Other Food & Drink https://perfectdailygrind.com/category/other-food-drink/ Coffee News: from Seed to Cup Sun, 04 Aug 2024 19:28:57 +0000 en-GB hourly 1 https://perfectdailygrind.com/wp-content/uploads/2020/02/cropped-pdg-icon-32x32.png Other Food & Drink https://perfectdailygrind.com/category/other-food-drink/ 32 32 How to keep your takeaway coffee as safe as possible https://perfectdailygrind.com/2024/08/how-to-keep-takeaway-coffee-safe/ Mon, 05 Aug 2024 05:28:00 +0000 https://perfectdailygrind.com/?p=114432 Beverage quality is a priority for any specialty coffee shop. Whether customers stay in to enjoy their drinks or take them to go, baristas should strive to serve excellent coffee every time. But beyond the great care put into making coffee and providing stellar service, once a customer leaves a café, staff have much less […]

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Beverage quality is a priority for any specialty coffee shop. Whether customers stay in to enjoy their drinks or take them to go, baristas should strive to serve excellent coffee every time.

But beyond the great care put into making coffee and providing stellar service, once a customer leaves a café, staff have much less control over the overall beverage experience. In some cases – particularly with hot drinks such as filter coffee – this also extends to customer health and safety. 

With specialty coffee’s interest in beverage safety growing in recent years, it has become even more important to implement proper procedures to minimise the risk of injury and illness, including for takeaway drinks.

To find out more, I spoke to Alexandra Burns, business development and marketing director at StixToGo.

You may also like our article on why the coffee industry needs to take cold brew safety seriously

Takeaway coffee on top of a newspaper on a table.

Why baristas should prioritise takeaway coffee quality

Takeaway drinks have always been vital to coffee shops. Throughout the pandemic, however, takeaway services became even more essential.

At the height of lockdown, businesses around the world were forced to temporarily close their doors. A study from World Coffee Portal revealed around 92% of UK coffee shops had to cease operations in early 2020 – with similar situations in most other countries.

As Covid-19 restrictions continued, many cafés and roasters shifted to pickup and delivery services. The 2020 Square x Specialty Coffee Association report showed there was a staggering 5,000% increase in curbside pickup sales in the first half of the year in the US as coffee shops found new ways to adapt to government-imposed social distancing measures.

In the years since the pandemic, most restrictions have been lifted in many countries, so roasters and coffee shops have been able to resume regular operations. But the ongoing effects can still be felt – particularly when it comes to takeaway coffee.

In its 2021 National Coffee Data Trends report, the National Coffee Association found a 30% increase in both drive-thru and app-based ordering in the US as social distancing measures began to wane. Fast forward to its latest 2024 NCDT report and 35% of past-day US consumers had purchased coffee outside of the home. This indicates continuous strong sales of to-go drinks.

Takeaway services will remain a staple of the coffee industry, especially with more and more consumers prioritising convenience and speed of service. Considering this, baristas must maintain high standards for takeaway coffees to ensure they match the quality of in-house drinks – providing consistency across the board.

Barista moving takeaway cups on top of an espresso machine.

Takeaway drink safety is vital

Just like all foodservice businesses, health and safety measures are an important part of any coffee shop. Baristas serve certain drinks – particularly espresso, batch brew, and pour over – at temperatures ranging between 82°C and 85°C (179°F and 185°F), which can pose a safety risk if not handled correctly.

According to the American Burn Association, cooking, drinking, and serving hot liquids like coffee accounts for 85% to 90% of scald burns in the US. Moreover, exposure to liquid as hot as 60°C (140°F) for as little as three seconds can lead to severe burns that may even require surgery.

While it’s certainly a rare case, the 1994 McDonald’s coffee lawsuit highlights the severity of hot takeaway coffee spills. After customer Stella Liebeck spilled coffee on her lap (which was around 88°C or 190°F), she received third-degree burns and required extensive surgery. This landmark case led the fast food chain to include clearer caution labels on its coffee cups to minimise the risk of injury from hot liquids.

The risk of injury is higher with takeaway coffee

Alexandra Burns is the business development and marketing director at StixToGo – a manufacturer of spill-proof solutions for beverage industries, including coffee shops. She tells me that despite the risk of drink spillage whether customers decide to stay in or take away, the chances increase with to-go beverages.

“Many customers are constantly on the go and need to have takeaway options from coffee shops,” she says. “One of the biggest issues that customers deal with while travelling with hot beverages is an increased risk of spills and injuries.”

Although many coffee spills don’t cause injury, they are still fairly common – especially when walking with a cup of coffee. Researchers from the University of California at Santa Barbara found that the movement of liquid inside a mug or takeaway cup matches our walking pattern (or gait), which ultimately increases the likelihood of spilling your coffee.

Two takeaway coffee cups with StixToGo stirrers.

So how can coffee shops keep takeaway drinks safe?

Baristas do all they can to prevent them, but spills, slip-ups, and accidents will occur from time to time. In turn, it’s essential that coffee shops implement proper health and safety practices to minimise the risk of injury to both staff and customers.

There are a number of measures that can improve takeaway beverage health and safety, including:

  • Securely attaching lids to takeaway cups to massively reduce the risk of spills
    • To avoid cross contamination, baristas should attach lids without touching the holes
  • Offering cup sleeves which allow customers to comfortably hold hot coffee beverages
  • Placing cups on counters for customers to pick up rather than handing them over
  • Providing trays for customers to carry multiple drinks at one time

In addition to these practices, drink stoppers and stir sticks like StixToGo can minimise the chances of spills and injuries even further for both hot and cold takeaway drinks.

Alexandra also highlights that drink stoppers and stir sticks can maintain beverage temperature for longer periods of time.

“Our products can decrease heat loss by as much as 40%,” she tells me. “This gives customers more time to enjoy their hot beverages.

“Coffee shops can also customise coffee stoppers with their brand logo and design of their choice, as well as their preferred material,” she adds, highlighting how to-go products can be an effective marketing tool.

Why coffee temperature is so important

According to a study that analysed the impact of serving temperature on flavour perception of Caturra filter coffee, temperature plays a crucial role in how we experience flavour, which also changes as beverages cool down.

Most flavour perception starts to take place around 76°C (168°F). We tend to detect higher levels of aroma at temperatures between 60°C and 70°C (140°F and 158°F), and bitterness is also particularly prominent at this temperature range. Sweetness in coffee is heightened around 44°C (111°F), while acidity can be perceived best at lower temperatures such as 25°C (77°F).

The Specialty Coffee Association recommends serving drinks between 50°C and 70°C (122°F and 158°F) to experience the full range of flavour and aroma. And given that the average price of a pour over can be around US $7, it’s vital that customers receive their drink at the right temperature to enjoy their coffee as much as possible.

Reducing single-use plastic waste

Following the rollout of single-use plastic bans in many countries, coffee shops have made concerted efforts to reduce and eliminate the number of single-use items offered to customers.

When it comes to takeaway coffee, minimising waste is especially important. In line with this, Alexandra explains that more and more to-go products and accessories can be reused, recycled, or composted.

“For instance, StixToGo’s Bamboo Stix are biodegradable, compostable, reusable, and recyclable as they are made from 100% bamboo,” she says.

Alexandra adds that drink stoppers are also available in different sizes, with some able to be used as stirrers to further reduce coffee shop waste.

A woman works on a laptop while holding a cup of coffee.

On top of ensuring consistent beverage quality, implementing proper takeaway safety measures should be a priority for coffee shops. Baristas need to make sure they serve drinks at the optimal temperature range for consumers to experience the full spectrum of coffee flavour and aroma.

At the same time, coffee shops need to be proactive when it comes to ensuring both customer and staff safety – and choosing which takeaway products to stock is a huge part of this.

Enjoyed this? Then read our article on zero-waste coffee shops.

Photo credits: Clara Jay Branding

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Please note: StixToGo is a sponsor of Perfect Daily Grind.

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Specialty coffee has learned a lot from tea-drinking cultures https://perfectdailygrind.com/2024/06/specialty-coffee-tea-drinking-cultures/ Thu, 27 Jun 2024 08:35:21 +0000 https://perfectdailygrind.com/?p=113851 Specialty coffee culture has come a long way over the past decade or so. In many countries around the world, the number of coffee shops and roasters grows year after year – pushing the boundaries of innovation even further. Many industries have influenced specialty coffee (and vice versa): craft beer, wine, and chocolate, for example. […]

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Specialty coffee culture has come a long way over the past decade or so. In many countries around the world, the number of coffee shops and roasters grows year after year – pushing the boundaries of innovation even further.

Many industries have influenced specialty coffee (and vice versa): craft beer, wine, and chocolate, for example. But one that is often overlooked is tea.

Believed to have originated in China around 2700 BC, the tea industry is steeped in tradition. From ancient ceremonies to widespread consumption in many different countries, tea has now become synonymous with hospitality, mindfulness, and connection.

This, naturally, paints a very similar picture to specialty coffee. So to learn more, I spoke to Li Di, owner of Zeng Yun Tea House, George Delichristos, co-owner of Loud Bean Roasters, Dharmaraj Narendranath, independent tea consultant, and Steve Lovegrove, board member of the European Specialty Tea Association

You may also like our article on whether green tea contains more caffeine than coffee.

Li Di pours tea into several small cups.

Tea ceremonies around the world

While the influence of tea ceremonies on specialty coffee culture may not be as overt or widespread as some might expect, the underlying principles of mindfulness, attention to detail, and sensory experience are undoubtedly present in both.

Tea ceremonies and rituals are revered in many cultures worldwide, particularly in Asian countries where tea is deeply ingrained in tradition and spirituality. 

In China, for example, tea is much more than a beverage – with ceremonies including certain clothing, decorations, and specific preparation rituals. 

Li Di is the owner of Zeng Yun Tea House in Hangzhou, China. He explains that tea is an integral part of daily life.

“Over the past decade, the aesthetics of tea rituals have become increasingly important, even the tables and seating arrangements,” he says. “Ritualistic tea gatherings have also become more prevalent in China.”

Other examples of tea ceremonies include:

  • Japanese sadō or chanoyu (which translates to “the way of the tea”) where a host prepares and serves green tea
  • A Korean darye (which translates to “etiquette for tea”) that often serve pu-er or green tea

The concept of coffee ceremonies, however, is much less widespread. One of the most notable exceptions is the traditional Ethiopian coffee ceremony, or Buna Qualla

In contrast to the more elaborate and formal nature of tea ceremonies, Buna Qualla is characterised by its simplicity, warmth, and sense of community – although it does still follow a set of procedures.

George Delichristos is the co-owner of Loud Bean Roasters and the 2024 Hellenic Brewers Cup Champion. He explains that preparing and drinking coffee is, of course, a daily part of many people’s lives.

