Carlyle and Boyu emerge as likely buyers for Starbucks’ China operations, sources say

Dubai – Qahwa World

Private equity firms Carlyle Group and Boyu Capital have reportedly taken the lead in efforts to acquire a controlling stake in Starbucks’ China business.

Seattle-based Starbucks initiated a formal sales process in May 2025, seeking to bring in strategic partners amid slowing growth and stiff competition from local chains such as Luckin Coffee and Cotti Coffee.

According to sources, up to five firms made the final shortlist by September 2025, with Carlyle and Boyu now viewed as frontrunners for the deal. The transaction is expected to value the China operations at around USD 4 billion, and Starbucks may retain up to a 49 percent interest.

Carlyle already has experience in the coffee and restaurant sector: it acquired South Korea’s A Twosome Place chain and previously held a 28 percent stake in McDonald’s China, which it sold in 2023.

Meanwhile, Boyu has backed major food and beverage enterprises, including a role in investing in Mixue Group, and has co-ownership in the Honeymoon Dessert brand in China and Singapore.

Starbucks currently operates roughly 7,800 stores in China, making it its second-largest market by store count—and roughly 20 percent of its global total—though it contributes only about 8 percent of revenue.
MarketScreener

Unlike most markets where Starbucks licenses some stores, its entire China operation is wholly company-run.

While Starbucks endured three straight quarters of revenue decline in China in 2024, more recently the business has rebounded: it posted three consecutive quarters of year-over-year growth in 2025, including its first six-month stretch of positive same-store sales during the second quarter.
Comunicaffe International

Nestlé to Reduce Workforce as Part of Cost-Saving Drive

Dubai – Qahwa World

Nestlé, the Swiss multinational food and beverage corporation, has revealed plans to cut roughly 6% of its global workforce over the next two years as part of a broad efficiency initiative.

Under new CEO Philipp Navratil, the company aims to eliminate about 16,000 positions. Of these, around 12,000 will be in corporate and administrative roles, while the remaining 4,000 will affect manufacturing, logistics, and supply-chain operations.

The job cuts respond to persistent cost pressures and two consecutive quarters of revenue decline. In the first nine months of 2025, Nestlé’s sales fell by 1.9% year-on-year to CHF 65.9 billion ($76.8 billion). Nonetheless, the company credited its coffee and confectionery divisions—underpinned by price increases—for delivering solid growth.

Navratil is pushing to expand Nestlé’s cost-savings target from CHF 2.5 billion to CHF 3 billion by the end of 2027. He described the cuts as “hard but necessary,” noting that while Nestlé’s size offers advantages, it also brings complexity and inefficiencies that must be addressed.

According to the company, the planned reductions in corporate staffing are expected to yield approximately CHF 1 billion in annual savings. Efficiency drives in the production and supply chain segments are intended to support further cost mitigation through automation and operational consolidation.

While Nestlé’s nutrition segment and operations in China were among the weaker performers, the coffee segment showed resilience—even as commodity prices remained elevated and consumer spending softened in many markets.

In particular, the company implemented an average price increase of 7.4% across key coffee and confectionery brands such as Nescafé and Nespresso—moves that helped support growth across all regions. Nestlé also reported strong momentum in its ready-to-drink and coffee concentrate lines, especially in Asian and Oceanic markets.

The decision to downsize globally underscores the intense cost pressures faced by one of the world’s largest food and beverage companies. Even strong-performing sectors like coffee could not completely offset rising production and raw-material expenses, particularly for green coffee and cocoa.

In the coffee commodities market, both Arabica and Robusta prices remain at historically high levels. In September 2025, Arabica futures exceeded $4 per pound for the first time since April, while Robusta prices hovered near $5,694 per tonne—strained by adverse weather, reduced yields in Brazil and Vietnam, and continued supply chain disruptions.

Coffee Prices in Russia Soar to 4,000 Rubles per Kilogram

Moscow – Qahwa World

Coffee prices in Russia have reached an all-time high, with instant coffee exceeding 4,000 rubles per kilogram for the first time. Ground and roasted coffee have also risen sharply, prompting a noticeable decline in demand of 4–11% across categories.

A Steep Climb Over the Past Year

According to Russia’s Federal State Statistics Service (Rosstat), the price of natural instant coffee rose to 4,006 rubles per kilogram in September 2025, up from 3,988 rubles in August — an annual increase of 18.3%. The price of ground and roasted coffee jumped to 1,994 rubles per kilogram, marking a 29.3% rise compared with last year. In the foodservice sector, the average cup of coffee now costs 110.9 rubles, up 13.6% year-on-year.

Analytics from Check Index show that between June and August, the average retail price of coffee reached 829 rubles, 12% higher than in 2024. The average receipt for whole-bean coffee grew by 22% to 1,508 rubles per pack, while instant coffee climbed 11% to 461 rubles. Ground coffee increased by 16% to 650 rubles, and coffee capsules saw a 17% rise to 881 rubles per pack.

Why Coffee Is Getting More Expensive

The primary driver of the surge is the global rise in coffee prices. Over the past year, Arabica prices have increased by 1.5 times, while Robusta surged by 40% in just three months.
The International Coffee Organization (ICO) attributes this to poor harvest conditions in Brazil, the world’s largest producer. Additional pressure has come from U.S. tariffs on Brazilian coffee, which encouraged American roasters to stockpile supplies. European roasters are also building reserves ahead of the EU’s deforestation-free supply regulations.

According to Olga Lebedinskaya, Associate Professor at the Plekhanov Russian University of Economics, domestic factors are also adding strain: inflation, higher transportation costs, international payment difficulties, and rising labor and rental expenses have all contributed to the surge.

“The market has become highly concentrated, leaving few alternative sources,” she explains. In 2025, Brazil overtook Vietnam as Russia’s main coffee supplier. From January to September, Russian companies imported $287.9 million worth of Brazilian coffee beans, nearly double the value imported during the same period in 2024.

Lebedinskaya notes that Laos could become an alternative source, but logistical barriers remain unresolved. “While for Russia this would serve as a niche complement to Brazilian and Vietnamese supplies, for Laos it means diversifying exports without raising costs dramatically,” she said.

