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Gentle

Ge
e Co
Conveying
vey g
Visit us at Booth #630

(641) 673-8451
www.cablevey.com
Cablevey is a registered trademark of Intraco, Inc. 11/2013

Tubular Drag Cable Conveyors Hel


p Company
Turn Green Coffee Beans Into Smoo
th Blends

A coffee roaster species tubular dra


g cable conveyors for a new facility
s
production process to reduce opera
ting costs and improve production
efciency.
Apffels Fine

Coffees, Santa Fe Springs, Calif.,


produces a wide range of custom
ed regular and avored whole bea
blendn and ground coffees and other coffe
e ingredients
for food stores, private labelers, and
food-service establishments. The com
pany imports
hand-picked green coffee beans and
custom-blends and roasts them to
make the wholebean and ground coffee products
that are packaged in 1- ounce to
5-pound valve
bags for distribution. In early 200
4, the company worked with an eng
ineering rm to
design and build a new advance
d computer-aided roasting facility
for small-batch and
high-volume production runs. Wh
en planning the facility, the compan
y needed to install
a conveying system that would efc
iently and gently move the coffee
beans and ground
coffee through the production proc
ess without diminishing product qua
lity.

Finding Better Conveyors

In the past, the company used bucket


elevators, augers, and pneumatic
pressure conveying systems to move the
beans
and ground coffee through the blen
ding,
roasting, grinding, avoring, and
packaging processes. However, these conv
eyors
were maintenance and labor-intensiv
e and
required excessive production dow
ntime
to clean between product runs to
prevent
cross contamination. This kept our
operation costs high and decreased our
production efciency, says Darr yl Blunk,
Apffels
president. The conveyors also brok
e the
roasted coffee beans and declassi
ed the
coffee grounds because of the way
they
worked. This was a problem beca
use we
want unbroken beans and a cons
istent
grind distribution at the end when
we
package the nal product.
When the company decided to build
the new facility, it worked closely
with

Nohbell Corp., Bellevue, Wash.,


an
engineering rm that specializes
in
designing, developing, and impleme
nting
supply-chain operations for coffee,
wine,
and food processors. During the plan
ning
stage, the engineering rm recomme
nded
that the company use enclosed tubu
lar
drag cable conveyors to move the
beans
and ground coffee through the prod
uction
process. Based on the engineering
rms
experience in the coffee industry,
these
slow-running, dust-free conveyors
would
carefully convey the friable roasted
mended conveyor supplier for testi
beans
ng. The
and ground coffee without breaking
supp
lier, Cablevey Conveyors, Oskaloo
the
beans or stratifying the grounds. And
sa, Iowa, manufactures custom-desig
bened
cause of how the conveyors move
material conveying systems for the food processthrough the enclosed tubes, they wou
ing, agriculture, wood, and other
ld
bulk
also reduce maintenance and clea
solid
s industries. The tests proved succ
ning
essrequirements and improve productio
ful, and the companys engineers
n efworked
ciency and product quality.
with the suppliers engineering team
to
cust
om-design eight conveying systems
The company sent samples to a reco
for
mthe new facility.

The Tubular Drag Cable Conveyor

The roasted beans discharge from


the holding silos (right) into a conveying syste
m that
moves them vertically and then hori
zontally
above the two grinders (bottom left).

In late 2004, the suppliers technicia


ns
installed eight Model 4000 Series
tubular drag cable conveyors, som
e of
which have multiple discharges, in
the
companys new roasting facility. Each
conveyor consists of two 4-inch-diam
eter
enclosed tube sections (an infeed
and a
return tube) with a turnaround sect
ion at
one end and a variable-speed 5-ho
rsepower drive-and-sprocket assembly
at
the other. The turnaround section
connects the infeed and return tubes
at the
infeed end and includes an automati
c
cable-tensioning device. The drive
andsprocket assembly connects the tube
s at
the discharge end, forming a cont
inuous
circuit. If necessar y, a strategically
placed

mechanical corner in the conveyin


g
circuit redirects material at a hori
zontal
or vertical right angle. The conveyor
is
constructed of stainless steel, mak
ing it
suitable for food-grade applications
.
A continuous exible stainless stee
l cable
is installed inside the enclosed tube
s, and
solid, food-grade, ultrahigh- mole
cularweight polyethylene (UHMW-PE)
circular
discs are mounted on the cable at
regular
inter vals...Continue Reading

http://cablevey.com/articles/pbe

-apffels-jan-2013.html

Previously & originally published


by our friends at Powder Bulk Engin
eering.

Contents

features

January 2014 Vol. 186/No. 1

CO
STOVER
RY

20 Poland: A New Home for


Specialty Coffee
By Anne-Marie Hardie

30 Tea in Eastern Europe:


Growing in Sophistication
By Barbara Dufrne

36 Caramelized Sugar:
Boosting Flavor & Value
By Aubrye McDonagh Leigh

40 Special Report: Social Media Part 1


By Aaron Kiel

46 Origin Highlight: Indonesia


By Ocane Trevennec

20
30

36
50 Weather Patterns Are Driving Change
in Insurance Assessment
By Aaron Tucker & Christina Dammen

54 Burning Spent Coffee


By Robert Johnson

departments

40
6 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

Editors Letter

10

New & Notable

16

Facts, Figures & Findings

18

Calendar of Events

56

Green Coffee ReportEmploying Genetics

62

People News

60

Company News

64

Advertisers Index/Marketplace

66

Straight from the Cup:


Melanie Rutten-Slz
ISSN 0040-0343 (Print)
ISSN 2331-8546 (Online)

from the

EditorsDesk
Change: The Operative Word for 2014
Happy New Year! And what a start to 2014 its been! Im writing this column
in the midst of an arctic blastfreezing temperatures are breaking records
across the United States (here in New York City it was around 4 F when I last
checked and all 50 statesincluding Hawaiiexperienced freezing temps
some time today). It was also an unseasonably cold and/or snowy fall in many
states. This unusual weather makes me think of climate change, of course.
While the U.S. does not produce any coffee or tea, it is home to numerous
major ports, and consequently, key warehousing facilities for these products
both of which are affected by climate change. As this months warehousing
story reveals, climate change and extreme weather events are changing the way
industry insurers assess risk and pricing.
Consumption habits are changing in Poland for both coffee and tea,
which is why it will provide the ideal setting for our 18th Tea & Coffee World
Cup (Warsaw, Feb. 11-13). As our dual cover story details, the coffee scene in
Poland is rapidly growing, with more consumers embracing the Western
coffeehouse experience and desiring specialty coffee. Poland has traditionally
been a tea-drinking nation, and primarily a value-oriented black tea one at
that, but consumers are now stepping up to premium loose-leaf teas and
exploring green tea options.
The 300-plus year-old coffee industry in Indonesia, this months origin
highlight, is also undergoing change as farmers, looking to protect their coffee culture, are beginning to form cooperatives.
What could be more ever changing and evolving than social media? Part
one in our multi-issue series discusses how social media continues to change
companies marketing approach and consumer outreach, and offers ideas on
how social media can be utilized by coffee and tea companies.
There are also more changes coming to T&C this year. We will soon roll
out our updated Facebook page and new Twitter handle (these are in addition
to our Tea & Coffee World Cup accounts). We have new editorial content
planned that includes a number of new series, profiles, origin highlights and
special reports, as well as bonus distribution at new conferences and trade
shows throughout the world. And, stayed tuned for exciting news that will be
coming regarding TC World Cup
Change is necessary, and we want to always change for the better. In that
vein, please continue to contact me with editorial ideas or suggestions on how
to further improve T&C for you, our readersI truly welcome your feedback.
Change is a good thing!

Editor-in-Chief

Vanessa L. Facenda

Specialties Editor

Donald N. Schoenholt

Art Director

Lily Lee

Assistant Art Director

YiLing Yen

Production Coordinator

Melinda Ayala

Contributing Editor

Aaron Kiel

Contributing Writers

Barbara Dufrne
Anne-Marie Hardie
Rachel Northrop
Maja Wallengren

Founding Editor

William H. Ukers (1873 1954)

Editorial Advisory Board


Lon LaFlamme & Phil Beattie, Dillanos Coffee Roasters;
Michael Cramer, Adagio Teas; Daniel Ephraim, Modern
Process Equipment; Stephen Hurst, Mercanta; Stephen
Schulman, S&D Coffee; Joseph Simrany & Melissa J. Pugash,
U.S. Tea Council/ Specialty Tea Institute; Christian Wolthers,
Wolthers America

Subscription Rates
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Canada: $59 (1 year), $89 (2 years), $134 (3 years)
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Other Areas-Airmail: $129 (1 year), $199 (2 years), $289 (3 years)
Back issues: $15 per copy
Inquiries: circulation@teaandcoffee.net

TEA & COFFEE TRADE JOURNAL


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Web Site: www.teaandcoffee.net, Inquiries: editor@teaandcoffee.net
ANNUAL DIRECTORY & BUYERS GUIDE
Each year, Tea & Coffee Trade Journal publishes the Ukers Tea & Coffee
Global Directory & Buyers Guide, a comprehensive reference guide to
the industry and its allied industries. Qualified companies are entitled to a
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TEA & COFFEE TRADE JOURNAL (ISSN 0040-0343 print;
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Member: National Coffee Association, Green Coffee Association, Pacific


Coast Coffee Association, Coffee Association of Canada, Specialty Coffee
Association of America, Specialty Coffee Association of Europe,
Specialty Tea Institute, Tea Association of USA, Tea Council of Canada.

Vanessa L. Facenda
Editor-in-Chief
v.facenda@teaandcoffee.net

letter to the editor


Muchas gracias por el artculo de la Roya en Centro
America, en el Tea and Coffee Octubre 2013.la versin
de espaol excelente! Saludos!Francisco, Costa Rica

8 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

A whiter and brighter future. Tea & Coffee Trade Journal has teamed up
with delfortgroup to deliver to you the finest in thin print paper. The
Tea & Coffee Trade Journal editions are printed exclusively on delfortgroups
Thinstar Plus HB 60 g/m2. delfortgroup thin print papers are created
to promote sustainability by continuous reduction of the
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a range of ultra-lightweight paper solutions, both in coated
and uncoated paper. Imagine your on-pack or
off-pack promotion printed on this paper!

New&Notable
tea & coffee reports brewing worldwide

Dethlefsen & Balk Opens First Tea Shop in China in November


Long-time tea suppliers, Dethlefsen & Balk, opened their first-ever retail outlet in China in November. Located in the heart of Shanghai, the new store
provides Chinese consumers and wholesalers with a wider variety of choices
in tea, coffee, confectionary and accessories. It will also function as a retail
showroom for Dethlefsen & Balk (D&B) and provide consumers better
access to D&B products. Consumers can now experience the entire range of
D&B products by seeing, touching, smelling and tasting them and they can
now purchase products directly from D&B sales staff.
Wholesalers, distributors and partners of D&B in China can use this
showroom to see the types of products that appeal to consumers and have
a better understanding of their tastes and demand.
The D&B shop is located in the district Pudong, at Room 204,
No.1099 Mei Hua Road, Pu Dong District, Shanghai, near the Kerry
Parkside, Shanghai New International Expo Centre and the 5-star Jumeirah
Himalayas Hotel.
The tea shop opening in November coincided with D&Bs participation
in FHC China 2013 (Chinas largest food and hospitality exhibition), where
D&B showcased its entire range of products. Dethlefsen & Balk GmbH, is
headquartered in Hamburg, Germany.AML

President

Robert M. Lockwood

Publisher

Frederick A. Lockwood

Executive Director

Rob Lockwood

Director of Exhibitions

Frank B. Schuetze (Germany)


Tel: +49 30 645 7212
Fax: +49 30 6409 1350
E-mail: fbsch@t-online.de

Trade Show Manager


Circulation Manager

Mayuri Khemlani

Trade Show Assistant

Omaima Khan

Accountant

Roxanne Cordova-Melendez

ADVERTISING REPRESENTATIVES
Austria, France, Switzerland, Germany, United Kingdom
Robert M. Lockwood
Tel: +1-212-391-2060, ext. 109, Fax: +1-212-827-0945
E-mail: robert@teaandcoffee.net
Benelux, Italy, Portugal, Spain, South America
Frederick A. Lockwood
Tel: +1-212-391-2060, ext. 107, Fax: +1-212-827-0945
E-mail: f.lockwood@teaandcoffee.net
Africa, Bulgaria, Caribbean, Central America,
Greece, Scandinavia, Turkey
Rob Lockwood Jr.
Tel: +1-212-391-2060, ext. 130, Fax: +1-212-827-0945
E-mail: rob@teaandcoffee.net
Special Sales Representative
George E. Lockwood
Tel: +1-413-548-9700, Fax: +1-212-827-0945
E-mail: lockwood.george@gmail.com
Asia, Australia, Middle East, Oceania
Oliver Medcalf
Tel: +1-212-391-2060, ext. 123, Fax: +1-212-827-0945
E-mail: o.medcalf@teaandcoffee.net
North America
Scott Rogers
Cel: +1-917-763-6478, Fax: +1-212-827-0945
E-mail: s.rogers@teaandcoffee.net
Online Advertising, Sponsorships and Special Sales
Mark Siebel
Tel: +1-212-391-2060, ext. 130, Fax: +1-212-827-0945
E-mail: m.siebel@lteaandcoffee.net

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Fax: +1-212-827-0945
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For permission to reuse material from Tea & Coffee Trade Journal,
ISSN: 0040-0343 (print) ISSN: 2331-8546 (online), please access
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Lockwood Publications produces the magazines:
SMOKE, Smokeshop, Tobacco International,
as well as the Ukers Global Directory & Buyers Guide

Dethlefsen & Balk opened its first retail shop in Shanghai, China, in November.