“Creating small coffee rituals in your daily life can bring you closer to specialty coffee culture,” he tells me. “You can enhance everyday experiences by intertwining them with enjoyable moments.”

Independent consultant Dharmaraj Νarendranath grades and scores tea.

Assessing quality

To be categorised as “specialty”, both tea and coffee are carefully assessed and graded to be above a certain quality. This means that for both, factors like climate, terroir, harvesting practices, and processing methods are incredibly important.

Unlike the coffee industry, however, there is no universal method or standardised protocol to assess tea quality:

  • In China, region, harvest season, and the type of tea generally influence how professionals analyse quality
  • The Japanese industry assesses quality based on the type of tea, production area, and different grades
  • Taiwan’s grading system focuses on regions, mountains, and seasons
  • Countries like India, Sri Lanka, and Africa categorise black teas based on the number of whole, broken, and crushed leaves, and use intricate systems to assess leaf quality and characteristics

The European Speciality Tea Association (ESTA) works to create a more formalised definition of specialty tea by identifying key markers, such as suppliers, farms, production dates, and processing methods.

According to ESTA, you can also define the quality of specialty tea by assessing the dry leaf, aroma, “liquor” colour and clarity, flavour, and mouthfeel, as well as the appearance and aroma of the wet leaf (or brewed tea leaves). This is similar to the Specialty Coffee Association’s quality protocol, which many industry professionals use the world over.

Dharmaraj Narendranath is an independent strategic and operations tea consultant.

“Liquor characteristics (or the ‘brightness’ of the brewed liquid) are arguably the most important, especially when using tea bags as the leaves aren’t visible,” he says. “For loose leaf tea, the appearance of the leaves is more significant. Additional attributes like density and moisture content also impact quality.”

Different types of tea in traditional Chinese bowls.

What about brewing methods?

Although attention to detail and precision are both important when preparing specialty coffee and tea, the processes involve slightly different brewing variables.

George explains that grind size, extraction time, and water temperature are the most important for specialty coffee.

“These three key variables, along with other parameters, form a complex puzzle to determine how coffee extracts in the cup,” he says. “Essentially, we have to find the ‘sweet spot’ and the right balance to deliver the best-tasting result.”

Li Di, meanwhile, emphasises that personal experience and intuition are integral to preparing specialty tea, including closely observing the dry and wet leaves to assess extraction.

“We typically brew tea at 100°C (212°F), but this can depend on the variety,” he says. “We also use specific containers and steep times when preparing certain teas to achieve a desired flavour profile and quality.

“Unlike coffee beans, tea leaves are delicate and require careful handling,” he adds. “Each type of tea may require different handling methods due to variations in the size and shape of the leaves.” 

Despite these differences, there are still many similarities and crossovers between specialty coffee and tea. While variables such as temperature and extraction time are obviously some of the most important, level of brewing experience and analysis of spent grounds can help elevate coffee quality and sensory profile, too. For instance, analysing the bloom phase or the placement and shape of coffee grounds after extraction can help baristas to avoid under or overextraction.

A small green tea ceremony in China.

Is there more to learn from tea culture?

As the specialty coffee and tea industries continue to evolve, there is growing potential for further collaboration – including in competitions, which are a huge part of specialty coffee culture.

Steve Lovegrove is a board member of the European Speciality Tea Association and the commercial director at Canton Tea – a premium wholesale and direct-to-consumer tea supplier.

“More and more baristas have started to participate in matcha latte art and tea cup tasting competitions,” he says. “This trend is expected to continue, which is sure to foster a greater sense of community as specialty tea continues to flourish.”

A move towards mindfulness

But beyond competitions, there are plenty more opportunities to influence and shape trends and experiences in both industries.

“A lot of aspects of Chinese culture, for example, values metaphysics, and tea drinking is a big part of this,” Li tells me. “In comparison, coffee consumption is seen as more rational.

“It is difficult for coffee shops to incorporate elements of tea ceremonies in their daily operations,” he adds. “Coffee culture thrives on its distinct ambiance, which is different to tea. Each beverage has its own unique setting and experience.”

In recent years, however, there has been a big shift towards mindfulness in specialty coffee. “Omakase”-style coffee experiences have started to become more prominent (particularly in Asian countries), where guests are served the barista’s choice of coffee in a more intimate and experiential setting. 

Similarly, more and more consumers have become aware of the complex and nuanced flavours in specialty coffee – and intentionally seek out certain sensory profiles to enjoy the more delicate tasting notes.

A Chinese woman harvests green tea.

As specialty coffee continues to evolve, tea-drinking cultures around the world are sure to keep influencing different trends, brewing techniques, and sensory experiences.

Ultimately, this creates exciting opportunities for the two distinct worlds of specialty coffee and tea to learn from and inspire each other.

Enjoyed this? Then read our article on coffee leaf seltzer.

Photo credits: Li Di, Dharmaraj Νarendranath

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The cold coffee market is evolving: How can roasters tap into it? https://perfectdailygrind.com/2024/04/cold-rtd-coffee-market-evolving/ Mon, 08 Apr 2024 05:24:00 +0000 https://perfectdailygrind.com/?p=112418 It was only a decade ago that the cold coffee market was limited to just a few options. But today, coffee consumers can choose from many different beverages – from flash brew to nitro cold brew to ready-to-drink (RTD) products. And the sector continues to evolve. By 2027, the value of the global cold coffee […]

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It was only a decade ago that the cold coffee market was limited to just a few options. But today, coffee consumers can choose from many different beverages – from flash brew to nitro cold brew to ready-to-drink (RTD) products.

And the sector continues to evolve. By 2027, the value of the global cold coffee market is expected to increase by 22% year-on-year to around US $1.4 billion, with the RTD segment seeing the most growth.

So naturally, more and more roasters are entering the RTD coffee market, which only makes it more competitive. Finding new ways to stand out is becoming increasingly important, and tapping into new beverage innovation is a huge part of this.

To learn more, I spoke to Kyle Bosshardt of Snapchill, Jonathan Gogel and Bailey Manson of Intelligentsia Coffee, and Trevor Corlett of Madcap Coffee.

You may also like our article on how snapchilling coffee works.

Male barista pouring cold brew coffee into wine glass on coffee shop counter.

How has the cold coffee market diversified?

In today’s market, cold coffee no longer just means cold brew – although it’s certainly still incredibly popular. Cafés and roasters now offer a wide range of cold coffee beverages, including iced lattes, nitro coffee, and espresso tonic.

At the same time, the quality of these beverages has reached new heights, and consumers’ expectations keep rising.

Jonathan Gogel is the Director of Brand Marketing at Intelligentsia Coffee – a pioneering specialty coffee roaster in Chicago, US. 

“The cold coffee trend defies seasonality and regionality, and we believe it marks a larger shift in specialty coffee,” he tells me. “We’re at a point where, when done right, coffee drinkers should experience the same level of flavour and quality that they can expect from dialled-in hot brew.”

So what has been driving this growth and innovation? 

Younger consumers tend to opt for cold coffee drinks more than any other generation, and this demographic has a huge impact on the market. According to recent research from World Coffee Portal, 37% of people aged 35 and under drink iced coffee daily – and all throughout the day, too.

Moreover, in its 2023 third quarter reportings, Starbucks stated that cold drinks now represent a staggering 75% of sales in the US – a clear indication of where the market is heading.

Kyle Bosshardt is the Director of Business Development at Snapchill, a beverage solutions company that works with roasters to create RTD coffee drinks. Snapchill’s patented process involves brewing hot coffee before instantly chilling it to preserve flavours and aromas. 

Kyle tells me that convenience has played a key role in the success of the cold coffee market.

“Rather than having to prepare hot brewed coffee, cold coffee can be enjoyed immediately, and it is far easier to take with you on the go,” he explains.

Demand for RTD coffee grows

Convenience has always been king in the coffee industry. As far back as the late 1800s, consumers started to expect their coffee to be roasted for them, rather than doing it themselves. Although the definition of convenience has massively changed in the centuries since, it still remains one of the most important purchasing factors.

Canned coffee made its debut in the industry in the 1960s in Japan, and has inspired a range of RTD coffee products over the years – including cold brew and milk-based drinks. 

Unsurprisingly, younger generations are the biggest consumers of RTD coffee. In fact, data from Mintel shows that Gen Z (people born after 1996) are “significantly more likely” to drink RTD than traditional hot brewed coffee

So as the cold coffee segment continually expands, we’re also seeing more RTD coffee beverages appear on the market. In 2022 alone, RTD coffee sales grew by an impressive 32% year-on-year.

This growth has also been noticeable through the opening of Snapchill’s new production facility in Green Bay, Wisconsin – which has the capacity to produce 50 million RTD cans every year. 

And with more brands entering the RTD coffee market, there has been a noticeable shift towards using higher-quality coffee, offering a variety of products, and creating new sensory experiences – both in terms of flavour and mouthfeel.

A person holds a Snapchill can of RTD cold coffee from Madcap Coffee.

Tapping into new innovation in the RTD coffee market

The soaring popularity of RTD coffee presents roasters with a unique opportunity to diversify their product offerings, and stand out in an increasingly competitive market.

Trevor Corlett is the founder and president of Madcap Coffee in Michigan, US. 

“With the continued advancement of beverage technology, it’s more accessible than ever before for coffee companies of all sizes to create RTD products,” he says.

So the intensifying need to differentiate from competitors has pushed for more diverse RTD coffee manufacturing and processing methods. These not only address important food safety concerns for cold coffee products, but also help to preserve more of the delicate and nuanced flavours and aromas in RTD coffee – pushing the boundaries of consumer expectations even further.

Many cold coffee drinks (including cold brew) are prepared at low temperatures, which can encourage the growth of various bacteria, yeast, and moulds. Additionally, cold coffee tends to be less acidic than hot brewed coffee – which can also be an ideal environment for various microorganisms to survive.

To avoid these serious issues, many RTD coffee manufacturers use high-pressure, high-temperature retort systems to kill harmful bacteria and create shelf-stable products. This can often be at the expense of flavour, however, as high-pressure and high-temperature environments will destroy the more complex flavours and aromas in RTD coffee.

So how can roasters best preserve flavour in RTD coffee?

It’s absolutely essential that roasters sell RTD coffee products which are safe for consumption, but beverage quality also needs to be high. To account for both, a growing number of coffee brands are partnering with innovative RTD companies.

Kyle explains that Snapchill uses a tunnel pasteurisation process, along with its patented chilling technology, to instantly chill hot-brewed coffee – preserving the full spectrum of coffee’s flavours and aromas, while ensuring all products adhere to food safety standards.

