Specialty Coffee Retailer

August 2011 Specialty Coffee Retailer

Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.

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China seen as high- potential market Coffee production and consumption low but growing China’s per- capita coffee consumption is minuscule compared to the West, but c o n s ume r interest is increasing and could lead to big increases. Experts at the recent Beijing International Coffee Fair said international travelers and students who have spent time abroad will help raise coffee consumption by up to 20 percent a year. Even at that pace, it would take some doing to catch up to major coffee-consuming nations. Annual per-capita consumption stands at only three cups, suggesting that for most Chinese, coffee is still a novelty. (Annual global consumption is about 240 cups.) But Starbucks, for one, feels confident Mark Your Calendar September 8-10 Coffeena, Cologne, Germany, www.coffeena.biz 8-10 Florida Restaurant and Lodging Show, Orlando, Fla., www.flrestaurantandlodgingshow.com 13-15 Coffee Summit of the National Coffee Assn., Alexandria, Va., www.ncausa.org 23-25 Coffee Fest Seattle, Washington State Convention Center, Seattle, Wash., www.coffeefest.com 20-23 China Xiamen International Coffee Fair, Xiamen, China, www.coffeefair.cn 24-27 Camp Pull-a-Shot barista training, Santa Barbara, Calif., www.baristaguildofamerica.net/camp.html 3-5 Middle East Coffee & Tea Convention, Dubai, United Arab Emirates, www.coffeeandteaconvention.com 9-13 Sintercafé 25th Anniversary, Herradura Beach, Costa Rica, www.sintercafe.com/en/ 22-24 European Coffee Symposium, Berlin, Germany, www.europeancoffeesymposium.com/Home.aspx 6 | August 2011 • www.specialty-coffee.com November 29-1 SCAA Leadership Conference, Portland, Ore., www.scaa.org October in the future of specialty coffee retailing in China. Starbucks, which currently has 450 outlets in China, recently announced plans to increase to 1,500 by 2015. One big obstacle to coffee consumption in China is high taxes and tariffs, which can add up to 47 percent to the prices of imports. Coffee production in China stands at about only 45,000 tons, or 0.45 percent of the world’s total. Starbucks hit over milk switch N.Y. dairy supplier cries foul over canceled contract Starbucks has changed its milk supplier for its New York City and Long Island locations, in a decision that has sparked a lawsuit from the spurned supplier. Elmhurst Dairy in Queens, which has supplied Starbucks stores in the New York area for years, was informed in July that it was being dumped in favor of a Dean Foods processing facility in upstate New York. The non-union Dean facility can supply dairy products at lower cost. Elmhurst Dairy executives told the Queens Courier that the move will cut half of the company’s profits and force it to lay off up to 700 employees. The company filed suit against Starbucks and Dean Foods to preserve the contract, which was not due to expire until 2013. Elmhurst Dairy raised the specter of increased milk prices for schoolchildren. The company supplies milk to 1,400 New York City schools, but if it no longer sells to Starbucks, it will have to raise prices up to eight cents a serving, company officials told the Courier. Studies indicate new health benefi ts for coff ee Consumption may help with Alzheimer’s, prostate cancer Two studies suggest that heavy coffee consumption may have certain newly discovered health benefits—at least in terms of avoiding disease. Researchers at the University of 7-9 World Coffee Trade Outlook, Antwerp, Belgium, www.ibc-asia.com South Florida experimented on mice that were bred to develop symptoms mimicking Alzheimer’s disease. They found that caffeinated coffee caused the mice to develop a growth factor that is depleted in Alzheimer’s patients, and that has been shown to improve memory in Alzheimer’s mice. The effect occurred with caffeinated drip coffee but not with either decaffeinated coffee or caffeine alone, leading the researchers to theorize that the caffeine interacted with some unknown other substance in the coffee to produce the anti-Alzheimer’s effect. The finding appeared in the Journal of Alzheimer’s Disease. Harvard researchers who looked at men’s coffee drinking habits over a 22- year period found that heavy consumers were less likely to develop deadly prostate cancer. The Harvard study, reported in the online edition of the Journal of the National Cancer Institute, involved almost 48,000 men who self-reported their coffee consumption every four years from 1986 to 2008. Subjects who drank six or more cups a day were 20 percent less to develop prostate cancer, and 60 percent less to develop lethal prostate cancer. Men who drank one to three cups a day were 30 percent less likely to develop lethal prostate cancer. “At present we lack an understanding

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