This month in coffee: Lavazza unveiled its new brand ambassador—a charming Wall-E-inspired animated robot—in a global campaign. New product launches from Nespresso, SOWN, and Peet's Coffee continue to expand consumer options. Meanwhile, implementing EUDR regulations significantly changes global coffee trade dynamics.
Let’s get to it…
New Roaster Releases & Updates
Lavazza has launched an AI coffee-making robot as its new ambassador alongside Hollywood stars Steve Carell and John Krasinski in its new Coffee Campaign. Luigi is an office coffee delivery machine who can only dream of experiencing the joy he brings to others through coffee. Through his observations of these "Dolce Vita" moments, Luigi delivers an ironic message: while robots may serve our coffee, only humans can genuinely savor the simple pleasure of enjoying it. Watch it here.
(Source: Lavazza)
SOWN Introduces Oat Cold Foaming Cream to use with coffee. The vegetarian-friendly, plant-based oat cold foaming cream is available at select Whole Foods Markets stores nationwide and offers a convenient way to create barista-standard specialty coffee drinks. Even better, you can do all this in just 30 seconds - simply add the foam to cold brew or iced lattes and experience stable cold foam within a few seconds. The Oat Cold Foaming Cream comes in vanilla flavor.
(Source: Nasdaq)
Keurig has expanded its K-cup variety through a partnership with Hip-hop artist Ghostface Killah’s coffee brand, Killah Coffee. The partnership has rolled out two coffee blends in K cups: Supreme Dark Roast and Shaolin Cannoli.
(Source: BET)
Peet’s Coffee introduces its own unique concentrate coffee product. The coffee brand has launched its first-ever coffee concentrate made from its Espresso Forte blend. To enjoy it, you only need to mix a tablespoon of the concentrate with milk or water.
(Source: PR Newswire)
Onyx Coffee Lab has launched its new premium-quality and aesthetically unique packaging to spotlight its producers. Each packaging is attractive and comes with essential information, including interactive cards for its single-origin coffee, which includes information on the farmer, region, and processing method. You can scan the cards for further information, such as relevant interviews and farmer videos.
(Source: PR Newswire)
New & Interesting Products
Nespresso Professional launches Nespresso Momento for offices. The Nespresso Momento system for offices features an innovative design tailored for office settings. The modular design allows for customization in workplace settings and includes sustainable features like recyclable packaging and energy-saving settings. Further, the machine comes with an ultra-low sound operation to ensure zero distractions. The Nespresso Momento features 3 machine types, 2 different dispensers, and a cabinet option, allowing for arrangement depending on your space. You can even install it with or without a direct water connection. Even better, you can set the machine to free with no payment options, with an online cashless payment such as Apple Pay or Bank card, an offline payment with a rechargeable badge, or open options for cashless/badge/coin.
(Source: Comunicaffe International)
Coffee Farming Industry Updates
The International Coffee Organization (ICO) reported a 10.6% increase in green coffee exports for the 2023/24 season. This increase drove the total export amount to about 103.08 million 60-kg bags. According to ICO, coffee traders have worked tirelessly and around the clock to speed up shipments to stockpile before the EUDR implementation in December. Meanwhile, the robusta exports in Brazil increased by more than 5%, while Brazilian naturals increased by 4.6%.
(Source: Manilla Times)
The upcoming EUDR policy changes have continued to pose challenges for coffee producers in less developed countries like Ethiopia. According to a report prepared by UK-based ODI, the planned implementation of the EUDR law could potentially reduce market access and significantly increase compliance costs for coffee traders in developing countries. For instance, a 10% compliance cost increase in Ethiopia could reduce GDP by nearly 1%. As if this isn't enough, trends have also shown a global shift in large coffee buyers, with large corporate buyers already moving from Africa to countries like Brazil, where compliance tools are more accessible.
(Source: ODI)
Ghana Expands Coffee Production. Ghana, known for its cocoa, is working on boosting coffee production and consumption with support from the International Trade Center - which is actively working to support coffee growers in the country. While some West African countries (Ivory Coast is prominent for Robusta) do produce coffee, they rarely compare to their East African counterparts. Thus, Ghana's embracing the industry is a breath of renewed hope.
(Source: Ventures Africa)
Ugandan Coffee Farmers report theft as the price of Robusta continues to hit record highs. The situation has become dire, forcing many Ugandan farmers to hire armed guards to protect their crops, while others have turned to guard dogs or bees as their security options. This pressure continues to grow as the government actively works towards boosting exports and output.
