Category: News

Dubai, August 7, 2025 – (Qahwa World) – U.S. network CNN has reported that China is seizing the opportunity to promote what it called “beloved Brazilian coffee” following the imposition of new tariffs by former U.S. President Donald Trump.

According to CNN, as the new tariffs imposed by Trump on Brazilian goods come into effect, China has swiftly moved to deepen its ties with the world’s largest coffee producer, capitalizing on escalating trade tensions to expand Brazilian coffee’s access to its domestic market.

The 50% tariffs, which took effect on Wednesday, target a wide range of Brazilian products, including coffee. China has viewed this as a chance to strengthen its partnership with Brazil in this vital sector.

The Chinese embassy in Brasília recently announced the arrival of new Chinese companies in the Brazilian market, including food delivery giant Meituan. In a post, the embassy stated: “The bridge is bidirectional—Brazil is also reinforcing its presence in China with its beloved Brazilian coffee.”

A few days earlier, the embassy revealed that China had granted five-year export permits to 183 Brazilian coffee companies. In another message, it noted the growing popularity of coffee in China, stating that the beverage “is becoming part of everyday life for the Chinese people.”

Despite the United States remaining the world’s largest coffee importer—buying 30.7% of its total 1.5 million metric tons of imports from Brazil in 2024—China’s recent moves may reshape the global coffee trade landscape.

Rising Tensions Between Washington and Brasília

These developments come amid rising tensions between the United States and Brazil. Brazilian President Luiz Inácio Lula da Silva criticized the U.S. decisions, saying, “Trump was not elected to be emperor of the world.”

While the U.S. enjoys a trade surplus with Brazil, the White House justified the tariff hike on political grounds. A recent executive order signed by Trump accused the Brazilian government of committing “serious human rights abuses,” referring to the trial of former President Jair Bolsonaro over his alleged attempt to orchestrate a coup against President Lula. Bolsonaro, a close ally of Trump, denies the accusations.

In a controversial move, Trump sent a letter to Brazilian authorities demanding the immediate suspension of Bolsonaro’s trial, describing it as a “political witch hunt.” Lula responded by affirming the independence of Brazil’s judiciary, stating, “The president does not interfere with the judiciary. Bolsonaro is not being judged personally, but for the acts he carried out in attempting a coup d’état.”

China Steps In

Amid these tensions, Brazil may find itself turning to alternative international partners. On Wednesday, Chinese Foreign Ministry spokesman Guo Jiakun stated that cooperation between Beijing and Brasília “has benefited both peoples,” and expressed China’s willingness to enhance relations with Brazil “across various sectors and add new strategic dimensions.”

So far, the Brazilian government has not issued an official response to the new U.S. tariffs. However, President Lula da Silva stressed that Brazil must be treated “as an equal partner” in any future trade negotiations, warning that “there is a limit to dialogue” with the Trump administration.

Dubai, August 5, 2025 – (Qahwa World) – Starbucks is bracing for rising costs as the U.S. imposes a 50% tariff on Brazilian coffee imports starting August 6. As Brazil remains the largest coffee supplier to the U.S., the new tariff could significantly impact Starbucks’ supply chain—especially for its ready-to-drink beverages and packaged beans.

According to TD Cowen analyst Andrew Charles, these increased costs could raise annual expenses in Starbucks’ packaged division by 3.5%, leading to a projected $0.02 dip in earnings per share.

The timing couldn’t be worse. Starbucks’ operating margin dropped to 13.3% in the latest quarter, down from 21% a year earlier. Meanwhile, U.S. same-store sales have declined for six consecutive quarters. Though quarterly revenue rose 4% year-over-year to $9.5 billion—beating Wall Street’s estimate of $9.3 billion—adjusted earnings per share came in at $0.50, falling short of the expected $0.65.

Starbucks stock has declined slightly since the earnings release. As of now, shares are down 1% year-to-date, compared to the S&P 500’s 8% gain.

Despite these challenges, Starbucks CEO Brian Niccol stated that prices will remain unchanged through fiscal 2025. However, he left the door open to future increases:
“We’ll be smart about how we go about increasing any of those prices,” Niccol said in an interview with Yahoo Finance’s Opening Bid.