What to Expect in 2026

Lebedinskaya forecasts that global price increases will reach Russia’s retail market with a six-month delay, meaning consumers are likely to see new price levels by spring 2026.
“Many coffee shops are already gradually adjusting their prices to soften the impact,” she noted, adding that the traditional tactic of replacing Arabica with cheaper Robusta is no longer effective, as both varieties are now priced nearly equally.

She expects coffee shops to expand their beverage menus by promoting alternatives such as matcha, chicory, and milk-based drinks, while espresso and Americano will likely see the fastest price growth.

According to Alexey Plugov, Director of the Agribusiness Analytical Center AB-Center, 2025 is set to record the highest average global coffee prices since the 1977 coffee crisis. In 2026, he predicts that prices will remain high but fall by 10–15% from 2025 levels.

Tea and Cocoa: Moderate Movements

Rosstat data show that as of October 6, the price of black tea in Russia reached 1,351.9 rubles per kilogram, rising 7.3% over the year — slower than the overall annual inflation rate of 8.1%. According to AB-Center, green tea prices grew by 3.9%, while black tea in bags increased by only 1.6%, averaging 84.7 rubles for a 25-bag pack.

In contrast, cocoa powder prices rose 7.1% year-on-year in September to 1,139 rubles per kilogram. Plugov notes that global tea prices could rise 8–12% in 2026, while cocoa prices may fall 5–10%, though still remaining well above 2022–2023 levels.

Cropster Acquires South Korean Coffee Tech Company

Dubai – Qahwa World

Austria-based Cropster, a leading developer of smart software solutions for the coffee industry, has announced the acquisition of Firescope, a South Korean technology company specializing in coffee roasting software. The move marks a key step in Cropster’s expansion strategy across Asia and its broader plan to strengthen its position in global coffee technology.

Firescope, founded in 2020 in Seoul, provides cloud-based roasting software used by more than 3,000 independent coffee roasters in South Korea and Japan. The acquisition will enable Cropster to expand its footprint in East Asia’s rapidly growing specialty coffee market. The financial terms of the deal were not disclosed.

Founded in 2008 by Andreas Idl, Norbert Niederhauser, and Martin Wiesinger, Cropster creates digital tools that improve efficiency, consistency, and traceability across the entire coffee value chain — from green coffee trading and roasting to retail operations and cafés.

In 2024, Cropster sold a majority stake to the Oslo-based investment firm Verdane, providing the company with a strong financial foundation to pursue mergers and acquisitions aimed at building an integrated digital ecosystem for the coffee industry.

Under the new agreement, Firescope will continue operating as a standalone platform until the second half of 2026, after which it will be integrated into Cropster’s ecosystem. This integration will allow Firescope’s services to reach new markets beyond East Asia for the first time.

Cropster also plans to use Firescope’s Seoul headquarters as its new regional hub for sales and technical support in Asia, further strengthening its presence in the region.

“Asia plays a central role in the growth of the global specialty coffee sector, and this acquisition positions Cropster as a leader in providing comprehensive digital solutions across the region,” said Ralph Karg, Director at Verdane.

Andreas Idl, Co-Founder and CEO of Cropster, emphasized that this acquisition is the beginning of a larger strategy:

“Our vision is to digitalize the entire coffee journey — from cultivation and production to roasting, distribution, and cafés. Firescope represents a key part of this vision, and we plan to pursue additional acquisitions to achieve our ‘crop-to-cup’ mission.”

Today, Cropster works with thousands of coffee companies in more than 100 countries, including well-known specialty coffee brands such as Blue Bottle Coffee, WatchHouse, Five Elephant, Verve Coffee Roasters, and Bunista. Firescope’s clients include HOWW Coffee, Your Home Coffee Roasters, Koffee Sniffer, and Indigo Coffee Roasters.

With this acquisition, Cropster reinforces its role as a global leader in coffee technology, advancing its goal of creating a connected, data-driven ecosystem that supports innovation across the entire coffee supply chain.

Iced Drinks and Matcha Fuel Record Summer Sales for The Nero Group

Dubai – Qahwa World

London – The Nero Group, operator of several well-known coffeehouse brands, has reported its strongest-ever summer performance, with iced beverages and matcha-based drinks driving substantial sales growth across its network.

The company achieved £166 million ($220 million) in revenue during the first quarter ending 31 August 2025, marking a 9% increase compared to the same period last year. Like-for-like sales rose by 6%, reflecting solid customer demand across all key markets.

The Group’s leading brand, Caffè Nero, recorded its best-ever first-quarter performance in the United Kingdom, generating £97 million ($128 million) in sales — a 7% year-on-year rise. Across the group’s five coffee chains, summer sales of iced beverages surged 49%, supported by the growing popularity of iced matcha options introduced this year.

According to The Nero Group, its seasonal menu expansion — particularly the launch of iced matcha — played a pivotal role in attracting new and returning customers. More than 1.3 million cups of matcha drinks were sold during the summer months alone.

“The opening quarter has been outstanding, giving us a very strong start to our financial year. Our iced drinks campaign, especially our matcha and iced coffee selections, resonated extremely well with customers,” said Gerry Ford, the group’s Founder and CEO.

The company added 13 new stores during the quarter, expanding its global footprint to 1,150 outlets across its five brands: Caffè Nero, Coffee#1, 200 Degrees, Harris + Hoole, and FCB Coffee. The UK remains its largest market, with over 630 Caffè Nero locations and nearly 200 outlets under its other banners.

Beyond the UK, Caffè Nero continued to perform well across Europe and the United States, with particularly strong results in Turkey, Sweden, Ireland, and Cyprus. In the US, the brand now operates 41 stores, primarily in Boston, Massachusetts, where trading remains robust despite intense competition.

Founded in 1997, Caffè Nero has grown into one of the most recognizable European coffee chains, known for its premium café experience and strong community presence. The Nero Group’s performance this year builds on last year’s record £626.4 million ($853.1 million) in annual sales, supported by the acquisitions of 200 Degrees and FCB Coffee in late 2024 — both of which have strengthened the group’s position in the specialty coffee market.

