Category: Coffee & Tea

Coffee folks call for more clarity around the EU’s deforestation legislation. Plus, new research into coffee agroforestry and Starbucks CEO Laxman Narasimhan is out, and his successor is getting a package worth around $110 million to fill his shoes. 

‘Prominent Coffee Groups Call for Immediate Interventions as EUDR Looms’ – via Daily Coffee News

A set of anti-deforestation laws known as the EUDR will go into effect on December 30, 2024. To comply with the regulations, companies importing coffee and other commodities into the EU have to prove that those items have not contributed to forest destruction.

As this deadline for large companies nears (smaller companies have an extra six months to comply), several coffee organizations claim there is still a lack of clarity on how regulations will be implemented and enforced. 

Fairtrade International, a non-profit coffee certification group, released a public statement asserting that, while it believes in the objectives of the EUDR, it wants clarification on the law’s impact on smallholder producers. Critics of the legislation believe that small-scale farmers will be unable to provide the level of traceability and reporting required to comply and that large importers will simply stop working with them.

“Fairtrade is very concerned that producer organizations will be cut off from trade with the EU market or pushed out of supply chains by larger producers not because they farm on deforested land, but because they face challenges in collecting, managing, and submitting the necessary data,” the organization wrote.

It urged the European Commission (EC) to release guidance to help clarify the rules it seeks to enforce and provide funding to assist smallholders to comply: “The farmers should not have to bear the compliance costs linked to laws imposed by the EU.”

Dozens of stakeholders from coffee organizations across the globe published an open letter to EC president Ursula von der Leyen “calling for urgent action for effective EUDR implementation in the coffee sector.” The group said they were committed to the EUDR, but asked the EC to address seven concerns, such as enhancing compliance clarity and simplifying the reporting system for companies operating in “low risk” countries.

Signatories of the letter, which claims to represent “the entire coffee supply chain, accounting for over 90% of the coffee imported, manufactured, sold, and exported in/from the EU annually,” include coffee associations from several countries, including the World Coffee Producers Forum, Global Coffee Platform, and the European Coffee Federation. 

Read the full story here.

‘Starbucks CEO Out After Just Over a Year Amid Sales Struggles’ – via NBC News

Just seventeen months after he took the top job, Starbucks fired CEO Laxman Narasimhan. NBC News reports that the company removed Narasimhan to “revive flagging sales and appease outside investors.”

Narasimhan’s replacement is former Chipotle CEO Brian Niccol, who will take over next month. The news led Starbucks stock, which had fallen 20% since the beginning of 2024, to jump 24%, while Chipotle’s stock declined. The coffee giant has struggled in recent years as it transitions from being a cafe-focused “third place” for customers to enjoy a drink on plush sofas to a drive-thru and mobile-app-focused quick-service brand.

But this quick-service transformation came at a cost: increased focus on promotions has put enormous pressure on baristas as orders flood in. An increasingly expanding menu and the literal billions of customizable drink options make wait times longer and have resulted in annoyed and sometimes aggressive customers.

Former Starbucks chair Mellody Hobson seems to acknowledge the company’s new quick service focus. She called Niccol “one of the biggest names in the industry,” noting his previous track record at Chipotle, Pizza Hut, and Taco Bell. “He knows this industry, and we thought he would be the right leader for this moment,” Hobson told CNBC.

Starbucks chairman emeritus and former CEO Howard Schultz praised Niccol, calling him “the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support.” Niccol will walk away from Chipotle with around $85 million in assets and will receive a pay package worth over $110 million in his first year at Starbucks. 

Narasimhan was also celebrated when he was appointed CEO in 2022. Schultz called Narasimhan the equivalent of a “No. 1 draft choice” as well as a “world-class operator” and an “entrepreneur” who “is going to be a great, great leader for the future of this company.”

Read the full story here.

‘Study Highlights Environmental and Economic Benefits of Agroforestry for DRC Coffee Crops’ – via Mongabay

Although the concept has been around in coffee forever, agroforestry—or growing coffee in a forest among shade trees and other plants—is becoming ever more popular as the industry seeks ways to cope with the impacts of climate change.

New research in the Democratic Republic of Congo (DRC) sought to compare agroforestry growing practices to more standard techniques such as monoculture, or growing just one crop. The goal was “to see whether agroforestry could be a pragmatic solution for farmers instead of merely a solution proposed by scientists, conservationists and development cooperation actors,” according to study co-author Ieben Broeckhoven from KU Leuven, a university in Belgium.

The study found that coffee agroforestry systems return comparable yields to monoculture plantations, but support 19 times more biodiversity and store twice as much carbon, which both helps soil health and mitigates the impacts of climate change by trapping carbon in the ground. 