Other major players like Keurig Dr Pepper and J.M. Smucker have already raised prices in response to rising coffee costs. Starbucks may soon have no choice but to follow, especially as it faces stiff competition from fast-growing rivals like Luckin Coffee.

Michael Gunther, head of research at Consumer Edge, warned that Starbucks risks alienating younger customers if prices rise. The 18–34-year-old demographic, which is highly price-sensitive, has already shown signs of shifting loyalty.

To reduce dependence on Brazil, Starbucks has been diversifying its sourcing and investing more in Central American coffee farms—a strategy it began implementing last year. A company spokesperson confirmed that Starbucks currently sources arabica coffee from 30 countries. Still, TD Cowen estimates that Brazilian beans account for 22% of its coffee costs in North America.

Bernstein analyst Danilo Gargiulo projected that the broader U.S. coffee market could see a 15%–20% retail price hike as a result of the tariffs. However, Starbucks’ hedging strategies may help offset some of the impact by locking in coffee prices in advance.

The industry is already pivoting to alternative sources such as Vietnam and Colombia. But Duane Stanford, editor at Beverage Digest, noted that shifting supply chains is not easy:
“There is zero doubt that they [Starbucks] are working hard to figure out how much supply they can shift, but it’s a challenging task,” he said.

Complicating matters further is policy uncertainty. While Vietnam faces lower tariffs than Brazil, it’s unclear how long any of these duties will remain in place.
“The company has to decide how much effort to put into these alternatives without knowing whether the tariffs will remain in place,” Stanford added.

With tariffs looming and costs climbing, Starbucks’ ability to balance margins, maintain pricing, and retain younger customers will be critical in the months ahead.

Dubai, August 4, 2025 – (Qahwa World) – In a move that brings specialty coffee to new heights, Peet’s Coffee has entered into a strategic collaboration with a major U.S. airline, ensuring its signature brew will now be served on all flights operated by Southwest Airlines.

This development marks the first time Peet’s has partnered with a national carrier of this scale. With Southwest’s fleet of over 800 aircraft connecting more than 100 destinations across the U.S., Puerto Rico, Mexico, and the Caribbean, the partnership significantly expands Peet’s in-flight presence.

Peet’s Coffee President and CEO, Eric Lauterbach, expressed enthusiasm about the collaboration, highlighting its potential to create meaningful moments for travelers. “This partnership isn’t just about scale—it’s about sharing the Peet’s experience with millions of people at 30,000 feet.”

The partnership extends beyond the cabin. Peet’s coffee is already available in 25 airports frequented by Southwest passengers, including major hubs like Denver, Houston, and Phoenix.

For Southwest Airlines, the move aligns with ongoing efforts to elevate the in-flight experience. Tony Roach, Executive Vice President of Customer & Brand, emphasized that thoughtful touches like quality coffee contribute to passenger comfort and satisfaction. “We’re committed to enhancing every stage of the journey, and a well-crafted cup of coffee is a key part of that promise.”

Starting August 13, passengers will be able to enjoy the “Off the Grid” blend on board—a medium roast featuring carefully sourced beans from Colombia and El Salvador.

This partnership symbolizes a growing trend in the airline industry to bring artisanal food and beverage offerings to travelers seeking more personalized experiences in the skies.

Dubai – 4 August 2025 (Qahwa World) – A cappuccino might be a simple pleasure, but in some cities, it comes at a luxury price. According to Deutsche Bank’s 2025 “Mapping the World’s Prices” report, the cost of this popular coffee drink varies dramatically across the globe.

Based on average cappuccino prices sourced from Numbeo and converted into US dollars, the report shows that Zurich and Copenhagen are tied for the highest average price: $6.77 per cup. In contrast, coffee lovers in Cairo or Rome can enjoy their favorite brew for less than $2.

Top 10 Most Expensive Cities for a Cappuccino in 2025:

1. Zurich, Switzerland – $6.77

2. Copenhagen, Denmark – $6.77

3. New York, USA – $5.95

4. Abu Dhabi, UAE – $5.84

5. Edinburgh, United Kingdom – $5.28

6. Helsinki, Finland – $5.13

7. Stockholm, Sweden – $5.10

8. Hong Kong – $5.09

9. Doha, Qatar – $5.08

10. Vienna, Austria – $4.96

These high prices are often linked to the cost of living, labor, taxes, and even café culture. In Zurich and Copenhagen, for instance, strong wages and expensive rents contribute to the premium. In Abu Dhabi, upscale coffee shops and luxury offerings—including gold-infused drinks—play a role.