Selecta Group Names Venkie Shantaram as New CEO

Dubai – Qahwa World

Switzerland’s Selecta Group has announced the appointment of Venkie Shantaram as its new Chief Executive Officer, marking a pivotal step in the company’s ongoing transformation following a major leadership restructure earlier this year.

Shantaram joins the Cham-based food and beverage vending operator from Morgan Stanley Infrastructure Partners, where he served as Managing Director since December 2023. Before his role in investment banking, he spent several years at Compass Group, one of the world’s leading catering and support services firms. During his tenure, he held key regional leadership positions, including CEO for Central Asia (2017–2019) and later for Europe and the Middle East (2019–2022).

At Compass Group, Shantaram was credited with delivering record revenues of €5 billion ($5.8 billion), improving profitability, and enhancing customer retention across the region. His performance in leading large-scale operations and driving strategic growth is seen as an ideal fit for Selecta’s ambitions as it seeks to strengthen its position in the European vending and coffee service market.

“We’re delighted to welcome Venkie to Selecta. His deep sector knowledge, clear vision, and people-first leadership style will help us move confidently into the future,” Selecta’s Board of Directors said in an official statement. “The Board is certain that under his guidance, Selecta will continue to grow and thrive.”

Shantaram succeeds Michael Rauch, who served as interim CEO for five months. His appointment follows Selecta’s September 2025 senior leadership overhaul, during which the company eliminated the Chief Commercial Officer position and introduced new roles, including Chief Financial Officer, Chief Transition Officer, and Chief Business Profitability Officer.

The executive reshuffle comes after Selecta finalized a recapitalization deal in July 2025, which saw ownership transfer from UK-based private equity firm KKR to a consortium of institutional investors and creditors—including Invesco, Man Group, Strategic Value Partners, and Diameter Capital Partners. The deal provided €330 million ($369 million) to support future growth while cutting the company’s outstanding debt by over €1 billion ($1.1 billion).

Founded in Switzerland, Selecta Group is one of Europe’s largest vending and self-service coffee operators, managing over 365,000 machines across 16 countries. The company’s extensive network serves transport hubs, workplaces, educational institutions, and public buildings, offering both coffee and food solutions. Its coffee portfolio includes leading international brands such as Starbucks We Proudly Serve, Nescafé, ZOÉGAS, Lavazza, Pelican Rouge, and Change Please.

With Shantaram now at the helm, Selecta is expected to focus on accelerating digital innovation, enhancing operational efficiency, and strengthening partnerships with major beverage and snack brands to adapt to evolving consumer preferences in automated retail.

JDE Peet’s Opens Transformed Innovation Laboratory in Utrecht to Accelerate Coffee Breakthroughs

Amsterdam – Qahwa World

JDE Peet’s (EURONEXT: JDEP) has announced the opening of its fully revamped modular Innovation Laboratory in Utrecht, the Netherlands, marking a major milestone in its efforts to accelerate next-generation coffee breakthroughs.

The upgraded facility reinforces the company’s commitment to scaling customer-led innovations and highlights the strategic importance of its global R&D center in Utrecht. With a modular setup, the Innovation Lab allows teams to rapidly develop new coffee products, processes, and packaging materials that can be quickly scaled across JDE Peet’s global manufacturing network.

This investment complements the recent opening of the company’s innovation facility in Joure, which focuses on next-generation extraction and freeze-drying technologies. Together, both facilities represent a combined investment of €8 million.

Key focus areas for the Utrecht Innovation Lab include single-serve, capsule, ready-to-drink, and instant coffee formats, alongside the development of sustainable packaging solutions. In support of JDE Peet’s Common Grounds sustainability goals, the new laboratory also integrates advanced heating and ventilation systems designed to recycle heat and reduce energy consumption.

Carolyn Adams, Chief R&D Officer at JDE Peet’s, said:

“We’re proud that our next generation of coffee innovations will be developed in the home of our oldest and most beloved brands – Douwe Egberts. Coffee is one of the most exciting and fast-evolving consumer categories, with new flavors and formats emerging almost every week. The agile, modular setup of our Innovation Lab enables us to rapidly respond to consumer insights and quickly scale new flavors and formats – whether hot, cold, wet, or dry – to full factory production. As we deliver our ‘Reignite the Amazing’ strategy, this investment will allow us to significantly accelerate the time-to-market of the next generation of coffee breakthroughs in response to changing consumer needs and trends.”

The Utrecht Innovation Laboratory offers a flexible, modular workspace equipped with advanced technologies for coffee product development. These include high-precision grinders and capsule fillers for single-serve and portioned espresso, technologies for JDE Peet’s liquid Cafitesse products, facilities for ready-to-drink cold coffee, and advanced freeze-drying systems for next-generation instant coffee — an important growth area for the company.

Recent innovations developed at the Utrecht Lab include improved non-dairy creamers, energy-efficient roasting methods, home-recyclable paper packaging for freeze-dried instant coffee in the UK, and the ongoing development of mono-material packaging to enhance recyclability.

Breaking the Commodity Trap: A Conversation with Burke Campbell on Coffee, Sovereignty, and Nation Building

Dubai – Ali Alzakary

Coffee is more than a morning ritual—it’s a global industry steeped in history, power dynamics, and untapped potential. In this riveting interview, Burke Campbell, a Cree-Métis Canadian who traded the oil sands of Alberta for the coffee farms of Honduras, shares his journey of connecting the dots between resource extraction, economic sovereignty, and sustainable development. From his personal awakening to the parallels between Canada’s Indigenous communities and Honduran coffee farmers, to his groundbreaking work bridging Yemen’s ancient coffee legacy with modern markets, Burke’s story is one of resilience, vision, and a relentless pursuit of equity. Join us as we dive into this compelling conversation about redefining coffee’s future by reclaiming its past.

Growing up Cree with a father who worked in oil sands must have given you a unique perspective on resource extraction. What was that moment when you realized you needed to leave all that behind and head to Honduras to work in sustainable development?

