Caffe Coffee Culture - July 10, 2023

Welcome to the inaugural issue of Caffe Coffee Culture; a newsletter for coffee professionals and enthusiasts.

Innovation

Sancoffee partners with Clever Coffee to calculate carbon footprint of Brazilian coffee

Fazenda Santa Clara introduces Impact No. 1, the inaugural carbon-neutral coffee supported by emissions data, with a remarkable -0.06kg CO2 per 1kg of roasted coffee. The coffee plants on the farm sequestered approximately 3.31kg CO2, contributing to its carbon-neutral status.

Catalyst Trade Hosting Inaugural Ethiopian Innovation Lots Auction

Portland, Oregon-based green coffee company Catalyst Trade is hosting its first ever online coffee auction, focused on high-quality microlot coffees sourced from Ethiopia.

Under the name Ethiopia Innovation Lots, the auction is scheduled to take place through the M-Cultivo auction platform on Tuesday, Aug. 1. A limited number of sample sets are currently being sold for $275.

McIntyre said part of the impetus for the auction was the suspension of the Ethiopia Cup of Excellence competition and auction program for 2023.

Products

• Go Get Em Tiger Teams Up With Ceramicist Ben Medansky For 10th Anniversary Mugs

Celebrating 10 years of Go Get Em Tiger, the folks have partnerd with renowned sculptor and friend Ben Medansky to release limited mugs. Going on sale July 11th, these will be limited to 100 pieces.

Retail

• Paris Baguette America eyeing further outlet growth in New York state

• South Korea’s Compose Coffee to make international debut in Singapore

• Starbucks Hong Kong gives away 100,000 cups of coffee 

Industry Hires

Julie Centracchio joins WatchHouse as the company's newly appointed Finance Director

Specialty coffee group WatchHouse has appointed Julie Centracchio as its new Finance Director as part of its aggressive expansion plan.

With two decades of hospitality industry experience and previous CFO role at Boston Tea Party, Centracchio will contribute to the regional and international growth of WatchHouse.

The company has recently opened its 12th store in Bath, its first outside of London, and plans to open four more London outlets and its first international store on Fifth Avenue in New York by the end of 2023.

Farmer Brothers welcomes John Moore on board to spearhead their coffee operation.

Texas-based coffee company Farmer Brothers has appointed John Moore, an experienced coffee professional, as its vice president and head of coffee.

Moore's extensive background in the coffee industry, including green coffee purchasing, sustainability initiatives, and blend development, will contribute to the company's efficiency and product quality.

Farmer Brothers, in business for over 110 years, recently sold its headquarters and production facilities in Northlake, Texas, and acquired Portland-based roasting company Boyd's in 2017. In fiscal year 2022, the publicly traded company reported net sales of $469.2 million.

Investment

La La Land Kind Café raises $20m for outlet growth and youth skills programme

La La Land Kind Café secures $20 million in funding to expand its network of coffee shops across the US, providing training and employment opportunities to youths transitioning out of the foster care system.

The investment round, led by John Phelan and Andy Teller, aims to support the company's growth and encourage other businesses to adopt similar social hiring models. Francois Reihani, the founder of La La Land Kind Café, previously established the non-profit We Are One Project to provide comprehensive support to youth leaving foster care.

Westrock Coffee announces $75m equity investment, opens $300m facility

Westrock Coffee Company has secured equity investments of $75 million from HF Capital and the Herbert Hunt family, which will be used to purchase 7.5 million shares of company common stock. The investments are expected to close in August 2023. Additionally, Westrock Coffee announced plans to open a state-of-the-art facility in Conway, Arkansas, with an investment of over $300 million, creating 600 jobs and allowing for the manufacturing and packaging of various beverages, including cold brew coffees, lattes, teas, and juice-based products.

Lavazza braces for double-digit earnings decline amid soaring costs

Lavazza anticipates a significant decline in earnings for 2023 and has cautioned that it won't be able to reduce prices for consumers until the following year due to escalating green coffee expenses. The Italian coffee roaster experienced a rise in costs, reaching €550 million ($599 million) in 2022, leading to a 6% average price increase. Lavazza attributed its financial challenges to an 80% increase in green coffee expenditure since 2021, along with rising energy and freight costs, as well as the stronger dollar impacting profit margins.