10 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

EW

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New&Notable
Ethiopian Coffee Exporters Host 2nd
International Conference
More than 200 experts and coffee industry stakeholders crowded the conference
facilities at the Sheraton Hotel in
Ethiopias capital Addis Ababa when the
country, famously known as the birthplace of coffee, hosted its second international conference, Nov. 4-5th.
It gives me immense pleasure to be
here in the birthplace of coffee, said
Roberio Silva, the executive director of
the London-based International Coffee
Organization, in his opening remarks to
the conference.
I would like to congratulate the
Ethiopian Coffee Exporters Association,
which has put together this wonderful
conference. As a trade association that
has been in the business for over four
decades, it is the authentic coffee industry
leader vested with the prime responsibility
of promoting the Ethiopian coffee in the
global market, said Silva.
Silva also announced that the government of Ethiopia has made a generous
offer to host the next ICO World Coffee
Conference to be held in 2015 and while
a final decision has yet to be taken at the
next ICO council meetings, there was no

doubt as to the excitement from the


crowd of the possibility of holding the
conference in the country where coffee
first was discovered growing in the wild
between 1000-1200 years ago.
Under the theme building a sustainable coffee future, a packed conference
program analyzed and discussed everything from quality and best growing practices, the outlook of the market for supply
and demand in the 2013-14 crop cycle,
research and particular challenges to the
Ethiopian coffee exporter sector.
Ethiopian coffee exporters still struggle to adapt to the last decade of open
market policies and a brand new coffee
exchange, but laws and regulations that
were written decades ago and have yet to
be modernized.
But most participants, however,
agreed that despite such challenges, the
outlook for the Ethiopian coffee industry
is by far dominated by positive indicators,
from the low cost of production that
makes it competitive in the global market
space, to the unique quality of the over
6000 original varieties and a healthy support in public government policies.
There are several opportunities for
the coffee sector in Ethiopia, especially
when we look at the genetic diversity and
favorable environment we have for coffee
combined with the farmers ancestral
knowledge and the many coffee varieties
that have been established as a primary
source of some of the worlds best quality
coffee, said Taye Kufa, the head of
Ethiopias Jimma Coffee Research Center.
Showing impressive support for the
coffee sector, the conference was inaugurated by Ethiopian President Mulatu
Teshome, and top cabinet ministers
from Prime Minister Hailemariam
Desalegn to the ministers of trade,
industry and agriculture.MW

12 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

Brand Development Fosters the


Success of GI Products
On Nov. 6th, experts came together to discuss Protecting Commodities and
Turning Them into Brands, the Value of
Geographical Indicators (GI).
Massimo Vittori, managing director,
Origin, Geneva, Switzerland, emphasized
that one of the key roles that GIs play is
that it encourages sustainable local development. In order for a product to receive
geographical indication, it has to be produced in the region that is protected. This
ensures that not only the name of product
is protected, but also the quality of the
product. However, protecting a product
on its own will not guarantee the success
of a GI product.
For the majority of the North America
public, Geographical Indicators on their
own holds little value. Instead, it is the
marketing and branding of these products
that has helped create their core value. GI
leaders such as Darjeeling tea,
Champagne and Colombian coffee have
become products known for their quality.
Each GI protected product has to adhere
to a specific set of standards, and so the
customers begin to associate these factors
with this product.
Jan Benedict E.M. Steenkamp, professor of marketing, University of North
Carolina and author of Branding
Commodities in Four steps emphasized that
it is the branding of the product that will
help determine the value of the GI commodity. There is a clear first mover
advantage to GIs, said Steenkamp.
Those manufacturers that are the first to
introduce a GI in their category, and
claim that position through branding, will
have captured the preferred location in the
mind of the consumer.
One of the key elements to launching
a successful GI brand is how the brand

New&Notable
communicates its product information to the consumer. By and
large, GIs on their own hold little value for consumers.
Successful companies should strive to inform clients why its
critical to purchase a product with the GI indicator. Colombia
has been extremely successful in both protecting its coffee while
promoting its brand.
Luis Fernando Samper, chief communications and marketing
officer, Colombian Coffee Growers Federation, Bogota, has been
actively involved in the 100% Colombian Coffee Project. A
GI protected product since 2007, Samper emphasized that
Colombia sought out geographical indication primarily because
trademark and certification marks do not protect against using
such labels as Colombian blends or Colombian types.
Since 2007, Samper has been one of the leaders in preserving
both the integrity of Colombian coffee and developing the
brand. Today, Colombian coffee is widely recognized as one of
the best Arabicas worldwide.AMH
Dispatch from the Field: Costa Ricas Consumption Habits
Are Quickly Changing
In the world of wines, the best of a given harvest is often what
the vintner keeps on hand for his own consumption. In coffee,
traditionally, the finest beans have been exclusively exported.
That pattern is changing as consumption not only increases in
producing countries, but as it also become more diversified with
a greater emphasis on specialty coffees.
Costa Rica annually exports just over a million bags of
washed Arabicas grown on the countrys 93,000 hectares of coffee producing land, tended by some 52,000 farming families.
Costa Ricas international reputation is for flavorful high grown
coffees with a sharp acidity, but domestic coffee consumption has
traditionally been of second class ground coffee packaged with
sugar, such that, until recent years, most Costa Ricans had never
tasted unadulterated Costa Rican coffee.
This is rapidly changing. Costa Rica is the perfect representation of the trend across producing countries towards a dramatic increase in coffee shop culture and the consumption of prepared specialty espresso and pour-over beverages.
This demand for out-of-home specialty coffee has led to an
increase in coffee shops, which in turn creates a demand for

baristas to work preparing specialty drinks. The Specialty Coffee


Association of Costa Rica has been offering barista training and
roasting courses for several years, but with so many more Costa
Ricans wanting to drink the best coffee their country has to offer,
more such academies are cropping up.
Ricardo Azofeifa, several times Costa Ricas competitor in the
World Barista Championship, has been appointed the director of
the new Costa Rican Academy of Coffee in downtown San Jose,

Ricardo Azofeifa, director of the new Costa Rican Academy of Coffee.

which opened in November. The academy offers courses in roasting, cupping, and, of course, barismo, the craft of being a
barista. The academy showcases the best coffees of the country,
offering producers of specialty coffee a place to roast, cup, and
even package their coffees for local retail. Azofeifa excitedly
explains that the academy is a space specialized for all things coffeeits the first place in the country exclusively dedicated to
and designed for World Barista Championship training.
In June, Kaba Coffee Center opened in the San Jose suburb
of Heredia. Founded by coffee producer Kattia Barrantes and
directed by the president of Costa Rice chapter of the

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14 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

International Womens Coffee Alliance, Laura Aguilar Masis,


Kaba takes a holistic approach to coffee education, looking at the
chemistry and physics of the whys behind farm-level production, roasting, and beverage preparation.
In producing countries its rare to find coffees from other
producing countries, but specialty origins might soon become
the next markets for imports from other specialty origins as the
consumers in specialty coffee producing nations not only develop a taste for specialty prepared drinks, they also begin to form a
culture of education and craft poised to soon match that in traditional consuming countries.RN
India Set to Host 5th International Coffee Festival
Hundreds of coffee industry stakeholders are expected to
gather in Indias coffee capital of Bangalore Jan. 21-25th,
when the country hosts the 5th edition of the India
International Coffee Festival (IICF).
Organizers are expecting to see exhibitor numbers double
this year from that of the last IICF held in 2012 when 33
exhibitors participated. Exhibitors include representatives
from all sectors of the industry: producers, roasters, trade and
equipment dealers.
Conference participants will be able to hear the inspiring
tales on fostering real economic progress in developing countries
first hand from Nobel Laureate Dr R. K. Pachauri. The show will
also host the India Barista Championship.
India has been among the worlds sixth or seventh largest coffee growing countries for years. While most consumers know
India better for tea, the popularity of Indian coffee has been
growing steadily in foreign markets during the last decade. The

Coffee Board of India, chief organizers of the IICF, has also


embarked on expanding production in a number of new regions.
Traditionally all our coffee has been in the south with the
three states of Karnataka, Kerela and Tamil Nadu, making up
between 90 and 95 percent of Indias total production. The rest
of the regions are all very small in output but during the last 15
years we have gradually added 60,000 hectares of new coffee in
our main new region, the Araku Valley in the state of Andhra
Pradesh in north-eastern India, said Jawaid Akhtar, chairman,
Coffee Board of India.MW

Tea is tops! Well, at least in 2014 trends


it is. Tea is the only beverage
included in The Food Channels
recently released Top Ten Food
Trends for 2014.
Based
on
research
conducted by The Food
Channel in conjunction with
CultureWaves, the list identifies the significant food movements consumers, foodservice professionals and manufacturers should watch for in the coming year.
This year its all about global flavors and customs. There
is also recognition of how technology has impacted food
behaviors, said Kay Logsdon, editor of The Food Channel,
Chicago, in a statement. Of the Top 10 Food Trends, only
one beverage made the list, Low Tea.
Per Logsdon, the upper classes had a low tea that was
more likely to be served in the drawing room or parlor, on a
low table. It was meant to sustain them prior to evening
activities. The influence of Downton Abbey may reign here,
but its just one of the reasons weve called out the celebration
of tea. It's also attributable to the move toward more
frequent small meals.
For the full Top Ten Food Trends, visit www.foodchannel.com.

mailto:info@florapharm.de

www.florapharm.de

mailto:info@florapharmteausa.com

www.florapharmteausa.com

JANUARY 2014 15

facts, finding & figures


Consumer Inflammation Concerns
18 college-age males

20 %
50 %

consumed 1,760
mg/d of black tea
extract for nine
days and underwent
a series of perform-

20 percent of
consumers report being
very concerned about
inflammation

Nearly half said they


were not concerned
about the problem

ance tests and blood


samples

Subjects who took


black tea extract
produced significantly higher peak
power and higher
average mean power
across intervals, and
experienced significantly lower levels of
delayed-onset muscle
soreness 24 and 48
hours post-workout.

Source: Multi-Sponsor Surveys Food & Nutrition Database 2012, Applied Food Sciences, Inc.

Black Tea: A Natural Tool to Fight Inflammation


Controlling inflammation is an essential part of good health.
Inflammation occurs when the body responds to tissues that are
injured by bacteria, trauma, toxins, heat or other causes including non-disease factors such as oxidative stress everyday living
through stress, being overweight and exposure to environmental
irritants and. Excess inflammation is thought to be a root cause
of several serious health problems, including heart disease and
rheumatoid arthritis. It can also result in accelerated aging, joint
problems, and general soreness and discomfort that can prevent
active people from participating in activities they enjoy, whereby
reducing their overall quality of life. Thus, managing inflammation is essential.
Studies have shown that consuming polyphenol-rich foods
and drinks like fruits, vegetables, tea and coffee can help reduce
inflammation. Specifically, the polyphenols in black tea have
been found to be especially powerful, with the ability to inhibit
free radical generation, scavenge free radicals in the body and
reduce the activity of pro-oxidation factors.
A recent article published by Applied Food Sciences, Inc.,
Austin, Texas, reported that although drinking black tea is one
way to get beneficial polyphenols into the body, consuming
products or supplements containing theaflavins such as black tea

extract, is even more effective. The inflammation-minimizing


benefits of theaflavins are both powerful and wide-ranging in
their ability to address joint, heart, muscle or gut inflammation.
Theaflavins have also been shown to reduce atherosclerosis by
alleviating inflammation. Furthermore, studies have confirmed
the ability of theaflavins to prevent certain types of cancer such
as esophageal, prostate and colon.
Many studies have looked into the benefits theaflavins have
on people consuming anywhere from one to six cups of tea a day.
Yet, it isnt always convenient for consumers to drink that much
tea on a daily basis. However, black tea extract delivers 75 percent polyphenol content in a dose thats more convenient (see
chart). Additionally, black tea extract is as versatile as it is powerful. The AFS article also noted that theaflavinswhich are known
to be rapidly absorbed by the bloodstreamderived from black
tea are commercially available in dry powder form, making them
easy to add to foods, beverages and supplements.
An effective black tea extract standardized for theaflavin content can be used alone or in combination with other ingredients
for synergistic absorption, such as collagen for joint health,
resveratrol for heart health or choline of healthy brain function
depending on the formulations objective and application.

Careful Conveying of your


Sensitive Tea & Coffee Products

No destruction of the product texture


No alteration of taste and no loss of aroma
No degradation of the product by abrasion
inside the conveying ducts
No intrusion of foreign matter
Low installation and running costs
Internet: www.simar-int.com simar@simar-int.com

SIMAR GmbH Am Fuchsloch 7 71665 Vaihingen/Enz Germany Tel. +49. 7042. 90 30 Fax +49. 7042. 903-39

16 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

calendar of events
January 21 25
India International Coffee Festival

March 7 9
Coffee Fest New York

May 14 15
Caffe Culture

Bangalore, India
Web: www.iicf.in/coffee_2014/index.php

New York, N.Y.


Web: www.coffeefest.com

London, England
Web: www.caffecultureshow.com

February 6 8
World Tea & Coffee Expo 2014

March 19 20
Universita del Caffe (illy)

May 15 18
Melbourne International Coffee Expo

Mumbai, India
Web: www.worldteacoffeeexpo.com

Napa Valley, Calif.


Web: www.ciachef.edu/california

February 11 13
Tea & Coffee World Cup Europe

March 20 22
NCA Annual Convention

EXPO XXI
Warsaw, Poland
Tel: +1 212 391 2060
Email: info@tcworldcup.com
Web: www.tcworldcup.com

New Orleans, La.


Web: www.ncausa.org
April 8 10
Global Dubai Tea Forum

Dubai, United Arab Emirates


Web: www.dmcc.ae
April 9 11
NAMA One Show

Chicago, Ill.
Web: www.namaoneshow.org
April 23 24
SCAA 6th Annual Symposium

February 12 15
BIO-FACH

Nuremberg, Germany
Web: www.biofach.de

The Conference Center


Seattle, Wash.
Web: www.scaasymposium.org

February 13 15
African Fine Coffee
Conference & Exhibition

April 24 27
SCAA 26th Annual ExpositionThe Event

Bujumbura, Burundi
Web: www.afca.org

Washington State Convention Center


Seattle, Wash.
Web: www.scaaevent.org

February 23 27
Gulfood

May 8 14
Interpack

Dubai, United Arab Emirates


Web: www.gulfood.com

Dusseldorf, Germany
Web: www.interpack.com

Melbourne, Australia
Web: www.internationalcoffeeexpo.com
May 17 20
NRA Show

Chicago, Ill.
Web: www.restaurant.org/show
May 27 29
Coffee Expo 2014

Guangzhou, China
www.coffeexpo.org/en
May 29 31
World Tea Expo

Long Beach, Calif.