It wasn’t a moment. It was a slow awakening that took years to understand.
Here’s what people don’t know about my father working in the oil sands: those oil sands are our family’s traditional trapline. That’s where my father was raised as a child, where our family sustained ourselves for generations. That land is ours. Except it isn’t anymore. My family ended up there after a series of forced migrations, and then my father ended up working the industry on his own ancestral land.
But here’s the deeper wound: my people weren’t even invited to participate. My father became the first Indigenous general foreman across any of the trades working there, and that was only possible through deep identity issues he carried. The cost of entry was losing pieces of himself.
My mother planted different seeds. She wasn’t Indigenous, but she was a social worker in Alberta who dedicated herself to working directly with Indian bands across Northern communities. Before I turned 12, we’d moved through so many of these communities that I witnessed firsthand what it looks like when your own land is developed without you, when you’re excluded from the systems built on top of what was yours, when the few who do manage to participate pay for it in ways that don’t show up on a paycheck.
So I grew up understanding both sides. My father showed me what it costs to participate in systems that weren’t built for you. My mother showed me what happens to communities watching wealth being pulled from their land while they’re shut out.
When I first arrived in Honduras, I was still incredibly naive. I didn’t see the connection between those Northern Alberta communities and the coffee farmers I was meeting. But as I spent more time on farms, I started recognizing parallel patterns: producers excluded from the value their own land creates, outside buyers controlling terms, the few farmers who do break through into specialty markets having to adapt to systems that weren’t designed with them in mind, wealth flowing out while communities remain marginalized.
That’s when it crystallized for me. I realized I had a deep social responsibility as a Canadian to use everything I’d been given – my voice, my access, my passport, my understanding of these systems – not to perpetuate another commodity chain where producers are excluded from value, but to fight for my new community in Honduras. To make sure that coffee wouldn’t do to these farming families what oil had done to the communities my mother served.
I’m Cree-Métis. I understand what it means when outsiders arrive promising prosperity. I grew up watching what happens when your own land generates wealth that you’re never invited to share.

Starting fresh in a new country at 34 couldn’t have been easy. What was the toughest part of those early days in Honduras, and what kept you going when things got rough?

I first arrived when I was 28. By 31, I was married with one child, stepfather to two others, and uncle to five more who basically lived with me as my own. So it wasn’t just starting fresh in a new country. It was suddenly responsible for eight children in a place I barely understood.
The reality is that the last 17 years have been framed around me splitting my time between working in Canada and living in Honduras. Coffee has never really fully sustained my life. It’s helped, but I’ve had to do whatever it takes to make it work.
My kids kept me going. Doing anything I could to insulate them from all the problems that come from living in such a place. Usually at the expense of my own personal stability. The toughest part wasn’t the language barrier or the cultural adjustment or even the economic precarity. It was knowing that every decision I made, every month I spent working in Canada, every risk I took with coffee, directly affected whether these kids would have what they needed.
Then COVID hit, and I was forced to stay in Canada for two years. I couldn’t get back to Honduras, couldn’t be with my family. That separation could have broken everything. Instead, it became the time when I discovered Yemen.
I became obsessed. Started digging through Ottoman archives, genetic studies, historical texts, anything I could find about Yemen’s coffee. And something clicked. Suddenly I could see it – the common thread connecting Canada, Honduras, and Yemen. Three places that seemed completely unrelated, but they all shared the same story: communities excluded from the wealth generated on their own land, knowledge systems dismissed by outside experts, people forced to participate in economies designed without them.
Yemen gave me the framework to understand what I’d been doing in Honduras all along. It wasn’t just about better prices for coffee. It was about reclaiming narrative, restoring agency, proving that the old ways aren’t backwards – they’re the future, especially as climate change forces the industry to finally pay attention to what farmers have known all along.
But I wouldn’t change a thing. Those children gave me a reason bigger than myself. They’re why I stayed when it would have been easier to leave. They’re why I kept pushing into coffee even when it didn’t make financial sense. They’re why Yemen mattered so much – because I needed to build something that could work for them, for their community, for their future. Yemen showed me how.

Building Trust with Farmers

Building trust with farmers is everything in this business. How did you earn that trust with Honduran coffee growers, and what’s been the moment that made it all feel worth it?

Building trust is the hardest part. I’m still working on it. And honestly, I’ve started to question whether “trust” is even the right word.
I saw firsthand how even direct trade with farmers was inadequate. Sure, we could achieve a price differential for one season, but then my company would want to be there the next season and the next season and the next. I watched how that created its own dependencies, its own power dynamics. It takes much more than better prices.
Yemen showed me that you need to build eternal relationships. Cultivation is a practice that comes from deep human history. Basically everything we consume today was the result of hundreds or even thousands of years of people taking wild grains and beans and completely transforming them into something that could sustain us. That knowledge, that practice, that relationship with land and plant – it’s generational. It’s eternal.
So when we talk about “building trust,” we’re still operating within a framework where I’m the outsider who needs to earn something from them. That framing itself reveals the power imbalance. Just saying that I need to build trust with farmers denotes that there’s forever going to be some economic inequality where I have power that they don’t.
I don’t think I’ve even begun to complete my goal. Because the goal isn’t trust. The goal is true economic sovereignty for farming communities. Trust is just a placeholder word for something much bigger – the ability for farmers to control their own narratives, their own value chains, their own futures. Until that happens, I’m still part of the problem, even if I’m trying to be a better part of it.
So no, there hasn’t been a moment where it all felt worth it. Because “worth it” would mean I’ve arrived somewhere, and I haven’t. The work continues.

Weaving Yemen and Honduras Together

Working with Mokha Story as Technical Advisor for Yemen’s auction house sounds fascinating. How are you weaving together Yemen’s incredible coffee story with what’s happening in Honduras?

