STiR coffee and tea magazine

STiR coffee and tea 35 The first shipment of one million surgical masks donated by Alibaba Group founder Jack Ma arrive in the US on March 17. Ma also gifted the Center for Disease Control 500,000 coronavirus test kits "Instant coffee accounts for 72% of the $15 billion in domestic market sales, according to Mintel International. Freshly ground coffee holds an 18% share, and ready-to-drink accounts for 10% of sales. In China, sales of RTD coffee and tea already exceed $11.7 billion a year. Mark Floisand, s.v.p. of product and industry marketing of Coveo, an AI company personalizing in digital experiences, explains that "a personalized and relevant online shopping experience is critical. During the coronavirus pandemic, with more and more shoppers electing to avoid the risk of public spaces, they'll head to the retailer that provides the most efficient and person- alized online shopping experience. And the corollary is that those that don't deliver on these online expectations will lose out to those that do. Shoppers are going to put their personal health above their default store preferences." Because of this, online shopping traffic is going to hit an all-time high, and brands that are going to succeed are those that can ensure relevant and efficient experiences for their consumers at scale. A coronavirus-triggered recession could affect businesses in unexpected ways such as threatening international collaboration, cross-border supply chains, and global consumer demand, as well as prove a boon to e-commerce and other tech-driven trends that let lives go on with less direct human con- tact, according to Axios. "The epidemic is a warning to coffee stores: regard- less of size, pay more attention to business fundamentals, standardize store development, improve business strategy, focus on team training, and make good store safety planning," writes Fu. Lessons shared In March, Chinese President Xi Jinping sent an anti-epidemic team of medical experts to Italy, a country suffering from coronavirus on a scale comparable to Wuhan. Billionaire Jack Ma donated 500,000 testing kits and one million masks to the US that arrived March 17 for distribution by the US Center for Disease Control and Prevention (CDC) "The epidemic is ruthless," advised a social media post by a worker at Xiaomi, an internet electronics company that donated materials to help Italy resist the virus. "I hope that the Italians, while maintaining their romantic na- ture, also pay attention to epidemic prevention," reads the post. Quoting the ancient Roman philosopher Seneca, the writer observed that "We are waves of the same sea, leaves of the same tree, flowers of the same garden." The blow that followed was unprecedented. Cur- fews imposed in Wuhan earlier that month led to a January 23 lockdown of 54 million residents in Hubei province. "The coronavirus virus has been a tragedy for China and specifically for the coffee producers," writes Thomas J. Mitchell, president of Strategic Cof- fee Concepts, organizers of the China International Specialty Coffee Forum and Expo sponsored annually by the Yunnan Coffee Exchange (YCE). "January and February are typically at the center of the harvest. The low altitude coffee harvest pauses for Chinese New Year (January 25). The premium, high-altitude coffee [1,500 meters and above] is then harvested. The coronavirus extended Chinese New Year for many additional weeks. With a less than perfect weather pattern negatively affecting the crop, this extended period of reduced harvesting will have a negative impact on the Yunnan coffee crop this year," writes Mitchell, adding the coffee expo scheduled for March was canceled "but as soon as the event can be re-scheduled safely, YCE will set a new date and announcements will be forthcoming." There are 222,914 coffee outlets in China, with 2,500 in Wuhan, a city of 11 million. A March survey of 2,000 small- and medium-sized coffee shops by the Kamen Institute revealed 85% were shuttered at the height of the epidemic. Two-thirds reported no income for 60 days, with an additional 20% reporting sales declines of 50% to 80%. Starbucks closed more than 2,000 outlets in China to help stem the spread of the coronavirus. In Yunnan, growers suddenly confronted a mid- harvest lockdown that limited transport to processing facilities. Since medical care was uncertain, the gov- ernment isolated entire villages behind roadblocks. Strict traffic controls led to labor shortages. Workers were issued masks, told to keep six feet apart, and periodically examined for signs of fever. Local officials urged them to step up production and processing and minimize losses. Their orders were to pick and process fruit the same day, harvesting only fully ripe cherry. Li Shaoquan, with the "High-Altitude" coffee proj- ect in Mang county, Dehong, Yunnan, said that: "Down the coffee value chain, cafés could switch gears turn- ing towards online marketing and sales as a solution, but coffee farms, located at the origin of the chain, did not have any way out." Due to labor shortages, transport restrictions, and segregation, the last harvest had to be abandoned, re- sulting this year's berry quantity is about one-third of average," he said, adding the batch harvest that was abandoned was his premium grade. The Pu'er Tea and Coffee Development Center circulated directives such as this: "During the epidemic period, if the coffee products are not delivered in time due to traffic control, scientific storage should be per- formed, moisture monitoring and mildew and moisture prevention work should be done to ensure the quality of coffee and achieve maximum benefits." Small business loans, tax relief, and technical sup- port were made available. The Yunnan Coffee Exchange (YCE) notified growers that the PICC (China Insurance Company) will compensate them "for market price fluctuations and losses caused when the market price of coffee and raw beans is lower than the established price; rewards will be awarded for actual transaction prices higher than the target price." The result: YCE estimates the 2019- 20 harvest will be at least 10,000 metric tons below 2018-19. A final tally was not available at press time. Photo courtesy Jack Ma

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