Coffee News Recap, 16 Aug: BoP 2024 auction sets new record of US $10,013/kg, Starbucks appoints Chipotle CEO as new leader & other stories

Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the week. 

Editor’s note

There have been some major leadership changes for some of the industry’s biggest players this week. Following continuous struggles with declining sales, in an abrupt but unsurprising move, Starbucks replaced Laxman Narasimhan with Chipotle CEO Brian Niccol. Similarly, JDE Peet’s interim CEO Luc Vandevelde stepped down from his role due to “unforeseen matters”, notably after the company’s stock has lost a third of its value since listing in 2020.

In other news, isolated incidents of frost in some of Brazil’s growing regions pushed coffee futures by up 6% on the ICE exchange. Although the cold snaps are so far less severe than those that took place in 2021, many producers are understandably concerned about how frost could impact harvests.

Lastly, at this year’s Best of Panama auction, a natural Gesha received a record-breaking bid of US $10,013/kg. Although this is only a US $8 increase on the previous world record from the 2023 auction, it’s a clear sign that high-end roasters are still willing to pay incredible prices for the variety. However, what’s nonetheless interesting is that Chiroso – an “up and coming” arabica variety – also set a high price, selling for US $1,630/kg.

Given that interest in this coffee has been growing for some time, coupled with the fact that BoP has come to influence the industry’s buying habits over the years, it seems likely that more interest in Chiroso from roasters and competitors will soon emerge.

Top stories of the week

• Mon, 12 Aug – JDE Peet’s interim CEO departs after five months. CFO Scott Gray is now the interim CEO after Luc Vandevelde’s departure. This is the latest in a series of management changes at JDE Peet’s, controlled by investment firm JAB Holding, after the company’s stock has lost a third of its value since listing in 2020. (Amsterdam, the Netherlands)

• Mon, 12 Aug – Isolated frost incidents in Brazil lead to surge in coffee futures. Farmers reported isolated frost incidents, according to Executive Director at the Cerrado Coffee Producers Federation Juliano Tarabal, which represents a key arabica-growing region. Producers are preparing for another cold snap in the coming days. (São Paulo, Brazil)

• Tue, 13 Aug – Starbucks appoints Chipotle CEO as new leader. Brian Niccol will assume the role on 9 September, with the company’s current CFO leading until then. Following the announcement, Starbucks shares rose by 15% in premarket trading, while Chipotle shares dropped by 8.3%. Starbucks’ shares had plunged by 20% earlier this year as the chain posted two straight quarters of comparable sales declines. (Seattle, Washington, US)

• Wed, 14 Aug – Best of Panama 2024 auction sets new record of US $10,013/kg. A natural Gesha from Lamastus Family Estates received the highest bid, Adaura Coffee’s Kaizen washed Gesha followed with US $10,002/kg, and a Chiroso variety sold for US $1,630/kg. The auction, hosted by M-Cultivo, generated over US $1.38 million in total – another new BoP record. (Panama City, Panama)

Industry news

• Wed, 14 Aug – Starbucks opens first store in Ecuador. The new location is part of a plan to open store locations in Ecuador this year, with two more set for Centro Comercial Iñaquito in 2025. Delonorte S.A., a subsidiary of Delosi, will operate the new stores. (Quito, Ecuador)

• Thu, 15 Aug – Purity Coffee launches partnership campaign. The health-focused coffee brand is inviting investors to support and fund its mission. Purity partners with organic and regenerative farms, and has been recognised as a fast-growing coffee brand with a strong customer base. (Greenvile, South Carolina, US)

New launch

• Tue, 13 Aug – Califia Farms launches new seasonal flavours. The fall and winter lineups feature fan-favourite Pumpkin Spice, an expanded Caramel Apple range, new Creamers, and a Holiday Blend Black Iced Coffee. (Los Angeles, California, US)

Trade & production

• Wed, 14 Aug – Vietnamese producer set to receive up to US $25 million in ESG loan. Coffee and pepper producer Phuc Sinh Corp. will receive the loan from SAIL Investments’ & Green Fund. It will be the first loan of its kind from the foundation for a Vietnamese company, and will support Phuc Sinh’s efforts to maintain deforestation-free coffee supply chains. (Ho Chi Minh City, Vietnam)

Research

Events

• Mon, 12 Aug – En Taza Café to start on 29 August. The event brings together industry leaders, professionals, and coffee enthusiasts for two days of coffee tastings from various origins, paired with artisanal pastries, expert talks, art, and live music. (Córdoba, Argentina)

• Wed, 14 Aug – Husky Events to host Manchester and Dublin Coffee Festivals. The Sussex-based company, which organises the Brighton Coffee Festival, now owns the brands and rights to the Manchester and Dublin Coffee Festivals after the liquidation of Cup North. More information will be announced in the near future. (Sussex, UK)

Competitions

• Thu, 15 Aug – The Barista League confirms venues for three events. The Brooklyn event will now take place at the Music Hall of Williamsburg on 24 August, while Sewon Garage will host the Seoul event. The Dubai event will be held on 11 December at The Earth Roastery.

• Fri, 16 Aug – Dates announced for 2024 US, Australian, Northern Irish, Austrian & French AeroPress Championships.
  • Onyx Coffee Lab will host the US competition on 22 & 23 August, with over 30 participants set to compete
  • The Australian competition will be held on 24 August at Fieldwork Coffee in Melbourne
  • Oh Yeah Music Centre will host the Northern Irish championship on 21 August in Belfast
  • The Austrian competition is set to take place on 27 August in Vienna, hosted by Oatly
  • The French event will take place on 31 August at Claque Café in Strasbourg

Here are a few coffee news stories from previous weeks that you might find interesting. Take a look:

Photo credits: Ádám Csordás

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