STiR coffee and tea magazine

20 STiR coffee and tea / Issue 5, 2018 (October / November) SINGAPORE Costa Leaves Singapore Costa Coffee closed its remaining two Singapore shops in September, complet- ing a planned exit begun earlier this year. Costa, the largest coffee chain in the United Kingdom, decided in early 2018 to close its eight coffee shops. No reason was given to for closures. Reports, however, indicate high property rental costs and rising expenses were factors. In addition, independently operated cafes serving specialty coffee are growing in popularity throughout the city-state. Photo courtesy Nespresso Honde Valley grower harvesting coffee cherries UK Coca-Cola Acquires Costa The Coca-Cola Company is acquiring Costa Limited, the United Kingdom's leading coffee brand, for $5.1 billion. The agreement, announced Aug. 31, is expected to close by July 2019. Costa recently became a wholly owned subsidiary of parent company Whitbread PLC. As such, the sale requires Whitbread shareholder's approval. Coca-Cola officials indicate that will take place by mid-October. "Costa gives Coca-Cola new capabili- ties and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide," said James Quincey, Coca-Cola president and c.e.o. "Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform." Costa generated $1.7 billion in revenues and $312 million in net income in the 2018 fiscal year that ended March 1, Coca-Cola said. With the acquisition, Coca-Cola gains about 4,000 retail coffee outlets and 20,000 employees in more than 30 countries. In addition, Costa Express vending machines are in 8,000 locations worldwide. Coca-Cola also will own Costa's new roastery in Basildon, Essex, which began operations in early 2017 quadrupling its previous roasting capacity to 45,000 tons each year. The acquisition helps Coca-Cola to expand its existing coffee portfolio and gain "strong expertise across the coffee supply chain including coursing, vending and distribution," according to a company statement. "The Costa team and I are extremely excited to be joining The Coca-Cola Company," Costa managing director Dominic Paul said in a statement. "… Being part of the Coca-Cola system will enable us to grow the business farther and faster." US Sustainable Pods at CBTL Alliant Coffee Solutions, office product provider for The Coffee Bean & Tea Leaf (CBTL), is producing sustainable packaging for CBTL's soft coffee pods. Alliant roasts and packages coffee for CBTL's office services. Alliant's BPI certified compostable soft coffee pod packaging creates zero waste, the company states. Coffee is roasted in a facility powered with 100% green electricity. The soft coffee pod film combined with nitrogen flushing keep each pod free from oxygen degradation and preserves coffee quality. "We have been committed to providing highly sustainable product packaging for many years," said Chris Taffera, Alliant's director of operations. We are thrilled to reveal our latest compostable pods for the Coffee Bean brand. Office coffee customers have been very interested in environmentally friendly packaging and we will continue to innovate all of our products to meet their desires and the needs of our earth." Alliant Coffee Solutions, headquar- tered in Edmonds, Wash., provides office coffee services, including whole and ground beans, single-serve pods and cups, organic teas, and gourmet solubles, across the United States. The company incorporates recyclable, biodegradable, and compostable materials into their products and packaging. ZIMBABWE Nespresso Pledges Investment Nespresso is committing to Zimbabwe's coffee industry with a long-term investment to boost the rural economy. The international coffee company announced in early September that it will provide training and technical support for 400 smallholder farmers in partner- ship with Technoserve, a Washington D.C.-based nonprofit. The goal is to improve the national production of quality, sustainable coffee. Nespresso also said it expects to purchase 95% of Zimbabwe's high- quality coffee produced by smallholders this season, spending $1.25 million over five years. Zimbabwe's coffee industry has suffered from a series of economic setbacks and, as a result, there has been a steep decline in production during the past 18 years. Exports were as high as 1 million 60-kilo bags in 1993, according to the International Coffee Organiza- tion. The total declined to 664,000 bags in 2017. "We are investing in reviving coffee farming in different regions of the world, where adverse conditions have impacted the lives of farmers and their ability to grow and nurture their coffee industries," Nespresso c.e.o. Jean-Marc Duvoisin said in a statement. "Zimbabwe has a long history of producing beautiful coffees and we are pleased to be working with farmers through our AAA Sustainable Quality Program to help bring this industry back to life."

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