STiR coffee and tea magazine

Volume 4, Number 4

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STiR tea & coffee industry international 11 NEWS LBP Manufacturing Acquired by Pritzker In July LBP Manufacturing, best known as the exclusive maker of Starbucks hot cup sleeves, was acquired by Pritzker Group Private Capital, the private equity division of the multi-billion dollar Chicago investment firm owned by Tony and J.B. Pritzker. LBP, based in Cicero, Ill., with manufacting facilities in China and Poland, also manufactures UpShot single-serve capsules, hot cups, insulated cardboard containers for coffee, clamshells, and catering supplies. Terms of the deal were not disclosed but the company is expected to continue its expansion plans with the additional resources made available by Pritzker. Barry Silverstein, 64, is stepping down as c.e.o., a position filled by president Matt Cook, 45. Cook and a group of managers will hold a minority ownership stake in the business. LBP employs 750, mainly in Chicago. "We are continually looking for opportunities to create innovative products for our customers and having a partner with the reach, long-term perspective and financial resources of Pritzker Group gives us a very special platform for growth," said Cook, "We look forward to expanding the business and working together for many years to come." Learn more at: www.lbpmfg.com. Inaugural International Coffee Day The International Coffee Organiza- tion (ICO) and 26 coffee associations from around the world will celebrate the first official International Coffee Day on Oct. 1. The event is an opportunity for coffee lovers to share their love for the beverage and support the millions of farmers whose livelihoods depend on the aromatic crop. "Many countries celebrate their own national coffee days at various dates throughout the year," according to ICO. "In March 2014, the 74 member states of the ICO agreed to organize the first International Coffee Day to create a single day of celebration for coffee lovers around the world." . To add meaning to the event, ICO joined with Oxfam to fund 'Caffè Sospeso Against Poverty.' The Italian term "Sospeso" describes a tradition of paying baristas for a second cup of coffee to be given to a person in need. "Coffee lovers have an opportunity to show solidarity with smallholder coffee farmers by donating the value of an additional cup of coffee to Oxfam's work with such farmers via an online platform. To organize local events in support of the charity, download Oxfam's guidelines at: http://dev.ico.org/documents/cy2014-15/Presentations/ promotion-5-oxfam-international-coffee-day.pdf China Leads Starbucks Growth China helped deliver Starbucks its strongest growth yet in a record-setting quarter that saw revenue increase 18% to $4.9 billion. The company reported an additional 23 million transac- tions during the quarter, an average 255,000 new transac- tions a day. Same store sales grew 11% in China where Starbucks currently operates 1,700 stores. The company plans to increase store count to 3,000 there by 2019. Starbucks recorded a 7% increase in same store sales, attributed in part to the US roll-out of a payment app that reduced wait time at 4,000 locations. Analyst Ayush Singh, in a research note for Seeking Alpha writes "there's one Starbucks outlet for approximately every 765,000 people in China as compared to the US where there's one outlet for every 28,000 people" leading to longer wait times. "The Starbucks app will be a huge success in China and lesser waiting time will lure more customers once the roll-out is complete," predicts Singh. Starbucks also opened its first store in Bolivia and Panama, its 15th Latin American market. The company also announced it will partner with Danone to develop a premium grocery yogurt line. Evolution Fresh Greek Yogurt will sell for $1.69 for a 5.3 oz. cup.

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