Category: News

Yemeni Café to Replace Starbucks in the Heart of Dearborn

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Detroit – August 27, 2025 (Qahwa World) – The well-known Starbucks branch on Michigan Avenue in East Dearborn has permanently closed after nearly 16 years of operation, paving the way for a Yemeni café that reflects the cultural shifts in a city with one of the most prominent Arab-American communities.

The store, located at the intersection of Michigan Avenue and Oakman Boulevard, officially ceased operations on August 24 and will soon be transformed into a Yemeni café. According to local reports, Moka & Co, a Yemeni coffee brand with multiple branches in Detroit, Ann Arbor, East Lansing, Okemos, and other states, is expected to take over the site. The lease is anticipated to be finalized within weeks, with the café projected to open by late 2025 or early 2026 after renovations.

The closure comes as part of Starbucks’ “Back to Starbucks” initiative, announced in July 2025, which includes closing or converting up to 90 mobile-order and pick-up-only stores across the U.S. by fiscal year 2026 to focus on traditional café formats. While the company has not issued a specific statement about this location, the decision aligns with consumer trends in Dearborn, where Yemeni cafés are steadily gaining ground.

Dearborn, home to one of the largest Arab-American populations in the United States, has become a hub for Yemeni coffee through establishments such as Haraz Coffee House and Qahwah House. These cafés are distinguished by their richly spiced brews, honeycomb bread, and late-night community atmosphere, creating spaces that have often outshined corporate chains.

The upcoming Yemeni café is expected to serve single-origin beans from Yemen alongside a menu that blends tradition and modern trends, including iced pistachio lattes, moka spice lattes, Adeni chai, frozen drinks, refreshers, and matcha lattes.

The shift away from global coffee chains in Dearborn has been fueled both by consumer boycotts tied to geopolitical issues and by a preference for authentic, community-driven experiences. A 2024 report by The Arab American News highlighted a sharp decline in Starbucks sales in the city as customers increasingly turned to Yemeni cafés for better value, cultural connection, and superior taste.

For many residents, the closure of Starbucks marks a continuation rather than a loss. “Starbucks was fine, but Yemeni cafés offer something unique — coffee with a story, from Yemen’s mountains to our cups,” said Aisha Nasser, a regular at Qahwah House.

With renovations already underway, the location is expected to reopen soon under Yemeni management. For East Dearborn, the transformation of a Starbucks into a Yemeni café underscores a broader narrative: the city’s coffee identity is no longer shaped by global chains but by a return to its cultural roots — Yemeni coffee as both tradition and thriving enterprise.

Arabica Coffee Slips as Brazil’s Harvest Nears Completion

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Dubai, August 27, 2025 (Qahwa World) – Arabica coffee futures fell on Tuesday as pressure from Brazil’s near-complete harvest weighed on the market, while robusta prices gained on tightening supply signals. On the ICE exchange, December arabica coffee (KCZ25) closed down 1.44% at -5.45, while November robusta (RMU25) climbed 0.86% (+40). The divergence reflects the complex forces shaping global coffee markets at the end of August.

Brazil’s influential Cooxupé cooperative announced that as of August 22, its members had completed 91.3% of their 2025/26 harvest, signaling an abundant flow of fresh beans into the market. Independent consultancy Safras & Mercado reported even higher progress, noting 99% of Brazil’s harvest complete, including 100% of robusta and 98% of arabica. Such rapid progress has increased selling pressure, pushing arabica futures lower despite ongoing concerns about weather damage in Minas Gerais, the country’s top arabica-growing region. Somar Meteorologia reported no rainfall in the week ending August 23, following frost damage earlier in the month.

Counterbalancing the harvest pressure, exchange-monitored stocks remain tight. ICE arabica inventories dropped to a 1.25-year low of 717,113 bags, while robusta inventories fell to a one-month low of 6,614 lots, underpinning prices. Additional upward pressure stems from U.S. market disruptions, where buyers are canceling contracts for Brazilian coffee following the imposition of 50% tariffs on Brazilian exports. With Brazil supplying nearly one-third of unroasted beans to the U.S., the restrictions are tightening American supplies.

