STiR coffee and tea magazine

Volume 8, Number 6

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STiR coffee and tea 21 ensure efforts on the ground have a meaningful and lasting impact," said José Calderón, president of the Hispanic Federation. "We're pleased with the progress we're making, but it is only the beginning. With the help of Nespresso and its consumers, we're optimistic about the future of coffee on the island." Cafecito de Puerto Rico, described as a zesty and intense coffee, is a limited- edition coffee. Consumers who donate to the Hispanic Federation from now through Oct. 27 will have first access to the coffee. Contributions to the Hispanic Federation support efforts with World Coffee Research and Puerto Rico Coffee Roasters to plant 2.25 million coffee trees in Puerto Rico. Nespresso also has committed 50,000 trees to this effort. Nespresso's Reviving Origins program helps restore high-quality coffee production in regions around the world that are under threat due to political conflict, economic hardship or environmental disasters. In May 2019, Nespresso launched the Reviving Origins program with coffee from Colombia and Zimbabwe. Learn more: nespresso.com Philippines Jollibee Finalizes CBTL Takeover Jollibee Foods Corp.'s $350-million take- over of American retailer Coffee Bean and Tea Leaf (CBTL) is complete, making the fast-food giant the first Filipino company to have a significant investment in the global retail coffee. Jollibee told the Philippine Stock Exchange on Tuesday, Sept. 24, that the transaction was closed following the completion of conditions, including government approvals. Jollibee now owns 100% of CBTL for $350 million. The company set out to become one of the top five restaurant companies in the world. With Coffee Bean and Tea Leaf's positions in 27 countries, the acquisition will add 14% to Jollibee's global sales, 26% to its total store network and boost the share of Jollibee's international business to 36% of worldwide sales. CBTL had 1,180 outlets on Aug. 31, of which 336 are company-owned and 844 were franchised. Of these, 288 are in the US, 439 in Southeast Asia (Philip- pines 150, Indonesia 88, Malaysia 100, and Singapore 65), 301 in East Asia (South Korea 290), and 152 in the Middle East and other parts of Asia (Kuwait 36, Qatar 28, Saudi Arabia 16, Egypt 13, and India 25). Coffee Bean and Tea Leaf recorded a $21 million net loss in 2018 but Jollibee projects it can reverse the brand's fortunes in 12-18 months. Uganda Coffee Exports Climb Forecasts call for coffee exports, aided by good weather and increased acreage of mature trees, to climb about 16% during the 2019-2020 crop year. That's the recent report from Uganda's state-run Coffee Development Authority. In all, the crop year, which ends in September 2020, may reach 5.1 million 60-kg bags. The previous year's total was 4.4 million bags. "We had a good crop last year and we expect even a higher production this year on account of favorable weather," authority official James Kizito Mayanja told Reuters. "Also, the planting program is starting to bear fruit because we are seeing most of the trees that were planted are now maturing." The Ugandan government has emphasized a planting program in recent years to increase coffee exports. Farmers were given free seeds to expand acreage and replace unproductive trees. The nation then recorded heavy rainfall in recent months in the coffee-rich regions. As a result, farmers saw good flowering and bean formation. UK Jill McDonald New Costa C.E.O. Jill McDonald will replace Dominic Paul as the c.e.o. of Coca-Cola owned Costa Coffee. She will report to Jennifer Mann, Coke's president of global ventures. McDonald was managing director of clothing and home for Marks & Spencer and is a former c.e.o. at Halfords Group, a UK retailer of bikes, car parts, leisure products and a chain of garages. McDonald held three roles with McDonald's Corp. from 2006 to 2015, ultimately serving as UK c.e.o. and division president, North Europe. "Her track record, depth of interna- tional experience, and excitement about joining our business makes her an ideal leader to build on the great work of Dominic and the rest of the Costa team." US US Coffee Shop Growth Slows The pace of new coffee shop openings in the US continues to slow, according to new research from Allegra World Coffee Portal. The report, released in October, showed America's 37,274 coffee shops grew at a 3.3% rate. That rate, however, marks the third consecu- tive year in which the growth rate has declined. Starbucks and Dunkin' dominated the new openings. Starbucks added 585 stores during the past 12 months while Dunkin' opened 309 new outlets. Together, the two firms totaled 80% of the net new openings during the period, according to Allegra's Project Café USA 2020 project. Industry leaders consulted or surveyed for the study indicated specialty coffee and young consumers are powering the growth. Specialty coffee was considered "the most important consumer trend currently affecting the US coffee shop market," a report summary provided by Allegra stated. Cold brew remains the fastest-growing product in coffee shops. The trends were powered by under-30s consumers "who are more willing to try new products than older demographics," the study stated. "This age group is also most likely to have significantly increased coffee shop visitation over the last 12 months, making them a key demographic for sales growth." Younger consumers also supported the use of mobile apps and online ordering. Overall, annual sales showed a 4.3% increase during the research period over the previous year. "The US coffee shop market is at a critical crossroads, with rising costs and consumer expectations combined with intense pressure on end-consumer spend," said Allegra c.e.o. Jeffrey Young. Dunkin Donuts mobile order station

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