Web: www.worldteaexpo.com
May 30 June 1
Coffee Fest St. Louis

St. Louis, Mo.


Web: www.coffeefest.com
June 2 5
Sustainable Brands Conference

San Diego, Calif.


Web: www.sustainablebrands.com/events
June 10 12
SCAE World of Coffee

Rimini, Italy
Web: www.worldofcoffee-rimini.com

info@mardenedwards.com | www.mardenedwards.com | +44 (0) 1202 861200


18 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

polands coffee market

Poland:

A New Home for


Specialty Coffee
Polands coffee scene, dormant for decades,
is buzzing again. As Polish coffee consumers
palettes become more refined, the coffee
culture and specialty coffee market continue
to evolve. By Anne-Marie Hardie

olands warm, welcoming nation is now opening its arms to the


specialty coffee industry. The country is perhaps best known
for its hearty meals (perogies are among the favorites), and of
course, its vodka. Its a little known fact that it may have been a Polish
officer who created the first cappuccino. In 1683, at the end of the
Battle of Vienna, soldiers found several sacks of strange beans. The
Polish king, Jan III Sobieski, gave the bags to one of his officers, Jerzy
Franciszek Kulczycki. After a bit of experimentation, Kulczycki added
sugar and milk to the beans creating the first cappuccino. He then
travelled to Vienna and opened the first coffee shop. Kuczyckis photo
can still be found in several Vienna cafs.
Polands coffee culture did not end there. In fact, it remained
vibrant until World War I. We had a really strong caf culture, especially in bigger cities. There once was a famous Pluton coffee roastery
in Warsaw, hundreds of cafs, and even Polish-made espresso
machines, said Konrad Konstantynowicz, owner, Filtry Caf, Warsaw,
Poland. All this changed after the war. Good coffee became both rare
and expensive, and cafs stopped service espresso and began to serve
Turkish coffee.
Turkish coffee, which in Poland is a few tablespoons of ground coffee added to boiling water, became the main at-home brewed beverage.
According to Strauss Caf Poland, the primary way of preparing coffee
is commonly known as Turkish coffee, however, it is different than
the traditional Turkish coffee preparation ritual. Strauss Caf explained
that the reason for the common use of this term is that the strength of
the traditional coffee beverage in Poland is strong and the extraction of
coffee is long. Most people still drink a strong coffee prepared this way,
the company said via a statement.
Konstantynowicz said that at home, most Polish residents take
one to two teaspoons of medium ground, dark, roasted coffee and
then add it to boiling hot water. This dark drink is then simply served
in a glass or mug.
20 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

CO
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JANUARY 2014 21

polands coffee market


This remained the case for decades,
until the explosion of instant coffee in the
early 90s. Today, soluble coffee is still
widely consumed in Poland. Key drivers
for instant coffee are its convenience, mild
taste and instant boost of energy, reported
Euromonitor International, London.

The Desire to Brew at Home


Traditionally, the Polish roast and ground
coffee market was mainly a Robusta one.
Strauss Caf Poland reported that currently 70 percent of the coffee products in
Poland are derived from Robusta.
Established in 1992, Strauss Caf
Poland has continued to evolve with the
transforming coffee market. Originally,
its core sales were its Robusta-based
products that the market demanded. Its
top seller for years was Fort, a Robustabased blend. In 2005, Strauss took over
MK Caf, expanding its premium line of
coffee. Today, the premium brand of
MK Caf has become Polands top selling at-home brand.

Participants taste a variety of specialty coffee in the 2013 Polish Cup Tasting Championships.

The development of MK Caf


Premium brand and its rising share in
Strauss Caf Poland sales portfolio shows
that Polish consumers expectations are
changing, the company noted. The companys focus on its premium product line,
MK Caf, is just one illustration of the

evolving Polish coffee consumer. Future


plans include developing this flagship line
in addition to Strausss MK Caf Espresso
Professional products.

Convenience and Quality


The Polish consumer is now demanding a

Nearly 70 percent of the coffee products consumed in Poland are derived from Robusta, but demand for specialty coffee is rapidly growing.

22 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

CO
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There is a slow shift taking


place toward specialty, fruity, acidic
coffees but there is a long way to go,
said Bartek Kozina, owner, Karma
Coffee, Krakow, Poland. The prices
and mentality are the basic obstacles to
the specialty coffee industry. People are
used to bitter and chocolaty coffee and
as with every novelty it takes time to be
introduced. But the number of places
expanding into the arena of specialty
coffee and the customers who are
demanding these quality products is
growing steadily.

A Stable Economy Has Resulted


in a Coffee Resurgence

combination of a high quality coffee that


still meets the consumers need for conveniencequick and ideally brewed at
home. Yet, despite the demand for a higher quality brew, the overall retail volume
sales of fresh ground coffee experienced a
slight decrease [in 2012]. The Polish con-

sumer wants to brew their cup quickly


and they want higher quality coffee products at home, opening up the market for
single serve and other at-home brewing
products. In 2012, purchases of at-home
single-serve brewers grew by 23 percent in
the Polish market.

Today, Polands coffee scene is experiencing resurgence. Although still not comparable to nearby Austria and Italy, the specialty coffee movement is slowly beginning to grow. Euromonitor reported that
the off-trade value of coffee witnessed a 4
percent growth in 2012.
Polands economy coped with the
2008 economic crisis better than most of

JANUARY 2014 23

CO
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polands coffee market


the European Union (EU), experiencing a
cumulative 15.8 percent growth. Despite
this economic security, Polish consumers
are still acting quite conservatively. For
the coffee industry, this hesitation has
worked to its benefit resulting in consumers increasingly choosing small indulgences like a cup of specialty coffee.

Rising Demand for Specialty Coffee


The Polish coffee consumer seems to fall
into one of two categories: those who
drink coffee at home and those who
are beginning to seek out a more
Westernized experience of the coffee
caf. The urban population is definitely
advancing the knowledge of the specialty
coffee market, said Mauricio Galindo,
International Coffee Organization (ICO),
London. These individuals are well travelled, modern and are beginning to
demand the type of coffee that they have
consumed elsewhere.
One surprising trend Euromonitor
reported is that the specialty coffee
consumer tends to be part of a coffee
to go culture. These individuals are

USA +1 626-960-3300

One growing trend in Poland are coffee consumers who are beginning to seek out a more
Westernized experience of the coffee caf.
not seeking to buy their coffee in retail
outlets instead they opt to consume
their beverages in cafs. Galindo said
that the vibrancy of the caf scene combined with the fact that less individuals

Europe +44 1621 852 244

24 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

enquiries@ndc.com

are meeting for drinks also plays a factor in the increase of this coffee sector.
In the past few years, there has been
significant growth in the number of specialty coffee shops in Poland. In 2011

Warsaw - Poland
11/02 - 13/02/2013
Stand 328

CO
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RY

polands coffee market


The premium brand of Strauss
Cafs MK Caf is Polands top
selling at-home brand.

alone, these cafs increased by 18 percent.


Specialty coffee is actually something [that has been happening over] the
last five years in Poland. When we
opened Filtry six years ago it was very
differentour small niche of specialty
coffee did not exist at all, said
Konstantynowicz. Now there are a few
cafs, most of them in the larger cities
catering to more elaborate tastes.
The decision to open a caf in Warsaw
was inspired by Konstantynowiczs wife

who came across a vacant space


that was previously a laundry mat.
Konstantynowicz credited the cafs continued success to his baristas, stating that
he makes the caf business-viable but it is
the baristas who transform it to be both
progressive and fun. These qualities
appeal to the cafs young markettheir
average clientele ranges between the ages
of 25 and 40, is mainly male and most are
seeking out espresso-based beverages. The
top selling beverages at Filtry Caf are caf

lattes, espressos and drip coffees.


Committed to providing fresh high
quality coffee, Filtry Caf makes a weekly
purchase of its own blend directly from
local roaster Java Coffee Specialty
Roasters, Warsaw, Poland. Their
drip/aeropress singles also come from
local suppliers; Kofi Brand from Warsaw
and Coffee Proficiency and Karma, both
from Krakow.
Kozina also noticed the increasingly
discerning taste of the Polish consumer.

mailto:heid@cimbria.at
www.cimbria.com
www.cimbriakaack.com

26 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

CO
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polands coffee market


People in Poland have started to realize
that coffee is a fruit. With all its fruit-flavor characteristics, said Kozina. Baristas
are also being trained. They read, travel,
observe and experiment. So do the roasters. As a result the level of service and
knowledge is growing.
Karma Coffee, Krakow, Poland, has
been operating as a caf for the past three
years. In the past year, the business
evolved to include its own roastery, filling
the need of the increasingly discerning
Polish palette. In fact, Krakow tourism
describes its city as becoming enamored
with espresso. With over 500 locations
serving coffee, this city is becoming
known for its dynamic atmosphere and
emerging hot beverage culture. At Karma
coffee, the top-selling beverages tend to be
espresso based; however, Kozina said that
there is a growing segment of consumers
requesting v60, aeropress, chemex, French
press and Kalita brewed beverages.
Although relatively small when compared to other Westernized countries, the
Polish specialty market is becoming a for-

As Polish consumers coffee knowledge expands, their tastes are becoming more discerning.

midable one. As the consumer palette


continues to become more refined, this
demand for a quality cup will continue
to grow. The specialty coffee market is
telling us where the industry is heading,
said Galindo. What happens in the specialty coffee industry is in essence a fore-

28 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

cast of what will happen in the main


stream coffee consumer.
Anne-Marie Hardie is a freelance writer,
professor and speaker based in Barrie,
Ontario. She may be reached at
annemariehardie1@gmail.com.

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eastern european tea market

Tea in Eastern Europe:

Growing in Sophistication
Although Eastern Europe has been a predominantly teadrinking region for decades, there is a strong opportunity
for premium teas and green tea. The greatest potential
for upscaling the tea market lies in Poland, one of the
largest tea-consuming nations. By Barbara DuFrne

ith the fall of the Iron


Curtain in 1989, and their
countries return to free market economies, Eastern European consumers crave quality, diversity and novelty
in their tea.
One hundred years ago these eight
East European Republics belonged partly
to the Austro-Hungarian Empire:
Czech Republic, Hungary, Slovakia and
Slovenia, and partly to the King of Poland

and to the Russian Empire: the Baltic


States of Estonia, Latvia and Lithuania.
This historical background may help
to explain the distinctive cup preference:
coffee in the Hapsburg dynasty and tea
further east. Russia introduced tea, at
home and with close neighbors, by transporting it over land from China before
Western Europe imported tea on the sea.
Today, Poland is the fourth biggest teaconsuming market per head in Europe,

30 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

CO
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RY

according to the International Tea


Committee (ITC), London.
These eight Republics were under
Communist Rule for half a century,
then recovered freedom and re-arranged
their boarders before joining the
European Union (EU) in 2004. With
their rich agriculture, unspoiled countryside, historical towns, splendid royal
castles and imperial palaces, these countries are attracting more and more
tourists. Though wages are still low, the
local economies are fast catching up
with the West. A growing middle class
with better income is now keen to
access a wider choice of high-end food
and beverages. Tea and coffee are getting their share from this growth. For
many years, standard black cups
brought in through barter deals from
producing countries during the Soviet
rule and low-cost tea bags from the big
multi-national companies dominated.

eastern european tea market


Although this is slowly changing, the tea market remains
dominated by low-cost tea bags from big multinational companies. Unilevers Lipton and Saga brands rank first in
Poland and Estonia; Sara Lee with its Pickwick brand ranks
first in the Czech Republic and Hungary, and Tata Global
Beverage, with its Tetley and Jemca brands is the third major
player in these four markets. It is the German market leader,
Teekanne, which has a dominant position in Slovenia. In
Slovakia, Latvia and Lithuania, some smaller local brands are
catering to their combined population of almost 10 million
people. In Poland, a significant local coffee, tea and herbals
manufacturer has developed a major brand named Mokate,
which remains to date, the most prominent amongst all the
national producers.

The Upscaling Tea Market


With an important traditional consumption of herbal tisanes all
over Eastern Europe, the dividing line is not always strictly
drawn between the camellia sinensis beverage and those containing flowers, leaves or other material from non-camellia sinensis
origin. However, after decades of mainstream black tea in tea
bags and nothing else, consumers are becoming better
informedthey read the labels and want to discover new origins, new tea families and want to try loose leaf tea.
Shortly after the fall of the Iron Curtain, a tea lover in the
Czech Republic, Petr Zelik, who had been working for

Oxalis serves premium loose-leaf teas bought directly from producers.

German tea giant Teekanne in Austria, decided to found his


own company. He called it Oxalis, the botanical name of
the four leaf clover, a modest little plant that is reported to
bring luck and success. Set up in his home town, Slusovice,

HPT

HENRY P. THOMSON, INC.


Tea Importers EST. 1912

P.O. Box 440| 126 Main Street| Peapack, NJ 07977


P: 908-532-0500

OUR MISSION
IS TO PROVIDE:

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Always there with the Right Tea


at the Right Time

mailto:info@florapharm.de

www.florapharm.de

mailto:info@florapharmteausa.com

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32 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

MEMBER OF:

CTPAT CERTIFIED

CO
STOVER
RY

The Eastern European Tea Market


Country

Poland
Czech Republic
Hungary
Slovakia
Slovenia
Lithuania
Latvia
Estonia

Pop. in Millions

Tea Imports*

Per Head**

38.5
10.5
10.0
5.4
2.0
3.0
2.0
1.3

29,500.
3,200.
2,200.
960
1,100.

