STiR coffee and tea magazine

20 STiR coffee and tea / Issue 4, 2017 (August / September) Coffee Report: Dan Shryock SCA Global Retail Research The Specialty Coffee Association (SCA) recently announced a new market research study to help roasters and retailers make sound business decisions. "The idea for this study transpired over 20 years ago, when coffee roasters in the US community were requesting shared business information," SCA said in a statement. "They were seeking help with writing their business plans, setting sales targets, or just looking for industry norms. They wanted data and evidence of what the industry was doing to support their business decisions, rather than going off gut feelings or assumptions." At that time, the then-Specialty Coffee Association of America (SCAA) responded to that need and conducted a major study about roasters and generated useful financial data. SCAA led its first major benchmark- ing study for the roasting segment in 2015, providing a wealth of useful financial data based on responses from 205 roasting companies. SCA is now expanding that effort to include retailers and cover the recently combined US and European member- ship areas. Those who respond to this survey with receive free access to the findings, expected to be released after the Aug. 7 response deadline. Lose Weight with Coffee Obese mice can lose weight by consum- ing high levels of caffeine, according to a recent report in Nature Communications. The study, by Guo Zhang and colleagues, identified neural circuitry that takes place when caffeine is used to suppress appetite and increase energy expenditure in obese mice. Caffeine interacts with an area of the brain causing the mice to use more energy, eat less and lose weight. The mice consumed caffeine equivalent to 24-26 cups of coffee for a human being. AFRICA East Africa's Top Chain Java House, east Africa's largest coffee shop chain, was acquired by Abraaj Group, an investment fund. The sale price was not disclosed but bids were reported to reach as high as $100 million, according to the Quartz news organization. In announcing the purchase, Abraaj was reported to be looking to the African continent's increased population growth, an expanding middle class, and urbanization in north, east, and west Africa markets. Coffee consumption continues to increase across Africa and Java House, which has enjoyed continued growth since opening in 1999, looks to capitalize on that expansion. CANADA Lavazza Buys Kicking Horse Italian roasting giant Lavazza recently acquired 80% interest in Kicking Horse Coffee, a popular roastery in British Columbia. The deal, announced in late May, placed Kicking Horse's value at $215 million. Elana Rosenfeld, who co-found- ed the company in 1996, retains 20% interest and will continue to indepen- dently operate the company. Kicking Horse Coffee has reported double-digit growth for many years as it expanded in the United States. Sales have tripled since 2012, Rosenfeld is reported as saying. "We have 20 years of experience, they have 120 years of experience," Rosenfeld said. "Certainly, my roasting and sourcing team and even the maintenance team are pretty excited about that Italian expertise." COLOMBIA Starbucks Supports Farmers Starbucks has a new plan to support Colombian coffee growers. Working with the United States Agency for International Development (USAID), the retail giant intends to train and support 1,000 farmers in areas battered by political conflict. After 50 years of violence and insurgency, the Colombian government made peace with its primary rebel group, the Revolutionary Armed Forces of Colombia, commonly known as FARC. During the conflict, many farmers were forced to grow coca leaves for cocaine production. With peace, they now can grow coffee instead. The Starbucks-USAID plan calls for farmers in the former conflict zones to receive training in agriculture and climate resiliency programs. They also will get access to new technology to help them operate their farms. In addition, a $4 million farmer loan initiative will support 2,000 farmers, primarily women. "To say, 'We are going to quit growing coca leaves and produce coffee' – that's huge," said Alfredo Nuno, who leads the Starbucks Farmer Support Center in Manizales, Colombia. "They will gain in their own tranquility and self- esteem and won't be bound to blackmail and pressure." ETHIOPIA Ethiopian Exports Up Ethiopian coffee exports increased during the 2016-17 fiscal year, up 11.5% over the previous year, according to the news website AllAfrica. Sales totaled $866 million by selling 221,000 tons of coffee during the period. The Ethiopian Coffee & Tea Develop- ment and Marketing Authority reported it has reached 92% of its goal to increase coffee exports. The agriculture sector has historically been the engine of the Ethiopian economy, but it has recently given way to the service sector. The National Bank of Ethiopia (NBE) reports the agricul- tural sector's share of GDP shrank by more than 25% between 2005 and 2016, while the service sector's share grew by 27% during the same period. Colombia conflict coffee farm

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