I’m following Latif’s lead and his dream. Everything starts there.
Yemen is basically the template for the whole global commodity system. Yemen had this incredible ability to cultivate coffee and created a monopoly over it that made coffee one of the most sought-after luxury items in the world. But then I watched how that same commodity system is now used as a weapon of sorts against all origin countries. Getting the raw form of coffee – and now many other products – out of nations and into other nations so those other nations can benefit from the secondary processing.
That’s when I understood what all origin countries need to do in order to achieve truly sustainable economies. What they need to do to develop.
The technology of processing raw coffee hasn’t changed since Yemen developed coffee roasting. It’s incredibly simple, and yet mysteriously so hard to achieve. Why? Because the system is designed to keep origins exporting green beans.
I see Yemen’s deep problems and Honduras’s deep problems as just a different flavor of economic control from abroad. And the only way to change that is to see that each nation’s problems all have a common thread. The approach to solutions might be different, but the diagnosis is virtually the same.
All nations that find their raw products completely extracted for other economies are missing out on true development at an exponential, almost incalculable scale.
What I’m doing with the auction house for Yemen, and what I’m trying to build in Honduras, comes from the same understanding: we’re not just moving coffee. We’re trying to reopen the world’s oldest coffee market, guided by trading protocols developed over hundreds of years. This isn’t new. This is the oldest coffee market in the world, and we’re reopening it.
The world needs balance. And these nations need voices that are all calibrated to understanding this common inequity. That’s how Yemen and Honduras connect – not through some romanticized sister-city partnership, but through the shared recognition that we’re all fighting the same system, just with different accents.

Opening Saudi Market Channels

Opening up $80 million in Saudi market channels – that’s incredible! Was there a particular conversation or breakthrough moment where you knew this was really going to happen?

It was Latif showing me that the Saudi coffee market is quite closed to Honduras, and Honduras has a deep capacity to be a major player in the Middle East.
Saudi Arabia imports 70,000 to 90,000 tons of coffee annually, spending over $1 billion. The market is growing at 6.5% annually and is expected to reach nearly $2.3 billion by 2028. But here’s what matters: Ethiopia dominates Saudi imports with a 77% share. Honduras, despite being the world’s seventh-largest coffee exporter, barely registers in that market.
And it all comes down to awareness, trust, and education.
I believe that Honduran coffee has a place as a pillar of supply in Saudi Arabia. Honduras produces 5.5 to 5.8 million bags annually – all Arabica, grown between 1,000 and 1,600 meters. We’ve built strong quality systems, we have 120,000+ coffee farms, and we’ve proven ourselves in demanding markets like Germany, Belgium, Italy, and increasingly South Korea since our 2020 free trade agreement.
But more importantly, I believe this relationship provides an alternative market for both Saudi Arabia and Honduras. Especially in these tumultuous times of great volatility within the coffee market.
Coffee prices hit record highs in 2025 – Arabica reached $4.41 per pound, the highest ever recorded. Climate change is devastating yields in Brazil and Vietnam, which together supply over 50% of global coffee. Droughts, frosts, erratic rainfall – these aren’t temporary disruptions anymore. FAO predicts 50% of current coffee-growing land could become unviable by 2050.
In this context, Saudi Arabia relying so heavily on Ethiopian supply is a vulnerability. Honduras represents geographic diversification, stable production, and established quality infrastructure. For Honduras, the Saudi market represents diversification away from over-reliance on the US and Europe, which together take over 60% of our exports.
When global coffee stocks hit 20-year lows and prices swing 70-90% in a single year, both producing and consuming countries need more options, more partnerships, more resilience built into the system. That’s what this is about – not just opening a market, but building the kind of relationships that can weather what’s coming.

The Most Mind-Blowing Discovery

Digging through Ottoman archives and genetic studies for coffee research – what’s the most mind-blowing thing you’ve uncovered about coffee’s real history?

It’s not one discovery. It’s how four separate revelations came together to show the same thing: that what we call “coffee history” is actually a perfectly documented catastrophe.
First, the genetics. In 2021, Christophe Montagnon’s team found that 57% of Yemen’s coffee belongs to a genetic cluster that exists nowhere else on Earth. Meanwhile, every cup of coffee outside Ethiopia and Yemen traces back to 20 to 50 individual plants taken between 1616 and 1723. The genetic bottleneck is so severe that global coffee has less diversity than most endangered species. Your morning cup is more inbred than a captive breeding program.
Second, the archives. Ottoman tax records from the 1630s documented multiple coffee varieties, different grades, elevation-specific types, processing methods tied to specific outcomes. They recorded an agricultural system so sophisticated that modern agronomists still struggle to comprehend it. This wasn’t primitive farming. This was biotechnology operating at the speed of seasons, refined over eight centuries.
Third, the legal theft. In 1612, the Dutch and Ottomans signed a capitulation agreement that made coffee trade perfectly legal. Which is the most damning part. This wasn’t piracy or smuggling or romantic adventure. It was systematic appropriation through proper channels, with contracts and receipts and official stamps. The Dutch spent ninety years learning everything they needed to know, then took just the narrow slice of genetics they could manage, leaving behind the diversity and the knowledge.
Fourth, the knowledge gap. Recent genetic research shows that what Yemeni farmers called “Udaini” or “Dawairi” weren’t stable genetic varieties in the modern sense – they were vernacular names encoding generations of cultivation knowledge tied to place, microclimate, processing methods. The names themselves were technology. When the Dutch took the plants without the knowledge, they captured seeds but not understanding. They achieved cultivation but not complexity. They produced quantity but not quality.
Here’s what’s mind-blowing: these four discoveries prove the same thing. The coffee industry was built on a genetic bottleneck created by legal extraction that documented its own crime while failing to steal the actual knowledge. We have the receipts. We have the genetic evidence. We have the archives showing what was lost. And we have an industry that’s now facing climate collapse because the diversity we needed was left behind, and the knowledge that could save us is dying in the mountains we’re bombing.
The Ottoman archives don’t just show what happened. They show that everyone knew what was happening, approved it through proper legal channels, and documented the destruction with bureaucratic precision. The catastrophe we’re facing now was built into the system from the beginning, recorded in triplicate, filed correctly.
That’s what keeps me up at night. Not that coffee’s history is theft – but that the theft was so thorough, so legal, so well-documented, that we convinced ourselves it was progress. And now the genetic poverty created by that “legal” appropriation threatens the entire industry, while the solutions sit in Yemeni farmers’ fields, encoded in knowledge systems that colonial archives carefully recorded before helping to destroy them.
We have the proof. We’ve always had the proof. We just preferred the pirate stories.

Traditional Methods as the Future

In your Yemen Coffee Book, you make a strong case that old-school farming methods are actually the future, especially with climate change breathing down our necks. What convinced you of that?