Brazil’s July export data highlighted another bullish element. The Trade Ministry reported a 20.4% year-on-year decline in unroasted coffee exports to 161,000 metric tons. Exporter group Cecafé confirmed the trend, citing a 28% fall in green coffee exports to 2.4 million bags. Arabica shipments dropped 21%, while robusta exports plunged 49% compared to July 2024. For the first seven months of 2025, Cecafé recorded a 21% decline in Brazil’s overall coffee exports, totaling 22.2 million bags.

Global indicators, however, showed a mixed picture. The International Coffee Organization reported that global June exports rose 7.3% year-on-year, reaching 11.69 million bags, although October–June cumulative exports slipped slightly by 0.2%. In Vietnam, drought weighed heavily on 2023/24 production, which fell 20% to 1.47 million metric tons, the smallest crop in four years. Exports also slumped 17% in 2024, though this year’s January–July shipments rose 6.9%.

Looking ahead, the USDA’s Foreign Agricultural Service projects record global coffee production in 2025/26 at 178.68 million bags, led by a 7.9% increase in robusta output. Arabica production, however, is expected to decline by 1.7% to 97 million bags. Despite this, traders remain cautious, as Volcafé forecasts an arabica deficit of 8.5 million bags in 2025/26, marking the fifth consecutive year of supply shortfalls, compared with a 5.5 million bag deficit in the current cycle.

New Study Reveals the Secrets of Coffee Price Networks: What Do Quality and America Have to Do with It?

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Dubai – August 25, 2025 (Qahwa World) – A groundbreaking academic study titled Quality differences, location, and coffee price return networks: Insights from a high-dimensional CoVaR-copula analysis has shed light on the hidden mechanisms driving coffee price dynamics worldwide. The research highlights that both quality and geographic location play a central role in shaping risk spillovers and market interconnections across the global coffee trade.

The study analyzed daily data spanning twenty years and covering 17 distinct coffee varieties traded in three of the world’s most important markets: the United States, Germany, and France. The data, drawn from the International Coffee Organization (ICO), was not used in aggregated form. Instead, the researchers disaggregated it at the variety level, allowing for a far more detailed and accurate picture of price dynamics and market integration.

The findings suggest that high-quality coffees, such as mild arabicas, form stronger and more stable price linkages within markets, while lower-quality coffees like robusta exhibit more volatility and divergence. Moreover, risk spillovers are found to be stronger among coffees of similar quality, creating distinct clusters in the price network.

One of the study’s most important insights is the role of the United States as the central node of the global coffee risk network. As the world’s largest importer of coffee, the U.S. absorbs spillovers from European markets, particularly Germany and France. This centrality means that disturbances in European markets can quickly reverberate through the U.S., which then amplifies their impact across the rest of the world.

From a methodological standpoint, the study employed a high-dimensional CoVaR-copula framework, a sophisticated statistical approach that focuses on extreme price movements rather than long-term averages. Unlike traditional cointegration methods, which focus on whether prices move together in the long run, this approach looks at how shocks in one market are transmitted during stress periods to other markets.

To address the challenge of handling a large number of variables, the researchers used high-dimensional VAR (Vector Autoregressive) models combined with an Elastic-Net technique, which helps to reduce overfitting and manage what is known as the “curse of dimensionality.” This combination allowed for the creation of clearer, more precise connectedness networks, showing how risk flows between different coffee varieties and across national markets.

In addition to price data, the study incorporated insights from chemical analyses of coffee. Previous research had identified specific chemical compounds that differentiate varieties and contribute to flavor and aroma profiles. By aligning price data with chemical properties and trading locations, the researchers produced heatmaps and connectedness graphs that reveal how both intrinsic quality and geography drive the clustering of coffee markets.

The results demonstrate that geographical proximity facilitates faster transmission of information and market shocks, while chemical and sensory differences create visible separations within networks. In other words, the global coffee market is not just shaped by supply and demand—it is influenced by the interplay of quality, chemistry, taste, and trading location.

Although the study faced limitations, particularly the inability to analyze coffee futures contracts at the variety level due to insufficient data, it still provides valuable insights into the structure of the global coffee trade. By revealing how clusters form and risks spill over, the research helps explain why certain markets are more vulnerable than others during times of stress.