“Our pasteurisation machine gently raises the temperature over a period of twenty minutes,” he adds. “It then holds the temperature precisely at a set point, and then gently cools the coffee down over the course of another 20 minutes to preserve the volatile aromatics in the can.”

Because the coffee is brewed hot and then rapidly cooled, more of the coffee’s delicate flavours are preserved – creating a more complex sensory profile.

“Our approach has always been to brew coffee hot and use different methods to flash chill it,” Trevor says. “Partnering with Snapchill for our RTD products has enabled us to maintain beverage quality and provide it at scale. 

“We want consumers to be able to taste the clean, complex flavours, but to also enjoy the experience regardless of how they drink their coffee,” he adds.

Choosing a coffee for RTD products

Kyle explains that Snapchill has partnered with over 300 roasters to develop high-quality RTD coffee products. Intelligentsia is one of them – using its well-known Black Cat espresso blend to offer sweetness with a balanced amount of acidity.

“We consider Black Cat to be the quintessential specialty espresso profile,” Jonathan says. “So we used Black Cat in our cold coffee offerings because it presents the perfect body with just the right amount of acidity. 

“We were able to capture a flavour profile with Black Cat that can appeal to a wide range of cold coffee drinkers with its body and richness, but also present the delicate fruit acidity that specialty drinkers know and love,” he adds.

Bailey Manson is the Director of Innovation at Intelligentsia Coffee. He echoes this sentiment, highlighting the flavour complexity that Snapchill allowed them to achieve over traditional cold brew methods. 

“We love the sweetness and overall flavour complexity from this process,” he says. “With cold brew, you’re generally stuck with the same kind of tasting notes no matter which coffee you use – preventing your product from being able to stand out.” 

A person holds a four-pack of Madcap Snapchill RTD coffee.

Why roasters should enter the RTD coffee market

More and more roasters are creating their own RTD cold coffee products for many reasons. Not only can brands cater to growing demand for cold coffee and enter a highly lucrative market, but they can also diversify their revenue streams and attract new types of customers.

“Coffee companies can’t ignore the opportunity for larger exposure by offering consumers a convenient and quality product,” Trevor says. “Roasters that previously would have avoided RTD for quality reasons no longer have to compromise.”

One of the most effective ways to reach new audiences is through selling RTD coffee products in supermarkets and grocery retailers.

“The RTD market provides an opportunity to reach more people with your brand,” Jonathan says. “We have a strong fanbase for our RTDs among those who visit our coffeebars and buy our bagged coffee offerings, but RTDs also reach customers who may have never stepped in an Intelligentsia or experienced our larger brand. 

“This is a huge opportunity because there are diverse specialty coffee lovers in all parts of the world, and we’d love to be a consumer’s favourite cold coffee beverage as much as we’d love to be someone’s favourite roaster or specialty coffeebar,” he adds.

Additionally, through selling their RTD products in supermarkets, roasters can appeal to consumers who shop at a range of price points.

“Selling Snapchill products through a wide range of retailers – from Whole Foods Market to Walmart – is extremely important to support the growth and education of specialty coffee,” Kyle explains.

He adds that Snapchill is the exclusive manufacturer of RTD products to the Local Collective – an e-commerce platform which supplies more than 2,200 Walmart stores nationwide with coffee from local roasters. Ultimately, this helps to support local coffee businesses and provide consumers with better access to high-quality coffee options.

More control over the final product

Trevor highlights that roasters don’t always have the luxury of controlling what happens to their coffee once it’s in the hands of end consumers. Understandably, this can be a cause for concern in terms of maintaining quality standards and brand reputation.

“RTD coffee, however, is a product that we get to have a direct hand in the finished product and what consumers experience,” he adds. 

He also tells me that Snapchill provides research and development support to roasters so they can capture specific flavour profiles from their coffee and represent their products to the standards they expect.

Bailey emphasises that for any roaster looking to enter the RTD coffee market, working with trusted partners is key.

“Snapchill’s low minimum order requirement makes it easier for us to offer limited-edition RTD products, which allows us to highlight our best work,” he tells me. “They can also scale massively, and we have no concerns with their ability to keep up with us.”

A glass of cold brew coffee with two ice cubes.

The cold coffee revolution shows no signs of slowing down any time soon. If roasters have the resources and capabilities, developing and selling their own RTD products is a smart way to tap into a booming market.

However, store shelves are now brimming with a myriad of RTD coffee options. To stand out, roasters need a unique selling point – and having a big focus on flavour and quality is key.

Enjoyed this? Then read our article on why coffee shops should pay attention to cold brew food safety.

Photo credits: Intelligentsia Coffee, Madcap Coffee

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What is coffee leaf seltzer? https://perfectdailygrind.com/2023/10/coffee-leaf-seltzer/ Mon, 02 Oct 2023 05:26:00 +0000 https://perfectdailygrind.com/?p=107681 The popularity of ready-to-drink (RTD) coffee is impossible to ignore. According to a 2023 market research study, the value of the global RTD coffee market will reach US $42.36 billion by 2030.  Although canned lattes and cold brew are popular options in this market sector, demand for functional RTD coffees is also growing – including […]

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The popularity of ready-to-drink (RTD) coffee is impossible to ignore. According to a 2023 market research study, the value of the global RTD coffee market will reach US $42.36 billion by 2030

Although canned lattes and cold brew are popular options in this market sector, demand for functional RTD coffees is also growing – including coffee leaf seltzer. As the name suggests, these drinks are made using leaves from coffee plants, which means they contain no caffeine.

So how is coffee leaf seltzer made and what does it taste like? And more importantly, can it help coffee producers diversify their income? To find out more, I spoke to Josh Tarlo, founder of Headstand, and Carlos Pola, a producer in El Salvador. Read on to find out what they had to say.

You may also like our article on coffee leaf tea.

Dried coffee leaves.

How do you make coffee leaf seltzer?

Before explaining coffee leaf seltzer, it’s important to acknowledge the cultural significance of coffee leaf tea. In countries like Sumatra, Ethiopia, Jamaica, India, Java, and Sudan, people have been preparing coffee leaf tea for hundreds of years.

In Ethiopia, for example, coffee leaf tea (referred to as kuti by local Harari communities) is made by boiling coffee leaves in water for around 30 minutes. People also add sugar or salt to taste, too.

Josh Tarlo is the 2018 UK Barista Champion and 2013 Canadian Brewers Cup Champion. He tells me how he started Headstand – a UK coffee leaf seltzer brand.

“I had heard about coffee leaves being brewed like tea and I was interested,” he says. “In 2018, I spoke to Carlos Pola, who I was buying coffee from, and asked him about making coffee leaf tea so I could use it as part of my signature drink round at the World Barista Championship.

“When I tasted it I knew I needed to use it, it was delicious,” he adds.

However, he explains that it wasn’t until the pandemic that he decided to add coffee leaf tea extract to carbonated water. 

“One day it clicked that coffee leaf tea would make a delicious no added sugar seltzer,” Josh says. “I then realised that we can develop a market for it and help diversify producers’ income. 

“I spoke to Carlos again and we came up with different ways to process the leaves,” he adds. “After some trial and error, we created a method and I developed Headstand as a brand.”

Josh explains how Headstand makes its coffee leaf seltzer.

“We import vacuum-packed leaves and steep them in cold water for 24 hours,” he says. “From there, we strain the leaves and mix the leaf extract with flavourings, and then carbonate and pasteurise the drinks.”

What does it taste like?

There are some comparisons between coffee leaf tea and green tea. Coffee leaf tea generally tastes sweeter than green tea, contains less caffeine, and has a higher level of antioxidants – which can have a number of health benefits.

When added to a seltzer – a carbonated beverage made by adding carbon dioxide to water – coffee leaf tea can work as a natural sweetener. In turn, coffee leaf seltzers can be a refreshing low-calorie beverage option.

Coffee leaf seltzers can also be flavoured. Headstand, for instance, sells yuzu and ginger flavoured drinks, which also includes other natural ingredients such as chamomile, ginseng, and L-theanine. The brand also recently launched three loose coffee leaf blends which are brewed similarly to tea.

“Because coffee leaf tea is a new concept for many consumers, we need to educate them about what it is and what it tastes like, as well as its health benefits and how it can benefit coffee producers,” Josh tells me.

A can of Headstand next to a pack of cards.

How big is the market for coffee leaf seltzer?

As the craft RTD coffee market grows and diversifies, it’s likely that coffee leaf seltzer will become more popular in the coming years. 

Carlos believes there is a lot of market potential for coffee leaf seltzer. 

“Josh and I have been carrying out experiments with processing methods for a long time now, and some of them have been great successes,” he explains. “Coffee leaf tea was a new and different experience for us.

“It’s a refreshing and healthy drink, as well as a way for coffee producers to diversify their revenue,” he adds.

That’s not to say however, that there aren’t challenges when exporting coffee leaves. Carlos stresses the importance of understanding the different regulations and permits needed to export them to different countries. 

“The biggest issues we face are knowing which permits to apply for, monitoring any regulation changes, and paying higher costs for air freight,” he says. “Overall, it’s been a big learning curve.”

Despite these obstacles, it’s clear there is space in the RTD market for coffee leaf seltzer. Consumers – particularly younger generations – are continuously demanding more convenient coffee products. Moreover, they are increasingly placing more importance on health and wellness when purchasing RTD coffee drinks.

“Whether it’s plant milks or functional drinks, what we consume and how it affects the wider supply chain matters to a lot of people,” Josh explains. “I see coffee leaf seltzer as part of a movement that is changing our food systems for the better.”

Coffee blossoms and leaves used in coffee seltzer.

How can producers benefit?

Although coffee (and potentially other cash crops) is usually the biggest income generator for the majority of coffee producers, selling coffee leaves can be a boost in revenue for some – as long as they have the right level of support and resources.

As all coffee plants produce plenty of leaves, farmers are already able to start selling a new product and diversify their income. There are, however, still some challenges which producers would need to overcome to sell their coffee leaves effectively, including:

  • Knowing how to process and dry leaves correctly for export
  • Understanding the logistics of exporting coffee leaves to different countries
  • Knowing when and how to remove leaves from branches without damaging the plants (similar to coffee flowers which can also be upcycled)

A way to better support the coffee industry?

Josh believes that selling coffee leaves could be a viable way for more producers to increase their income.

“In terms of popularity, coffee leaf seltzer could become the next kombucha or CBD-infused coffee drink,” he says. “But more importantly, it presents an opportunity to help increase the standard of living for coffee producers around the world. 

“What’s more, selling coffee leaf seltzer is a way for coffee shops to express their values around sustainability and create a more ethical supply chain,” he adds. “Covid-19 showed us how fragile our supply chain system can be, and so many coffee producers experienced a very challenging time. 

