Issue link: https://read.dmtmag.com/i/491371
10 STiR tea & coffee industry international On the Cover: Wee Tea Garden near Amulee, Scotland. The "i" in STiR this month is a spinning cone column by Fla- vourtech. It is used as an aroma recovery device. www.flavourtech.com Keurig Earned $4.7 Billion in 2014 Keurig Green Mountain earned $4.7 billion in FY 2014, selling 9.8 billion portion packs and 10.9 million brewers. Sales of portion packs grew 13% to $3.6 billion. Keurig and its licensed partners currently sell about 9 of every 10 single-serve capsules in the U.S. where household penetration of single cup brewers is above 15% and almost 40% in Canada. Keurig brewers are in 20 million households. Americans consume about five times more cold beverages than hot. Keurig expected to introduce a cold brewing system with Coca-Cola products next year. But market dominance has a price. Competitors in the past year have filed several lawsuits in both the U.S. and Canada and are now going public alleging KGM is unfairly muscling retailers that promote non-licensed brands. Coffee Club LLp c.e.o. John Pigott has voiced his concerns in speeches and the televised Business News Network. Coffee Club is one of the largest roasters of grocery store coffee in North America. The company, which is owned by food conglomer- ate Morrison Lamothe Inc., makes millions of non-licensed single-serve capsules that fit and operate in even the newest of Keurig's "lock-out" brewers. In September the company filed a lawsuit in Ontario claiming $600 million in damages. In November it filed a formal complaint with the Competition Bureau. The complaint was signed by five rival roasters. Under Canadian law the bureau must now conduct an investigation. The lawsuit claims Keurig is engaging in anti-competitive practices, language that mirrors lawsuits filed in U.S. courts by TreeHouse Foods and Rogers Family Coffee. Keurig maintains its business practices comply with regulations in both countries. A spokesman said the complaints "are without merit." In November a U.S. court refused a Rogers Family legal maneuver to halt sales of Keurig 2.0 brewers. NCA Consumption Report Coffee consumption in the United States continues to rise by a steady 2% per year. In August NCA introduced a monthly Industry Sizing Data report that breaks the market into three segments (in-home, at-work, and restaurants). Total coffee consumption was up 2.23% to 7.9 billion cups in October. Coffee served at work and in food service locations (coffee shops, fast-food, and cafes) was up 4% compared to the same period in 2013. Data from StudyLogic also tracks the number of cups by method of prepara- tion. In October, for example, consumption of single serve was up 15.9% to 1.7 billion cups for the month compared to 1.5 billion during the same period last year. Consumption of instant is falling along with the number of cups prepared by traditional methods such as drip brew. Preparation in a French press was up 1.23%. NCA has tracked coffee drinking trends since 1950, releasing a comprehen- sive report annually. Brazil's Election Weighs on Trade The re-election of Dilma Rousseff as Brazil's president unsettled commodities markets in a country facing economic woes. Brazil is in recession, facing weakening demand from Europe. Inflation is high, the currency exchange rates are falling and the stock exchange is volatile. Rousseff's economic policies have been loudly criticized by Brazilian business leaders including many in the coffee industry. Rising commodity prices for sugar and arabica coffee remain critical to the economy. Coffee industry observers expect the appointment of new finance and agricultural ministers and new policies to resume growth. Rousseff's Workers' Party is credited with lifting 40 million from poverty, reducing unemployment, and insuring food security since coming to power in 2003. However, popular housing programs, vocational schools, and an expansion of credit depend on continued economic growth. Rousseff won 51.6% of the vote amid allegations of corruption in the closest and most divisive election in 30 years which may make it difficult for her to assemble a coalition government. Incorporating NEWS Advertising Representation: Global Glenn Anthony John (Thailand) Tel +66 22 55 66 25 Mobile +66 818 299 409 gaj@octobermultimedia.com The Americas / Northern Europe Emerson Leonard (United States) Tel/Mobile: +1 917 680 1050 edl@octobermultimedia.com Southeast Asia / Middle East Chris Michaelides (Hong Kong) Tel +66 22 55 66 25 Mobile +66 869 896 540 cam@octobermultimedia.com Spain / Italy Jonathan Wesley Bell (France) Tel: +33 563 414790 jwb@octobermultimedia.com Production/Distribution October Inter Co., Ltd. Bangkok, Thailand Tel +66 22 55 66 25 Fax +66 26 55 22 11 info@stir-tea-coffee.com Directors Glenn Anthony John Boonthin Tubsongkroh Dilma Rousseff