The moment I realized that Yemen had an answer for basically any sort of climate stress or disease stress. That answer might have taken a few generations to cultivate, but by the time we got to the 1600s, they were ready for anything the world threw at them. And each time it was an opportunity to utilize or develop an even better coffee. It was always about quality.
Look at what the Ottoman archives documented: varieties for high terraces where frost threatens, varieties for dry eastern slopes, varieties for valleys where heat pools. The Khawlan variety that survives on 200mm of rainfall annually – that’s less than Las Vegas gets. The Haraz cultivar that produces sweet cherries in near-desert conditions. The Bani Matar strain that resists coffee berry disease without any chemical inputs.
At any temperature, at almost any elevation, at any hint of disease – they had a variety ready. Not just to survive, but to excel. They weren’t selecting for maximum yield or ease of harvest. They were selecting for quality under stress. Which means they were accidentally breeding for exactly what we need now: resilience with excellence.
The proof isn’t just historical. It’s happening right now in competitions. The 2024 Best of Yemen auction set a world record – $1,159 per kilogram for the top lot. The average was $369 per kilo. That’s not sentimentality or storytelling premium. Those coffees scored over 90 points in blind cuppings by international judges. One scored over 90 points – that’s extraordinarily rare for any coffee, anywhere.
And here’s what’s most important: these aren’t isolated exceptional lots. The entire representation of coffees from Yemen that participate in competitions score at levels no other origin can match. You can’t describe any other coffee the way you describe Yemen – thick as jam, with complexity that sommeliers struggle to articulate. That density, that intensity, that’s what eight centuries of selection under stress produces.
Yemen grows coffee with rainfall levels that experts say make cultivation impossible – between 244 and 379 millimeters per year versus the 1,400 millimeters that’s supposedly minimum. The trees don’t just survive, they thrive. And they produce coffee that makes buyers from Saudi Arabia, Japan, Europe, the US compete in auctions, driving prices to levels that prove quality isn’t about inputs – it’s about knowledge.
When coffee leaf rust devastated Central America, resistant varieties had to be rushed from seed banks. But Yemen’s terraces? The farmers there tell stories about rust coming “like fire through the mountains” generations ago. Some trees survived. They planted from those survivors. Now their coffee “laughs at rust” – what scientists call horizontal resistance that took modern breeding programs decades to try to replicate.
Climate change is accelerating everything. Rising temperatures, erratic rainfall, new disease pressures – the coffee industry is spending billions trying to engineer solutions. Meanwhile, Yemen has been running these experiments for eight hundred years. Every variety they maintained was an adaptation to stress. Every generation of selection was training coffee to survive what’s now becoming universal.
The traditional methods aren’t backwards. They’re sophisticated biological science operating at the speed of seasons. What the Dutch took ninety years to approximate, what modern research stations struggle to replicate – Yemen had already perfected it by maintaining diversity, selecting under actual field conditions, and never losing sight of quality as the ultimate measure.
That’s what convinced me. Not romanticism about tradition, but data. Genetic studies showing unique adaptation. Auction results proving quality. Climate evidence showing Yemen growing coffee in conditions that will be standard as temperatures rise. The traditional methods work better than modern alternatives because they were developed to solve harder problems than modern coffee has faced – until now.
The future looks like Yemen’s past. We just need to admit it before it’s too late to learn from it.

The Yemen-Honduras Exchange Vision

Teaching Yemeni processing techniques to Honduran farmers is such a cool cultural exchange. How’s that going, and what changes are you seeing on the ground?

It’s a dream right now. But it’s the dream that drives everything I’m doing.
I have this completely idealist vision of bringing a coffee cultivator from Honduras to Yemen on a fact-finding mission. A diplomatic mission. A ceremonial mission. I want to film it, document it, and have that information deeply affect how everyone in the world cultivates coffee – to recalibrate the entire industry’s approach.
Think about what that would mean: a Honduran farmer, someone who’s been told their whole life that modern agronomic practices are “best practices,” standing on a Yemeni terrace that’s been producing coffee for 800 years with 200 millimeters of annual rainfall. Watching how varieties are selected. Learning why certain trees are kept even when they don’t produce much in good years – because they’re insurance for bad years. Understanding that what looks like chaos is actually sophisticated risk management.
The exchange wouldn’t be about transplanting techniques. You can’t just take Yemeni methods and apply them in Honduras – the contexts are different, the challenges are different. But the principles? The philosophy of cultivation? That’s what could transform everything.
Yemen developed coffee cultivation through constraint. Honduras has been taught to develop it through input – more fertilizer, more chemicals, more irrigation, more intervention. What happens when a Honduran farmer sees that the highest-quality, highest-value coffee in the world comes from the opposite approach? From less intervention, more observation, deeper understanding of what each variety needs rather than forcing all varieties to conform to one system?
I want to document a Honduran farmer learning from a Yemeni farmer whose family has been selecting coffee for thirty-seven generations. Not as some romanticized agricultural tourism, but as serious knowledge transfer between peers. The kind of exchange that should have happened 400 years ago but didn’t because colonial powers weren’t interested in learning – they were interested in taking.
This would be different. It would acknowledge that Yemen holds knowledge the rest of the world needs. That the “primitive” methods are actually advanced biotechnology. That climate change means we need to learn from people who’ve been farming in climate extremes for centuries, not from research stations trying to engineer resilience in controlled conditions.
The changes I want to see aren’t just in Honduras. I want this exchange to recalibrate how the entire coffee industry thinks about cultivation. To shift from “how do we make coffee fit our industrial systems” to “how do we work with what coffee has already learned through centuries of adaptation.”
So no, it’s not happening yet. But that’s the mission. That’s what all of this is building toward – creating the conditions where that exchange becomes possible, where it gets documented, where it changes how we think about coffee’s future by finally paying attention to its past.
The fact-finding mission I’m dreaming about isn’t just about finding facts. It’s about finding the future by learning from the people we should have learned from all along.

Five Year Vision

Fast forward five years – where do you see this Honduras-Yemen partnership, and how do you think it’ll change the way the world thinks about coffee?

