Category: News

Bangkok – August 1, 2025 (Qahwa World) – Café Amazon, owned by Thailand’s PTT Oil and Retail Business (OR), reported record-breaking sales of 107 million cups of coffee in the second quarter of 2025. The surge in sales was supported by the addition of 40 new outlets across its expanding network.

However, the company is facing growing margin pressures. According to CGS International Equities, the non-oil EBITDA margin is projected to decline to approximately 28%, down from 29.9% in the previous quarter. The dip is attributed to rising selling and marketing expenses.

As one of Thailand’s most recognizable coffee chains, Café Amazon operates on a convenience-driven model, with locations spread across petrol stations, shopping malls, and transit hubs. The chain plays a critical role in OR’s non-oil growth strategy. With over 4,500 stores in 11 countries, CGS International estimates that a 1% increase in the number of Café Amazon outlets could boost full-year EBITDA by 3.4%.

In Cambodia, Café Amazon added five new stores in Q2, maintaining expansion momentum despite early signs of operational challenges. While petroleum sales slightly declined due to seasonal effects, the company continues to push growth across its non-oil business units. However, rising logistical costs and softening consumer sentiment may weigh on Q3 performance.

In 2024, OR had set a target to open 300 new Café Amazon locations annually. According to Amornrat Cheevavichawalkul, Executive Vice President of Research at CGS International Securities (Thailand), most of these openings are planned for domestic markets, which deliver stronger margins compared to international operations.

Nevertheless, the brand opened only 47 new outlets in Q1 2025, falling short of its annual pace.

While Café Amazon remains a key pillar of OR’s diversification strategy, analysts caution that its promotional activities may pose downside risks. CGS estimates that a 10% price cut on coffee products could reduce full-year 2025 earnings by 6.7%.

Looking ahead, OR is also exploring new non-oil business opportunities to replace its now-defunct Texas Chicken operations, which closed last year.

Brasília / São Paulo – August 1, 2025 (Qahwa World) – The Brazilian government is urging the United States to exempt coffee from the newly imposed tariffs announced by the administration of President Donald Trump, which now affect several key Brazilian exports, including coffee and beef.

In a televised interview, Brazil’s Vice President Geraldo Alckmin said that the new 50% tariff on coffee exports would hurt both countries, emphasizing that the U.S. does not produce coffee and that the cost will ultimately be borne by American consumers.

“We will work to convince the U.S. to reduce the tariff on coffee,” Alckmin said during an appearance on TV Globo’s Mais Você morning show. “This is a lose-lose scenario.”

Official estimates show that 35.9% of Brazil’s exports to the U.S. by value are now subject to the new 50% tariff. Another 44.6% of exports remain under the pre-existing 10% tariff, while 19.5% are affected by global U.S. import tariffs ranging from 25% to 50%.

The U.S. administration claims the tariff decision is a response to what Trump has called a “witch hunt” targeting former Brazilian President Jair Bolsonaro, who is currently on trial for allegedly plotting a coup after losing the 2022 election. While some sectors like aviation, energy, and orange juice were spared from the sharp increases, coffee was not exempted.

In response, the Brazilian government is preparing an economic contingency plan to support affected industries. The plan will include financial aid, credit facilities, and tax relief, with the aim of protecting jobs and ensuring production stability.

Alckmin also noted that some of the goods initially destined for the U.S. market could be redirected to the domestic market, helping to ease inflationary pressures at home. He added that some of the support measures may be excluded from the government’s primary fiscal target, as Brazil works to eliminate its budget deficit in 2025.

Finance Minister Fernando Haddad confirmed that Brazil would challenge the U.S. decision through legal avenues—either within U.S. jurisdiction or via international bodies—stating that several sectors were unfairly and disproportionately impacted.

“We see room for corrections,” Haddad said. “Some sectors were excessively burdened, and this must be reviewed urgently.”

Dubai, July 31, 2025 –( Qahwa World)  – Arabica coffee prices experienced a drop on Wednesday due to reduced concerns about potential tariffs affecting Brazilian coffee exports. The futures for September arabica coffee declined by 3.10 points (-1.05%), whereas robusta coffee futures saw an increase of 66 points (+1.97%), hitting their highest level in two weeks.

