.6 million bags, while cumulative exports for the first ten months of the current season declined 0.3%. Brazil’s shipments saw particularly sharp declines. Data from the Trade Ministry showed that unroasted coffee exports in July plunged 20.4% to 161,000 metric tons, while exporter group Cecafe reported green coffee shipments down 28% to 2.4 million bags. Robusta exports collapsed by nearly half. In total, Brazil’s shipments between January and July dropped 21% to 22.2 million bags.

In the short term, harvest pressure continues to weigh on arabica prices. Brazil’s Cooxupe cooperative, the country’s largest exporter group, reported that its members had completed 98.9% of the harvest by September 12, signaling that near-term supply remains ample. Yet market participants remain cautious about the months ahead, with the National Oceanic and Atmospheric Administration forecasting a 71% chance of La Niña developing between October and December. Such a weather pattern could intensify drought conditions in Brazil and place the 2026/27 crop at risk.

The global coffee market thus finds itself pulled in opposite directions. On one side, robusta prices are supported by immediate weather risks in Vietnam, while arabica is weighed down by trade policy uncertainty and harvest dynamics in Brazil. On the other, tightening inventories, shrinking exports, and the prospect of continued arabica deficits provide a strong bullish undertone. With weather volatility and geopolitical trade policies both in play, analysts expect price swings to remain a defining feature of the market for months to come.

Lavazza Doubles UK Profits Despite Record Coffee Costs in 2025

Posted on by Qahwa World

London – Qahwa World

Italian coffee giant Lavazza has doubled its UK profits despite grappling with severe supply chain disruption and record-high green coffee costs. Strategic price increases and high-profile sponsorships have helped the brand maintain momentum in one of its key European markets.

Lavazza UK reported a pre-tax profit of £3.2 million ($4.3m) in 2024, compared with £1.5 million ($2m) the previous year. Sales rose 8% year-on-year to £110.3 million ($149m), marking the second consecutive year revenues surpassed the £100m threshold. The Turin-based roaster strengthened its UK presence through partnerships with Wimbledon, Arsenal Football Club, and Ascot Racecourse, initiatives that it said significantly boosted brand visibility and consumer recognition. Lavazza has also operated a flagship store in London since 2021, reinforcing its retail footprint.

In its Companies House filing, the company acknowledged “unprecedented” cost pressures tied to climate change, geopolitical tensions, and volatile green coffee markets. Despite leveraging Lavazza Group’s global procurement strategies to hedge against volatility, it admitted that part of the inflationary burden had to be passed on to consumers. “The company benefits from the policies adopted by the Lavazza Group to limit the impact of volatility within the coffee market,” Lavazza UK stated. “However, despite these measures, the company has had to mitigate the increased risk by passing some inflation to its customers and consumers.”

According to company figures, UK households consume 13 million cups of Lavazza coffee every week and use 1.4 million capsules. Raising prices has been a key lever for sustaining modest revenue growth and absorbing cost pressures in an environment where inflation has pushed up the cost of everyday goods. Data from consumer watchdog Which? indicates that retail coffee prices in the UK climbed by up to 40% in the 12 months to March 2025.

Still, there are signs of relief. Speaking to UK press in July 2025, Lavazza Group Chairman Giuseppe Lavazza suggested that record coffee prices may have already peaked, potentially bringing stability to supermarket shelves. On a global scale, the group absorbed €600m ($658m) in additional costs since 2022 but nonetheless achieved record revenues of €3.35bn ($3.67bn) in 2024, underlining the strength of its brand across more than 140 markets.

Founded in 1895, Lavazza remains one of the world’s most prominent coffee roasters. Its performance in the UK highlights how strategic pricing and brand-building investments have enabled it to withstand inflationary shocks while continuing to expand its international footprint.

Keurig Dr Pepper Shares Plunge to Multi-Year Low After JDE Peet’s Deal

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New York – Qahwa World

Keurig Dr Pepper (NASDAQ: KDP) fell 3.6% in Monday trading, hitting a multi-year low of $26.09, after BNP Paribas downgraded the stock to Underperform. The drop reflects mounting skepticism over the company’s ambitious $18.4 billion acquisition of JDE Peet’s and its plan to split into two separate businesses.

BNP Paribas analyst Kevin Gundy said the deal was “one of the worst-received transactions in the consumer sector we have ever seen,” adding that management now faces the difficult task of convincing a shareholder base that has grown impatient. The firm cut its price target to $24, citing deal risk, global coffee demand elasticity, and what it called a “credibility setback.”

Deal Overview

The transaction, valued at €15.7 billion (~US$18.4B), offers JDE Peet’s shareholders a 33% premium to the 90-day average price. Once completed, KDP will split into:

Global Coffee Co. – about $16B annual sales, the world’s largest pure-play coffee company, including brands Keurig, Jacobs, and Peet’s Coffee.

Beverage Co. – more than $11B annual sales, covering Dr Pepper, Canada Dry, and 7UP.

The combined entity will remain under KDP’s current leadership, led by CEO Tim Cofer and CFO Sudhanshu Priyadarshi.

Why Investors Are Concerned

Debt Burden: Financing the deal relies heavily on debt, with leverage projected to rise into the high-5× EBITDA range. Moody’s has already placed KDP under review for downgrade.

Execution Risks: Integrating JDE Peet’s operations while simultaneously splitting into two companies creates unprecedented complexity.

Market Reaction: JDE Peet’s stock jumped on the premium offer, but KDP has lost about 25% since the August announcement.

Demand Uncertainty: Rising coffee costs and consumer shifts may pressure single-serve coffee demand, a core KDP segment.

KDP’s Strategic Bet

Despite the skepticism, management highlights:

Global scale and reach across North America, Europe, and Asia.

Synergies worth about $400M over three years.

Sharper focus for each business post-split.

Market Impact & Outlook

The stock market, for now, is focused more on the risks than the promises. KDP’s bold gamble could reshape the global coffee and beverage industry, but investors are demanding proof that the strategy can deliver.