For policymakers, producers, and importers, these findings carry important implications. Monitoring general coffee price indices is no longer sufficient. Instead, stakeholders must consider differences in quality and geographic positioning when evaluating market risks. With global coffee markets under increasing pressure from climate change, supply chain disruptions, and regulatory frameworks such as the European Union’s deforestation regulation, this research offers a timely tool for risk management and strategic planning.

Ultimately, the study underscores how coffee—often seen as just a daily ritual—sits at the center of a complex economic web. Quality and geography act as the hidden levers of price dynamics, and the United States remains at the core of this network, both shaping and being shaped by the flows of risk. What emerges is a portrait of coffee not simply as a commodity, but as a global force whose market behavior reflects the broader challenges of interconnected economies.

Global Coffee Prices Surge as Brazil Faces Weather Woes and US Tariffs

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São Paulo, August 25, 2025 (Qahwa World) – Coffee markets remain under heavy pressure from climate shocks in Brazil and trade tensions with the United States, pushing prices sharply higher in recent weeks, even as a stronger U.S. dollar triggered modest profit-taking on Monday.

Arabica futures in New York had surged to a 3.5-month high earlier in the day but ended lower, with December contracts closing down 0.15% after investors booked profits. September robusta contracts were idle due to a UK holiday. Analysts said the dollar’s strength spurred liquidation, though underlying supply concerns continue to dominate the market.

In Brazil, retail coffee prices that had fallen an average of 12% earlier in August are now expected to reverse course. According to the Brazilian Coffee Industry Association (ABIC), raw coffee prices rose almost 25% between July and August, reaching 2,191 reais ($395) per 60-kilogram bag. Despite this surge, supermarket prices in August averaged 58.99 reais (around $10) per kilogram, still below May’s peak of 70 reais/kg. ABIC’s executive director, Celirio Inacio, warned that if futures remain elevated, higher shelf prices are “inevitable.”

The main external factor driving the rally remains the 50% tariff imposed by the U.S. government on Brazilian goods, including coffee. Brazil normally supplies about one-third of U.S. unroasted coffee imports, and American buyers have already begun canceling contracts. Marcio Ferreira, president of Brazil’s Coffee Exporters Council (Cecafé), called the tariffs “the main driver” of the sharp price increases in New York.

Weather concerns add another layer of pressure. Somar Meteorologia reported that Minas Gerais, Brazil’s largest arabica-producing state, received no rainfall in the week ending August 23. Frost damage earlier in the month has also raised fears of reduced yields. Despite this, Brazil’s 2025/26 harvest is almost complete: Safras & Mercado estimated 99% of the crop had been gathered by August 20, with robusta fully harvested and arabica at 98%. Cooxupé, the country’s largest cooperative, reported its members’ harvest at 86.1% by mid-August.

Exports are slowing dramatically. Brazil’s July shipments of unroasted coffee dropped 20.4% year-on-year to 161,000 metric tons, while Cecafé data showed green coffee exports fell 28% to 2.4 million bags. Arabica exports fell 21%, robusta plunged 49%, and total shipments from January through July were down 21% from last year at 22.2 million bags. Meanwhile, inventories tracked by ICE remain at multi-year lows: arabica stocks hit a 15-month low of 726,661 bags in mid-August, while robusta fell to its lowest in four weeks.

Global dynamics reflect the same strain. The USDA’s Foreign Agriculture Service (FAS) projects world coffee production in 2025/26 will rise 2.5% year-on-year to a record 178.7 million bags, with robusta up nearly 8% but arabica slightly down. Brazil’s production is forecast to rise only 0.5% to 65 million bags, while Vietnam could rebound 6.9% to 31 million bags, its largest in four years. Yet despite the higher output, trading house Volcafe predicts an arabica deficit of 8.5 million bags for 2025/26 — the fifth consecutive year of shortfalls.

Brazil, as the world’s top coffee producer and exporter and the second-largest consumer after the United States, stands at the center of these global shifts. With tariffs restricting trade, exports slowing, inventories tightening, and weather threats mounting, analysts warn that consumers should brace for rising retail coffee prices both domestically and worldwide — even if day-to-day trading sometimes pulls prices lower.