This decrease in arabica coffee prices came after Commerce Secretary Lutnick indicated that Brazil’s coffee exports might avoid a previously proposed 50% tariff. The announcement alleviated market worries over potential disruptions from Brazil, the largest producer of arabica coffee globally.

Meanwhile, robusta coffee prices benefited from dry weather conditions forecasted for Vietnam, the world’s top robusta coffee producer. Predictions of no rain in Vietnam’s key coffee-growing regions for the upcoming week provided additional market support. Furthermore, significant short positions reported by ICE Futures Europe highlighted the likelihood of potential short-covering rallies in robusta coffee futures.

Brazil’s ongoing coffee harvest continues to impact global coffee market dynamics. Cooxupe, Brazil’s largest coffee cooperative, announced that their harvest reached 67% completion as of July 25. Overall, Brazil’s 2025/26 coffee harvest was 84% completed by July 23, outpacing the prior year’s progress and exceeding the five-year average.

Coffee prices have generally weakened in recent months due to expectations of ample supply. According to the latest report from the USDA’s Foreign Agricultural Service, Brazil’s coffee production for 2025/26 is forecasted to increase modestly by 0.5% year-on-year to 65 million bags, while Vietnam’s production is expected to rise by 6.9% to reach 31 million bags, a four-year high.

Recent rains in Brazil’s Minas Gerais region, the primary arabica-producing area, have further eased concerns about drought conditions. Somar Meteorologia reported significant rainfall of 3.5 mm in the week ending July 26, well above historical averages.

Inventory levels also present mixed signals for coffee markets. Robusta coffee inventories monitored by ICE reached a one-year high, indicating a bearish outlook. In contrast, arabica inventories dropped to their lowest in three and a half months. Brazilian coffee exports experienced a notable reduction, falling by 31% in June compared to the previous year, potentially signaling tighter supply conditions.

Vietnam continues to grapple with coffee production issues stemming from drought conditions, recording its smallest crop in four years for the 2023/24 season. Additionally, Vietnam’s coffee exports in 2024 declined by 17.1%. However, exports from January to June 2025 increased slightly by 4.1% compared to the same period last year.

The USDA’s latest global outlook anticipates record-breaking coffee production for the 2025/26 season, reaching 178.68 million bags, driven by a robusta increase of 7.9%. Conversely, arabica production is forecasted to decline by 1.7%. Ending stocks for the season are expected to rise nearly 5%.

Additionally, Volcafe has forecasted a substantial global deficit for arabica coffee at 8.5 million bags for the 2025/26 season, an increase from the previous year’s deficit of 5.5 million bags, marking five consecutive years of deficits.

Dubai, July 30, 2025 –( Qahwa World) – Luckin Coffee, the leading coffee chain in China, reported significant gains in the second quarter of 2025, driven by its expansive store network, supply chain investments, and growing customer base.

During the quarter ending June 30, 2025, Luckin achieved a 47% year-on-year increase in revenue, reaching RMB 12.3 billion (approximately $1.7 billion). Both its directly managed and franchised locations contributed to this growth, with sales rising by 46% and 55%, respectively.

Net profit also saw a healthy rise, increasing 44% year-on-year to RMB 1.2 billion ($174.4 million). Operating income under GAAP standards surged by 62% to RMB 1.7 billion ($237 million), while store-level operating profit grew by 42% to RMB 1.9 billion ($268 million).

While overall operating expenses rose by 45% to RMB 10.6 billion ($1.5 billion), the company managed to improve efficiency, reducing operating costs as a share of total revenue by nearly one percentage point compared to Q2 2024. Luckin credited its performance to a growing base of transacting users, which averaged a record 91.7 million per month during the period.

“Our strategy focused on scaling has driven robust growth and improved margins,” said CEO Dr. Jinyi Guo. “Our operational strengths — from fulfillment and efficiency to supply chain execution — enabled us to deliver double-digit same-store sales growth in our directly operated stores.”