0.80
0.30
0.22
0.19
0.55

4,200.

0.70

*Metric tons
**Kilograms
Source: International Tea Committee statistics for 2012

in 1994, his goal was to specialize in premium loose-leaf teas


bought directly from the producers. This was a totally
unheard way of sourcing tea at that time in Eastern Europe.
Zelik had discovered that approach during a training trip to
Sri Lanka with the Teekanne team, an eye-opener that helped
him decide to launch his own business. At that time, he said,
there was no loose-leaf tea available at all in Eastern Europe.
Today, looking back 20 years, he is still surprised but pleased
to see the regular growth registered by Oxalis year-on-year.
Oxalis now has a staff of 110 and includes a sourcing team
comprised of a tea expert from China and customers in 37
countries throughout Europe.

With stronger influence from the West and growing income in the East, Zelik added a small range of fine
origin coffees to the Oxalis catalogue in 1999. He also
expanded the range of herbals and of scented teas, but his
passion remains with pure origin teas directly from the producing estates. Zelik confirmed that his biggest export market is Poland and he is now exploring sales to Russia.
Forecasting the future development of the premium looseleaf tea market in Eastern Europe, he said that there is a huge
and almost untapped potential.
Oxaliss own market share in the Czech Republics tea
market was rated with 2 percent in 2012 by Euromonitor
International, London, which is a significant share for a
company that exclusively sells premium teas.

Tea salons like this one in Budapest, are sprouting all over Eastern Europe.

JANUARY 2014 33

CO
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RY

eastern european tea market

A Slow Expansion in Polands Specialty Tea Market

The demand for premium loose-leaf and green tea is rising in Poland.

The Future of Tea in Eastern Europe


With regard to long- and medium-term market trends, there is
the notable increase in consumer interest for green tea, with its
ever-growing scientific material bearing evidence to positive
health benefits. Furthermore, there is also the aging population,
which is reported to often change from coffee to tea after retirement, mainly for health reasons, noting the purported preventive
effects of tea against aging.
While the Euromonitor tea report stated that the biggest
market, Poland, has reached a degree of saturation as far as the
standard cup is concerned, it confirmed the views expressed by
Zelik, that there is a high growth potential for premium teas and

Traditionally a tea-drinking nation, as well as the


largest Eastern European tea market, Poland also
remains primarily a black tea market. However, there
has been a slight rise in the consumption of green
tea (mainly for health reasons) and a small but
steady growth, 4 percent in 2012, in the loose-leaf
black specialty tea market.
Although tea is served in all drink- and foodrelated establishments, it is usually black tea from a
bag. I know of three proper tea houses in Warsaw,
said Konrad Konstantynowicz, owner, Filtry Caf,
Warsaw, Poland. We serve only loose-leaf tea [at
Filtry], but its not something widely available in cafes
or bars. The average Polish consumer drinks their
tea dark and strong. Tetley, Lipton and Dilmah remain
the three top premium tea brands in Poland. Yet,
London-based market-research firm Euromonitor
International reported that there has been an expansion in discount brands as Polish consumers continue
to seek value products.
Konstantynowicz is an advocate for expanding the
tea palate in Poland. Although Filtry Caf serves only
loose-leaf tea, this is still a rarity for a nation that was
primarily a tea-drinking country for decades.
However, Sri Lanka-based Dilmah Tea, which
entered Poland in 1990, has been successful in creating a premium tea niche-market there. Dilmah is also
continuing to try to transform Polands tea culture
with an expansion of their tea bars. Dilmah returned
to the concept of T-bars, opening one in Warsaw,
reported Euromonitor. The main goals behind the Tbar opening are reinforcing the brand Dilmah, and
building a more advanced tea culture, similar to the
expanding coffee-to-go phenomenon.
Anne-Marie Hardie
green tea all over Eastern Europe.
Although a few years ago there were mostly coffee house
in Budapest, Warsaw, Prague, Ljubljana, Riga, Tallinn,
Vilnius and Bratislava, tea salons have been popping everywhere during the last 10 years. Western specialty tea operators
such as Demmers Teehaus from Vienna Austria, the French
Palais des Ths from Paris, and producing-country companies
like Dilmah from Sri Lanka and Marumoto from Japan have
started to explore these newly accessible Eastern countries, so
there will be a lot more fine teas available for the East
European consumers in the next few years.

www.jgs.de gdg@jgs.de

sales@sinass.de

www.sinass.de

34 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

Barbara Dufrne is the former Secretary General of the European


Tea Committee and editor of La Nouvelle Presse du Th. She may be
reached at: b-dufrne@orange.fr.

flavorings

Caramelized Sugar:

Boosting Flavor and Value


The use of pure and natural ingredients like caramelized
sugar is an example of a strategy that fulfills consumers
demand for coffee worldwide while keeping costs down.
By Aubrye McDonagh Leigh

t the recent Food Ingredients


Expo in November in Frankfurt,
there was an unlimited amount
of ingredients on display that can be used
in a broad range of food applications.
Some of them could be of interest to the
coffee and tea industry as well. In order
to improve flavor or alter the taste, aromas are often added. To create an appealing appearance some brands use a number of different food colors.

The trend has moved away from synthetic additives so more natural-only aromas and colors are being used. But in
searching for clean-label recipes, other
options are also available, such as
caramelized sugars. In some countries
there is a long history using caramelized
sugars in ground coffee. More recently, we
see them being applied to instant coffee,
like for example, in 3-in-1 coffee mixes.
Caramelized sugar is often made

36 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

from sugar, but the raw material can


also be another carbohydrate source.
Caramelization of sucrose starts with
the melting of the sugar at high temperatures followed by foaming (boiling). Sucrose first decomposes into
glucose and fructose. This is followed
by a condensation step, in which the
individual sugars lose water and react
with each other. Hundreds of new aromatic compounds are formed having a
range of complex flavors. Caramelized
sugar is no longer sweet; its flavor
depends on the process and raw materials but will be mostly nutty, bitter
and typical caramel. The color is reddish brown, less dark then the Class IIV (E150a-d) caramel colors. It is a
natural ingredient, not an additive and
has to be labeled as caramelized sugar
or burnt sugar.

flavorings

Why Caramelized Sugar?


Many ask, what can caramelized sugar do for coffee?
Caramelized sugar offers several functions in coffee. For example, it can enhance and balance the flavor. In instant coffee
(mix), as well as in ground coffee, caramelized sugars can
enhance the coffee aroma; let it stand out more clearly. Some
types can offer more balance to a flavor that contains too much
peaks in bitter aroma. The mouth feel and complexity are
increased, giving an enrichment of the total drink.
Caramelized sugar can also improve the appearance of coffee. Caramelized sugar will give a warm, reddish brown color
to RTD coffees and coffee mixes like cappuccino, 3- or 2-in1. Caramel colors are also used, but Class III and IV (E150c
and d) will give a more grayish brown hue. Other colors used
are for example carmine (E120) and lycopene (E160d) being
both red in color.

The Application Process


How can it be used? Andre den Hartog, application manager
at Buisman Ingredients B.V., Zwartsluis, The Netherlands,
said, caramelized sugar powder can be used in several steps in
the logistic chain of coffee. There are roasters who add it
after roasting and grinding their coffee, before packing. They
just mix it in, for example, together with salt. But it can just
as well be added to an instant coffee or a coffee mix. When
you make for example a 3-in-1 mix then it can be added simCaramelized sugars can improve the taste of lower quality coffee beans
by enhancing the coffee aroma or balancing the flavor.

The name says it all!


QUALITY
DEPENDABILITY
RELIABILITY
The industry standard
and the preferred faucet for
coffee and beverage dispensing.

1998 Tomlinson Industries

Tomlinson Industries
Tel: 216/587-3400 or 800/945-4589
(U.S. & Canada)
Fax: 216/587-6192 or 800/945-9869
(U.S. & Canada) www.tomlinsonind.com
World Class, Worldwide

38 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

ply together with the sugar and creamer, he explained.


There are minimal production issues when adding
caramelized sugar. Den Hartog said, As long as someone has
mixing equipment it is very straight forward. The only thing to
be aware of is that some of the caramelized sugar types can be
hygroscopic. He said that when adding these types on freshly
roasted beans that are still hot, it is better to use an agglomerated version to prevent sticking.
Buisman Ingredients has a long tradition in producing
caramelized sugars. It started selling it as a coffee booster already
in the 19th century. Their powders are being sold worldwide also
in other food applications next to coffee.
Den Hartog noted there is another important reason for
using caramelized sugars. Cost reduction is a key driver in any
food industry. Especially in Asia there is a large market segment
for low-priced coffee products. They even blend coffee with
fillers like soy to decrease costs. This of course, is not beneficial
to the flavor.
Caramelized sugars can improve the taste of lower quality coffee beans by enhancing the bitter, roasted coffee aroma
or balancing a flavor that has too many peaks. This is done
with different types of caramelized sugars. Also it can simply
replace coffee in a mix. As you replace coffee in a 2:1 ratio,
cost savings up to 20 percent on the coffee part of a
formulation are within reach.

Join us in New Orleans for the coee event of the year!


The NCA Annual
Convenon
MARCH 20-22, 2014
Ritz Carlton-New Orleans
New Orleans, Louisiana

Registraon is now open at www.ncausa.org!


Thank You to our 2014 Convenon Hosts

To learn more about exhibitor or sponsorship opportunies please contact Leigh


Price at 646-924-4033 or 212-766-4007 or ljprice@ncausa.org
Visit NCA on the Web at www.ncausa.org for the latest informaon and make
your plans now to join us in New Orleans!

special report: social media part i

Tea & Coffee, Socially Speaking


Whether B2C or B2B, social media creates communities,
launches dialogues and drives profitable businesses. Part
one of a multi-part series, offers insight into how tea and
coffee companies are successfully utilizing social media.
By Aaron Kiel

s a fourth-generation coffee grower, Hans Hombergers family has


been perfecting eco-friendly coffee growing techniques for almost a century.Today, his start-up plantation,
Fourth Wheel Coffee, produces shadegrown beans in the mountains of El
Salvador, with revenues going directly to
the farmers. But while the sustainable

farm is steeped in history and tradition


with Hombergers family legacy, the
company is choosing a contemporary
approach to tell its story.
Social Media is the cornerstone of
Fourth Wheels marketing campaign,
Homberger said. The company sells
directly to the end consumer, delivering
beans within five days of roasting. Social

40 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

media is such a cost-effective way to


engage potential customers. Like all startups, we have minimal resources and an
even more microscopic budget, so utilizing social media channels is our primary
method of growth in the long-run.
Banking on social media success,
Fourth Wheel Coffee is about to launch
a campaign called Stick it, Snap it, Sip
it. Theyll give out Fourth Wheel
Coffee stickers for people to post anywhere (Stick it), take a picture of the
sticker (Snap it), and then upload it to
any of Fourth Wheels social media
channels. In the end, participants
receive a 10 percent discount on their

special report: social media part 1


next purchase (Sip it).Thanks to social
media, [our budget] doesnt put us at as
much of a disadvantage against the larger competitors in terms of marketing
efforts, noted Homberger.
Indeed, many industry companies
continue to garner success when it comes
to social media, not only with business to
consumer (B2C) efforts but with business
to business (B2B), too.

B2C: Making a Social Footprint


Tetley Tea (USA), New Providence, N.J.,
recently used social media to launch its
Black & Green blend, organically
increasing Facebook likes by 10 percent
over a short period. And when Good
Earth Tea, also New Providence, N.J.,
overhauled its brand, social media was
critical to the relaunch, guiding existing
consumers through changes while also
appealing to the new audience the brand
was trying to reach.
Eight OClock Coffee, Montvale,
N.J., thrives in presenting an authentic
and real voice across social media. In
2013, the company increased its social
footprint substantially via Facebook,
Pinterest and YouTube, while maintaining a high level of engagement.
Dunn Bros Coffee, Minneapolis,
Minn., has nearly 32,000 Facebook fans,
more than 10,000 active FourSquare fans
and more than 6,000 twitter fans. The
company is also investing in technologies
to track and monitor social media activity, geographically and demographically,
using that data to better improve the
in-store experience.
On National Coffee Day, Grace

BeASocialClimber.com
While social media is ideal for speaking to consumers, it also works well for B2B efforts.

Hightower Coffees of Rwanda, based in


New York, N.Y., implemented a huge
promotion in the area, where they
offered free coffee at several locations.
Social media generated significant awareness of the truck stations, and famous
friends of company owner Grace
Hightower De Nirolike Alicia Keys and
Robin Thicketweeted to keep an eye
out for the trucks.
For Argo Tea, social media is also an
important channel to connect, listen
and converse with customers. Weve
seen over 15,000 new Facebook fans
and 2,000 new Twitter followers in
2013, said Dana Dimitri, director of

42 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

marketing at Argo, a Chicago-based


chain of tea cafs that also distributes
packaged and bottled teas to more than
3,000 grocery stores. This growth was
the result of exclusive promotions
through social media and, of course,
daily interaction with the community
We are relentless in our pursuit to continuously improve and grow social
media relationships, and were successful
at doing so in 2013 as we doubled our
community of followers and fans.
Vin Ferrer, a social media strategist at
Graphic D-Signs, Washington, N.J., said
for an industry such as tea and coffee,
where the brand has such an impact on

Caffe Artisan Roasted Coffee,


Facebook is ideal for B2C as well as
B2B efforts, like gaining company support, puzzling out solutions to problems and achieving business goals.
Most recently, the Augusta, Ga.-based
company used the site to find people
who could help them recycle coffee
grounds, filters and milk jugs. I had
tried to do this on my own before and
got nowhere, said Curry. I posted

it on Facebook and had a solution


within a couple of hours. Now we
have alliances with a hobby farming
organization that is taking all our
grounds for compost and an organic
farm that is taking our milk jugs for
garden cloches.
Buona Caffe also uses social media
as part of its sales pitch to prospective
wholesale or restaurant B2B customers,
which they promote across platforms.