“Ultimately, it means we need to create new ways of strengthening and adding value to the whole supply chain – from producers to consumers,” he concludes.

A can of Headstand in a pocket.

Demand for RTD coffee beverages has never been so high, and is only going to increase in the coming years. And with health and wellness becoming a bigger focus in this market segment, it’s inevitable that consumers will want more options.

Coffee leaf seltzer certainly has potential to become more popular, especially in the specialty coffee sector. But with the numerous logistical hurdles associated with exporting coffee leaves, it may take some time.

Enjoyed this? Then read our article on how specialty coffee can push for a circular economy model.

Photo credits: Josh Tarlo, Headstand

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How to pair specialty coffee and cheese https://perfectdailygrind.com/2023/05/how-to-pair-specialty-coffee-and-cheese/ Mon, 15 May 2023 05:31:00 +0000 https://perfectdailygrind.com/?p=104336 Cakes, pastries, biscuits, chocolate and ice cream – around the world, many people enjoy these foods with a cup of coffee. The sweet flavours of baked goods and chocolate tend to complement coffee beverages well, with or without milk. At the same time, however, there is a growing trend of pairing coffee with more savoury […]

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Cakes, pastries, biscuits, chocolate and ice cream – around the world, many people enjoy these foods with a cup of coffee. The sweet flavours of baked goods and chocolate tend to complement coffee beverages well, with or without milk.

At the same time, however, there is a growing trend of pairing coffee with more savoury foods, such as different breads and meats. But what about cheese?

Although it may sound unconventional, there are notable similarities in flavour (and even texture) between coffee and cheese. In turn, interest in trying different cheeses with particular coffees has started to gather some speed in certain countries.

To learn more about how coffee and cheese can complement one another, I spoke to two renowned cheesemongers. Read on for more of their insight.

You may also like our article on pairing food with specialty coffee around the world.

Cheese cures at a cheese factory.

How are coffee and cheese similar?

As with coffee, there is a burgeoning market for fine cheese, also referred to as gourmet cheese or even specialty cheese. Although there are no formal definitions or classifications, there are some general similarities with specialty coffee:

  • A focus on high-quality, artisanal products
  • Differentiation in quality from a product which is traded as a commodity
  • Cheese can often be traced back to a specific cheesemonger and/or farmer in a specific place or region
  • An emphasis on how production methods affect flavour and texture

Bruno Cabral is a cheesemonger at La Caseïna in Barcelona, Spain.

“Cheese and coffee are both very complex products,” he says. “The flavours and textures you experience with cheese depend on different types of milk and different maturity levels, while with coffee, the flavours are a result of different terroirs.

“Both products are ancestral and natural,” he adds. “The raw materials you use for both are transformed into completely different products.”

Andy Swinscoe is an award-winning cheesemonger at The Courtyard Dairy in Lancashire, UK. He emphasises that not all coffees and cheeses can complement each other.

“You need to be careful when pairing certain cheeses with coffee,” he advises. “A good coffee or cheese can actually be overpowered, or the flavours can clash, if you get it wrong.”

Traditional and innovative cheese coffee drinks

While butter or Bulletproof coffee is popular in some Western countries (mainly North America and the UK), some Scandinavian countries also drink kaffeost, or coffee cheese.

This traditional Scandinavian beverage is made by adding small cubes of leipäjuusto (or bread cheese) to a cup of filter coffee. The cubes of cheese will melt slightly, and will absorb some of the coffee’s flavours. At the same time, the coffee will take on some of the cheese’s nutty and buttery flavours.

People in Colombia also enjoy café con queso, which is similar to kaffeost (although the cheese has a consistency more akin to mozzarella). As the cheese melts, it imparts creamy flavours, with some people removing the cheese to eat separately or with bread.

In recent years, we have also seen cheese foam become a popular addition to coffee and tea beverages – particularly across Asia. Cheese foam is typically made using cream cheese, whipping cream, milk, and sugar, and therefore tastes sweeter.

Similarly, a recent trend has seen Parmesan cheese grated over coffee cocktails (such as espresso martinis), which adds more of an umami flavour.

At the same time, we’ve also seen some examples of coffee-infused cheeses as a result of collaborations across the two industries. In 2016, Danish roaster Coffee Collective collaborated with Mads Østergaard Clausen from dairy company Arla Unika to make a Swedish Prästost and Dutch Gouda-style cheese made with coffee. Coffee Collective brewed 250l of filter coffee from Finca Vista Hermosa in Guatemala and combined it with 2,500l of fresh organic milk.

The roaster noted that after eight months of maturation, the coffee flavours were more notable in the cheese.

A jug of coffee on a wooden saucer.

Identifying flavours in coffee & cheese

Although it may not seem so obvious, cheese and coffee do share some similarities when it comes to flavour and texture. 

For coffee, there are five main aspects of sensory profile: acidity, sweetness, bitterness, body, and aftertaste. But alongside these characteristics, we also talk about specific tasting notes.

The majority of coffee professionals use the Specialty Coffee Association’s Coffee Taster’s Flavor Wheel and World Coffee Research’s Sensory Lexicon to identify flavours and aromas in coffee. 

The Wheel has several flavour and aroma categories, including:

  • Fruity
  • Floral
  • Sweet
  • Spices
  • Green/vegetative
  • Sour/fermented

Within each category, there are several subcategories. For example, the fruity category is divided into four subcategories – which all contain at least another two subcategories, such as peach, plum, and apple, to name a few.

When it comes to cheese, industry professionals also use similar resources to assess flavour, aroma, and texture. The Academy Cheese Tasting Wheel is often used alongside the Academy of Cheese’s Structured Approach to Tasting model (SATC). 

“Coffee and cheese are not classically paired together, but some of the flavours are similar,” Andy says. “These include bitterness, sweetness, and caramel notes.

“Cheese has such a diverse range of textures, intensities, and flavours, so it can work well with many different types of drinks,” he adds.

The structure of the Academy Cheese Tasting Wheel is somewhat similar to the SCA’s Coffee Taster’s Flavor Wheel, with five key flavour categories: sweet, salty, acid, bitter, and savoury. Following this, each category has its own number of several subcategories. For instance, the sweet category has four subcategories, including fruit sugars and vegetable sugars – which also have flavours such as berry, tropical fruit, malt, and nut.

“With certain similarities in flavour between coffee and cheese, they are definitely compatible,” Bruno tells me.

Blocks of cheese and a cheese knife on a cutting board.

Pairing coffee and cheese together

First and foremost, Andy recommends allowing your cheese to reach room temperature before pairing it with coffee. This allows you to experience the full spectrum of flavours and aromas in the cheese.

Similarly, your coffee should also be at a comfortable drinking temperature.

“The coffee shouldn’t be too hot, and it can even be made as cold brew,” Bruno tells me.

When choosing which coffees to pair with certain cheeses, he says that picking out similar or contrasting flavours – such as sweet and salty – is a good starting point.

“The first step is to visually analyse both products, such as the colour of the coffee,” he tells me. “For the cheese, you can also touch and smell it.

“Then you can taste each product individually,” Bruno adds. “After that, place some of the cheese in your mouth and take a few sips of coffee.”

Andy also emphasises that it’s important to taste the cheese before the coffee.

“You should cut your cheese into small, thin slithers, and taste it before and after drinking the coffee so as to allow the cheese’s flavour and aftertaste to come through first,” he explains.

Looking out for key flavour combinations

Andy explains how brewing method is a key aspect of choosing which cheese to pair with your coffee.

“Whether you choose to prepare coffee as espresso, a milk-based drink, or filter, it can have a huge impact on how much the coffee’s flavour comes through against the cheese,” he adds. “Moreover, it definitely affects which type of cheese you should use.”

Mouthfeel and aftertaste also play an important role in choosing which cheese to pair with coffee.

“Fat in cheese tastes complex, and the aftertaste is usually quite long, so the flavours linger for a while,” Bruno explains.

He uses the example of Queijo Minas Artesanal do Cerrado from the Cerrado Mineiro region in southeast Brazil and natural Brazilian coffee.

“There is a balance of the coffee’s sweetness and acidity and the saltiness of the cheese, which is a wonderful experience,” he tells me.

Regarding other types of cheese, Andy provides more combinations with coffee.

“The higher levels of bitterness and flavour intensity of medium and darker-roast profiles hold up well to blue cheese, as well as harder and drier sweet cheese like Parmesan, Gruyère, and Lincolnshire Poacher,” he says. “Milk-based coffees with more creamy textures and caramel and fruit flavour notes go well with Gouda and Vintage Red Leicester.”

Coffee and cheese on a wooden cutting board.

Tips to get the best results

Bruno explains that there are a number of ways to approach pairing coffee and cheese.

“You can select coffee and cheese which was grown or produced in the same region, or has the same geographical indication,” he says. “Beyond this, it’s best if medium-roasted coffees are not paired with very strong cheeses. Likewise, coffees with more delicate flavours should be paired with semi-cured or soft cheeses.” 

Andy tells me that it’s also important to take acidity into consideration.

“Lactic-fermented goats’ cheese, which tend to have the highest levels of acidity, are some of the most complicated to pair with coffee,” he says. “However, they will work if you use a coffee which is also high in acidity.

“Cured or aged cheeses, such as blue cheese, have slightly spicy flavours, so they need to be paired with medium or darker roast profiles that have more body and sweetness,” Andy adds.

Ultimately, no matter which coffees and cheeses you decide to pair, Bruno says the experience should be enjoyable.

“Don’t be afraid to make mistakes, and if you do, try again,” he says.

A cheese board alongside a cup of coffee.

Although it may not be the most popular pairing, it’s clear that when done right, cheese can complement and highlight the flavours in coffee.

Not all coffees may go well with certain cheeses. But by carefully choosing which ones to pair with coffee and experimenting with different kinds of cheeses, you may be able to uncover an entirely novel sensory experience.

Enjoyed this? Then read our article on umami flavours in coffee: What should you expect?

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What is a flat red coffee & where did it come from? https://perfectdailygrind.com/2023/03/what-is-a-flat-red-coffee-where-did-it-come-from/ Tue, 07 Mar 2023 06:25:00 +0000 https://perfectdailygrind.com/?p=102751 In many coffee shops around the world, more and more baristas are developing new and innovative drinks. These beverages can help a coffee business to stand out, as well as creating new sensory experiences for consumers. One example is the flat red, an espresso-based drink which includes steamed pomegranate and orange juice. The beverage originated […]

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In many coffee shops around the world, more and more baristas are developing new and innovative drinks. These beverages can help a coffee business to stand out, as well as creating new sensory experiences for consumers.

One example is the flat red, an espresso-based drink which includes steamed pomegranate and orange juice. The beverage originated in Ukraine, where it continues to remain popular.