The company’s rapid growth was supported by its infrastructure expansion. In April 2024, Luckin launched a 570,000-square-foot roasting facility in Suzhou City. By September, it began construction on a RMB 3 billion ($21.2 million) roasting and logistics center in Qingdao, which will play a central role in handling Brazilian coffee imports.

Luckin has deepened its supply relationships as well. In 2024, the company signed two major agreements with ApexBrasil — the Brazilian Trade and Investment Promotion Agency — to secure 240,000 tons of Brazilian green coffee over five years, valued at $1.38 billion.

In terms of footprint, Luckin added 2,085 net new outlets across China in the second quarter, bringing its domestic total to 26,117. It also expanded internationally, opening 24 stores abroad — including its first two locations in the U.S. in New York. As of the end of the quarter, the company operated 26,206 stores worldwide, 76% of which are company-operated. Outside China, its presence includes 63 outlets in Singapore and 24 in Malaysia.

With an aggressive approach to scaling, an efficient supply chain, and a keen focus on affordability and convenience, Luckin Coffee continues to reinforce its position as one of the fastest-growing coffee brands globally.

Dubai, July 30, 2025 ,(Qahwa World) – Coffee prices fell on Tuesday as Brazil’s harvest progressed rapidly and concerns over a potential U.S. tariff on Brazilian beans eased.

September arabica futures (KCU25) dropped by 1.72%, closing at -5.20, while robusta futures (RMU25) edged down by 0.39% (-13). The decline followed fresh updates from Brazil’s largest coffee cooperative, Cooxupé, which reported that 67% of its harvest was completed as of July 25. Safras & Mercado added that Brazil’s national 2025/26 coffee harvest reached 84%, outpacing last year’s 81% and the five-year average of 77%. The breakdown revealed 96% of the robusta and 76% of the arabica crops had been harvested by July 23.

Markets also responded to remarks by U.S. Commerce Secretary Lutnick, who indicated Brazilian coffee might be exempt from the proposed 50% tariff, calming earlier fears of supply disruptions. Those fears had previously driven prices higher on concerns about global trade imbalances.

Prices have generally trended downward in recent months amid expectations of strong global supply. Arabica recently hit an eight-month low, while robusta dropped to its lowest level in over a year. The USDA’s June report estimated that Brazil’s 2025/26 coffee production would rise by 0.5% to 65 million bags, and Vietnam’s production would increase by 6.9% to a four-year high of 31 million bags.

Weather developments in Brazil have also pressured prices. Recent rainfall in Minas Gerais — Brazil’s key arabica-producing region — exceeded 200% of the historical average, reducing drought concerns.

Meanwhile, speculative activity remains a factor. ICE Futures Europe data revealed that fund managers increased net-short positions in robusta futures to 4,628 contracts — the highest in two years — potentially setting the stage for a short-covering rally. Inventories also reflect mixed signals: ICE-monitored robusta stocks rose to a one-year high of 7,029 lots, while arabica inventories fell to a 3.5-month low of 791,842 bags.

On the export front, Brazil’s green coffee shipments declined by 31% year-over-year in June to 2.3 million bags, with arabica exports falling 27% and robusta 42%. In Vietnam, drought conditions caused 2023/24 output to drop by 20% to its smallest level in four years. While 2024 exports were down 17.1% year-over-year, the first half of 2025 saw a 4.1% rebound.

Looking ahead, the USDA projects global coffee production for 2025/26 will reach a record 178.68 million bags, up 2.5% year-over-year. This includes a 1.7% drop in arabica and a 7.9% rise in robusta production. Ending stocks are forecast to climb 4.9% to 22.82 million bags.

Despite bearish trends, Volcafe projects an arabica deficit of 8.5 million bags for 2025/26 — the fifth consecutive global shortfall, and significantly wider than the 5.5 million bag deficit in 2024/25.

For ongoing coverage of coffee prices, trade dynamics, and market analysis, stay connected with Qahwa World.

Amsterdam, July 30, 2025 (Qahwa World) – JDE Peet’s, one of the world’s largest coffee and tea companies, has announced its financial results for the first half of 2025, showcasing robust growth across key performance indicators. The company recorded strong organic sales, solid profitability, and healthy free cash flow—despite continued volatility in green coffee prices.