As noted in Joseph A. Michellis new book,


Starbucks is the leader when it comes to
social media in the coffee and tea industry.

the overall experience, social media can


grow to become an invaluable extension
of the marketing mix. People will overlook slight discrepancies in taste and
choose the better-branded companies
products 9 out of 10 times, he explained.

Social Media Generates Business


Certainly, while social media is ideal for
speaking with consumers, it works well
for business to business efforts, too. For
example, Daves Coffee of Charlestown,
R.I. is experiencing B2B success, as new
accounts and potential partners learn of
the company across channels. Theyve
also had a B2B triumph via cross-promotion. Case in point: Daves Coffee
conducted a campaign with its preferred
liquor partner for cocktail events, Sons
of Liberty, South Kingston, R.I. The
campaign ran on Instagram and
Facebook and not only increased Daves
social presence, but led to discussions of
creating a Sons of Liberty coffee liquor
using Daves beans (test batches ran in
November). In addition, the company is
launching a crowd-funding initiative to
build social momentum and fund a
cookbook that centers around their
gourmet coffee syrup.
For Pat Curry, co-owner of Buona
JANUARY 2014 43

special report: social media part 1

Setting the Social Media Bar


Kent Lewis, president of the marketing
firm Anvil Media, Inc., Portland, Ore.,
presented on social media at the
Specialty Coffee Association of
Americas annual Event in 2012 and
2013. He advises tea and coffee brands
not engaged in social media to get
involved now. If not, your days are
numbered, he said. The competitors
that beat you to the punch will ultimately take away your business.
According to Lewis, Starbucks is king
when it comes to social media and the
coffee and tea industry. For better or
worse, the bar has been set by Starbucks,
as they have the horsepower to delve deep
into social media and has been recognized
over the years as one of the most engaged
brands in social media.
Joseph Michelli agreed. Hes an expert
on Starbucks and their tech communication techniques and the best-selling
author of Leading the Starbucks Way: 5
Principles for Connecting with Your
Customers, Your Products and Your People.
Starbucks leadership has effectively integrated a digital strategy involving commerce, company owned web and mobile
channels, loyalty/customer relationship
management/targeted database, social
media and paid digital marketing[and]
Starbucks leadership often brings together
these diverse assets to ultimately engage
social followers and drive traffic.
Michelli stated that many companies jump on board emerging social
platforms with zeal; however, some
leaders take a more calculated entry.
Members of the Starbucks social
media team examine each new platform
opportunity to determine if there is a
fit with the human connection that is
at the essence of the brand, he said.
Similarly, they look at whether
they have the resources to effectively
engage on that platform while seeking
to respect the existing members of
the community.

Social Media Best Practices


Former Marines Michael Haft and
Harrison Suarez, the guys behind the
popular e-book Perfect Coffee At Home,

For Argo Tea, social media is an important way to connect, listen and converse with customers.

believe the most important reason for a


tea or coffee company to use social
media is to create real value through
meaningful connections. In other
words, dont just spam people who have
given you their attention, said Suarez,
whos in the process of opening a
Washington D.C. coffee roastery with
Haft. Treat them with respect. In our
increasingly busy world, the fact that
someone is giving you their time is
incredibly valuable. So dont waste it.
Tell them about things that will actually be meaningful in their lives. And yes,
sometimes this means that saying nothing is the better option.
Tony Gebely, tea author and digital
strategy consultant, concurred. In
order to grow your following, you must

44 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

provide valuable, shareable content. Ask


yourself, Would I share this? each time
you post something, he said. Because
you sell X, you will be perceived as an
expert on X by your constituents.
Continue to teach them and provide
them with value, they will become your
brand champions.
Lorrie Thomas Ross, CEO of Web
Marketing Therapy, Santa Barbara,
Calif., and author of the McGraw-Hill
36-Hour Course to Online Marketing,
stressed, Whether an organization is a
B2B- or a B2C-based business, they
have to rethink the way they market.
Dont think B2B or B2C, think
P2Ppeople to people. Social media is a
way for brands to humanize and be
accessible to people, while also allowing

Tea and coffee companies may use social media to create value through meaningful connections.
But experts warn, dont spamuse social media to provide valuable, shareable content.

people to communicate and connect


and build community under a brands
umbrella. Todays social-centric population does not want to be talked atthey
want to be talked with.
Lisa Parkin, president of Social
Climber, Sanford, Fla., encourages
industry companies to start small, if
they havent launched an effort. Start
with a Facebook page, which is considered a social media staple, and then
choose from Twitter, Instagram or
Pinterest. Be sure to evaluate what your
staff has time fordont overdo it, she
said. If your company already has a
blog or is thinking of starting one, I definitely recommend investing more time

and resources there. It helps your website and brand directly by increasing
search rank and establishing the company as an industry expert.
For the company thats already regularly engaging in social media efforts,
Parkin advised: Remember that its
quality not quantity that matters. If
tweets are being scheduled and posts
are going live, and theres no engagement, whats the point? Make sure that
theres thought behind social activity.
Posting for the sake of posting doesnt
do you any favors.

B2B Social Media Tips


Jason Walker, who helps tea businesses

with social media and publishes Walker


Tea Review, said wholesalers in tea are
using social media to show how end consumers are already in love with their teas.
This gives retail customers more confidence, knowing there are tea drinkers
ready to rave about the products.
Walker suggested disseminating news
and research from other sources. Sharing
valuable info shows your business is
informed and responsive to changes in the
business environment, he said. It
encourages potential clients to come to
you as a trusted source of knowledge and
interpreter of change in the industry.
Lewis explained the content mix for
social media changes up for B2B play,
noting LinkedIn as the primary site.
Content would focus more on products
and services solving pain points, technical
content, research, case studies and customer testimonials, he said. In the end,
a well-developed B2B social strategy will
increase the size of the sales funnel, shorten sales cycles and increase deal sizes.
With such a low barrier to entry, there is
no reason not to start today and see what
it can do for you.
Aaron Kiel, principal of ak PR Group, is
a marketing communications and editorial
consultant whos worked in the industry for
more than 10 years. Hes also the contributing editor of Tea & Coffee Trade Journal. Email him at akiel@akprgroup.com.

www.kktee.de
mailto:mail@.kktee.de

JANUARY 2014 45

origin report: indonesia

Coffee of Indonesia:

Culture, Terroir and People


Coffee in Indonesia is produced by small farmers only.
Arabica coffee constitutes 20 percent of the coffee
production and is deeply rooted in tradition, culture,
people and even in religion. By Ocane Trevennec

ith its 15,000 volcanic


islands, the Indonesian
Archipelago offers both high
and fertile lands, and therefore, perfectly
suitable for Arabica plantations. From
Sumatra to Papua, via Java, Bali, Sulawesi
and Flores, the micro-climates and cultural traditions create specific environments
to produce unique terroir coffee.
Indonesias coffee history started 300
years ago, when the Dutch East India
Company VOC imported the first
Arabica coffee plants in 1699 from
Mocha. From Java to Sumatra, Celebes
and Bali, coffee plantations were spread-

ing in the Archipelago as the European


demand was growing. Indonesia became
the main coffee supplier to Europe in the
world, but also a place of terrible slavery
and bloodied ethnic conflicts, which
made it difficult to maintain such high
volume of production.
Today, Indonesia is still classified
third (based on 2012 statistics) worldwide coffee production and is governed
by the demands of large volumes in the
place of quality. Only 20 percent of the
coffee production comes from Arabica
plantations and the rest of the production
is dominated by Robusta coffees.

46 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

Exporters are concentrated in Lampung,


in south Sumatra (where Robusta coffee
is mainly
produced) to negotiate
Robusta coffee prices.
Yet, in spite of its heavy history and
strong pressure from international market, Indonesia has kept its coffee culture
as a tradition. The collection of cultures,
practices, terroir and local people has
shaped Indonesian coffees for decades.
The entire Indonesian coffee production
comes from small farmers only. Around
two million families, living with one or
two ha of plantation, have passed down
lands, know-how and coffee culture for
generations. More specifically, Arabica
coffees plantations scattered in highlands
of the archipelago are deeply rooted in
traditional culture, and even religion, as it
is the case in Bali.

The Arabica Regions


Indonesia is home to around 300 ethnics
with their own traditions. This diversity
of population also means a variety of

origin report: indonesia


Arabica
coffees:
Aceh
Gayo,
Mandheling, Lintong, Sunda, Bali,
Toraja, Flores and Papua. Plantations,
cultural practices and processes are specific to each area and produce unique
coffee, that is, terroir coffee.
In north Sumatra, in the province of
Aceh, Arabica plantations are scattered
in wide forest of Gayo mountains. Far
from everywhere, thousands of farmers
come daily to Takengon village by bike
to sell one or two bags of green coffee
beans. Located in high altitude (13001750m), Arabica coffee trees are planted under dense shadow trees, producing
a heavy and round coffee. Traveling in
the heart of Sumatra, the Mandheling,
Lintong and Dolok Sanggul terroirs
offer completely different coffees.
Produced by Batak people, Arabica coffee is famous because of the specific
process, which is called blue process,
because of the beautiful deep blue-green
coffee beans. The beans are husked at
30-28 percent humidity and are kept
sun drying until 12 percent humidity.
This process is unique and used for generations. In the cup, Mandheling coffee
tastes vegetal, light and lively. But in

late notes, or Bali coffee, with more citrus trees, also offering good acidity.
At 1350 and 1700 meters altitude in
the center of Sulawesi Island, the Toraja
province has a strong tradition and culture of Arabica coffee and has been the
first Indonesian coffee recognized as a coffee terroir (and highly appreciated by
Japanese consumers). Finally, Papua coffee, cultivated in a rich biodiversity, offers
amazing complex flavors in the cup.

STARTING PGI PRACTICES

Sun drying green coffee beans.

Java, farmers mainly use the wet


process, stock their green beans in
parchment and husk at 12 percent
humidity. In Sunda province (West
Java), old variety of Arabica is still preserved. The flavor is quite spicy with
tobacco notes, but not strong. This contrast makes an interesting taste and
good balance. From West to East, the
climate is drier and sunnier, which gives
sweeter and acidic characteristics to the
Arabica coffees, like Flores with choco-

For a long time, Indonesia has hidden the


diversity of its Arabica coffees, which
reveal the lands, culture and practices of
their terroir.
In recent years, the Indonesian government has been aware of this diversity
of Arabica coffees and has started to support research, agricultural extension and
promotion of Arabica terroir coffee.
These Arabica coffees of terroir, with the
high quality like specialty coffees, are still
few. As previously mentioned, Arabica
coffee production represents only 20 percent of the whole production and of
which, 15 percent are specialty coffees.
The challenge to attain Protected

The micro-climates and cultural traditions of Indonesia


produce a wide variety of unique terroir coffee.

48 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

Concerned with their coffee culture, Indonesian coffee farmers are beginning to establish coops.

Geographical Indication (PGI) is big,


but the potential is high. Under FrancoIndonesian research cooperation in
2006, the first PGI label was created for
Kintamani Bali coffee to protect the
name, the origin, to keep the quality
high, and above all to promote the terroir. This initiative has continued with
other areas like Aceh Gayo coffee in
North Sumatra, and in 2013, Java
Preanger coffee in West Java.
Concerned with their exceptional coffee culture, farmers are also taking action
with the establishment of cooperatives.
One such example is the Cooperative
Klasik Beans, which is made up of 19
families from Sunda province (located on
the side of volcanoes in West Java). Sunda
Province is the oldest Arabica coffee producing area of Indonesia, giving evidence
by the names of villages like Panawuan,
which means collect, Penggilingan
husking or Pangalengan packing.
After the huge eruption of Guntur
Mountain in the 19th century and the
coffee leaf rust disease in 1875, coffee
plantations were devastated. But coffee
culture has been passed down from generations and coffee plantations have been
preserved. Since 2009, Klasik Beans has
been determined to produce high quality
terroir coffee. From the plantation to the
cup, each step is controlled following
strict requirements, but keeping flexibility
to adapt process to the coffee.

Following its passion for coffee,


Klasik has searched places for terroir coffees in Indonesia. After their initial proj-

ect in the Lintong area in Sumatra, Eko


Purnomowidi and Deni Glen, the leaders
of the Coop Klasik Beans, traveled to Bali
and Sulawesi. Because of the hilly landscape, coffee as an agroforestry plantation
is one of the best options. Shade trees and
variety are strongly maintainable, thus,
Sulwesi coffee could become one of the
best terroir coffee-producing regions in
Indonesia, said Purnomowidi, but added
that a lot of education is necessary. After
interviewing farmers, we feel that no one
is educating them. For example, they
dont know that the cherry has to pulp the
same day of picking, he said. Klasik
Beans can offer these farmers education.
We are not just pursuing regions that offer
specific lands and farmers who can produce a high quality coffee. Our goal is to
expose the richness and diversity of
Indonesian Arabica coffees to more and
more consumers worldwide.

Arabica coffee production


represents 20 percent of
the entire Indonesian
coffee production.