To learn more about the flat red – and whether there is potential for a wider market – I spoke to Vadym Granovskiy, owner of Coffee in Action, and Valeriy Siverchuk, owner of Black Cat & White Cat coffee shop. Read on for more of their insight.

You may also like our article on the flat white and where it came from.

A barista holds up a flat red coffee.

Who invented the flat red?

Combining coffee with fruit juice is common in many parts of the world, especially in certain Asian countries. However, the flat red is somewhat of a distinctive beverage with a unique history.

Vadym tells me that he had been serving the flat red at his coffee shops – as well as some local festivals in Ukraine – for some time. Sadly, Vadym had to temporarily close Coffee in Action following the Russian invasion of Ukraine, and is now focusing on supplying Ukrainian soldiers with coffee brewing kits.

“I had been playing with the flat red recipe, and experimenting with the base of the drink, for quite a few years,” he says.

In 2016, interest in the drink began to grow after Vadym had finished competing in several UK and Ukrainian Coffee Championships. He tells me that Japanese automobile manufacturer Lexus reached out to him to collaborate on developing a premium coffee service setup for the launch of its new car range in Ukraine.

Inspiration for the flat red

As part of the collaboration, Vadym created a signature drink to represent each car, but he says the Lexus NX was particularly inspiring to him. Vadym tells me that the juxtaposition of the car’s white exterior and deep red interior prompted him to create the flat red – a play on the flat white

“I wanted to create a new type of beverage because I didn’t want to include milk,” he says. “Essentially, the flat red is a double espresso with freshly squeezed orange and pomegranate juice, but the juices are mixed together and steamed as you would with milk.”

In an effort to replicate the Lexus NX’s interior colour, Vadym says he initially used Sicilian blood oranges, but eventually added pomegranate juice. When a customer would order the drink, the barista would have to freshly squeeze the juice using a hand press. 

“Customers were filming the baristas, and taking pictures of the drink and posting them on social media,” he says. “It became a marketing tool, and we didn’t have to do much to promote it ourselves.”

A person rinses a pomegranate.

How to prepare a flat red

In order to prepare a flat red, Vadym combines a double espresso with 110ml of orange and pomegranate juice, which he says roughly results in a 160ml drink. To produce a high-quality beverage, Vadym explains that both fruits are freshly squeezed using a hand press.

“We source oranges from Azerbaijan, Turkey, India, Israel, or Spain,” he says. “We focus heavily on sourcing the best ingredients which are always in season.”

When it comes to the coffee, Vadym tells me that over the years, he has switched between three to four single origin Ethiopian coffees for the flat red. However, he adds that because of seasonal variations, he now uses Brazilian, Kenyan, Tanzanian, and Rwandan coffee, too.

The recipe for the flat red is as follows:

  • Pull a double espresso shot (around 50ml depending on the recipe)
  • Steam 110ml of orange and pomegranate juice mix to 55°C (131°F)
  • Pour the drink into a Duralex Picardie clear glass tumbler

“[Because it’s served at this temperature], you can instantly drink a flat red,” Vadym explains. “However, before taking a sip, it’s important to inhale the beverage’s aromas.

“It’s a complex and pleasant drink, particularly during colder seasons,” he adds. “It’s similar to mulled wine in a way.”

A magazine article about flat red coffee.

In Ukraine, the flat red is a popular beverage among consumers. Vadym says that at one point, one out of every four drinks ordered at Coffee in Action was a flat red. Moreover, at festivals or events in the country, he would often sell up to 300 flat reds per day.

“Extracting the juice is part of the drink’s appeal,” he tells me. “When people order the drink, they watch the barista choose, wash, cut, and prepare the fruit by hand. 

“Although we make the drink quickly, it still takes a few minutes,” he adds. “Customers appreciate the craft and labour behind it.” 

Furthermore, he says that no two flat reds taste the same – mainly because the flavour of the oranges and pomegranates changes slightly according to the season. In turn, Vadym occasionally changes the ratio of orange to pomegranate juice, sometimes using a larger volume of orange juice for a sweeter drink.

On a similar note, because of its natural sweetness, Vadym says the drink is best enjoyed without milk or sugar. He believes this helps to increase the appeal of the flat red among specialty coffee drinkers. 

Popularity among tourists and locals

Vadym says the uniqueness of the flat red proved popular for tourists in Ukraine.

”People would order it and post it on their social media, or post a review on our TripAdvisor page,” he tells me. “The more reviews we got, the more people came to try it. 

“People who enjoy discovering local Ukrainian cuisine also enjoy the flat red,” he adds. “Some people tried it just for the experience, even if it wasn’t something that they would drink every day.”

Prior to the war, former soldier Valeriy ran Black Cat & White Cat, a coffee shop in Vinnytsia, Ukraine. He says that after receiving specialty coffee training from Vadym, he started to serve his own version of the flat red in his café.

“[When I first tried] the combination of espresso with pomegranate and orange juice, it was a real taste experience,” he says. “What’s more, the flat red’s unusual appearance and preparation method impressed me. 

“I named my version of the drink ‘kava po-granovsky’ after Vadym,” Valerity adds. “A lot of people who try the drink ask me about its unusual name, and some were so interested in it that they travelled to Kyiv to taste the original version and compare it with mine.

“Following Russia’s invasion of Ukraine, I returned to the army,” he continues. “But I look forward to when I can return to my café and serve the flat red again.”

A coffee shop in Ukraine.

Is there a wider market for it?

There’s no denying that the flat red is immensely popular in Ukraine, but is there potential for this to grow in other markets?

Vadym says that prior to the pandemic, interest in the flat red was growing outside of Ukraine. However, during the pandemic, he explains that limited support from the government meant many coffee shops had to temporarily close their doors.

“Some businesses closed permanently, but we managed to keep one coffee shop open,” he explains.

Impact of the war

Despite the loosening of Covid-19 restrictions, many businesses in Ukraine were sadly also impacted by the Russian invasion in February 2022. Since then, Coffee in Action has ceased most of its operations, but a small team of volunteers still work in Kyiv.

“We roast coffee and sell metal cups, portable burners, and cezves,” Vadym explains. “All of our products are sent to Ukrainian soldiers fighting in the war.

“When customers buy a bag of our coffee, another bag is sent to the front line,” he adds. 

Ultimately, although interest has dipped in the beverage following the pandemic and the war, Vadym says he uses the flat red as a way of spreading awareness of the issues in Ukraine.

“I host a number of coffee talks and workshops at embassies and events in the UK, Italy, Switzerland, Poland, and Turkey,” he says. “Right now, for me, talking about coffee is the best way to keep Ukraine in the news.”

A Ukrainian soldier holds a cup of coffee.

It’s fair to say that events over the past two years have hindered the growth of the flat red. However, as the war continues in Ukraine, Vadym believes that it is much more than just a drink.

“With the flat red, I can tell the story of Ukraine’s resistance and fight for freedom,” he concludes. “It’s become somewhat of a diplomatic tool to connect with people and gauge their interest in what’s happening in Ukraine right now.”

Enjoyed this? Then read our article on signature coffee drinks in China.

Photo credits: Julia Kochetova, Serhiy Lysenko, Ukraine House Davos, Press Office General Staff of the Armed Forces of Ukraine, Oleksii Zubenko

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What is the most popular signature coffee drink in China? https://perfectdailygrind.com/2023/01/most-popular-signature-coffee-drink-in-china/ Mon, 30 Jan 2023 06:27:00 +0000 https://perfectdailygrind.com/?p=101932 Around the world, many coffee shops lean on unique or signature drinks, which vary from region to region. These specially-crafted beverages can help a coffee business to stand out and drive its brand identity, and often make use of local or seasonal ingredients. As with many other markets, drinks like these are becoming more common […]

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Around the world, many coffee shops lean on unique or signature drinks, which vary from region to region. These specially-crafted beverages can help a coffee business to stand out and drive its brand identity, and often make use of local or seasonal ingredients.

As with many other markets, drinks like these are becoming more common in the Chinese coffee sector. And with China’s coffee market experiencing considerable growth in recent years, signature beverages (or “特调咖啡” in Chinese) are becoming a key category.

So, which kinds of coffee shops offer these beverages, and what are some of the most popular options? I spoke with two local coffee shop owners to find out more.

You may also like our article on why coffee delivery is so popular in China.

A type of signature coffee drink in China made with milk.

The Chinese coffee sector has come a long way since Nescafé launched in the country in the 1980s. Historically, China has been a tea-drinking country, but in recent years, coffee consumption has increased – particularly in larger first-tier cities. In fact, Shanghai is home to some 8,000 coffee shops – the highest number of any city in the world.

The substantial growth of China’s coffee market is largely thanks to the growing influence of Chinese millennials, who are much more likely to be exposed to Western culture. In turn, this has helped spur the popularity of Western-style coffee shops in the country, which often serve signature beverages.

Although it’s difficult to know when exactly signature coffee drinks started to appear on Chinese coffee shop menus, it’s fair to estimate that it was sometime in the early 2010s. This was when more and more Chinese competitors started to take part in the World Barista Championship, which includes a signature drink course.

Tan Lei is the owner of Coffee Surround, a coffee shop in Shanghai. They say that signature coffee drinks can help to introduce more consumers to specialty coffee. 

“[Because of our tea-drinking history], coffee is quite foreign to many Chinese consumers,” Tan says. “Signature coffee drinks have additional flavours which can be more palatable for consumers.

“Moreover, signature beverages allow coffee brands to differentiate from one another and stand out,” Tan adds.

One of the most popular signature drinks is the “dirty” coffee, which is simply a double shot of espresso poured on top of cold milk. This creates a marbling effect as the espresso slowly mixes with the milk, which leads many coffee shops to serve these drinks in glasses or clear plastic takeaway cups.

Although Luckin and Starbucks are by far the most popular coffee chains in China, it is often independent coffee shops driving this trend. Some prominent Chinese specialty coffee shops – such as Manner, Seesaw, and M Stand – have “classic dirty” coffees on their menus, as well as serving seasonal variations which include different flavourings and sweeteners.

Recently, in larger cities like Shanghai and Guangzhou, more and more specialty coffee shops have been focusing on milk-based signature beverages. These coffee businesses often promote these drinks on popular Chinese social media and shopping platforms, including Little Red Book (“小红书” in Chinese) and TikTok (“斗音” in Chinese).

For example, Next Door’s Workshop (“隔壁工坊” in Chinese) in Guangzhou serves a signature cold brew which includes Sumatra Mandheling coffee, caramel syrup, full fat milk, iced sweet red beans, and lychee.

Chenyang “Vanilla” Li (“李晨旸” in Chinese) is the owner of Kokomo Coffee in Chengdu. 