🔹 Highlights for H1 2025

• Organic Sales Growth: +22.5% (driven by +21.5% price and +1.0% volume/mix)

• Reported Sales: €5,045 million (up 19.8%)

• Organic Adjusted Gross Profit: +2.2% to €1,665 million

• Reported Gross Profit: €1,537 million (down 8.7%)

• Organic Adjusted EBIT: €709 million (up 2.0%)

• Operating Profit: €402 million (down 40.2%)

• Free Cash Flow: €565 million

• Net Leverage: 2.5x

• Underlying EPS: €1.33 (up 75.0%)

• Reported EPS: €0.86 (up 16.2%)

• Share Buyback: 38% of €250 million program completed

🔹 CEO Statement: Relevance Amidst Volatility

Rafa Oliveira, CEO of JDE Peet’s, expressed satisfaction with the company’s performance:

“We are very pleased with our business and financial results in the first half of 2025. Our performance was broad-based and strong across top-line, profitability, and cash flow, despite operating in a challenging environment marked by persistently high green coffee prices.”

Oliveira highlighted recent product innovations—including Peet’s Popping Pearls, L’OR Coconut Iced Espresso, Jacobs Dubai Chocolate, and Moccona Liquid Espresso sachets—as key drivers for consumer engagement and market expansion.

🔹 Operational Restructuring and Strategic Progress

In line with its 2025 transformation goals, JDE Peet’s initiated several strategic changes:

• Divested its tea business in Turkey to Efor Holding.

• Halted the rollout of the L’OR Barista machine in the U.S.

• Transferred the U.S. L’OR capsules business to Peet’s.

• Announced the planned closure of the Banbury factory in the U.K.

• Simplified its European model by reducing country clusters and centralizing finance operations under a Global Business Services framework.

These changes are part of the company’s focus on streamlining operations, enhancing resource allocation, and unlocking future growth.

🔹 New Strategy: “Reignite the Amazing”

Unveiled on July 1 at its Capital Markets Day, JDE Peet’s launched a bold new strategy—“Reignite the Amazing.” This brand-led framework focuses on three pillars:

1. Peet’s (North American specialty leader)

2. L’OR (global premium espresso brand)

3. Ten local icons, with Jacobs at the forefront

The company aims to:

• Simplify its portfolio and operational model

• Drive €500 million in cost savings by end-2027

• Reinvest 50% of these savings into growth and innovation

• Expand global reach via high-potential opportunities

🔹 Green Coffee Price Inflation

Green coffee prices surged by over 60% year-on-year during the first half of 2025, with easing in the final two months. JDE Peet’s continues to mitigate these cost pressures through efficiency improvements and selective price adjustments—while maintaining affordability for consumers and supporting sustainability among coffee farmers.

🔹 Share Buyback Update

As of July 25, 2025, the company has completed 38% of its €250 million share repurchase program, on track for full execution by year-end.

🔹 Upgraded 2025 Outlook

Based on first-half performance and expectations for the remainder of the year, JDE Peet’s has raised its full-year 2025 guidance:

• Organic Sales Growth: high-teens (upgraded)

• Adjusted EBIT: at least stable (upgraded)

• Free Cash Flow: ~€1 billion (unchanged)

Seattle, July 30, 2025 (Qahwa World) – Starbucks Corporation (Nasdaq: SBUX) yesterday reported its financial results for the third quarter of fiscal year 2025, ending June 29. The results reflect steady progress under the company’s “Back to Starbucks” strategy and mark a pivotal step in what leadership says is a foundation for transformative innovation in 2026.

“We’ve fixed a lot and done the hard work on the hard things to build a strong operating foundation, and based on my experience of turnarounds, we are ahead of schedule,” said Brian Niccol, chairman and chief executive officer.
“In 2026, we’ll unleash a wave of innovation that fuels growth, elevates customer service, and ensures everyone experiences the very best of Starbucks.”

While Starbucks acknowledged that the full financial impact of these improvements is not yet fully reflected in Q3 performance, Niccol said momentum is building — especially in the U.S. market, where partner (employee) engagement is increasing, customer connection scores are rising, and non-Rewards customer transactions have returned to growth.

