STiR coffee and tea magazine

Volume 5, Number 4

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12 STiR coffee and tea / Issue 4, 2016 (August/September) NEWS S&D Coffee Sold to Cott Corp. for $355M The largest foodservice coffee and tea supplier in the US was purchased in August for $355 million by Canadian conglomerate Cott Corp. S&D Coffee, headquartered in Concord, N.C., supplies coffee and tea to McDonalds, Dunkin' Donuts, Bojangles, and Krispy Kreme among many other foodservice clients. The 89-year-old company,which employs 1,150 will keep its name and manage- ment team, operating as a Cott subsidiary. S&D c.e.o. Ron Hinson said that "the synergies S&D has with Cott, whether technol- ogy, supply chain, product, distribution channels, or markets, are abundantly clear." Cott produces beverages sold in the US and to European retailers and delivers bottled water (Eden Springs) to homes and offices in North America and Europe. Cott is trying to diversify its offerings, trimming its once soda-heavy line to 12% of adjusted earnings. S&D is a dominate player in fresh brewed tea at foodservice locations and recently began expanding its offerings to include carbonated teas and flavored milk. Revenue is projected at $550 million in 2016 with an expected $40 million in profits. Cott, with annual revenues of $3.3 billion, employs more than 12,500 workers in 21 countries. In its latest earnings release Cott reported $766 million in revenue with profit margin of 33%. Shares jumped 10% on word of the sale. Learn more: India Expected to Adopt New Coffee Act Legislators are considering replacing the Coffee Act, 1942, as it "no longer serves the purpose," according to Commerce and Industry Minister Nirmala Sitharaman. "Over the years, the role of the Coffee Board has changed and many provisions of the existing act have become redundant, especially after abolition of the coffee pooling system in 1996," she said, urging the Lok Sabha to enact a new Coffee Bill, 2016. The proposed legislation notes that "the activities of the Coffee Board are now increasingly focused on production, development, research, quality upgrada- tion and market intelligence. It has therefore, become necessary that the existing arrangements for production, pooling and marketing of Coffee are abolished and a liberal regime for functioning of coffee growers, industry and trade is put in place. Of special concern are regulations for smallholders. The intent is to strengthen the Coffee Board in assisting development and growth while regulating the sector, according to Sitharaman. The legislation was proposed in March. During the review period that followed numerous suggestions regarding the control of the coffee industry, definition of coffee and coffee estate, cognisance of offence under the Act were brought forth. "All are being examined," she said. NCA Summit 2016 The National Coffee Associa- tion's annual summit blends instruction with interaction to deliver practical business strategies. The summit is Oct. 26-28 at the Intercontinental Miami hotel in Miami, Fla. Early registration discounts end Sept. 8. The innovative, discussion- driven format engages and educates attendees with expert presentations and individual perspectives from across the supply chain, according to NCA. This year's topics include marketing SEO, understanding the Trade Facilitation and Trade Enforcement Act, and attracting (or retaining) talented team members. A FSMA training seminar, uniquely tailored to coffee, is available immediately preceding this event (separate registration required). Learn more: summit-2016 Coffee Exonerated for Throat Cancer The World Health Organization (WHO) has determined that tumors of the esophagus are likely the result of high tempera- tures and not the coffee or hot drinks consumed. "There is physical evidence that very hot beverages can contribute to cell injury in the esophagus and thus contribute to cancer formation," concluded Dr. Mariana Stern, from the University of Southern Califor- nia. Stern and her co-authors examined more than 1,000 studies documenting the effects of 20 different kinds of cancer. Researchers found a higher incidence of esophageal cancer in countries that drank very hot beverages (158 0 F), a temperature that can scald the esophagus. Coffee was once thought to be the root cause but two studies (2009 and 2016) now point to temperature. Esophagal cancer kills 400,000 annually worldwide.

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