“The third wave coffee market is growing fast in China, so more and more people are starting to drink coffee every day,” she says. “In turn, many coffee shops are trying to make a range of drinks which suit a number of taste preferences.

“If you mix coffee with juice or other flavours [to make a signature drink], coffee can be more palatable to a wider range of consumers,” she adds. “People are becoming more used to drinking flat whites or americanos every day, so when you serve signature drinks, you can add something special to their daily routines and let them try something different.”

A signature coffee drink in the hand of a Chinese consumer.

Culinary and regional influences in Chinese signature coffee drinks

Milk-based coffee beverages are by far the most popular drinks in Chinese coffee shops. Many consumers also order additional syrups and sweeteners, including fruit and floral flavourings.

However, signature drinks can often vary according to different regions and climates. In warmer areas of the country such as Guangzhou, Shanghai, and Nanjing, where temperatures can reach up to 40°C (104°F) in summer, colder signature drinks are often popular.

Many of these include cold brew or espresso, as well as sparkling water, sodas, and homemade fruit jams – which are particularly popular among younger consumers. In other coffee shops in first-tier cities, fruit flavours like orange, grapefruit, and peach are particularly popular.

In line with its history of tea consumption, many signature coffee drinks are influenced by milk and bubble tea beverages – which are both hugely popular in China. In fact, it’s estimated that sales of bubble tea in the country are around 140 billion yuan (US $20 billion) every year.

Similar to milk and bubble tea drinks, some signature coffee beverages also have a dense layer of milk foam on top, which can be made by steaming milk, using a cocktail shaker, or making “cheese foam”. The latter is a common addition to cheese tea, which is a popular iced drink believed to have originated in Taiwan.

The addition of foam not only helps to create different textures to the drink – it also adds a visual element which is becoming increasingly popular among younger consumers. In addition to this, some baristas will add dried fruits or flowers as a garnish, which enhances the visual appeal of the drink even more.

Certain types of plant milks have also become more popular in Chinese signature coffee beverages. For instance, specialty coffee chain M Stand recently launched an iced coconut milk latte and a coconut milk “dirty” latte, which are both served in a coconut shell.

Is there a wider market for these beverages?

It’s undeniable that China’s coffee market is growing. According to CBNData 2021’s white paper on trends in the country’s coffee market, around 60% of white-collar workers in the country drink three cups of coffee every week

Moreover, per capita coffee consumption in Beijing, Shanghai, Guangzhou, and Shenzhen is now comparable to that in some regions of Japan and the US – indicating significant growth.

Tan believes that as overall coffee consumption grows, so will the signature beverage sector.

“Many independent coffee shop owners and baristas are planning to leave first-tier cities and move back to their hometowns,” they say. “[It’s expected that] they will bring these types of drinks to smaller cities and towns.”

In recent years, specialty coffee brands like SeeSaw and M Stand have opened locations in second-tier cities such as Chengdu, Chongqing, Suzhou, and Hangzhou – indicating that the specialty coffee market is certainly growing. Both coffee chains serve a range of signature drinks, including “dirty” coffees and fruit-infused iced americanos.

Furthermore, as more wealthy Chinese expats are expected to move to other countries such as Singapore, Malaysia, and Thailand, we could see Chinese signature coffee beverages have more of an influence on these countries’ markets.

In fact, for many Chinese coffee brands, expansion into other Southeast Asian markets is common. Many of these companies already have a sound knowledge of these different cultures and their taste preferences, which allows them to develop and market beverages accordingly.

For instance, Japanese and South Korean coffee drinkers also have similar taste preferences to Chinese consumers, which could present an opportunity for a wider market for Chinese signature drinks. 

Although most consumers in Japan prefer black coffees, more and more younger consumers are starting to order iced milk-based coffees. Similarly, iced americanos are popular among millennial South Korean coffee consumers.

A signature Moutai coffee at a coffee shop in Hangzhou, Zhejiang Province, China.

The surge in coffee consumption across China’s major cities has pushed local brands – including both larger chains and smaller independent businesses – to innovate. A large part of this revolves around signature drinks, which can create a whole new sensory experience for consumers.

It’s clear that these drinks are popular with Chinese coffee consumers, and there is also potential for them to become more prominent in other markets. However, how much they will influence wider coffee consumption is still a question that needs to be answered.

Enjoyed this? Then read our article exploring Hong Kong coffee culture.

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What is yerba maté? https://perfectdailygrind.com/2022/11/what-is-yerba-mate/ Wed, 30 Nov 2022 06:28:00 +0000 https://perfectdailygrind.com/?p=100567 Around the world, many people drink coffee for its caffeine content – a natural stimulant which can improve a number of cognitive functions. As well as coffee, caffeine is also found in other products, such as tea, cocoa, guarana, and yerba maté. Consumed for centuries in some South American countries, yerba maté (Ilex paraguariensis) is […]

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Around the world, many people drink coffee for its caffeine content – a natural stimulant which can improve a number of cognitive functions. As well as coffee, caffeine is also found in other products, such as tea, cocoa, guarana, and yerba maté.

Consumed for centuries in some South American countries, yerba maté (Ilex paraguariensis) is a plant species which belongs to the holly genus. Once dried, its stems and leaves can be steeped in hot water to produce an earthy and slightly bitter tea-like beverage.

Today, yerba maté beverages can be found all over the world, including ready-to-drink (RTD) options which are becoming increasingly popular in the US and Europe. In fact, according to BevNet, the RTD yerba maté market was valued at US $93.2 million in 2016, and it’s likely this number has grown in the years since.

To learn more about yerba maté, how it is traditionally prepared and consumed, and its burgeoning RTD market, I spoke with three industry experts. Read on for more of their insight.

You may also like our article on whether green tea contains more caffeine than coffee.

yerba maté in a wooden vessel with metal straw

A brief history of yerba maté

It’s believed that the Ilex paraguariensis plant was first discovered by indigenous Guaraní people who lived in what is now known as Paraguay. For centuries, it was consumed by indigenous tribes for cultural and spiritual reasons, as well as its purported medicinal effects.

The Guaraní people reportedly first chewed the leaves and stems of the plant, but then began steeping them in water to create a tea-like beverage. This would be brewed in clay pots or hollowed and dried gourds, and drunk using hollowed-out sticks as straws.

However, when European colonists arrived in Paraguay in the mid-1600s, the consumption of yerba maté was initially forbidden – largely because European colonial powers deemed the plant to be addictive.

In the years that followed, however, European colonists reversed the ban on consumption and forced enslaved native people to increase production. The first commercial trade route for yerba maté was established in 1645, allowing dried leaves and stems to be exported to European countries.

With consumption of yerba maté increasing – both domestically and abroad – it became one of the colony’s biggest cash crops. However, this growth came at the expense of exploiting indigenous people. Production then began to steadily increase in neighbouring countries, such as Argentina and Brazil.

In the late 1700s, European colonists were expelled from Paraguay, which meant many yerba maté plantations were abandoned, and in turn, production started to decline. 

Following a devastating war in Paraguay from 1864 to 1870, Argentina and Brazil annexed some of the country’s land, which included major yerba maté-growing regions. This meant Paraguay’s production came to an end, while both Argentina and Brazil began to grow and export more.

Close up of a man drinking mate in Reigolil, Chile

Understanding its cultural significance

Yerba maté has deep rooted histories in several different cultures in South America. 

According to Statista, Argentina produced more than 837,200 tonnes in 2019, while the National Institute of Yerba Maté claims 100 litres of the beverage are consumed every year per capita. Brazil, meanwhile, is the world’s biggest producer of maté based on statistics from the Food and Agriculture Organisation of the United Nations.

Callum Berry is the owner of Anam Mate, a yerba maté importer in the UK. 

“Drinking yerba maté is culturally significant [in some South American countries],” he says. “People grew up drinking it and still drink it today – it’s part of their tradition and heritage.”

For centuries, the drink has been prepared and consumed communally. Following on from the colonisation of native Paraguayan people, gauchos (who are considered to be South American cowboys) preserved the tradition of sharing yerba maté among friends and family. 

Andrés Puras Fernández is from Chile and runs a yerba maté Youtube channel. He tells me the beverage is still consumed via traditional means across South America today.

“In supermarkets and homes alike in Argentina, Brazil, and Uruguay, you will see yerba maté products,” he says. “You’ll find people drinking it in many places.”

However, both Andrés and Callum mention that the drink isn’t as popular elsewhere in the world, but say that demand seems to have increased in recent years. In fact, it is also commonly consumed in Lebanon, Syria, and other parts of the Middle East (mainly by Druze and Alawite people), but this is largely linked to historic migration from South America.

Andrés specifically mentions that his YouTube channel saw a significant increase in traffic during the pandemic, and that yerba maté’s popularity among professional UK football players could be attributed to overall rising demand.

“It’s not going to appeal to everyone because some people may want a more quick and convenient beverage,” he says. “But the traditional way of consuming yerba maté aligns with my own personal values – to slow down and take the time out of your day to enjoy it.” 

This idea is somewhat similar to the Slow Food philosophy, which embraces the idea of taking time to enjoy food and beverages – including coffee.

a bombilla metal straw used for drinking yerba mate

How do you prepare yerba maté?

Traditionally, dried yerba maté leaves are placed in a gourd. You then add hot water (which needs to be lower than boiling temperature, otherwise it could damage the brewing vessel) and allow the leaves to steep for a few minutes.

Once brewed, yerba maté is usually consumed through a bombilla, which is a metal straw containing a built-in filter. The gourd can then be refilled with water as often as needed or until the leaves have lost the majority of their flavour.

Callum tells me that while some consumers today opt for glass or steel brewing vessels and straws, many still prefer handmade gourds and bombillas made from natural materials. These can include certain types of woods, such as Palo Santo, or can even be made from hollowed, cured, and dried calabash gourds – a member of the squash family. 

Many people believe that drinking yerba maté from a traditional gourd imparts more flavour to the beverage, and ultimately enhances the overall experience.

“Compared to drinking from a mug, using a traditional gourd has far more cultural significance,” Callum explains. “You have to take care of your gourd, so the connection you have with it is unique.”

Andrés tells me that there is a culture of yerba maté enthusiasts.

“For people who really enjoy the beverage, they sometimes make their own gourds, bombillas, and other accessories because the culture is interesting to them,” he says.

Victoria de la Torre is the founder of SouthmaTea, a yerba maté supplier based in Buenos Aires, Argentina. She tells me that children drink maté in schools in Argentina, often adding milk and sugar to “make it more pleasant” for less developed palates.

Andrés says that climate can influence how people prepare yerba maté. For example, in countries which experience longer periods of warmer weather, many people choose to brew the beverage using cold water – which undoubtedly affects total brew time and the extraction of flavours.

