STiR coffee and tea magazine

16 STiR coffee and tea / Issue 5, 2020 (October / November) Coffee Report: Dan Shryock Costa Coffee Cuts Jobs Costa Coffee, a leading retail coffee chain in the United Kingdom, is eliminating more than 10% of its workforce as it reopens storefronts following a Covid-19 lockdown. The company, owned by Coca-Cola, reopened about 2,400 of its 2,700 shops across the UK that were closed for six weeks. The remaining 300 stores should be operating again by October. With the reopening, however, as many as 1,650 employees will not return, according to reports. During the lockdown, Costa Coffee paid full wages to all employees, but as stores reopen and begin to generate sales, the company announced assistant store manager positions are being eliminated to reduce costs. "While trade is returning, helped by the government's VAT reduction, which Costa passed on to customers in full, and the recent [eat out to help out] scheme, there remain high levels of uncertainty as to when trade will recover to pre-Covid levels," the company said in a statement. "We have had to make these difficult decisions to protect the business and ensure we safeguard as many jobs as possible for our 16,000 team members, whilst emerging stronger ready for future growth," added Neil Lake, managing director for Costa Coffee UK and Ireland. Coca-Cola reported in July that coffee and tea sales dropped nearly 33% during March, April, and May. The loses were, in large part, caused by the temporary store closures of nearly all Costa Coffee shops in western Europe. Walmart Delivers Roast-to- Order Coffee Walmart customers can now order fresh-roasted coffee online under a partnership with a Colorado-based coffee company. Luna Gourmet Coffee & Tea Company, under its Boca Java and Boulder Organic Coffee brands, is roasting beans to order in small batches after orders are placed through Walmart. com. Those orders are then shipped with "roasted on" dates to indicate freshness. All coffees in the program, including single origins, blends, and flavored coffees, use 100% arabica coffee. Prices range from $8.44 for an 8-ounce bag to as high as $15.44 for a 12-ounce bag. Boulder Organic Coffee sources from the top 15% of Fair Trade-certified, USDA Organic farms. "Our personalized program merges quality and convenience for Walmart. com customers," said Jason Barrow, Luna Gourmet co-owner and president. "Customers order, we roast it and then send it out the day after, shoppers can enjoy Specialty Grade, craft coffee that is roasted specifically for them and delivered on-demand to their door." Smallholding Farmers Feel Effects of COVID-19 A new study by Hanns R. Neumann Stiftung (HRNS) concludes that new investment will be needed to support smallholding farmers as they cope with the effects of the Covid-19 pandemic. The foundation, dedicated to improving the livelihoods of families in tropical rural environments, surveyed families in regions where the foundation currently has projects. The survey showed the pandemic adversely affecting coffee prices, the cost of living, employment and income, and other critical issues. Families' greatest concerns center on community health, the availability of labor, access to markets, and, most importantly, the coronavirus' effect on coffee prices. When asked if COVID-19 has already had a negative effect on household income, a resounding 71% of those surveyed said yes. "The situation triggered by the coronavirus pandemic for smallholder families in coffee regions needs an urgent response," the founda- tion said. "The survey shows that Covid-19 will have a long-term impact on the livelihood of smallholder families. Upcoming crop cycles will be affected as much as families' cashflow and food security. The effects of climate change might be felt stronger as mitigation measures cannot be implemented due to higher input prices under Covid-19. Farmer families face higher production costs at a prospect of lower revenues." Follow this link to the report https://www.hrnstiftung.org/wp-con- tent/uploads/2020/07/Impact-on-Live- lihoods-by-Covid-19.pdf Uganda Law Registers Farmers Coffee farmers across Uganda are now expected to register and report on their operations to the government under a new National Coffee Bill that recently passed the Ugandan Parliament. The new legislation is intended to allow the Uganda Coffee Development Authority (UCDA) to oversee, regulate, and promote the coffee sector and manage all aspects of the country's value chain, according to published reports. Farmers are asked to report informa- tion such as the size of farmland, the number of coffee trees, nursery informa- tion, and other operational specifics. The registration is free and there is no penalty for failure to register. The new law replaces a 29-year-old UCDA act that allowed the government agency to manage off-farm marketing and processing on a national level. The new law goes much deeper. Farmers will be actively growing coffee at the time of registration or will need to prove they intend to begin within six months. The government stated the National Coffee Bill will help in the comprehensive planning as the agency links farmers and buyers, establishes irrigation systems, and enhances extension services. This comes after the nation enjoyed record coffee exports and earnings during the 2019-2020 fiscal year. Exports totaled 5 million 60-kilo bags, up 21% over the previous year. Export earnings reached a record-high $494 million, an 18% increase from the year before. Costa Coffee is cutting jobs.

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