Cities Where Cappuccinos Are Surprisingly Affordable

On the other side of the spectrum, Cairo, Egypt offers the world’s most budget-friendly cappuccino at just $1.57. Rome, Italy, known for its deep-rooted espresso culture, follows with an average price of $1.79. Other wallet-friendly cities include:

• Delhi, India – $2.07

• Milan, Italy – $2.15

• Mumbai, India – $2.58

Lower coffee prices in these cities are often a result of local sourcing, lower operational costs, and a cultural emphasis on accessibility.

Why Prices Differ Around the World

The variation in cappuccino prices comes down to several factors:

• Cost of living – Higher wages and living standards increase café operating expenses.

• Real estate and rent – Coffee shops in major cities pay premium rents, especially in tourist districts.

• Taxes and imports – In cities that rely on imported coffee or dairy, prices rise accordingly.

• Café type – Chain coffee shops or cafés in high-end neighborhoods often charge more than local favorites.

Smart Tips for Coffee Drinkers

If you’re traveling and want to enjoy good coffee without overspending:

• Try locally owned cafés instead of tourist-oriented ones.

• If you’re in a high-cost city like Zurich, brew at home when possible.

• Use apps like Numbeo to check average local prices.

• Consider traveling to affordable coffee cities like Rome or Cairo, where the experience is rich but the cost is not.

As global café culture continues to evolve, the price of a cappuccino remains a telling indicator of a city’s economy—and its relationship with coffee.

Beijing – August 3, 2025 (Qahwa World) – China has approved 183 new Brazilian companies to export coffee to its markets, in a move widely seen as a strategic shift in the global trade map—especially as it follows the United States’ recent announcement of a 50% tariff on Brazilian coffee and several other imports, effective August 6.

The Chinese decision, announced by the Chinese Embassy in Brazil, came into effect on July 30 and grants the new export licenses a validity of five years—a valuable opportunity for Brazilian exporters impacted by the recent U.S. trade policy.

The United States is the largest importer of Brazilian coffee, purchasing around 8 million 60-kg bags annually, representing roughly one-third of U.S. coffee consumption, with a total value of nearly $4.4 billion in the 12 months ending June 2025.

However, the new U.S. tariffs have pushed Brazil—the world’s top coffee producer—to seek alternative markets. China stepped in swiftly, seizing the geopolitical moment to enhance its role as a major importer of agricultural commodities and diversify its sources, especially in the rapidly growing domestic coffee sector.

In June alone, Brazil exported approximately 440,034 bags to the U.S., compared to only 56,000 bags to China, according to data from the Brazilian Coffee Exporters Council (Cecafé). This significant gap underscores the potential for China to expand its imports and strengthen its domestic coffee culture.

According to experts, the impact of this move goes beyond the bilateral ties between Beijing and Brasília. It reflects a new global reality marked by the restructuring of supply chains amid rising trade tensions.

For Brazil, diversifying export markets is no longer optional—it is an economic necessity. China, in particular, is showing growing interest in specialty coffee, fueled by the rise of coffee culture among young people in major cities such as Beijing, Shanghai, and Guangzhou.

Companies like Starbucks China and Luckin Coffee are fueling this demand, presenting a major opportunity for Brazilian farmers and exporters—especially those engaged in sustainable production chains and offering traceable, high-quality crops.

The five-year validity of the new export licenses offers Brazilian farmers and traders a measure of stability amid market fluctuations. It also enhances their ability to plan upcoming harvests and redirect investments to meet Chinese market demands.

The Chinese decision may ease the shock of the U.S. tariffs and could mark the beginning of a fundamental shift in the global coffee trade, with the potential for large volumes of Brazilian coffee to head east instead of west.

This move is far from being a mere bureaucratic adjustment—it is a clear signal that China is emerging as a major player in the global coffee market, especially amid growing protectionist policies in the West.