The company also noted that more U.S. stores are now delivering positive comparable transactions, and shift completion rates reached record highs — evidence, Niccol said, of growing operational strength.

Green Apron Service Model and Store Transformation

A central component of this operational turnaround is Starbucks’ new Green Apron Service model, described as the company’s largest investment ever in customer experience. The model is designed to bring greater speed, craftsmanship, and human connection to every coffeehouse.

It includes:

• Smarter staffing strategies

• Advanced order sequencing systems

• Defined service standards

According to Niccol, the model is already showing results in terms of faster service, stronger sales, and improved customer satisfaction — and will roll out nationwide next month.

Starbucks is also reinvesting in its physical spaces. Niccol said the company is “uplifting coffeehouses” with more seating, warmth, and texture, and building new stores with a 30% lower cost to build, while enhancing the customer experience.

Innovation Plans for 2026

With this new operating foundation in place, Starbucks is preparing to launch a wave of innovation in 2026. The company unveiled several upcoming initiatives, including:

• Protein Cold Foam: A first-of-its-kind modifier delivering 15 grams of protein.

• A bold new 1971 Dark Roast and reimagined artisanal bakery offerings

• Test beverages featuring coconut water, along with gluten-free, high-protein food and customizable energy drinks

• A new Starbucks mobile app, improved Mobile Order & Pay, and an updated Rewards program designed to increase engagement and deepen loyalty.

Over $2 Billion in International Revenue

Starbucks also highlighted international growth as a key contributor to its momentum. For the first time, international revenue exceeded $2 billion in the quarter. Notably, comparable sales in China — a vital growth market — turned positive, while expansion efforts are continuing in Canada, the U.K., Mexico, Türkiye, and other global markets.

Financial Notes and EPS Impact

Chief Financial Officer Cathy Smith confirmed that Starbucks made a one-time investment in its Leadership Experience 2025 initiative and recorded a discrete tax expense during the quarter, which collectively reduced earnings per share (EPS) by $0.11.

“We are making tangible progress in our ‘Back to Starbucks’ strategy,” Smith said.
“We are focused on growing back better and delivering durable, sustainable long-term growth.”

Full GAAP and non-GAAP reconciliations are available on the Starbucks Investor Relations site.

Conclusion: A Better Starbucks Ahead

Niccol closed the Q3 earnings presentation by affirming the company’s broader mission:

“We aren’t just getting back to Starbucks — we’re building the best Starbucks yet.”

With foundational improvements in place, a strong pipeline of innovations on the horizon, and global momentum accelerating, Starbucks is positioning itself not just for a recovery — but for a reimagined future.

Moscow, July 30, 2025 (Qahwa World) — Coffee imports from Indonesia to Russia surged nearly tenfold in the first five months of 2025, marking a new all-time high, according to data from Indonesia’s national statistics agency reported by RIA Novosti.

Between January and May, Indonesian companies exported $33.4 million worth of coffee to Russia — a dramatic increase from just $3.4 million during the same period in 2024. This surpassed the previous record set in 2017, when shipments totaled $27 million.

The bulk of the imports consisted of robusta coffee, which accounted for $33 million, while arabica coffee made up only $423,000.

Russia is now among the top 10 importers of Indonesian coffee, ranking ninth. The top three destinations were:

• United States — $159.8 million

• Belgium — $126.9 million

• Egypt — $67.5 million

Meanwhile, arabica prices have been rising sharply. In July, futures jumped over 3.5%, reaching around $3 per pound, following reports that the U.S. is planning to impose 50% tariffs on all Brazilian imports — a move that has raised global supply concerns.

The global coffee market is still recovering from last year’s downturn caused by extreme weather conditions in major producing countries. According to David Oxley, Chief Climate and Commodities Economist at Capital Economics, a return to previous price levels could take several years due to the severe damage inflicted by prolonged droughts in key coffee-growing regions.

Dubai, July 29, 2025 (Qahwa World) – The second edition of the “Taste of China” Global Specialty Green Coffee Bean Competition concluded on Sunday in Shanghai, offering the world a deeper look into the unique and evolving coffee flavor preferences of Chinese consumers.