The researchers hope their findings show that coffee agroforestry can be a practical alternative in a country where more than 90% of deforestation is caused by smallholder farmers needing to grow monoculture crops such as coffee. “It’s a question of considering the farmers’ needs and trying to work with them,” Broeckhoven said. “A ‘solution’ or regenerative practice will never work if it negatively impacts immediate to short-term agricultural production and farmers’ income.”

Read the full story here.

More News

‘Artisan V3 Software Launches, Supporting Roastery Scheduling‘ – via Daily Coffee News

‘I Tried The Pumpkin Spice Slurpee So You Don’t Have To‘ – via Sprudge

‘Starbucks Korea Raises Prices Amid ‘Consistently Soaring’ Costs‘ – via World Coffee Portal

‘Best of Panama Shatters Price Records with $627 Per Pound Average’ – via Daily Coffee News

‘JDE Peet’s Announces Interim Leadership as CEO Steps Down‘ – via Global Coffee Report

‘Arabica Coffee Prices Dip With Brazil Crop Avoiding Frost So Far‘ – via Bloomberg

‘Support a Pioneering DRC Cooperative Affected by Rebel Conflict‘ – via Daily Coffee News

The Week in Coffee Unionizing

Starbucks’ decision to replace its CEO might seem irrelevant to the chain’s much-publicized union drive, but it’s worth keeping an eye on as the incoming and outgoing executives have very different histories with unions.

Laxman Narasimhan’s short tenure as Starbucks CEO saw changes in how the brand dealt with the hundreds of unionized stores. After months of delayed talks, the company and union representative from Starbucks Workers United finally began negotiating in 2024. Both parties agreed to work on a “foundational framework” that both sides anticipated would lead to a collective bargaining agreement before the end of the year.

“While there is plenty of work ahead, coming together to develop this framework is a significant step forward and a clear demonstration of a shared commitment to working collaboratively and with mutual respect,” Starbucks Workers United said in a statement at the time.

Initial negotiations marked a significant change in approach from Starbucks, which has made headlines with its combative response to the union push.

However, Narasimhan’s replacement, Brian Niccol, used to run Chipotle, which has an aggressively anti-union reputation. The company has settled multiple unfair labor practice lawsuits from its workers for allegedly closing stores and retaliating against those who tried to unionize. In 2023, during collective bargaining negotiations with one location that managed to unionize successfully, Chipotle refused to accept any of the union’s requests. Instead, it offered a modest five-cent-per-hour pay rise—for some workers. By comparison, CEO Brian Niccol earned $17.2 million in 2022. 

Whether Niccol changes Starbucks’ approach remains to be seen. In the meantime, collective bargaining negotiations continue.

Beyond the Headlines

‘In Central America, Women Coffee Producers Lead the Charge in Battling Climate Change’ by Malena Kruger

‘Where Are All the British Coffee Unions?’ by Fionn Pooler

‘It’s Too Soon for Pumpkin Spice. Or Is It?’ by Ashley Rodriguez

The Singapore-headquartered coffee chain achieved 21% revenue growth, increased gross profit by 49% and opened 39 net new stores during the period

The Coffee Bean & Tea Leaf operates 1,186 outlets across 25 markets globally | Photo credit: The Coffee Bean & Tea Leaf

Filipino foodservice group Jollibee Food Corp (JFC) has highlighted The Coffee Bean & Tea Leaf (CBTL) as a standout performer in its second quarter after posting group sales of ₱67.2bn ($1.2bn). 

 

CBTL achieved 21% revenue growth in the three months ending 30 June 2024 to reach ₱5.2bn ($93.7m), with like-for-like sales increasing 25.6%. The coffee chain’s revenue for the first six months of 2024 stands at ₱9.9bn ($175m) – 14% higher than the same period last year. 

Additionally, CBTL’s gross profit during the second quarter grew 49% year-on-year to ₱1.1bn ($20.1m) while EBITDA increased 100% to ₱896m ($15.8m). 

JFC opened 39 net new CBTL stores during the second quarter, primarily in the Philippines and Kuwait where it operates 191 and 84 stores respectively. The coffee chain’s global presence now comprises 1,186 outlets across 25 markets in East Asia, the Americas, the Middle East and the Indian subcontinent. 

In a press release, Jollibee Group CEO Ernesto Tanmantiong said the company’s coffee and tea business ‘improved sequentially and year-on-year’ in what was an ‘excellent second quarter performance’ for the group. 