(Source: Bloomberg)
Amid the El Nino woes, coffee traders in Uganda, Rwanda, and Kenya have experienced container shortages during the peak export season. Unfortunately, the Djibouti port congestion in Ethiopia has left traders with no choice, as vessels and shipping schedules have been disrupted due to Typhoon Nagi in Asia. Meanwhile, the US government aid agency USAID has pledged $80 million in support to African farmers affected by El Nino by boosting agriculture, including coffee production in Tanzania, Malawi, and Zambia.
(Source: Sucafina and Bloomberg)
Brazil is set to sign a US $2.5 billion coffee supply contract with Chinese coffee chain giant Luckin Coffee. Earlier this year, the two agreed that Luckin Coffee would buy $500 million worth of coffee from Brazil. According to Apex-Brasil President Jorge Viana, this official announcement will be made during the upcoming G20 summit.
(Source: Business Times)
Lamastus Coffee Breaks Records at a private auction held through the M-Cultivo platform. The highest-graded coffee from the Lamastus Family Estates was sold for $13,518 per kilo ($6130 per pound) to a Korean company, Coffee Post - the total of the lot sold is 3 kilos.
(Source: Global Coffee Report)
According to the chairman of the Illy Caffe coffee brand, the climate has affected coffee prices. Andrea Illy has attributed the rising coffee prices to climate change, with these unbalanced and unpredictable weather patterns affecting key coffee-producing regions, such as Brazil and Vietnam.
(Source: Bloomberg)
USDA, through Hawaii’s Department of Agriculture, funded 9 agriculture projects through a grant program to expand market opportunities for local producers. The US$525,000 grant will support various competitive specialty crops growing in the state, including coffee.
(Source: Maui Now)
After over two decades, Fair Trade USA CEO and founder Paul Rice is set to step down. The CEO has served the organization for 26 years and will remain on its advisory council. Meanwhile, COO Felipe Arango will serve as the interim CEO.
(Source: FairTrade USA)
According to the latest published report by the National Coffee Association, Out-of-home coffee consumption in the US has reached pre-pandemic levels for the first time since the pandemic was announced in January 2020. The report states that while at-home coffee consumption remains the most popular place in the US, 36% of consumers report drinking coffee outside of home.
(Source: Bloomberg)
EUDR Updates:
Calls for EUDR Postponement continue this time, with big players like ICO calling for these delays. According to the International Coffee Organization director, Vanusia Nogueira, the 2024 December deadline is unrealistic for the industry. The regulation will hit coffee and other ley products like Cocoa, Soy, and Palm oil. With challenges experienced due to this deforestation-free law, the EU market access may be restricted to many exporters and traders.
(Source: Reuters and World Coffee Portal)
Coffee trades continue to rush shipments into EU ports and Stockpile ahead of EUDR implementation in December 2024. The EUDR law is expected to significantly impact global coffee supply chains and is planned for implementation towards the end of this year.
(Source: Bloomberg)
Brazil joins calls for delays in the implementation of the impending EUDR legislation. The world’s largest coffee exporter has formally requested the EU to delay this implementation, citing concerns that the majority of its exports (one-third of the exports are intended for Europe) will be negatively impacted.
(Source: Reuters)
EU finally bows down to pressure and announces delay to anti-deforestation law. After massive pressure from stakeholders in the agribusiness sector, the European Commission has confirmed the news of delays for its flagship anti-deforestation EUDR law. According to the commission, a 12-month delay to full implementation has been proposed. If the European Parliament and Council pass this proposal, the legislation will be delayed to 30th December 2025 for larger companies and 30 June 2026 for small companies.
(Source: Grocer UK)
Relevant Industry Dates
The US chapter of SCA announces the date and locations for next year’s US Coffee Championships.
According to SCA, companies such as Lavazza, Roast Tronix, and Black & White Coffee Roasters will host the 2025 US Coffee Champions. Up to five competitions will be held between October and January, and the registration window is already open. You can find more information here.
Author
Donna is a coffee lover and freelance writer from Tanzania. Coffee runs deep in her family, tracing its roots to her grandmother’s running of their first coffee farm in the mid-70s. During the summer seasons, she enjoys writing and co-running her grandmother's small robusta coffee farm with her sister in northwest Tanzania.