Organized by Hongqiao International Coffee Harbor, the two-day event featured 82 premium green coffee samples from 16 countries, including established coffee powerhouses like Brazil, Ethiopia, Colombia, and Vietnam, as well as rising origins such as Thailand, El Salvador, Ecuador, and Burundi. China’s domestic producers were also strongly represented, particularly from Yunnan and Hainan.

As China’s coffee industry expands, consumers are developing flavor preferences that differ significantly from those in Western and Southeast Asian markets. While coffee imports have surged, many international producers are still unfamiliar with the specific taste profiles favored in China—a gap this competition seeks to close.

The competition has received ongoing support from embassies, consulates, and specialty coffee associations of major producing nations based in Shanghai. The judging panel included industry leaders from top coffee chains such as Luckin Coffee, Starbucks, and Cotti Coffee, as well as national champions in brewing and cupping, and coffee professionals from across the country.

In a first for the event, the top 10 coffees were auctioned both online and offline, drawing strong interest from roasters, café owners, and buyers across China. Furthermore, the top 30 winning coffees will go on a nationwide cupping tour, visiting major cities and engaging directly with local consumers. The tour will culminate in the announcement of the “Most Popular Coffee Award”, based on public feedback.

The results of the competition offer valuable insight into Chinese consumer trends, providing data that roasters and producers can use to adapt their offerings for better alignment with the domestic market.

Hongqiao International Coffee Harbor has emerged as a leading platform in China’s growing coffee trade. It currently partners with over 200 international coffee enterprises, sources beans from more than 60 countries, and manages trade volumes exceeding 3 billion yuan annually.

With its blend of global collaboration and local insight, the “Taste of China” competition is becoming a key force in shaping the country’s specialty coffee landscape.

Kampala, July 28, 2025 (Qahwa World) — Uganda’s coffee export revenues have more than doubled over the past 12 months, driven by soaring global prices and the long-term results of a national coffee development program. According to the country’s Ministry of Agriculture, Uganda has solidified its position as Africa’s largest coffee exporter, setting new records in both volume and earnings.

Between July 2024 and June 2025, Uganda exported 7.77 million 60-kg bags of coffee, representing a 27% increase compared to the previous year. During the same period, export revenues surged from $1.14 billion to $2.22 billion.

Recent months have shown especially strong performance. In January 2025, the country earned $156.5 million from coffee exports — an 83% increase year-on-year. February saw shipments of more than 555,000 bags, generating $167.7 million, while May exports reached 793,000 bags, with income totaling $244 million, reflecting a 92% jump compared to May 2024.

The most impressive milestone came in June 2025, when Uganda exported 1.01 million bags, earning $289.6 million — the highest monthly revenue in the nation’s coffee trade history.

“High global prices have encouraged farmers to increase their production and expand coffee cultivation areas,” said Martin Maraka, Executive Director of the Uganda Coffee Federation. “This growth trend is now irreversible — we’re just getting started.”

 Long-Term Investment Paying Off

The current momentum is the result of a national program launched more than a decade ago, aimed at scaling up coffee production to 20 million bags annually. As part of this initiative, the government distributed free coffee seedlings to farmers, invested in soil improvement and the rehabilitation of aging trees, and provided training in modern agricultural practices.

Uganda primarily grows Robusta, a variety known for its high yields and climate resilience. With domestic consumption at around 330,000 bags per year, the vast majority of Uganda’s coffee is exported, especially to markets in Europe and Asia.

Global Market Trends Favor Uganda

Uganda’s rise comes at a time when traditional coffee giants like Brazil and Vietnam are grappling with drought and climate disruptions that have slashed their output. This supply gap has driven up global prices and created space for emerging suppliers — and Uganda has stepped up.

With sustained demand and continued government support, experts believe Uganda is on track to meet its export target of 9 million bags during the current marketing season. Maintaining this trajectory will depend on further investment in processing capacity, export infrastructure, quality control, and climate resilience.

For now, Uganda’s coffee sector stands as a leading example of how long-term vision and favorable market conditions can transform an agricultural economy.