JANUARY 2014 49

warehousing & insurance

Weather Patterns Are Driving


Change in Insurance Assessment
Climate changes, from rising sea levels to an increase in the number and intensity of extreme weather systems, are fueling the
creation of new methods of assessment by insurers with regard
to risk and pricing. By Aaron Tucker & Christina Dammen

hen Super Storm Sandy hit


the Atlantic Northeast a little over a year ago, everyone
felt the devastationcoffee insurers
included. While a light may be seen at
the end of Sandys dark tunnel in terms
of rebuilding, the coast is far from clear
as climate changes are proving more
than just a theory. Rising sea levels and
an increase in the number and intensity
of extreme weather events are driving
change with insurers both in assessment
of risk and pricing.
In 1968, the National Flood
Insurance Program (NFIP) was developed
to first identify flood prone areas in the
US then to establish flood-risk zones
within these parameters. Overseen by

Federal Emergency Management Agency


(FEMA), the program uses statistical data
to create Flood Insurance Rate Maps
(FIRMs), which display regions at or
below Base Flood Elevation (BFE)
meaning they have a one-percent chance
of annual flood and therefore are in a
Special Flood Hazard Area (SFHA).
Its easy to see that SFHAs carry a
much greater risk resulting in underwriters often lowering limits and increasing
rates and deductibles for coffee merchants storing in these zones. So the logical solution for a trader is to simply
avoid these flagged regions and problem
solved, right? Wrong.
While the entire US felt an effect
from Super Storm Sandy, New York and

50 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

New Jersey took a direct hit, and her


destruction was not limited to FEMAdesignated Special Flood Hazard Areas.
Losses cut like a laser into the marine
sector and exceeded $25 billion USD. A
large part of this was to the commercial
sector, especially to coffee, cocoa and
other exposures central to marine underwriting. Although Sandy was not classified as a hurricane when it made landfall, Category 2 storm surges still resulted. Not only did flooding reach regions
outside of Special Flood Hazard Areas,
but water levels often exceeded the BFE.
Surges and rising water caused the
majority of the damage not the high
windsa global trend that encompasses
rising sea levels.
FEMA reacted to Sandy by producing
Advisory Base Flood Elevation (ABFE)
maps to better represent the new flood
risks since many of the FIRMs for New
Jersey and New York counties were based
on 25-year old data and gravely miscalculated the impact of storm surges. Ten
ABFE maps have been released for New
Jersey, including Essex, Hudson,
Middlesex and Union counties, and six in

New York: Bronx, Kings, New York,


Richmond, Queens and Westchester
counties. New FIRMs for these areas were
set to be released mid-2013, but in light
of Sandy they have not yet been finalized
and are likely to incorporate much of the
ABFEs new data.

Creating New Requirements


Even with the re-evaluation of flood
zones, merchants still must be cautious.
Flood Insurance Rate Maps can provide
the big picture, but they are just a start.
With climate and infrastructure changes,
these maps can quickly become obsolete.
Furthermore, the storm magnitude used
in these models is based on statistical
probabilities. More severe storms than
those used to calculate the base flood can
and probably will occur. Warehouses that
are near the coast, but not necessarily considered a SFHA can still have catastrophic losses in the event of a severe storm, as
evidenced by Sandy.
Flooding is not the only resulting peril
of these storms. For example, Class A
facilities safe from rising waters or surge
can still sustain significant structural damage. Hurricane force winds tear off roofs,
dumping inches of water onto exposed
coffee stocksexactly the scenario the
coffee trade experienced during Katrina.

On the flip side, locations within a


flagged hazard area could have adequate
barriers, elevation above the BFE and pass
hurricane structural code compliance.
So, individual warehouse scrutiny is an
absolute must.
For this reason, underwriters have
mandated a closer look at risk assessment
tools. Risk Management Solutions
(RMS) is a company devoted to exposing
the insurance industrys risk using state of
the art technology to create quantitative
risk models. Version 13 of their North
Atlantic Hurricane model not only incorporates current FEMA data using intensity and surge level data, but also goes a
step further by assessing all possible
storm components.
RMS drills down models on building
performance, that is, how well a buildings
material, roof, and structure handle the
adverse weather conditions in light of
catastrophes. Reviewing Sandy claims,
structural engineers found buildings had
deficient materials that lead to the creation of new hurricane compliance coding
in five coastal regions.
As a result, underwriters such as
Chubb Group of Insurance Companies,
Allianz Global and Corporate Specialty,
and CNA use these comprehensive models. New requirements to immediately

quantify maximum loss amounts are now


integral to the capacity and reinsurance
necessary for underwriters to continue to
write these risks.
Beyond physical location, a litmus test
for coffee and cocoa merchants to the
acceptability of a prospective warehouse is
their willingness to provide some portion
of All Risk coverage. This is not to be
confused with legal liabilityit must be a
direct cover for property at that location
which can be allocated to the warehouse.
This will help distinguish these locations
from other facilities in the eyes of insurers.
Underwriters have taken the next step,
but without proactive analysis by coffee
merchants there is only one direction
these terms and conditions can go. Risk
assessment data can be developed and utilized when deciding where to place coffee,
but equally important is for warehouses to
share in the risk.
Aaron Tucker is the senior account executive at Rekerdres & Sons Insurance Agency,
Inc. He may be reached at:
aaron@reksons.com. Christina Dammen
is an account executive for the company. She
may be reached at: christina@reksons.com.
Rekerdres & Sons Insurance is a Dallasbased global insurer for merchants of
soft commodities.

Warehouses near coastsbut not necessarily considered an


SFHAcan still experience catastrophic losses after a storm.
JANUARY 2014 51

coffee processing

Burning Spent Coffee


Many coffee producers in Colombia are burning spent coffee because it is less costly
and more efficient than other methods of utilizing spent coffee. By Robert Johnson

ost soluble coffee producers


use their spent coffee, which is
the by-product of producing
soluble coffee, as boiler fuel because of its
availability and high BTU content.
Historically, either grate furnaces or fluidized bed boilers have been used. In
Colombia, a less costly but equally effective method of burning spent coffee has
become common practice.
The first step in this process is running the spent coffee grounds through a
screw press in order to remove the free
water. Next, the press cake from the screw
presses is delivered to a rotary drum dryer,
where it is taken down to 10 percent
moisture content. These dryers are two
meters in diameter and several meters
long. They turn slowly, which enables the
boiler flue gasses to transport the coffee
grounds from the inlet to the outlet.
This dried material can be burned in a
conventional boiler, without the cost and
complexity of a fluidized bed unit, which
is necessary if the spent coffee has a high
moisture content. In fact, the typical conventional boiler used in the Colombian
model discussed in this article, is relatively inexpensive because it can be deliberately undersized. Being undersized, the
chimney gasses come out quite hot.

UKERS

Rather than put these flue gasses out the


stack, they are ducted back to the drum
dryer. In this manner the flue gasses are used
to dry the press cake down to the required
10 percent moisture content.
At this low moisture, the cake burns in
suspension, like pulverized coal or natural
gas. There is no auxiliary fuel required in the
boiler (except for start-up). Additionally, no
burner or furnace is needed for the dryer.
The boiler is an unusual design. The furnace
is a conventional water tube construction.
However, at the top exit of the boiler there
is a fire tube section for pre-heating feed
water coming into the boiler. Several boiler
companiesColmaquinas in Colombia,
Hurst in the USA, and Cerrey in Mexico
all offer such a boiler.
Coffee processors in Columbia using
this system include Colcafe in Medellin,
Cafe Liofilizado in Chinchina, and
Industrias Aliadas in Ibague. All employ
screw presses for the initial dewatering.
Typically these plants are energy self-sufficient: enough steam is generated from the
spent coffee alone to operate all the equipment in the plant.

from the screw press are separated in a


gravity decanter tank. These fines are then
re-admitted to the screw press, usually
once a week.
Spent coffee normally enters the screw
press with 78 percent to 85 percent moisture content. Dewatering it in the press
reduces the moisture content to below 60
percent, which is critical because if a
pneumatic conveyor system is used to
transport the press cake, the product of
the screw press, the tubes of the system
will become plugged if moisture content
is over 60 percent.
The extraction process being used
determines the size of the grind and therefore the size of the spent coffee. Coarse
grinds allow for achieving a lower moisture
content as fine grinds hold more interstitial
water. Using the screw press method, any
size grind can be brought to between 45
and 55 percent water content, well below
the 60 percent threshold. The combination
of a screw press and specialized boiler can
used on a variety of biomass by-products in
addition to spent coffee.
Robert Johnston is senior engineer, Vincent
Corporation, a leading manufacturer of
screw presses, based in Tampa, Fla. He may
be reached at: bob@vincentcorp.com.

The Process
The illustration on page 53 shows this system. Note that coffee fines in the liquor

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59

TH

EDITION

Burning Spent Coffee Process

Source: Vincent Corporation, Tampa, Fla.

JANUARY 2014

53

green coffee report

Employing Genetics as a Coffee Development Tool


Stabilizing Arabica supplies in changing environmental contexts requires collaboration
of industry and streamlined scientific research.
World Coffee Research (WCR), managed by the Norman Borlaug Institute
for International Agriculture at Texas
A&M University, Collage Station,
Texas, aims to rectify a general paucity
of research surrounding coffee-crop science and genetics by functioning as an
international network of coffee
research institutes, centers and programs working together to grow,
enhance and protect supplies of quality
coffee while improving livelihoods of
the families who produce it.
Executive director Tim Schilling, in
his presentation at the 27th Annual
Sintercafe conference in Costa Rica in
November, described WCR as having an
ambitious, dynamic, and hard-hitting
agenda. Schilling outlined this agenda to
include the following pursuits: getting
current technologies (such as hybrid varieties) into hands of producers, furthering
the development of seed multiplication
technologies, broadening varietal base,
and gathering material from Ethiopia.
Changing
environments
mean
changes in the way traditional Arabica
varieties perform in the field. The reason
SHB (Strictly Hard Bean) Arabicas are
attractive to roasters is because their density allows them to maintain complex and
desirable flavors through the roasting
process. But even slight increases in temperature accelerate the rate at which coffee
plants mature, meaning sugars no longer
have the time to develop fully, threatening
the density, acidity and flavor attributes of
the bean. With continued shifts in climate, the altitude of a farm becomes less
of a straightforward indication that the
coffee coming from a certain elevation
will yield desirable characteristics.
Adapting to the effects of climate
change requires a more diverse toolbox of
coffee varieties, but the vast majority of
coffee grown commercially today shares
very similar geneticscoming from the

World Coffee Research is compiling genetic material from around the world, which it will use to
broaden the varietal base in order to augment the genetic capacities of Arabica farms to react to
the problems caused by climate change.

54 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

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same handful of parent strains from
Ethiopialeaving researchers with limited genetic tools for crop improvement.
WCR is actively compiling genetic material from around the world, which it will
then use to broaden the varietal base in
order to amplify the genetic capacities of
Arabica farms to react to the pests and
plagues that inevitably accompany climate change. A parallel goal is to develop
the global capacity for seed multiplication, such that once desirable coffee varieties are developed and tested in global
multi-location varietal trials, they can be
replicated and distributed with as little
overhead as possible.

Paucity of Research
There are currently only a handful of
facilities in the world dedicated exclusively to coffee seed multiplication and hybrid
cloning through the sterile process of
somatic embryogenesis. WCR intends to
provide the necessary training to outfit
existing tissue culture labs currently multiplying other crops in coffee-producing
countries with the capacity to also multiply coffee varieties.
WCR is aiming to help move coffee
into the territory of other agricultural
commodities, such as corn and soy, where
specialized breeders handle seed multiplication. In the coffee agricultural arena,
Arabica plant breeding is most commonly
performed at the farm level, with individual producers saving seeds and annually
creating nurseries. In some cases cooperatives or exporters provide farmers with
seedlings, in an effort to encourage farm
renovationwhich is as crucial to preventing the spread of disease as it is to
increasing productionbut these efforts
are still limited to the small existing pool
of varietals available in a given producing
country. Traditional nursery preparation
is a drain on time and space, making producers less agile in response to crises, as
has recently been seen in the cases of
farms decimated by leaf rust.
Responding defensively to plagues by
spraying and renovating farms is a costly
endeavor; WCR estimates that producers
spent $500,000 USD in responding to
the most recent coffee leaf rust crisis.

Variety Supplier
Brazil
Colombia
Costa Rica
Ecom Cirad
El Salvador
Honduras
India
Indonesia
Kenya
Mexico
Panama
PNG
Total

# of Varieties
7
5
3
4
1
2
4
7
4
1
1
6
45

Source: World Coffee Research

These dollars spent only treat the problem


for one crop cycle, whereas investments in
genetics have much longer term potential
to proactively prevent such sweeping epidemics from occurring in the first place.
Schilling noted that the coffee
industry is currently underpinned by a
very small amount of research, and
that focusing on genetics is a proven
way to make rapid gains and see meaningful returns on investment. Schilling
referred to genetics work in coffee as
low hanging fruit because not a lot of
work has been done in coffee. If you
look around at the other crop species
theres been a lot of work thats been
done. We are now able to utilize
those technologies and now leapfrog
years aheadwithout investing much
moneyto the same levels of performance. And we can do that without utilizing genetically modified techniques.

Orphan Crop
Currently, in terms of research and development, Schilling explained that coffee
is basically an orphan crop; it was born
in Africa, it didnt have very wealthy parents, it didnt have time to get a good
education and nurturing. Today were
feeling effects of coffees upbringing in
the constraints that a limited gene pool
exercises on the crops abilities to react to
changing environments.
Coffee owes its historic status as an
orphan crop to the fact that the govern-

56 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

ments of producing nations have not had


the financial or infrastructural capital to
invest in intensive agricultural research.
Producers, constantly bludgeoned by
market prices well below the cost of productions, have trouble buying anything,
including food, said Schilling. WCR recognizes that investments in genetic study
and other research around securing future
supplies of quality Arabica will have to
come from the industry.
WCR is privately funded by roasters,
importers, manufacturers and other players along the supply chain. To facilitate
ongoing industry investment, WCR is
initiating and managing a check-off
fund; an opportunity for roasting companies to agree to a five-year commitment of a self-imposed levy of
$0.005USD/lb on the volume of green
coffee they buy on the market. Many
importing companies have agreed to
match investments made by roasters.
Java City, Sacramento, Calif., and
Allegro Coffee Roasters, Thornton,
Colo., represent the larger participating
roasters. (Parties interested in participating in the check-off fund can start by
signing the agreement found on WCRs
website: worldcoffeeresearch.org.)
The monies generated by the fund
will support WCRs general ability to
conduct research on coffee to increase
productivity, quality, and resilience to climate change and diseases, said Schilling.
One of WCRs current projects is a roya
recovery program to control and prevent
the spread of leaf rust. The project
includes Global Multi-Location Variety
Trials, a rust breeding program, and
genomic selection.
To conduct the global Multi-Location
Variety Trials, WCR has pooled 45 varieties of seeds from 12 countries and institutions. The 22 participating countries
will evaluate the performance of these
varieties in their coffee growing regions
(see chart above). WCR is also working
with PROMECAFE, Guatemala City, to
conduct comparative trials in the ninemember Central American and
Caribbean nations in order to test new
varieties against existing local material
in order to generate empirical data that

could be used to justify swapping one


varietal in favor of another.