Tokyo’s Avatar Robot Café: A New Dawn for Inclusive Dining

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Tokyo, August 2025 (Qahwa World) – In the heart of Chuo Ward, Tokyo, a café is redefining what it means to dine out. The Avatar Robot Café Dawn ver. Beta employs people who are paralyzed or otherwise unable to leave their homes, giving them the chance to work and connect with society by remotely piloting humanoid robots.

Originally launched as a short-term experiment, the café has now become a permanent space that blends hospitality, technology, and inclusivity. Staffed by over 60 “pilots” operating from their homes across Japan, the café offers a uniquely human experience—through robots.

Dining with Robots, Connecting with People

Customers can choose from three seating tiers, ranging from casual observation to full table service by OriHime robots. These units, developed by OryLab, allow operators to interact with guests, take orders, and even hold conversations.

One such pilot is Koki, a veteran OriHime operator from Mie Prefecture, over 300 kilometers away. Paralyzed since 1991 after a diving accident, Koki once felt isolated and withdrawn. Today, through OriHime, he provides warm table service, shares stories, and even entertains guests with impromptu singing.

Koki explains how this work has changed his life: “Before, I was always thanking others for helping me, but I was rarely thanked myself. At the Avatar Café, I hear people say ‘thank you’ to me. That makes me happy.”

Human Interaction in a Robotic World

Unlike typical restaurants where robots simply deliver plates, Dawn’s robots are human-driven, giving them personality and humor. Guests witness lively exchanges between robot staff, occasional clumsy moments like dropping cups, and heartfelt conversations that make the dining experience feel deeply personal.

Beyond wait service, the café also features a Nextage Tele-Barista robot, which brews coffee through a French press under the control of a remote operator. Customers can choose from three coffee beans and watch as the robot prepares their drinks with precision—and occasional endearing mistakes.

A Vision of Accessibility

The café is the brainchild of Ory Yoshifuji, inventor of the OriHime robot, who created the system to combat loneliness and provide opportunities for people with disabilities. The project has grown into a platform for empowerment, allowing individuals like Koki to not only serve customers but also lecture at universities, carry the Olympic torch, and even assist Japan’s Prime Minister at global events.

Mariko Ohanabatake, a visitor who experienced Dawn firsthand, described it as “a place where robots connect people, not just serve them. It felt like the future.”

Café Details

Avatar Robot Café Dawn ver. Beta (分身ロボットカフェ DAWN ver.β)
📍 Nihonbashi Lifescience Building 3 (1F), Chuo-ku, Tokyo
⏰ Hours: 11:00 a.m. – 7:00 p.m. (Closed Thursdays unless public holiday)
🌐 Website: DAWN Avatar Robot Café

Living Legacy: Yemen’s Coffee Farmers Shine in Best of Yemen 2025

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Dubai / Sana’a – August 2025 (Qahwa World) – The mountains of Yemen have spoken once again. The Best of Yemen 2025 auction has revealed its winners: 33 rare coffees, each carrying the taste of history and the strength of survival. This year’s theme, Living Legacy, honors the people, practices, and places that have kept Yemeni coffee alive for more than five centuries.

At the summit stands Yahya Al Faqeeh, a farmer from Al Jidan in Hayma Kharijiya. His Yemenia natural, just 37 pounds in total, scored 90.45 points—the highest of the competition. In his cup: jasmine, yellow lily, peach, macerated strawberry, blueberry gummies, and green apple. Behind it is a family tradition stretching back three centuries, with women at the heart of harvest and terraces carved into stone that have endured drought, pests, and time itself.

He is joined by other remarkable producers: Maghrib Ans XV (90.29), a Kent variety shaped through Qima’s Alchemy fermentation; Hejrat Al Ain Women Farmers XV (90.16), a women-led lot grown at 2,300m; and Bait Yaseen XI (90.16), a community coffee that blends history with floral vibrancy.

This year, women played a defining role. Fourteen of the winning lots—42 percent—came from women farmers, either through individual entries or collective groups. From Hejrat Al Ain to Al Mezab, their stories echo sacrifice and determination: planting seedlings instead of qat, selling gold to buy new trees, and working from dawn to dusk so their children inherit both terraces and tradition.

The auction also highlighted Yemen’s unique balance of tradition and innovation. Natural processes preserved terroir at its purest, Alchemy lots introduced layers of clarity and sweetness, and Carbonic Honey, represented by Bani Zaidan, added rare vibrancy while conserving water.