This question has really crystallized for me, especially in the last year. I’ve moved beyond thinking it’s just about ensuring growers are fairly compensated. That’s each nation’s responsibility, certainly, but now I’m more focused on nation building in coffee communities all over the world.
In coffee communities everywhere, there are deep unemployment problems. And the true economic potential lies where it always does – in how they process their primary resources. How they can control and capture the wealth of roasted coffee. How they can do things their way.
In five years, I see this relationship playing out across all originations. There’s a deep exchange of knowledge, practice, understanding, and high-resolution support where we all help each other in pursuit of creating true national sovereignty and actual sustainable development.
Because relying on aid agencies whose help stops the moment nations want to industrialize this sector of their economy has proven that it will never achieve its goals. The goals of the northern sustainability complex do not align with the goals of the southern pursuit of sustainability and economic sovereignty.
What I envision is coffee-producing nations learning from each other, teaching each other their processing techniques, sharing their market development strategies, and supporting each other’s industrialization. Yemen teaching Honduras. Honduras teaching Ethiopia. Ethiopia teaching Colombia. Not waiting for permission from the North. Not accepting a model of development that keeps them permanently dependent on exporting raw materials.
This Honduras-Yemen partnership is the template. It shows what’s possible when producing nations connect directly, share knowledge horizontally, and refuse to accept the commodity trap as inevitable. In five years, I hope to see this replicated across dozens of origin countries – all building their own roasting capacity, their own brands, their own direct market access, and their own economic sovereignty.
That’s how we change the way the world thinks about coffee. Not by asking consuming nations to be more ethical in their purchasing. But by producing nations taking control of their own economic destiny.

How Gen Z Is Brewing a New Global Coffee Culture

Dubai – Qahwa World

In a world shaped by economic uncertainty, climate challenges, and changing consumer values, Generation Z is redefining how humanity drinks its coffee and tea. Born between 1995 and 2009, this generation stands out for its digital fluency, health awareness, and desire for personal expression — qualities now transforming one of the world’s oldest beverage traditions.

Coffee has long dominated consumption in developed markets such as Europe and North America, where per capita retail brewed consumption reached 127.7 and 98.5 litres respectively in 2024. Yet the real growth potential lies in the emerging regions of Asia Pacific and the Middle East — areas home to the largest Gen Z populations. With incomes rising and tastes evolving, these regions represent a new frontier for the global coffee and tea industry.

According to Euromonitor International’s Voice of the Consumer: Lifestyles Survey (2025), daily caffeine intake among Gen Z varies sharply between regions. Europe leads with around 44% of respondents consuming caffeine at least once a day, followed closely by Latin America and North America. In contrast, daily consumption rates are lower — though rising rapidly — in Asia Pacific (31%) and the Middle East & Africa (29%). The numbers underline both cultural diversity and untapped opportunity.

Generation Z is not simply consuming — it is curating. For these young consumers, coffee and tea are deeply personal experiences. Half of respondents in Euromonitor’s survey said they actively seek products and services tailored to their own identities and lifestyles. This is why social media now plays a central role in shaping beverage trends: matcha and coconut lattes, discovered on TikTok and Instagram, quickly turn from niche products into cultural symbols. In this digital space, a drink is not just consumed — it is shared, styled, and photographed.

Beyond cafés, the same creative energy is transforming home brewing. For Gen Z, the coffee machine has become both a tool of experimentation and a reflection of self-expression. Brewing at home satisfies both economic practicality and the pursuit of the perfect café-quality cup — an act that blends creativity, mindfulness, and comfort.

Health and sustainability are equally crucial. Young consumers are embracing functional coffee that delivers benefits beyond caffeine — from mushroom and collagen-infused blends to beverages that support digestion, focus, and beauty. At the same time, their environmental awareness is reshaping the market. Gen Z is far more receptive than previous generations to lab-grown and “beanless” coffee, such as the innovations being developed by Atomo Coffee and start-ups in Singapore, France, and the United States. For them, technology and ethics can coexist — and even enhance each other.

Social platforms remain at the heart of this transformation. TikTok and Instagram have become cultural laboratories where new drinks, aesthetics, and habits are born. Major brands are adapting fast: Starbucks’ Coco Matcha and Coco Cold Brew reflect this generation’s visual culture, while Nespresso’s collaboration with The Weeknd shows how celebrity storytelling can deepen brand connection. Direct-to-consumer brands like Blue Tokai and Sleepy Owl in India, or Perk Coffee in Singapore, are thriving with subscription models that deliver convenience, personalization, and loyalty in equal measure. Even convenience chains are evolving — 7-Eleven now offers automated tea machines, while Korea’s Coffee Banhada uses artificial intelligence and unmanned drive-throughs to serve customized brews to tech-savvy customers.

The world’s next coffee revolution will not be defined by new beans or machines but by new values. As Gen Z continues to mature, its influence on global coffee and tea culture will expand across continents, uniting digital innovation with human connection. The future of coffee, it seems, will be crafted as much by individuality and sustainability as by flavor and aroma — one personalized cup at a time.

Nuova Simonelli Unveils a New Logo Marking a New Chapter in Its Timeless Identity

Dubai – Qahwa World

Nuova Simonelli has officially revealed its new logo — an evolution that respects the brand’s deep heritage while embracing a modern vision for the future. The refreshed design preserves the company’s distinctive monogram that unites the initials “N” and “S,” symbolizing the harmony between innovation and tradition that has defined the Italian espresso machine manufacturer for nearly a century.

“For more than 90 years, the Nuova Simonelli logo has reflected craftsmanship, reliability, and progress,” the company stated. “Each transformation has mirrored the times, while remaining true to the essence of who we are.” The new emblem carries forward this legacy in a refined, contemporary form — one that positions the brand for its next era.

A Legacy Rooted in Design and Innovation

Founded in 1936 under the name Simonelli and renamed Nuova Simonelli in 1972, the brand has long stood for easy-to-use, technologically advanced espresso machines. Today, its products are found in cafés, restaurants, and hotels in over 125 countries. “When we acquired the trademark, we chose to keep the name Simonelli as a sign of respect for that pioneering phase,” recalled Nando Ottavi, Chairman of Simonelli Group. “Nuova Simonelli represents both continuity with our origins and a look to the future.”