Creating Industry Guidelines


Schillings background in agribusiness and
cooperative development in producing
nations helps ensure that WCRs overall
aims focus not just on ensuring the stability of future supplies of quality Arabicas,
but that embedded in WCRs work is also
the goal of safeguarding the economic sustainability of the smallholder families who
have been producing such quality
Arabicas for generations. WCR aims to
provide them with access to the latest
developments in genetic materials and
with concise agronomic recommendations and guidelines for coffee production
in rapidly changing climatic contexts.
Such recommendations and guidelines will be culled from synthesized
research presented by members such as
PROMECAFE, CIRAD (Paris), ECOM
SMS (Pulley, Switzerland), and national
coffee offices, and will appear in various

Some coops and exporters have provided


farmers with seedlings in an effort to encourage
farm renovation.

forms, including a Variety Intelligence


producer decision tool catalog outlining
the inherent traits (such as plague resistance) of known Arabica varieties, their
field performance characteristics, sources

of varietal seeds, and their general qualities in the cup, as assessed by SCAA and
Roasters Guild through controlled varietal cuppings. The catalog is slated for
release in July 2014.
WCR is also committed to strengthening existing institutions. An additional
goal of the rust project is to have PhD
candidates from PROMECAFE member
countries trained in economics, breeding,
genetics and pathology in order to drive
the caliber of data collection and analysis
at origin. A more thorough understanding
of all aspects of coffee crop science will
significantly augment the genetic and
informational toolbox available to parties
involved at all points along the supply
chain. WCR publishes its findings, and
this open platform model expedites the
ways scientific advancements can impact
all sectors of the industry.
Follow the progress of WCRs projects
on Facebook.com/WorldCoffeeResearch
or Twitter @WCoffeeResearch.
Rachel Northrop

AcmaVolpak: all-round solutions for tea and coffee


AcmaVolpak, a member of the
Coesia group, has some major solutions for the tea and coffee sector for
2014, supported by a product range
capable of covering every individual
need, from packaging in bags to
packaging in capsules. The top new
products are for the tea industry.
Through Tecnomeccanica, the companys tea division, AcmaVolpak has
developed a new version of the T2
machine to package single-chamber teabags at high speed with
biodegradable paper. Additionally,
the latest version of the T2 unit can
be configured to package full leaf
tea, thereby attracting conventional consumers, who usually choose
loose tea, to the bagged solution.
Further proof of the flexibility of
AcmaVolpak machines is that the T2
is able to produce bags in bag

packages, which are


appreciated in particular in emerging
markets, as they
allow consumers to
buy multipack bags.
The T4 machine will
also hit the market, to
package knotted
double chamber
bags; these will be the most appealing bags in the world, without metal
staples and capable of guaranteeing
the fragrance and wholesomeness of
the product. The machine will be
exhibited at Interpack 2014, next
to the Qi machine for filling and
packaging coffee capsules.
Created by the new coffee division
of AcmaVolpak, the Qi unit is the
most innovative machine currently
available on the market; it packs at a

rate of 500 strokes a minute and


guarantees considerable savings in
paper packaging. It features a compact footprint and in fact has been
chosen for all these reasons by major
brands of the coffee roasting industry.
Coesias range of products for the
tea and coffee industry is completed
with the secondary packaging solutions developed by Volpak and R.A
Jones to produce doypacks and
pouches.

JANUARY 2014 57

company news
DEMB Acquires Kaffehuset Friele
AMSTERDAM D.E MASTER
BLENDERS 1753 N.V. (DEMB)
acquired Norwegian coffee manufacturer
Kaffehuset Friele in late 2013. DEMB
increased its stake in Kaffehuset Friele to
90 percent from 45 percent. The remaining 10 percent will remain in possession
of the Friele family.
The Norwegian coffee manufacturer
will be instrumental in further developing
DEMBs European single-origin bean coffee business. DEMB and Friele have been
long-standing partners, with DEMB possessing 45 percent of the Norwegian company for more than two decades.
Kaffehuset Friele is the leading,
most renowned coffee company in
Norway. With its [leading] market position, strong brands and successful management, this acquisition fits perfectly in
our global pure-play coffee and tea strategy to build on strong brands and strong
market positions, said Pierre Laubies,
CEO of DEMB. It also creates further
opportunities to leverage Frieles expertise in the rapidly growing single-origin
bean coffee market and to benefit from
our joint capabilities.
We are going forward with this transaction to strengthen Kaffehuset Frieles
opportunities to address evolving needs of
customers and consumers locally and use
our expertise in single-origin beans on an
international level, said Herman Friele,
chairman of Friele. The transaction is a
natural development of our 25-year partnership with DEMB. Being fully part of
DEMB will allow us to be ahead of trends
and offer new concepts that will develop
in the coffee business. Also, with the rapidly growing demand for whole beans in
Europe, we see many opportunities to
take our know how of single-origin bean
coffee beyond the Norwegian borders.
All coffee production and other
activities in Bergen will continue as
before and the Friele family will remain
actively involved in Kaffehuset Friele.
Herman
Friele
remains
the
companys chairman.
Founded in 1799, Friele is the oldest
Norwegian coffee house and market

leader with brands such as Friele and


Krone. DEMB is a leading coffee and tea
company that offers an extensive range
of high-quality, innovative products
through well-known brands such as
Douwe Egberts, Senseo, LOR, Pilo,
Merrild, Moccona, Pickwick and
Hornimans, in both retail and out-ofhome markets.

Pod Pack Receives LBTC Award


BATON ROUGE, LA. During
Louisiana Business and Technology
Centers 25th Anniversary Banquet, Pod
Pack International, Ltd. was presented an
award recognizing them as a 2013 Silver
Anniversary Graduate.

LBTC is one of the nations top technology and food-related business incubators. Pod Pack is a manufacturer of single
cup coffee delivery systems. Accepting the
award on behalf of Pod Pack were the
companys key management team and
ownership (seen above).

ITO EN Debuts Bottled Coffee Line


BROOKLYN, N.Y.
Brooklyn-based
subsidiary has
launched
a
ready-to-drink
coffee line in the
U.S. The new Jay
Street Coffee is
available in four
flavors and sells
for $2.49 (USD)
a bottle.
Similar to
our TEAS TEA
and Oi Ocha
brands of fresh
brewed [RTD]

58 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

ITO

ENs

tea products, we developed the Jay Street


Coffee brand to leverage our expertise in
fresh brewed great tasting beverages,
said Jim Hoagland, evp, sales and marketing for ITO EN North America, in a
statement. Hoagland noted that the
RTD coffee category is growing at almost
20 percent per year.
The Mocha, Latte and Vanilla flavors are 100 percent Arabica fresh
brewed coffee and blended with milk
from dairy herds that have not been
treated with rBST. The 16.9 fl. oz., recyclable PETE 1 bottles depict a landmark water tower located atop of ITO
ENs 20 Jay Street building, a historic
brownstone window and an iron
wrought gate. With only 180 calories
per bottle, the three new bottled coffees
are a healthier alternative to the calorierich coffees on the market today.
We are excited to [launch] a locally
inspired beverage that was conceptualized
in our offices on Jay Street, said Rona
Tison, sr. vp, corporate relations. We are
proud to be part of the growing community and wanted to honor Brooklyn with
this fun new coffee line.

S&D Coffee and Tea to Expand


Concord Facilities
CONCORD, N.C. S&D Coffee and
Tea announced that it is expanding its
Concord facilities immediately, which
will generate 200 new jobs over a fiveyear period. Pending approval by the
City of Concord and the County of
Cabarrus Public Hearing of Industrial
Grants, and S&Ds completion of its due
diligence, it is estimated that the expansion will have an estimated $48 million
USD in area economic impact.
The two expansion sites at 7955 and
7975 West Winds Boulevard in Concord
(near the Concord Regional Airport) will
expand S&Ds capacity for coffee, tea and
extracts production. S&D looked at a
number of potential sites in North
Carolina and other states, but settled on
Concord in Cabarrus County. The new
locations are close enough to capitalize on
synergies with headquarters manufacturing and staff support, but far enough away

to provide redundancy as a prudent risk


management measure.
Our business continues to grow
and expand at a time when many companies have struggled, said Ron
Hinson, chairman, president and CEO
of S&D Coffee and Tea. We considered locations in other states for this
new round of expansion, but decided to
stay in North Carolina and the
Concord community. We thank the
state of North Carolina, Cabarrus
County and the city of Concord for
their tremendous support. It seems fitting that S&Ds bright future as a premier manufacturer should advance in
the same community where we have
been since 1929.
S&D Coffee and Tea is the nations
largest custom coffee roaster and the
largest blender of iced tea for the foodservices industry in the United States.
In continuous operation since 1927,
S&D serves over 80,000 customers
through national distribution and
direct store delivery.
S&D added a Food Innovations and
Ingredients production unit in 2010,
which extracts the flavors of coffee, tea
and botanicals for use in iced coffee,
shakes, iced cream and frozen desserts,
energy drinks and other packaged and
dispensed products.

specially marked boxes of Red Rose


Decaffeinated Tea in stores now.
Founded in 1969, IFAW saves individual animals, animal
populations and habitats throughout the
world, including countries such as Kenya,
Malawi, Sri Lanka and
India, where Red Rose
Tea has sourced its tea
leaves from carefully
selected tea estates for
more than 100 years.
Red Rose Tea is
very excited to work
together with IFAW to
help ensure a better future for the environmental habitats in the countries
from which we source our tea, said
Debo Mukherjee, CEO, Redco Foods,
Inc., parent company of Red Rose Tea.
Its important to remember where our
tea comes from and to ensure that the
tea we purchase is from a reputable

source and is purchased in a socially


responsible manner. By supporting
IFAW, we are in turn doing our duty to
help maintain the great
taste of Red Rose Tea.
IFAW is very pleased
to be associated with the
caring community of
Red Rose Tea drinkers
and growers, said Philip
Milburn, vp, IFAW.
Enabling people to help
protect wildlife has never
been more important
than it is today.
Red Rose Tea previously had an exclusive line
of North American Endangered Series figurines developed to help focus attention
on efforts to protect these animals.
Consumers can purchase Red Rose Teas
specially marked IFAW boxes at select
retailers nationwide. For more information or to donate to IFAW, visit
www.ifaw.org/RedRose.

Red Rose Tea Partners with Intl


Fund for Animal Welfare
LITTLE FALLS, N.Y. Red Rose Tea
has partnered with the International
Fund for Animal Welfare to help support the goal of preserving the environmental habitats in countries where Red
Rose Tea has sourced its teas for generations. In addition to a monetary donation, Red Rose Tea is supporting IFAW
by bringing awareness to the organization and its mission with special-edition carton artwork on Red Rose
Original Tea, Red Rose Decaffeinated
Tea and Red Rose Specialty Selections
tea boxes, each of which includes an
insert directing people to donate to
IFAW. Red Rose Tea also created collectible animal coasters, which are in
JANUARY 2014 59

company news

ARC Releases 3rd Coffee Book Edition


MILANO, ITALY Aziende Riunite
Caff SpA (ARC) announced the
availability of the third edition of
the book Coffee: Classification, Cup
Tasting, Roasting.
The first edition of the book was published in 2001
in Italian, and
earned subsequent re-publishings and in
English
as
well. It is
designed as a
guide for all
the people in
coffee industry. The book
focuses on green coffee on a 360 degree
basis. It includes green coffee classification
and fundamentals, listing nearly all producing countries across the world and the
main coffee qualities produced therein, as
well as almost all aspects of coffee cup
tasting, espresso and roasting.
This edition has been updated and
integrated with recent information and
facts that have lately shaped the coffee
industry and includes a new chapter dedicated to newly released world coffee statistics. For further info contact Aziende
Riunite Caff at the following email
address: aziende@riunitecaffe.com.

Reily Foods Acquires New England


Tea & Coffee
NEW ORLEANS, LA. Reily Foods Co.
announced the acquisition of the New
England Tea & Coffee Co. based in

Malden, Mass., one of the countrys


largest independent coffee roasters. Terms
of the transaction were not disclosed.
The transaction is not expected to
change the day-to-day operations of the
New England Tea & Coffee Co., which
will operate as New England Tea & Coffee
Co., LLC, a subsidiary of Reily Foods Co.
All production and distribution activities
of New England Coffee will continue as
usual, and no employee changes are
expected. New England Coffee is a leading marketer of bagged coffees, flavored
coffees and single-serve pod coffees.
New England Coffee and Reily
Foods are both multi-generation, familyowned companies with many shared values, said David Darragh, president and
CEO of Reily Foods, in a statement.
Both companies are passionate about
producing great coffee, providing superior customer service and consumer value,
and opportunities for its employees.
New England Coffee enjoys a strong,
well-earned reputation in the industry.
We look forward to working with all of
the New England Coffee Co. employees
to achieve strong growth and expanded
opportunities.
New England Coffee adds to Reily
Foods already considerable roasting
capacity and packaging capabilities, creating a network of three strategically located
roasting facilities. Reily Foods markets a
variety of well known brands including
Luzianne Tea, CDM Coffee & Chicory
and French Market Coffee.