From 12 highland villages, perched between 1,800 and 2,300 metres, these coffees are more than agricultural products—they are monuments of endurance. Each terrace tells a story of families who, against scarcity and isolation, continue to farm the world’s most legendary coffee.

On 18 September 2025, buyers worldwide will compete for these treasures at the seventh edition of the Best of Yemen auction, held in collaboration with the Alliance for Coffee Excellence. For them, it will be a chance to secure rare coffees of unmatched flavour. For Yemen, it is another chapter in a legacy written across mountains, families, and centuries.

Because Yemeni coffee is not just grown. It is lived.

Keurig Dr Pepper to Acquire JDE Peet’s and Separate into Two Independent Global Leaders

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Dubai, August 25, 2025 (Qahwa World) – Keurig Dr Pepper (NASDAQ: KDP) and JDE Peet’s (EURONEXT: JDEP) have announced a landmark agreement under which KDP will acquire JDE Peet’s in an all-cash transaction valued at €15.7 billion, followed by a strategic separation into two publicly traded companies: “Global Coffee Co.” as the world’s largest pure-play coffee business, and “Beverage Co.” as a major North American refreshment beverage challenger. Under the agreement, JDE Peet’s shareholders will receive €31.85 per share in cash, representing a 33% premium over the company’s 90-day average share price. The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals.

Following the separation, Global Coffee Co. will become the world’s leading coffee company with approximately $16 billion in annual revenue and operations across more than 100 countries. The new entity will combine KDP’s single-serve leadership in North America with JDE Peet’s global portfolio of iconic brands, including Jacobs, Peet’s, Douwe Egberts, L’OR, Moccona, and OldTown. With leading positions in 40 markets worldwide, the company is expected to generate around $400 million in cost synergies within three years, supported by strong cash generation, consistent earnings growth, and a compelling dividend framework.

“This announcement marks a transformational moment in the beverage industry as we create two winning companies, including a new global coffee champion,” said Tim Cofer, CEO of Keurig Dr Pepper. “The complementary combination of Keurig and JDE Peet’s gives us an exceptional opportunity to build a global coffee giant. This is the right time for this transaction, with KDP in a position of operational and financial strength and with momentum across our evolving portfolio.”

Beverage Co., based in Frisco, Texas, will operate with annual revenues exceeding $11 billion, focusing on the $300 billion North American refreshment market. Its portfolio will include iconic brands such as Dr Pepper®, Canada Dry®, 7UP®, and A&W®, alongside rapid expansion into high-growth segments such as energy drinks, functional beverages, and ready-to-drink alcohol alternatives. The company will also leverage its strong Direct-Store-Delivery system across the U.S. and Mexico, supported by a proven capital-efficient growth model.

Upon separation, Tim Cofer will serve as CEO of Beverage Co., while Sudhanshu Priyadarshi will lead Global Coffee Co. as CEO. Rafa Oliveira will continue as CEO of JDE Peet’s until the transaction closes. Global Coffee Co. will be headquartered in Burlington, Massachusetts, with its international base in Amsterdam, the Netherlands.

The acquisition, unanimously approved by JDE Peet’s Board of Directors, will be financed through a combination of new debt and existing cash resources, with full underwriting secured by affiliates of Morgan Stanley and Mitsubishi UFJ Financial Group. Closing of the transaction is anticipated in early to mid-2026, followed shortly by the spin-off of Global Coffee Co. as a tax-free distribution to KDP shareholders.

Burgerizzr Enters the Café Sector with 60% Acquisition of “Shuffle”

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Dubai, August 25, 2025 (Qahwa World) – Burgerizzr, the Saudi-based fast-food chain, announced the signing of an agreement to acquire 60% of Coffee Bean Trading Company, the owner of the café brand “Shuffle.”

In a statement released on Tadawul Saudi Exchange on Sunday, Burgerizzr explained that this strategic acquisition is part of its growth plan to expand into the café sector and strengthen its position in the wider food and beverage market. The company emphasized that the deal will enhance long-term value for its shareholders.

Coffee Bean Trading Company, which owns the “Shuffle” brand, currently operates seven branches and aims to expand further, building a strong presence in the café segment.