JFC’s bubble tea chain Milksha achieved 7% like-for-like sales growth during the quarter, while Vietnamese coffee chain Highlands Coffee saw like-for-like sales fall 3% – an improvement on its 9% first quarter decline. 

 

In March 2024, JFC outlined plans to further scale its branded coffee chain businesses as part of plans to open 750 new stores across its quick-service brand portfolio in 2024.  

Later that month the Manila-based foodservice group acquired a 10% stake in US automated coffee and tea concept Botrista Inc. for $28m – a move JFC Chairman Tony Tan Caktiong said would ‘deliver a world-class customer experience and provide substantial runway for sustained profitable growth’. 

In August 2024, JFC completed a deal to take a 70% stake in fast-growing South Korean coffee chain Compose Coffee for $238m. The deal for the 2,500-store business is expected to add 2% to JFC’s 2024 revenues and 12% to its annual EBITDA this year, as well as increase its global store footprint by 34%. 

Founded in 1978, Manila-based JFC achieved 15% year-on-year revenue growth in 2023 to reach ₱244bn ($4.4bn). Alongside its eponymous Jollibee fast-food chain, the group also operates fast-casual brands Chowking, Mang Inasal, Greenwich Pizza, Smashburger, Hong Zhuang Yuan, Yonghe King, Red Ribbon, Tortazo, Tim Ho Wan and Yoshinoya. 

Whether you refer to them as rare, exclusive, or ultra-premium, limited-edition lots are synonymous with specialty coffee. For years now, roasters have marketed these coffees to offer a premium product to consumers who are looking for a more unique flavour experience, as well as increased traceability.

Against a backdrop of high market prices and rising inflation over the past two years, however, it seems more and more roasters have shifted to higher-volume specialty lots. These coffees allow businesses to better manage costs while also staying competitive in a market that still demands exclusivity – albeit on an increasingly smaller scale.

So what does the future hold for limited-edition coffees? To find out more, I spoke to Matt Chitharanjan, co-founder of Blue Tokai Coffee Roasters, Rahul Reddy, founder of Subko Coffee Roasters, David Lalonde, founder of Rabbit Hole Roasters, and Pranoy Thipaiah, a producer at Kerehaklu Plantations.

You may also like our article on how ultra-rare varieties rise and fall.

Why the market for exclusive coffees will always remain small

Since the beginning of specialty coffee, micro lots have been popular among high-end roasters. The term usually refers to smaller, higher-quality lots that are sold separately to other coffees from the same farm, or lots sold by smaller-scale and smallholder producers.

To market these coffees effectively, roasters highlight their unique and desirable characteristics, which in turn, allows them to differentiate their brand from other competitors. Moreover, given the small size of micro lots, roasters can emphasise that these coffees are available for limited time only or until stocks last – which only adds to their perceived value and exclusivity.

Matt Chitharanjan is a co-founder of Blue Tokai Coffee Roasters – a prominent specialty coffee chain in India.

“The market for these coffees was only recently established and we have barely scratched the surface,” he says. “The availability of ultra-premium lots is still limited – in India alone it totals just a couple of tonnes – but the market has huge potential.”

Premiumisation has been a huge driver of this growth. This is the process by which roasters sell more exclusive, rare, and superior quality coffee to drive brand appeal and increase prices – typically in more mature markets. Ultimately, this adds a greater sense of value for the buyer, and makes them more willing to pay higher prices.

Affordability is more important than ever

In the late 2010s, as the market price for coffee reached the lowest levels in over a decade, micro lots and rare coffees became a more popular option for roasters to leverage low prices and stand out. Fast forward to a post-pandemic world, however, and the situation is the opposite – with record C prices, inflationary pressures, and economic uncertainty all impacting roasters’ margins and consumer preferences.

Rahul Reddy is the founder of Subko Coffee Roasters – another established specialty coffee company which operates in India. He explains how roasters have to pay more for limited-edition coffees, and that many aren’t willing to take the higher risk-to-reward ratio in current economic circumstances.

“While there is growing interest in ultra-premium coffees, there is also an education gap to fill,” he says. “Roasters have to absorb a much higher cost per kg for these coffees, so they have become some sort of litmus test to assess whether the price is justifiable to the consumer.”

David Lalonde is the founder of Rabbit Hole Roasters in Delson, Quebec, which received Roast Magazine’s 2023 Micro Roaster of the Year award.

“Quite often, we won’t break even on these lots,” he says. “But it’s part of the game – our ultra-premium coffees help draw attention to our ‘regular’ menu offerings as well.”

The challenges of producing limited-edition coffees

To sell micro and limited-edition lots for a higher price, roasters have to strategically market these coffees to showcase their desirable attributes. These can range from highlighting the specific plot of land the coffee was grown on to using experimental and innovative processing techniques.