The original monogram was designed in 1975 by industrial designer Carlo Viglino during the launch of the company’s first truly modern espresso machine, the ISX. “I started with the initials N and S, placing them inside a grid to build the frame and proportions,” Viglino explained. “I superimposed the two letters, softened the corners, and created a single monogram that symbolizes unity between innovation and tradition.”

The symbol, he added, can also be seen as two arrows expanding outward — a “prophetic sign” of a brand destined for global recognition. Viglino paired this with a clean, legible logotype to reflect the simplicity and precision of Nuova Simonelli machines.

Evolution Through the Decades

Since its creation, the monogram has been featured on every Nuova Simonelli espresso machine. The company made slight updates over time — introducing the red color and tagline in the 1990s, refining the design during the launch of the Aurelia series in 2003, and later returning the monogram to its original upright position with a renewed payoff.

Now, in 2025, Nuova Simonelli’s new logo represents a seamless bridge between past and future — a modern refinement of a design born from Italian ingenuity and a passion for espresso excellence. It reflects not only a visual evolution but also the brand’s enduring commitment to innovation, craftsmanship, and global leadership in the world of coffee.

Indonesia Expands Coffee Exports with New Shipment to Saudi Arabia

JAKARTA – Qahwa World

Indonesia has expanded its coffee export market with a new shipment of premium Arabica beans from the slopes of Mount Argopuro in East Java to Saudi Arabia, marking another milestone for the country’s growing smallholder coffee sector.

The shipment, totaling 15 tons and valued at around 3 billion rupiah (approximately 180,000 U.S. dollars), reflects Indonesia’s continued effort to strengthen its position in the global coffee trade and promote the role of micro, small, and medium enterprises in international markets. The consignment was officially dispatched on Monday, in a move hailed by government officials as a success story for local farmers and entrepreneurs.

Bagus Rachman, Deputy for Business Affairs at Indonesia’s Ministry of Micro, Small, and Medium Enterprises, said the export from Mount Argopuro demonstrates the competitiveness of Indonesian MSMEs on the global stage. He emphasized that more than 90 percent of the nation’s coffee plantations are managed by smallholder farmers, who have become the backbone of Indonesia’s coffee production and export activities. Rachman described the Argopuro shipment as a model of how medium-scale enterprises can become a driving force within the MSME ecosystem, creating added value and expanding export capacity.

According to Statistics Indonesia, the country’s coffee exports rose from 279.94 million kilograms in 2023 to 316.72 million kilograms in 2024, underscoring steady growth despite challenges from fluctuating prices and global demand pressures. East Java, where Mount Argopuro is located, remains one of Indonesia’s key coffee-producing regions, known for high-altitude Arabica beans characterized by their clean cup, moderate acidity, and distinct aroma.

Local officials in Situbondo Regency, the region surrounding Mount Argopuro, praised the export as a breakthrough for community-based farmer groups that have invested in quality improvement and post-harvest processing. They highlighted that Argopuro’s elevation, reaching about 1,800 meters above sea level, contributes to its unique flavor profile, making it increasingly sought after in Middle Eastern and Asian markets. The local government also called for stronger support programs to encourage youth participation in coffee farming and ensure long-term sustainability of production.

Data from Indonesia’s Ministry of Trade shows that the country exported coffee, tea, and related products worth more than 16 million U.S. dollars to Saudi Arabia in 2023. The new shipment from East Java is expected to deepen trade relations between the two nations, opening opportunities for future collaboration in the premium and specialty coffee segments. Saudi Arabia has become an emerging destination for Indonesian agricultural products, reflecting growing demand for high-quality Arabica beans in the region’s expanding coffee industry.

Industry observers say the success of this shipment could inspire similar initiatives across Indonesia’s coffee-growing provinces, including Aceh, North Sumatra, and South Sulawesi, where MSMEs are working to boost exports of specialty varieties. The government’s ongoing push to promote downstream processing, improve logistics, and introduce value-added branding is seen as essential to enhancing Indonesia’s competitiveness in international markets.

Indonesia, the world’s fourth-largest coffee producer, has long been known for its diverse range of beans, from Sumatra Mandheling to Java and Toraja. With global demand for Arabica and Robusta continuing to rise, initiatives like the Argopuro export are expected to help the country expand its share of premium coffee markets, create higher income for farmers, and reinforce Indonesia’s image as a leading origin in the world of coffee.

For the First Time in 133 Years, Maxwell House Changes Its Name to “Maxwell Apartment”

Chicago & Pittsburgh Qahw World

In a historic move, Maxwell House has announced its first-ever name change since its founding in 1892. The iconic American coffee brand will temporarily rebrand as “Maxwell Apartment”, a shift designed to resonate with modern consumers and highlight its long-standing promise of affordable, great-tasting coffee.

The rebrand is more than symbolic: it reflects a reality in which nearly one-third of Americans rent apartments instead of purchasing homes, according to the U.S. Census Bureau. Rising housing costs and the growing trend of brewing coffee at home rather than frequenting cafés inspired the company to embrace the “apartment” lifestyle as part of its brand identity.

To celebrate the transformation, Maxwell House is offering consumers a 12-month “lease” of Maxwell Apartment coffee. Beginning on National Coffee Day (September 29, 2025), coffee lovers can purchase a full year’s supply on Amazon for under $40, a deal designed to save households more than $1,000 annually compared to daily café visits. Each package will include rebranded canisters and even an official lease agreement for fans to sign.

“Two-thirds of American adults drink coffee every day, which can add up quickly, especially these days,” said Holly Ramsden, Head of Coffee for North America at The Kraft Heinz Company. “Maxwell House believes no one should have to go without great tasting coffee. Maxwell Apartment delivers the same delicious taste people know and love, at a value that celebrates all our fans are doing to make smart choices in their lives.”

The company emphasized that only the name is changing. Consumers can expect the same flavor, aroma, and quality that Maxwell House has guaranteed for over a century under its “Good to the Last Drop” legacy. The Maxwell Apartment campaign is one of two major initiatives launching this fall, underscoring the brand’s continued commitment to providing both consistency and value in an increasingly competitive coffee market.

As Maxwell House leans into its new identity, the rebrand underscores a broader message: smart choices add up. Whether in housing or in coffee, the company wants consumers to know they can enjoy premium taste without paying premium prices.