Burgerizzr confirmed that the acquisition will be financed through its own resources, subject to the fulfillment of contractual conditions and regulatory approvals in Saudi Arabia. The company also highlighted that it will disclose any material developments in due course and clarified that there are no related parties involved in this deal.

Earlier this month, on August 5, the Saudi Capital Market Authority approved Burgerizzr’s request to increase its capital by 60% through the issuance of bonus shares. According to the company’s statement on Tadawul, the capital increase will be executed by capitalizing SAR 21 million from retained earnings through the issuance of 21 million new shares. Each shareholder will receive three bonus shares for every five shares held.

As a result, the company’s capital will rise from SAR 35 million to SAR 56 million, distributed across 56 million shares. Burgerizzr noted that the entitlement of bonus shares will be granted to shareholders registered with the Securities Depository Center (Edaa) by the end of the second trading day following the extraordinary general assembly meeting, the date of which will be announced later.

The Capital Market Authority stipulated that the extraordinary general assembly meeting must be held within six months from the date of approval of the capital increase, with Burgerizzr required to complete all related regulatory procedures.

Around the Block Turns Pink for Emirati Women’s Day with Limited-Edition Creations

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Dubai, August 2025 (Qahwa World) – To mark Emirati Women’s Day on August 28, Around the Block, the homegrown café brand celebrated for its specialty coffee and vibrant brunch culture, is offering a playful pink twist on its menu. For one day only, guests can enjoy the new Strawberry Freddo Matcha—a refreshing blend of earthy matcha and fresh strawberry, served in a striking shade of pink for AED 38.

In addition, each order will come with a complimentary Horlicks softy, a nostalgic treat designed to evoke childhood memories while connecting generations. The pairing reflects the café’s tribute to Emirati women, honouring both tradition and the dynamic spirit of the future.

The limited-edition creations will be available exclusively on August 28 across all Around the Block locations in Dubai: Al Khawaneej, Al Wasl51, and Nad Al Sheba.

“With bold colours and uplifting flavours, this special release is our way of celebrating the resilience, creativity, and spirit of women across the UAE,” the brand noted in its announcement.

Founded in Dubai, Around the Block has built a loyal following for its specialty coffee and globally inspired breakfast menu, positioning itself as a hub for early risers, creatives, and local communities. Its venues combine thoughtful design with a sense of warmth, reinforcing its reputation as one of the pioneers of Dubai’s third-wave coffee movement.

Simonelli Group Showcases Innovation at Fine Food Australia 2025

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Dubai, 20 August 2025 (Qahwa World) – Simonelli Group has announced its participation at Fine Food Australia 2025, the country’s leading trade event for the foodservice and hospitality industry, taking place from September 8 to 11 at ICC Sydney. Visitors will find the group at Booth A40, where it will present a range of cutting-edge technologies from its two leading brands, Nuova Simonelli and Victoria Arduino.

Nuova Simonelli will present the NUOVA Aurelia, an advanced professional espresso machine featuring E-Milk and C-Automation technologies. E-Milk technology enables automatic frothing with up to nine customizable recipes at the push of a button, ensuring consistency in milk-based beverages. C-Automation, powered by artificial intelligence, connects the Aurelia machine with the GX grinder, analyzing coffee flow and automatically adjusting grind settings. This integration improves workflow speed by up to 20%, reduces training costs, minimizes human error, and cuts waste during recipe setup.

Victoria Arduino will highlight its Black Eagle Maverick espresso machine, designed for both high performance and sustainability. Equipped with T3 Genius, PBtech, Gravitech, and Advanced Steam-by-Wire technologies, the Maverick allows precise control over temperature, infusion, and steam. Alongside it, the Mythos grinder, engineered specifically for the specialty coffee sector, will be featured with its Clima Pro, Gravitech, and HighSpeed technologies, ensuring efficient grinding and consistent quality.

Also on display will be the Eagle One, a contemporary espresso machine combining sleek design with NEO (New Engine Optimization) technology for energy efficiency and exceptional performance. The Eagle Tempo, designed for cafés, restaurants, roasters, pastry shops, and chains, will also be introduced. With high production capacity, NEO technology, and a unique design, Eagle Tempo aims to deliver excellent results while reducing energy use and waste.