Describing its flavours

“Bitter” is often a word used to describe yerba maté, but Victoria says that its flavours can vary according to factors such as origin and drying methods.

“Similar to coffee and wine, the flavours can vary depending on the terroir where it was grown,” she explains. “Some can have a more earthy flavour, while others can taste more complex, spicy, and bittersweet.”

She adds that Argentinian maté is usually grown in mineral-rich soil in the country’s rainforest, before the leaves are dried over fire, which can give it some smoky notes.

Andrés agrees, saying that once you become familiar with the flavours of maté, you are more likely to know where it was grown – much like with single origin coffees. He finds that Argentinian yerba maté is sweeter, making it a popular choice for first-time drinkers. 

Health benefits – and risks 

Around the world, many people drink yerba maté for its supposed health benefits. 

Clinical research has found that consumption of maté is associated with a number of positive effects, such as weight loss and protecting the immune system. Moreover, it contains several antioxidants such as saponins and polyphenols, which have certain anti-inflammatory and cholesterol-lowering properties.

However, these health benefits vary according to how much yerba maté you consume and how you drink it, as well as how the leaves are dried and processed.

“There are many varieties of maté,” Callum says. “Some are weaker-tasting, while others are stronger.

“Because it can be consumed over longer periods of time, it doesn’t result in a caffeine rush,” he adds.

“Yerba maté can be compared to coffee in terms of caffeine content,” Victoria explains. “It can be consumed throughout the day and it can help to keep you alert and energised.”

Typically, a 150ml serving of yerba maté contains about 80mg of caffeine, but different varieties can have varying amounts of caffeine. However, continually adding more water to the drink means caffeine intake can increase significantly.

Additionally, the stems and leaves are often dried over fire, and some sources suggest this can form polycyclic aromatic hydrocarbons. These are known to be carcinogenic, but more clinical research is required to scientifically verify any purported health risks and benefits of yerba maté. 

canned ready-to-drink yerba maté

The rise of RTD yerba maté

Andrés says that while more traditional methods of consumption may not appeal to the majority of people, the increasing diversification of yerba maté products and preparation methods is helping to make the drink more popular. 

“In the US, some people brew it in a French press,” he says. “RTD yerba maté-based energy drinks are also becoming more popular, which can also include fruit to create different flavours.” 

There are a number of RTD canned maté products now available, particularly in the US and Europe. One prominent brand is Guayakí, which was first established in California in 1996. In addition to selling loose leaf yerba maté, the company also sells canned and carbonated maté beverages.

In 2021, the Coca-Cola owned subsidiary Honest Tea launched a RTD yerba maté drink, which included a number of different flavoured options. 

Callum also notes the variety of sweetened single-serve maté bags now available on the market for those looking for more convenient preparation methods.

In regards to its market potential, Andrés says that yerba maté is typically cheaper than coffee, which could help it to become more popular. However, he points out that because of the small number of maté-growing countries, it’s unlikely that production could scale significantly.

Callum believes that there needs to be a distinction between traditional yerba maté and RTD options – largely because they offer different experiences to consumers.

yerba maté in a wooden gourd with a bombilla straw

The rich history of yerba maté undoubtedly makes it a culturally significant drink for many people in South America. For more traditional drinkers, the ritual of preparing and sharing maté with friends and family is vitally important.

However, with the growing number of maté products available around the world, it’s clear that more modern ways of consuming the beverage are also becoming steadily popular.

“More people should try it,” Andrés concludes. “It’s an interesting drink with a lot of traditional heritage, but it isn’t valued enough.”

Enjoyed this? Then read our article on what is a matcha latte?

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Do specialty coffee shops play a role in gentrification? https://perfectdailygrind.com/2022/11/do-specialty-coffee-shops-play-a-role-in-gentrification/ Wed, 02 Nov 2022 06:36:00 +0000 https://perfectdailygrind.com/?p=100083 Although there are many reasons to celebrate and support the specialty coffee industry, it has received some criticism in recent years – most notably for being elitist and inaccessible. However, some may argue that in order for specialty coffee to truly remain “specialty”, it will always be somewhat exclusionary. This might specifically be the case […]

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Although there are many reasons to celebrate and support the specialty coffee industry, it has received some criticism in recent years – most notably for being elitist and inaccessible.

However, some may argue that in order for specialty coffee to truly remain “specialty”, it will always be somewhat exclusionary. This might specifically be the case for those who are unable to afford more expensive coffee or equipment, and lead eventually to their ostracisation.

A large part of this problem is rooted in gentrification – which is when lower-income neighbourhoods, most often in cities, see a rising number of more affluent residents. This can result in a number of complex issues which affect marginalised communities the most. 

For many, the arrival of more specialty coffee shops is often a key sign of gentrification in certain neighbourhoods (although it is by no means the only indicator).

In order to learn more about the relationship between gentrification and specialty coffee, and what the coffee industry can do to address this, I spoke with founder and CEO of Brewpoint Coffee, Melissa Villanueva, and founder and CEO of Mayorga Coffee, Martin Mayorga. Read on to find out more. 

You may also like our article on being black in specialty coffee.

Customers sit inside and outside a coffee shop

What is gentrification?

In order to fully understand the problems associated with gentrification and coffee shops, we first need to know what causes this process to take place.

Although gentrification is highly complex, it is essentially when a neighbourhood (often in a large town or city) which has historically received little investment and development experiences an influx of higher-income residents. As a result of the increasing migration of more affluent inhabitants, more urban renewal projects start to take place.

As part of these development projects, it’s common for more specialty coffee shops to open, accounting for the consumer behaviour of younger and more affluent demographics.

While gentrification does certainly mean that previously-neglected neighbourhoods receive some much-needed support and investment, it’s an unfortunate reality that the most vulnerable members of the community often aren’t able to reap the benefits for themselves. 

The increase in higher-income residents often leads to rising rent prices and higher costs of living in the area, which ultimately can displace the more marginalised and economically vulnerable inhabitants.

Again, while the reasons are deeply complex, this is largely a result of historical inequities which marginalised communities have been facing for centuries. 

“There is a lot of overlap between gentrification and race and ethnicity,” Melissa says.

As just one example of many, between the 1930s and 1960s, the US federal government classified certain neighbourhoods across the country as “risky” and “unfit for investment” – a set of policies referred to as “redlining”. In turn, many people of colour living in these areas at the time were refused access to loans, meaning they were unable to repair or reinvest in their homes, and led to an overall economic decline in these neighbourhoods.

Martin believes that we can draw comparisons between the effects of modern gentrification on marginalised communities and the colonial history of the global coffee industry.

“Coffee seeds were stolen from African people by colonists, cultivated around the world using slave labour, and traded through inequitable financial models,” he says. “The roots of the coffee industry were planted in the domination and displacement of brown and black people.”

However, Martin adds that some of these colonial inequities are still present in the coffee industry today.

“There are still many practices taking place in the industry which whitewash the history of coffee, as well as its different cultures,” he explains. “For example, some traditional Latin American brewing methods, rituals, or consumption trends are seen as ‘inferior’ [to specialty coffee] or are not given enough respect in conversations.”

Customers sit outside a coffee shop

Specialty coffee: a cause or an effect of gentrification?

Although there are many indicators that gentrification is taking place, the opening of newer, more expensive coffee shops in an underdeveloped area is one of them – which obviously means there is plenty of overlap with specialty coffee businesses.

This is largely because of prices. Broadly speaking, when specialty coffee shops open in these neighbourhoods, beverages are more expensive than they would have previously been. These higher prices are something that newer, more affluent residents might be able to afford – but they may well be too expensive for previous residents.

According to the Harvard Business School paper Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change, the opening of Starbucks stores (and other coffee shops more generally) is the leading indicator of gentrification. The research also concluded that the increasing prevalence of coffee shops alone led to a 0.5% increase in local house prices.

In response to the research, Starbucks announced it would aim to hire more local people to tackle issues such as local youth unemployment, but whether employers followed through remains to be seen.

However, the researchers stated in their findings that they were unable to determine whether coffee shops were a cause or an effect of gentrification.

While it’s certainly difficult to establish a cause-and-effect relationship between the two, Martin believes that coffee shops are a result of gentrification.

“The opening of specialty coffee shops in disadvantaged neighbourhoods follows on from ‘redevelopment’ programmes, which disproportionately affect black and Latino populations, as well as those who are on a lower income bracket,” he says.

“A new specialty coffee shop opening in a historically Latino or black neighbourhood does not automatically constitute an investment,” he adds. “[If not carried out thoughtfully and in partnership with the local community], it can be opportunistic instead.”

Melissa agrees, explaining that historical colonial inequalities are still linked to gentrification today.

“The US’ history includes slavery, which still has ongoing effects on black and indigenous communities,” she says. “Oftentimes, this was hidden under the guise of economic development, [but for less vulnerable and marginalised people].

“Gentrification usually results in the displacement of people of colour,” she adds.

Chairs outside a coffee shop

Can gentrification be beneficial to specialty coffee shops?

While the negative effects of gentrification on marginalised communities are undeniable, it can also be argued that specialty coffee shops do benefit from gentrification. Ultimately, expanding their company in new areas and attracting more customers helps to keep their business profitable.

However, Martin says that only coffee professionals who are already in more fortunate positions can really benefit from these advantages – which compound the existing inequities in the coffee sector.

“Gentrification is only beneficial to those who are already more economically stable,” he tells me. “Historically, producers are the most vulnerable people in the supply chain, and while there has been positive change, indigenous and impoverished farming communities are still worse off.”

Melissa agrees, saying: “It’s difficult to make the coffee industry equally profitable across the entire supply chain, and usually it is producers who receive the least amount of money.”

Martin says that one of the ways we can improve equity in the coffee industry is by supporting members of marginalised communities to take up positions of leadership.

“The number of black and brown people occupying positions that cover ownership, management, and decision-making in the coffee industry is embarrassingly low,” he tells me. “Inclusivity and representation have definitely improved over the last five years, but we still have a long way to go.  

“We also don’t see minority-owned brands receive the same level of respect as other specialty coffee companies,” he adds.

Melissa Villanueva behind the counter at a Brewpoint Coffee location

How can specialty coffee businesses support local communities in a more sustainable way?

Considering the significant negative impact of opening coffee shops in underdeveloped areas, how can business owners ensure they are supporting communities, rather than contributing to their displacement?

Ultimately, Martin says coffee shops and roasters need to commit to creating real positive change.

“Some companies say they support initiatives and communities, but there is little to no evidence that they are having a positive impact,” he says.

“If you want to have a positive effect on communities, buy or rent an older building in an area that can benefit from investment,” Martin suggests. “Repair and renovate the building and strive to make sure that around 80% of your workforce lives within walking distance of your shop.”