Coffee Farmers Fight Climate Change


NEW YORK, N.Y. More than 200
Rainforest Alliance Certified coffee farms
in Guatemala, Honduras and El Salvador
have achieved climate-smart verification.
These farmers are preparing for the challenges presented by a changing climate
by meeting the standards of the
Sustainable
Agriculture
Network
Climate Module. By adopting practices
that curb emissions and increase carbon
storage, these farms have captured more
than 218,000 metric tons of carbon
equivalent to the annual emissions of
approximately 43,600 cars.
This achievement marks the culmi-

60 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

nation of a two-year project of the


Rainforest Alliance (RA) and the coffee
trading company EFICO Green Coffee
and Cocoa that aims to promote the
Climate Module among Central
American coffee farmers who are vulnerable to the higher temperatures,
erratic rainfall and pest and disease outbreaks that are aggravated by the unstable climate. The project provided training and technical assistance to 538
coffee growers and saw 218 farms
achieve verification.
These farmers are [now] better prepared to deal with the impacts of climate
change, such as droughts and floods, and
recognize that their actions can have a tangible impact in addressing the problem,
said Mario Lopez, project coordinator for
the RA project in Guatemala.
To earn climate-smart verification,
farmers were required to conserve existing forest on their farms and plant more
trees. They also adopted soil conservation methods that
sequester carbon,
using
organic
matter as compost and burying
fertilizer to help
reduce emissions.
The farmers learned to prepare for
changing climatic conditions by conserving natural resources and establishing
emergency plans to deal with extreme
weather events.
To EFICO as a coffee importer, the
Climate Module represents a commitment to sustainability in our company
and to the industry and society as a
whole, said Renaud Cuchet, CEO of
EFICO Central America (Guatemala).
We are pleased to have worked together
with the Rainforest Alliance on this
important project that has helped to promote agricultural practices that mitigate
climate change among coffee farmers in
Central America.
RA is working to educate coffee
roasters in the US, Europe and other
key markets about the efforts of these
coffee farms and the importance of
establishing a sustainable coffee supply
that is also climate-smart. RA plans to

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NO
UN
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NG

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March 2015
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company news
expand its work in climate-smart coffee
and other crops worldwide.
We expect the markets to recognize
and financially support the responsible
practices that these farmers are adopting to protect the environment and to
mitigate and adapt to climate change,
said Nils Leporowski, president of
Anacaf, Guatemala.
The Sustainable Agriculture Network
Climate Module, developed by the
Rainforest Alliance, the International
Tropical Research Foundation (FIIT),
EFICO and Anacaf in 2011, seeks to
educate farmers about the impacts of and
how to adapt to climate change and promote the adoption of good agricultural
practices that are aimed at reducing emissions, increasing carbon storage and
strengthening resilience.

COE Program Ends 2013 with


Successful Brazil Auction
PORTLAND, ORE. Brazil Early
Harvest Cup of Excellence online auction rounded out the 2013 competition
year raising $516,000 USD as a reward
for Brazils quality coffees, up over 30
percent from the prior-year. An average
price of $6.53 per pound and a top price

of $23.10 per pound (both USD) proves


that the demand for very sweet, highbodied Brazil coffees remains strong.
Successful buyers overcame stiff competition with several importers organizing
small roasters into buying groups in
order to win the coffees they loved.
The Brazil auction and indeed all
Cup of Excellence auctions for 2013
were very well supported with high
prices at a time when the average coffee
price is at historical lows and farmers are
struggling, stated Susie Spindler,
founder and executive director of
Alliance for Coffee Excellence, which
owns the Cup of Excellence program.
The enormous increase in successful
bidders from Japan, Korea and Australia
during 2013 is a direct result of the consumer demanding higher quality and
greater transparency, both of which are
the cornerstones of the famous Cup of
Excellence program. Europe and the
USA have always been steady supporters
and the program is now seeing an
increase in interest again as we plan for
the 2014 programs and work to bring
new countries onboard.
More than 11,000 cups were scored
during the recent Brazil competition.

Every top ten coffee was scored at least


100 times. Nine countries hosted Cup of
Excellence in 2013 amounting to the
gross auction receipts of over 4.5 million
in revenue back to the countries and
their award-winning farmers. The average price of all lots for the 10 programsBrazil hosts two competitions
was a $9.44 USD per pound, a 37 percent increase over 2012.
As worldwide demand for specialty
coffee increases, it is imperative that buyers are willing to pay well over the cost of
production and farmers labors are
rewarded. If not, we risk losing these valuable coffees to other crops, said Spindler.
The 2014 competitions are now scheduled with Brazil Late Harvest (sundried
naturals) competition taking place in
January. Applications for jury participation
and membership are now open. For more
information about the Cup of Excellence
program, schedule and membership, visit:
www.allianceforcoffeeexcellence.org.

Retail - Wholesale
Tel: 212-348-5400
Fax: 212 348-6292

wholesale@orensdailyroast.com
sales@orensdailyroast.com

Roasted to perfection, not beyond recognition.


62 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

people news
Robert Nelson Resigns from the NCA
The National Coffee Association, New
York, announced that after nearly two
decades of service to the association as
president and
CEO, Robert
N e l s o n
resigned from
NCA to pursue his passion
for association
governance
and strategy
development.
For the foreseeable future,
Nelson will
remain available to the board of directors
to assist in a smooth and professional
transition once his successor is identified.
Robert has guided our association
from its most formative stages and led
us into the 21st century with exceptional foresight, vision and leadership. We
thank Robert for all his many contributions to the NCA and wish him well in
all future endeavors, said John E.
Boyle, NCA chairman of the board, in
a statement.
During the transition to new leadership, Dub Hay, former NCA chairman,
will provide leadership and oversight of
the daily operations. The NCAs Annual
Convention takes place March 20-22,
2014 in New Orleans.

Coffee Kids Names Singer Exec Dir


After a three-month-long search, Coffee
Kids named Rebecca Singer the new
executive director.
Singer succeeds Carolyn Fairman as
executive director. I am confident that
her leadership skills will help Coffee
Kids continue to grow and strengthen
our projects at origin, said Fairman.
Singer has more than a decade of
experience in humanitarian assistance
and development work. A registered
nurse and nursing doctorate, she is the
former program director at Grounds for
Health, where she implemented and
managed a cervical cancer prevention
program in Chirinos, Peru, and provided

support to programs in Nicaragua and


East Africa. She also oversaw the development
of
publishing
and advocacy
activities.
Singer previously helped
implement
and also managed sexual
and
family
violence
response programs in SubSaharan Africa and Papua New Guinea
for Doctors Without Borders.
Mike Ebert, president of Coffee Kids
board, stated, We are fortunate to have
found such a qualified leader in Rebecca
and are very confident that she has the
knowledge, passion and leadership skills
to carry out Coffee Kids mission of cultivating the power of coffee-producing
communities to determine their own
terms for the future.
Singer assumes the position Jan. 6th.
Coffee Kids, Inc., Sante Fe, New
Mexico, is a development organization
dedicated to improving the lives and
livelihoods of coffeefarming families.

Dawson Appointed President & CEO


of The Coffee Bean & Tea Leaf
The Coffee Bean & Tea Leaf, Los Angeles,
appointed
John Dawson
as the president
and
CEO, effective Jan. 1st.
Dawson joins
the company
from Dunkin
Brands, where
he was the
global development officer of Dunkin Donuts. Prior to Dunkin,
Dawson served as vp, worldwide
restaurant development at McDonalds
Corporation.
He succeeds Mel Elias who assumed a

position on the board of directors. Elias


was president and CEO since 2008.
We welcome John Dawson as our
new president and CEO and look forward
to his leadership, said Sunny Sassoon,
executive chairman.
The Coffee Bean & Tea Leaf is the
oldest privately-held specialty premium
coffee and tea retailer in the U.S.

Fairman Joins SCAA as Chief of Staff


The Specialty Coffee Association of
America (SCAA), Long Beach, Calif.,
announced that Carolyn Fairman
joined the SCAA as chief of staff. She
was previously the executive director of
Coffee Kids.
The SCAA also announced that
Willem Boot
stepped down
from
the
SCAA board
of directors
and thanked
him for his
efforts and significant contributions to
the industry.
The board
of directors
named Rachel Peterson to fill the board
position created when Fairman resigned
her seat. Peterson, also a coffee producer, from Hacienda la Esmeralda in
Panama, is a respected member of the
producer community and her organization has earned numerous awards and
recognition for their quality produce.

JANUARY 2014 63

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advertiser index
Advertiser

Page

Ahlstrom ..........................................................17
Bosch ..............................................................13
Bostons Best Coffee ......................................64
C.I.H Breda ......................................................27
Cablevey Conveyors ......................................4, 5
Cama Group ....................................................25
Cimbria Heid ....................................................26
Coffee Fest ......................................................41
Coffee Kids ......................................................19
Dethlefsen & Balk ............................................59
Dillanos ............................................................28
Eland, Inc. ....................................................7, 12
Euromonitor International ................................55
Flexicon Corporation........................................11
Florapharm ................................................15, 32

Advertiser

Page

Fresco ................................................................3
GEA Process Engineering................................37
Gehaka ............................................................64
Glatfelter ..........................................................29
H&S Tee ..........................................................33
Haelssen & Lyon GmbH ..................................C4
Henry P. Thomson............................................32
Kloth & Kohnken ..............................................45
Mai S.A...............................................................9
Marden Edwards..............................................18
Maximus Coffee Group....................................23
Modern Process Equipment ............................43
NCA..................................................................39
NDC Infrared ....................................................24
Orens Daily Roast ..........................................62
Rekerdres & Sons ............................................14

64 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

Advertiser

Page

Rubn Ganda Hilados ....................................60


SCAA................................................................47
Simar ................................................................16
Sinass Tee ........................................................34
Teamac ............................................................C2
Tea and Coffee World Cup Shanghai ..............61
Tea and Coffee Trade Journal, Subscribe ......65
Tea and Coffee Trade Journal, UKERS............52
Tecnomeccanica ..............................................57
TeePack............................................................31
Tianjin Xinjiang Tec-Packing Trading ..............42
Tomlinson ........................................................38
Tsubakimoto Kogyo Co. Ltd............................C3
World Tea Expo ................................................35
Zwirnerei ..........................................................62

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Straight from

THE CUP

New Springboard to the


Sustainability Market for
Minas Gerais Coffee Farmers

cooperation agreement between the 4C Association and


the government of Minas Gerais will see coffee farmers
gain wider access to the international sustainability
market. The new cooperation can also reduce vulnerability to
extra costs and efforts arising from multiple audits or verifications from different standards.
On September 10, 2013 the 4C Association formalized a
technical cooperation agreement with the government of Minas
Gerais, the largest coffee producing state in Brazil.
The agreement will support the consolidation and international recognition of the Minas Gerais State standard for sustainability in coffee production, the Certified Minas Coffee
(CMC). The cooperating partners are also setting out to increase
the supply of certified sustainable coffees to meet an increasing
demand in the world market in the coming years. The CMC,
which consists of a set of best practices and procedures related to
coffee production, was launched in 2006 by the state government and is now run by MG EMATER and the Institute of
Agriculture of Minas Gerais under the coordination of the
Secretariat for Agriculture, Livestock and Supply of MGSEAPA. The implementation of this standard provides farmers
with practical orientation to produce efficiently while respecting
social and environmental laws.

Increasing Market Options for Coffee Farmers


While sustainability standards share a common mission, each
one has a different focus and different requirements that farmers must meet. This can lead to extra effort and multiple audits
for farmers seeking to qualify for these standards, as well as extra
costs. The 4C baseline standard, however, defines all encompassing basic sustainability principles that are taken up by other sustainability standards with different levels and rigor.
To reduce the burden and maximize benefits for coffee farmers, the 4C Association also joins forces with other initiatives to
benchmark its standards. This involves technical comparisons
between the 4C system and other standards in order to document the equivalences and differences between systems. This
procedure has been an integral part of the 4C Associations work
since 2008 when the standards and systems of the 4C
Association and the Rainforest Alliance were first benchmarked.

Gateway to a Wider Sustainability Coffee Market


Performing a technical comparison between the CMC standard
and the 4C Code of Conduct will be one of the main processes
of the new cooperation agreement. Depending on the results,
other activities will be developed in order to facilitate obtaining
the 4C License by those farmers who have the CMC certificate.
The benchmarking is expected to provide CMC-certified
farmers with an additional gateway to the international sustainability market without having to undergo a full additional 4C
audit. In practical terms, this means gaining market access to the
growing sustainability market segment and strengthening the
demand for coffee from Minas Gerais, without additional costs
for the farmers.
We [look] forward to this cooperation between the Department
of Agriculture and the 4C Association, believing that the results will
benefit the coffee farmers from Minas Gerais. The benefits will be
seen, at first, [by] those who possess our certification and wish to also
obtain the 4C license. But, in general, the coffee of Minas Gerais
gains more visibility and this helps strengthening the demand for the
great coffee that we produce here, said Elmiro Nascimento, State
Secretary of Agriculture, Livestock and Supply of Minas Gerais.
Headquartered in Bonn, Germany, the 4C Association is a
pre-competitive platform that promotes and actively collaborates with other sustainability standards, governments, non-governmental organizations and private companies, in order to
increase the supply and demand of coffee verified and certified
worldwide. Through its global membership, it will also actively
assist in advancing CMC as a credible coffee sustainability
scheme on an international level.
This project is made possible through the support and funding of the IDH Sustainable Trade Initiative as public partner as
well as Mondelez International and Tchibo as private partners
within the framework of the Sustainable Coffee Program (SCP).
The project will be managed by the Sustainable Coffee Program
in Brazil, an IDH initiative.
Melanie Rutten-Slz, executive director, 4C Association, Bonn,
Germany. 4C is a platform that brings together stakeholders in the
coffee sector to address sustainability issues in a pre-competitive
manner. For more info, please visit: www.4c-coffeeassociation.org.

Views expressed in SFTC are not necessarily those of Tea & Coffee Trade Journal or Lockwood Publications.
If interested in authoring an SFTC column, please contact Vanessa L. Facenda for full details or questions concerning submissions:
v.facenda@teaandcoffee.net. Articles must discuss or analyze a relevant issue, trend or event within the coffee or tea industry.
66 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

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