At Fine Food Australia 2025, Simonelli Group will not only present its latest professional equipment but also offer visitors the opportunity to experience the future of coffee preparation through tastings, demonstrations, and live interactions with baristas and experts. With its commitment to innovation, sustainability, and workflow efficiency, the company aims to set new standards for the global coffee and hospitality industry.

Coca-Cola Weighs Future of Costa Coffee Amid Strategic Review

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Dubai, 24 August 2025 (Qahwa World) – The Coca-Cola Company is considering a possible sale of Costa Coffee, the British café chain it acquired in 2018, in what could become one of the most significant moves in the global coffee sector this year. According to reports confirmed by individuals familiar with the discussions, the U.S. beverage giant has hired investment bank Lazard to explore strategic options for Costa, ranging from a complete divestment to other restructuring paths. Early conversations have reportedly taken place with a limited number of potential bidders, including private equity firms, with indicative offers expected later this autumn.

The development marks a dramatic turn for Coca-Cola, which purchased Costa Coffee for more than $5 billion only seven years ago. At the time, the acquisition was presented as a bold entry into the booming global coffee market, positioning Coca-Cola to compete directly with established players such as Starbucks and Nestlé. With over 4,000 stores worldwide, including more than 2,700 outlets in the United Kingdom and Ireland, Costa provided the Atlanta-based company with an immediate international footprint in coffee retail, a sector where it had previously lacked presence.

Yet the performance of Costa under Coca-Cola’s ownership has fallen short of expectations. While revenues have grown modestly, the chain has struggled with profitability in the face of rising costs, increased competition, and shifting consumer behavior. In 2023, Costa’s revenues climbed by 9 percent to nearly £1.22 billion, but the company recorded a pre-tax loss of £9.6 million. The figure represented a sharp contrast with the £245.9 million profit reported just one year earlier, underscoring the financial pressure weighing on the brand.

Several factors appear to have contributed to Costa’s difficulties. Inflation has raised the cost of raw coffee beans and other inputs, while the high-street café market in the United Kingdom has grown more crowded with independent operators and international rivals. Additionally, some smaller branches in towns such as Andover and Lyme Regis have recently closed, fueling concerns that the chain has been unable to maintain momentum outside its core metropolitan strongholds.

The possibility of a sale, first reported by Sky News and later confirmed by other outlets, has already sparked debate over how much Costa is worth in the current environment. Industry analysts have suggested that the chain could fetch as little as £2 billion—less than half of what Coca-Cola paid in 2018. Such a valuation would reflect the challenges the brand faces as well as the cautious outlook of investors weighing long-term demand trends.

Coca-Cola executives have acknowledged the need to reassess the company’s position in the coffee category. In an earnings call last month, Chief Executive James Quincey stated that Costa had not delivered on the original investment hypothesis, noting that the company was now reflecting on lessons learned and exploring new avenues for growth in coffee. At the same time, he emphasized that Costa continues to operate successfully day to day, suggesting that any decision would be carefully measured rather than abrupt.

The discussions around Costa also fit into a broader wave of corporate restructuring across the global food and beverage industry. With inflation altering cost structures and consumers increasingly prioritizing health, sustainability, and transparency, large companies are rethinking their portfolios to adapt. Coca-Cola has already made moves in this direction, most recently announcing a shift to real cane sugar in its U.S. beverages as part of a campaign to respond to rising health awareness.

Should a sale move forward, it would reshape the global coffee landscape. Costa, with operations spanning more than 50 countries, represents one of the few brands capable of challenging Starbucks on a multi-regional scale. A new owner could seek to revitalize the brand with fresh investment and focus, while Coca-Cola would gain flexibility to redirect resources toward other categories. On the other hand, if bids fall short of expectations, the company may choose to retain Costa and pursue an internal restructuring to restore profitability.

For now, the process remains in early stages, and no definitive outcome has been decided. What is clear, however, is that Coca-Cola’s venture into the café business—once considered a cornerstone of its diversification strategy—is under critical review. Whether Costa changes hands or undergoes a major transformation within the Coca-Cola system, the decision will send ripples through both the corporate boardrooms and coffee shops that make up an increasingly competitive global market.