In doing so, staff at the coffee shop will visibly be much more representative of the local area – making members of the community feel more welcome to visit.

“We build relationships with communities,” Melissa explains. “We make sure that we ask important questions like ‘is the space inclusive?’ and ‘do the people behind the bar look like the community that we are now a part of?’”

Menu prices are an important factor to consider, too. When opening a new location in an underdeveloped neighbourhood, coffee shop owners need to be mindful that some members of the community may be dissuaded from visiting their café if prices are too high.

However, Melissa explains that this can be a delicate balancing act between reasonable prices for consumers and making sure that you pay a fair, responsible price for the coffee you buy.

“I have been advocating for specialty coffee to be more expensive,” she says. “Compared to the wine or the craft beer industries, there is a dramatic price difference.

“You can buy a bottle of high-quality wine for up to hundreds of dollars, but a cup of specialty coffee usually costs no more than US $10,” she says. “The scope to justify the amount of work that farmers put into growing specialty coffee often just isn’t there.”

Another large part of working to resolve issues of gentrification is improving representation and inclusivity. 

“More than ever, marginalised communities are becoming empowered to start their own coffee companies or to support those which are working to rebalance inequities,” Martin says. “We’re not waiting to be hired or to be given an opportunity.  

“An example is Cxffeeblack, created by Bartholomew Jones and Renata Henderson, who are unapologetically proud and vocal with their brand,” he adds. 

In fact, Cxffeeblack is currently working on a script for a TV pilot with HBO Max, which is inspired by Bartholomew and Renata’s experience of opening a coffee shop in a neighbourhood undergoing gentrification. 

“I think that the days of minority groups being observers in the US coffee industry are behind us,” Martin says.

A street view of a Brewpoint Coffee location

The link between coffee shops and gentrification is well-established, but that doesn’t mean coffee business owners can’t have a positive impact on these communities. 

While the issues are complex and deeply rooted in historical inequities, coffee shops and roasters need to be mindful and thoughtful of the areas they work in.

“Listen to the existing community and make sure you serve them, too,” Martin concludes.

Enjoyed this? Then read our article on how green coffee auctions can be used to promote wider social initiatives.

Photo credits: Stephanie Hulthen Photography, Glass & Grain Photography

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Are acquisitions becoming more common in the coffee industry? https://perfectdailygrind.com/2022/10/are-acquisitions-becoming-more-common-in-the-coffee-industry/ Mon, 24 Oct 2022 05:22:00 +0000 https://perfectdailygrind.com/?p=99832 Acquisitions are commonplace in all kinds of industries around the world, and the coffee sector is no exception. In recent years, we’ve seen a growing trend of multinational coffee brands acquiring specialty coffee shop chains and roasters. Many are wondering if this market consolidation is the beginning of a wider change for the industry, and […]

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Acquisitions are commonplace in all kinds of industries around the world, and the coffee sector is no exception. In recent years, we’ve seen a growing trend of multinational coffee brands acquiring specialty coffee shop chains and roasters.

Many are wondering if this market consolidation is the beginning of a wider change for the industry, and if specialty coffee may soon become dominated by a few holding companies, rather than being spread between a much broader range of brands.

However, it’s clear that Covid-19 shifted how coffee businesses operate, which ultimately influences the motives behind acquisitions. With more and more companies in the coffee industry now seeking guaranteed opportunities for growth, acquiring specialty brands could be a way forward.

To understand why coffee company acquisitions are becoming more prominent, and what this shift could mean for the global coffee sector, I spoke to several industry experts. Read on to find out what they had to say.

You may also like our article on opening & managing multiple coffee shops effectively.

Boxes containing Starbucks labeled single-serve coffee capsules for Nespresso coffee makers are displayed after a news conference to announce that Nestle will sell Starbucks-branded coffee at grocery stores in Europe, Asia and Latin America at the company

What are mergers and acquisitions?

Mergers and acquisitions are commonly grouped together when talking about the transfer of business ownership or consolidation within the market. But what are the differences?

At its simplest level, a merger is an agreement between two companies to join together and form one company. This is done for a number of reasons, including establishing a broader market reach or gaining more market share.

Acquisitions, meanwhile, are when one company buys some (or even all) of another company’s shares. In this case, companies might retain their own names and branding, or the original operation might become absorbed and rebranded accordingly.

There are many reasons why companies choose to purchase shares in other businesses, or allow other companies to acquire stakes in their business. Similarly to mergers, the biggest reason is to expand or diversify their reach or customer base, or to enter new markets using another brand’s pre-existing expertise.

Alternatively, companies may acquire other brands to gain access to new technologies or intellectual properties. Not only can this help a business to keep up with competitors, it can also help them to quickly hire staff and access resources needed to launch new products and services.

Containers of Stumptown Coffee Roasters' Cold Brewed Coffee in a supermarket in New York on Wednesday, October 7, 2015.

Recent major acquisitions in the coffee sector

Over the past decade, there has been a run of significant acquisitions in the coffee industry – including both larger chains and smaller specialty coffee brands.

One of the most significant examples was in 2019 when Coca-Cola acquired UK coffee chain Costa Coffee for around US $5 billion. The acquisition was driven by a number of factors, but possibly because US consumption of carbonated soft drinks hit a 30-year low in 2017.

In 2021, Coca-Cola HBC (the world’s third-largest bottler of Coca-Cola products) purchased a 30% equity share in Caffè Vergnano – one of Italy’s oldest coffee roasters.

Another example is Nestlé, which purchased a majority stake in Blue Bottle Coffee in 2017 – a specialty coffee roaster in the US and Japan.

Corporate interest in specialty coffee brands has seemingly been increasing over the past decade.

In 2012, German conglomerate JAB Holding Company acquired San Francisco’s Peet’s Coffee – a pioneer of the specialty coffee industry. Subsequently, three years later, Peet’s purchased Stumptown Coffee Roasters – another prominent specialty roaster in Portland, Oregon. JAB Holding also acquired the coffee and food-to-go chain Pret A Manger in 2018.

Broadly speaking, these acquisitions of coffee brands are a means of expanding into new markets (such as specialty coffee) by leveraging existing expertise and established brands. For instance, Starbucks and Blue Bottle offer different products to two very different consumer bases, providing them with reach within two important (and profitable) market segments.

Acquisitions can also help existing brands move into new international markets, too. For example, international food and ingredients company ofi completed the acquisition of 116-year old Canadian coffee roasting and packaging company Club Coffee earlier this year. Ultimately, this gives the company the chance to expand in North America (one of the biggest global coffee markets) while retaining Club Coffee’s expertise and established brand image.

Charles Zhengyao Lu, non-executive chairman of Luckin Coffee, poses during the company's IPO at the Nasdaq Market site in New York, U.S., May 17, 2019. REUTERS/Brendan McDermid

Has Covid-19 changed things?

While there has clearly been interest in acquiring coffee brands for well over a decade, Covid-19 has certainly influenced growth strategies for many companies.

Towards the beginning of the pandemic, a staggering 95% of out-of-home coffee businesses were forced to close operations for several months. Naturally, this resulted in a huge spike in home coffee consumption, as consumers started to prepare more café-quality beverages at home.

Undoubtedly, larger companies wanted to capitalise on this shift in coffee consumer behaviour, but doing so was by no means easy.

Umberto Doglioni Majer is President and Chief Executive Officer at Vea Ventures, a holding company  which owns several coffee machine brands, including Carimali, Elektra, and Bellezza. 

He explains that it can be difficult to scale a specialty coffee brand’s reach quickly because of the inherent challenges that come with it, such as sourcing high-quality and traceable coffee.

“[Specialty coffee companies] can be considered growth companies,” he says. “This term describes smaller brands which bigger companies can acquire as platforms to build on.

“However, returns on an investment like this don’t usually happen quickly,” he adds. “It can take years [to turn a profit].”

Umberto says that many larger companies are now seeking growth opportunities with a better chance of success. In his experience, he says this means acquiring shares in brands that are more established, with a proven record of profitability and a loyal customer base.

“Factors such as the pandemic, rising inflation, and crashes in the stock market have led to an increased interest in acquiring more established companies,” he tells me. “This is because these brands will already have better profit margins and larger consumer bases.”

Customers at a Blue Bottle coffee shop

Can specialty coffee brands remain competitive if the market consolidates?

The current economic climate for smaller coffee businesses is challenging to say the least. The C price recently reached a 10-year high, shipping is incredibly expensive, and profit margins for roasters have tightened in the past few months.

This has made it more difficult for smaller roasters and coffee shops to remain profitable, and less buying power means they may struggle to compete with more established brands which have been acquired by a multinational.

So what can they do to compete?

In some cases, smaller coffee companies can merge themselves. For example, Fairwave is a collective of specialty coffee brands who decided to merge following on from the pandemic. These companies include The Roasterie, Messenger Coffee Company, and Spyhouse Coffee Roasters.

However, the consolidation of brands doesn’t only happen through acquisitions and mergers – it can also take place through strategic partnerships and shared services initiatives. 

One example is The Curate Coffee Collective, which is a shared roasting facility in Portland, Oregon. Since 2020, the facility has been open to roasters of all sizes, and offers them access to equipment and office space, as well as educational resources. 

However, this model isn’t that common within the coffee industry – particularly in the specialty sector.

Spencer Turer is the Vice President of coffee consultancy Coffee Enterprises.

He points out that despite how difficult it can be for smaller coffee brands to remain profitable, mergers and acquisitions may not always be the best solution – especially with larger companies such as multinationals.

“The backbone of the specialty coffee industry is still largely formed of small regional companies,” he explains. “If these roasters and coffee shops have the skills, knowledge, and expertise – and are successful at what they do – then why should there be a reason for them to merge or be acquired by a bigger company?”

While mergers and acquisitions with larger brands can certainly help smaller coffee brands to grow and reach new consumer bases, there are also understandably concerns over how quality control can be scaled and maintained.

Cans of cold brew coffee in a busy Blue Bottle Coffee shop in New York on Friday, September 15, 2017

In the months and years that follow the Covid-19 pandemic, we will see just how prevalent mergers and acquisitions will be in specialty coffee – especially if the world moves towards a period defined by a global economic downturn. 

It’s clear that consolidation through acquisitions and mergers will nonetheless continue to be part of the conversation about how the industry evolves and scales into the future. This then raises questions about how smaller regional businesses can remain profitable.

Ultimately, for smaller coffee shops and roasters, the most important thing is understanding how you can continue to appeal to your customer base. In some cases, this might mean innovating in line with third wave coffee trends, but in others, it may mean just listening to what consumers want from you – and catering to that accordingly.

Enjoyed this? Then read our article on changing your business’ coffee strategy after Covid-19.

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