STiR coffee and tea magazine

18 STiR coffee and tea / Issue 2, 2019 (April / May) Coffee Report: Dan Shryock Nestlé Distributes Starbucks A new range of Starbucks products are now available, a result of the coffee giant's marketing alliance with Nestlé. The two companies agreed in August 2018 to have Nestlé sell Starbucks brand coffees. The February launch features 24 products including whole and ground coffee as well as first-ever Starbucks products using proprietary Nespresso and Nescafé Dolce Gusto coffee system technologies. The agreement grants Nestlé perpetual rights to market Starbucks consumer products around the world, outside its cafes and excluding Starbucks line of ready-to-drink products. "We are very pleased to be able to provide our premium high-quality Starbucks coffees to customers at home across the world's most popular single-serve platforms, the Nespresso and Nescafé Dolce Gusto systems," said Starbucks International group president John Culver. "[This] announcement further extends the global reach of Starbucks' brand as we expand into new channels as part of a global coffee alliance with Nestlé." CANADA Tim Hortons Loyalty Program Canada's largest coffee chain introduced a digital rewards program with a mobile app and reusable swipe card. The program is designed to increase visits with rewards of coffee or baked goods after seven stops (which must be at least a half hour apart). There is a 50-cent minium purchase. Currently 8 out of 10 cups of coffee sold in Canada are from Tims. The company recently announced it wants to raise that to seven in 10. Michael Hancock, Tim Hortons' c.o.o. said the loyalty program is to better understand and serve consumers and "wasn't built to compete with other coffee programs." ETHIOPIA Coffee Production Triples Ethiopia is aiming to triple its coffee output in five years through better production and marketing of its products. The Ethiopian government expects to harvest 600,000 tons of coffee this fiscal year, according to a report by New Business Ethiopia. The goal is to reach 1.8 million tons by 2024. To do this, older coffee trees will be replaced with new seedlings, eventually increasing productivity. Another 5.4 million hectares of suitable land also will be made available for coffee trees. Meanwhile, a new marketing strategy will be developed to promote and export the increased volume, according to the report. GERMANY JAB Holding Eyes Possible IPO JAB Holding, the parent company of Keurig Dr Pepper and Peet's Coffee & Tea, and other major brands, is consid- ering taking its coffee segment public. The company, based in Germany, announced its intent in February in a statement suggesting the initial public offering (IPO) would occur in future years and would apply to its Acorn coffee and beverage division. Acorn's portfolio also includes Stumptown Roasters, Intelli- gentsia, and Mighty Leaf Tea. "JAB has a very successful global coffee and beverages platform in Acorn, which includes Keurig Dr Pepper, Jacobs Douwe Egberts, and Peet's, and we are envisioning taking it public in the next 2-3 years," the company said in a statement. "A public listing would be in line with JAB's long-term philosophy to bring leading global consumer busi- nesses to the public markets. However, we have not made any decision to trigger an IPO process now. "Only the shares owned by JAB would be part of any IPO," the state- ment said. ITALY IMA Launches Coffee Hub IMA Group is buying 70% of Spreafico Automation S.r.l., the company an- nounced in early March. Spreafico Automation specializes in designing machines for the packaging of coffee capsules and soluble products. IMA also agreed to buy 61% of Tecmar S.A. a vertical form-fill-seal company that provides machines handling dosed filling of flexible, sealed packages in all shapes and sizes. The two acquisitions help the company solidify its new Coffee Hub. IMA Group, a leading designer and manufacturer of automatic processing and packaging equipment, launched the Coffee Hub as a cluster of specialist brands, each providing the key experi- ence and expertise needed to serve the coffee industry. Able to ensure market-leading competences, industry experience, and application-specific know-how encom- passing all stages of coffee handling, processing, and packaging, IMA leverages expertise at every step of coffee processing or packaging, thus becoming the one-stop supplier to large and small coffee producers worldwide, according to a company statement. At every step, an IMA Coffee Hub specialist reaches every corner of the coffee handling, processing, and packaging universe. Comprising a handful of expert companies and supported through consolidated, strategic partnerships, IMA can now address any issue facing coffee produc- ers, starting from when green coffee is delivered to when bulk-packaged capsules, pods, and ground coffee or beans are shipped to retail outlets. Through its Petroncini brand, IMA provides equipment for green coffee handling and processing, roasters, and grinders. Further green coffee systems for handling, sorting, cleaning, and storage are available thanks to special partnerships with the industry's leading names. Once coffee is ready for the next major step the IMA Coffee Hub handles packaging, a key company expertise. illycaffè Honored as Ethical Global coffee industry leader illycaffè S.p.A has been named as one of the world's most ethical companies, according to the Ethisphere Institute. This is the company's seventh consecu- tive honor from the institute.

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