Does a Cup of Coffee Weaken Your Treatment? Study Reveals a Surprise About Caffeine

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Dubai, 25 August 2025 (Qahwa World) – Coffee has long been celebrated as a daily ritual for millions, a comforting beverage that fuels mornings and punctuates workdays. Yet new scientific findings are shedding light on a potential downside that coffee drinkers might not expect: its ability to interfere with the effectiveness of certain antibiotics. According to a groundbreaking study recently published in the journal PLOS Biology, caffeine can alter how bacteria respond to some widely used antibiotics, raising concerns about the hidden influence of everyday dietary habits on medical treatments.

The study was conducted by an international team of researchers who set out to better understand how chemical substances affect the ability of bacteria to regulate what moves in and out of their cells. The focus was on Escherichia coli (E. coli), a bacterium commonly found in the human gut but also responsible for a range of infections from urinary tract infections to bloodstream infections. The scientists tested ninety-four different chemical substances and tracked their impact on bacterial transport systems, which function like cellular gates. Around a third of these substances were shown to disrupt genetic activity linked to transport, but one stood out more than any other: caffeine. When caffeine was introduced, E. coli absorbed noticeably lower amounts of certain antibiotics, most notably ciprofloxacin and amoxicillin, two drugs frequently prescribed around the world.

The mechanism behind this surprising effect turned out to be more complex than a simple blockage. At the center of the process was a regulatory protein called Rob, which the researchers discovered played a far larger role in bacterial survival than previously understood. Rob controlled about a third of all the transcriptional changes triggered by the different chemicals in the study. When caffeine entered the system, it activated Rob, which in turn stimulated the expression of a small RNA molecule known as MicF. This RNA molecule suppressed the production of OmpF, a porin protein in the outer membrane of E. coli. OmpF normally acts as an open gate, allowing substances, including antibiotics, to flow into the bacterial cell. By shutting down OmpF production, the bacteria effectively reduced the uptake of antibiotics, leaving the drugs less effective.

Researchers confirmed this effect through checkerboard assays, a method of testing drug interactions that involves exposing bacteria to different concentrations of antibiotics in the presence of caffeine. The results showed that the bacteria required higher doses of antibiotics to achieve the same level of inhibition once caffeine was present. This is a classic example of what scientists call low-level antibiotic resistance. It is not the dramatic, full-scale resistance that has become a global health crisis, where bacteria acquire mutations that allow them to permanently survive treatment. Instead, it is a subtler, temporary effect triggered by environmental changes and chemical exposures. These adaptations may not fully defeat antibiotics, but they can weaken their effectiveness and complicate treatment strategies.

Importantly, the weakening effect of caffeine was not observed in all bacteria. When the same experiments were carried out on Salmonella enterica, a pathogen closely related to E. coli, caffeine showed no influence on antibiotic absorption. This suggests that the response is species-specific and highlights how much remains unknown about the interaction between bacteria, antibiotics, and common dietary substances.

The authors of the study caution that these results were obtained under controlled laboratory conditions. At this stage, it is not possible to say how much coffee a person would need to drink to cause noticeable effects while taking antibiotics, or whether these findings translate directly to human patients. However, the researchers argue that the implications are serious enough to warrant further investigation. Even small shifts in antibiotic uptake could make infections harder to treat, particularly at a time when the medical community is racing to address the growing threat of antibiotic resistance worldwide.

Coffee has already been linked in past research to the way the body metabolizes certain medications, including drugs for high blood pressure and depression. The new findings extend this conversation to antibiotics, suggesting that caffeine’s influence reaches beyond human metabolism and into the bacterial world itself. As microbiologist Christoph Binsfeld of the University of Würzburg noted, substances like caffeine can “subtly but systematically” influence bacterial gene regulation, and mapping these mechanisms will be crucial for ensuring that antibiotics remain effective tools in modern medicine.

For coffee lovers, the message is not one of alarm but of awareness. More research will be needed to determine whether drinking coffee while on antibiotics has real-world clinical consequences. Until then, the study serves as a reminder that the foods and drinks we consume can interact with medical treatments in unexpected ways. With antibiotic resistance already recognized by the World Health Organization as one of the most pressing threats to global health, even small lifestyle factors deserve careful attention. The simple act of sipping coffee may seem harmless, but as this study reveals, it could be part of a much more complex story of how microbes adapt, survive, and challenge the medicines designed to fight them.