While many still question China’s capacity to absorb such large volumes of Brazilian coffee, industry experts believe the future may be Asian—driven by the rise of China’s middle class and a consumer taste increasingly leaning toward specialty coffee.

Wesley Chapel – August 3, 2025 (Qahwa World) – Coffee enthusiasts in Wesley Chapel can look forward to a new and culturally rich café experience with the upcoming opening of Haraz Coffee House at 1722 Bruce B. Downs Blvd., in the Shoppes at New Tampa plaza, next to Fine Ink Studios. A sign at the location reads “Brewing Soon,” sparking curiosity and anticipation among locals.

Founded in Detroit in 2021 by Hamzah Nasser, Haraz Coffee is rooted in a mission to share Yemen’s legendary coffee heritage with the world. The brand prides itself on sourcing premium Yemeni beans and preserving traditional coffee-making methods to offer what it describes as “bold, authentic flavors of Yemen in every cup.”

Since its launch, the chain has rapidly expanded to 31 locations across 13 U.S. states, with 185 additional outlets reportedly in development. The Wesley Chapel location will become Florida’s second, following an existing branch in Orlando.

The Haraz menu features a diverse selection of coffee and beverages that reflect both international and Middle Eastern tastes. Options range from classic espresso drinks such as lattes and cappuccinos to traditional preparations like Turkish and Saudi coffee. Unique offerings include spiced drinks infused with cardamom, ginger, or saffron, alongside non-coffee items like matcha, green tea, and hot chocolate.

Guests can also indulge in house-made desserts such as milk cakes, cheesecake, and cinnamon rolls. Additionally, Haraz sells branded merchandise, coffeemakers, and bulk coffee, catering to both casual drinkers and at-home brewers.

While the official opening date for the Wesley Chapel location remains unconfirmed, local anticipation is high. A representative from the Orlando branch confirmed that the new shop is managed by a separate franchisee and could not provide further details on the launch timeline.

For updates, follow local news or visit HarazCoffeeHouse.com.

Coffee prices in Russia are expected to rise in 2026 — anywhere from 5% to 40%, depending on global market developments. Economist Lyuza Baiguzina attributes this projected increase to extreme weather conditions in producing countries, rising inflation, and shifting consumer demand.

Moscow – August 2, 2025 (Qahwa World) – Russian consumers should brace for another spike in coffee prices in 2026, warns Lyuza Baiguzina, Candidate of Economic Sciences and Associate Professor at IMES, in an interview with Gazeta.Ru. According to her, even in the most optimistic case, a price increase is inevitable.

Baiguzina points to several contributing factors:

• Drought and extreme weather in key producing countries like Brazil and Vietnam,

• Global inflation, increasing production and transportation costs,

• Changing consumption patterns, with coffee becoming more of a lifestyle product.

Forecasted Scenarios for 2026:

• Optimistic (5–10%) – if weather conditions stabilize and supply chains normalize.

• Moderate (10–20%) – if current negative trends persist without worsening.

• Pessimistic (20–40% or more) – if droughts, inflation, and disruptions continue or intensify.

According to the analytics platform Kontur.Market, coffee prices in Russian stores already rose by 27% over the past year, with a 150g package now averaging 379 rubles. Despite this, demand increased by 4%, showing strong consumer attachment to coffee.

Earlier in 2025, reports indicated that Arabica coffee could rise by another 40% by year-end, due to a weakening ruble, logistical delays, and droughts in Brazil — the world’s largest coffee exporter.

In mid-September 2024, global coffee prices reached a 13-year high, exceeding $2.68 per pound ($5.9 per kilogram). The spike was caused by extreme heat and low rainfall in Brazil, damaging harvests and tightening global supply.

What Lies Ahead for Russia’s Coffee Market?

Experts agree that weather conditions in producing countries will continue to play a decisive role. However, another rising factor is cultural: more Russians are viewing coffee not just as a beverage, but as a lifestyle symbol — potentially increasing long-term demand.

Meanwhile, despite global uncertainties, Indonesian coffee exports to Russia surged nearly tenfold between January and May 2025, totaling $33.4 million in trade value — indicating growing diversification in sourcing.