Although the novelty and scarcity of these coffees is a unique selling point, this poses a significant risk to farmers in particular – one which they may not always be able to absorb.

Pranoy Thipaiah is a producer at Kerehaklu Plantations – a biodynamic coffee farm in India that was established in 1953.

“It’s always our aim to receive a higher cup score, but when planning to produce a micro lot, it’s our intention to highlight uniqueness in the cup first,” he says. “Hypothetically, if we have three piles of harvested cherries that more ripe than the others on the same day and from the same block, we will separate them for exclusive processing.

“Marketing these coffees as limited releases isn’t the ultimate goal, however,” he adds. “Sometimes we just want to experiment and see how we can improve the cup – this also comes with a lot of risk but the rewards can be massive, too.”

Balancing the cost-to-risk ratio

Pranoy mentions how erratic climate conditions pose significant challenges for producers to achieve consistent results with experimental processing methods, while extended fermentation periods can increase the likelihood of creating undesirable flavours.

For some producers, the risk is worth taking, as selling to high-end specialty roasters is a dependable revenue stream. But for others, it understandably adds too much pressure to manage practices sustainably.

“Premium lots showcase amazing coffees, but they also create this trend of demanding more from farmers,” David says. “Key industry players advocate for higher and higher cup scores, which leaves behind millions of smallholder farmers who can’t produce those coffees on a regular basis.”

Demand for exclusivity will continue to grow – but at a slower pace

It’s an overstatement to say the market for premium and limited-edition coffees has disappeared, but demand has notably dropped following a string of logistical issues in the supply chain over the last few years.

Unless prices significantly fall again, it’s unlikely that more roasters will start to stock up on micro lots to the extent seen in years prior. However, many will still remain a preference for the more niche specialty consumers.

“Some people only want to drink IPAs and craft beer,” Rahul points out. “This has driven the beer industry forward, and I think ultra-premium lots will do the same in specialty coffee.”

David agrees, saying: “I think we will see crazier and crazier fermentations in the future, which is intimidating, but also fun. I also hope we see a shift in mindset where both flavour and social impact will determine coffee prices.”

There will always be demand for novel and unique coffees in the specialty market. But as roasters grapple with rising costs, many have shifted away from micro lots and limited-edition releases.

These coffees still have an important place in the market, but if roasters and producers want to find viable ways to remain competitive, sourcing more affordable specialty lots is the answer – at least for the meantime.

Enjoyed this? Then read our article on why some roasters are willing to pay record prices for Gesha.

Photo credits: Blue Tokai Coffee Roasters, Subko Coffee Roasters

Perfect Daily Grind

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The upcoming Ljubljana Coffee Festival is bringing some prominent specialty coffee professionals from throughout Europe together this Sept. 21-22 in Slovenia.

Taking place at the City Museum of Ljubljana, in Slovenia’s capital and largest city, the festival promises to blend specialty coffee and haute cuisine in a program geared towards coffee pros and enthusiasts alike, according to the organizers.

Highlights will include a barista competition, a latte art competition, a sensory room with coffee tastings curated by importers, a lecture series exploring trends and innovations throughout the specialty coffee chain, a roaster village with equipment and brewing displays and a “Slovenian Roasters’ Place” highlighting the coffees and talents of Slovenian roasters.

One of the event’s big draws is likely to be a panel discussion on the evening of Sept. 21 called the Specialty Coffee & Haute Cuisine Panel Forum. The event will bring together world-renowned coffee pros and chefs from some of Slovenia’s finest restaurants to explore the intersection of specialty coffee and high-end cuisine.

The panel will feature coffee names such as James Hoffmann, Tim Wendelboe and Dale Harris, and Slovenian chefs Tomaž Bratovž, Igor Jagodic and Mojmir Šiftar. Journalist Vasileia Fanarioti will moderate.

According to the organizers, the panel will explore the challenges of integrating specialty coffee into established restaurants, as well as opportunities for coffee purveyors to enhance offerings and adapt to seasonality and freshness.

A special food and coffee tasing event taking place at Restaurant Strelec on the evening of Sept. 20 will lead into the festival.

Pioneering Slovenian specialty coffee company Stow Coffee Roasters created the first iteration of the volunteer-led festival in 2016, and it has since grown to find support from key sponsors such as La Marzocco, Mahlkönig, Brita, Alpro and more.

“The festival’s goal is to create one of the strongest professional programs, thereby helping to elevate the quality of Slovenia’s specialty coffee scene,” Peter Ševič, the festival director and AST Trainer at the Stow coffee academy, told DCN.

Tickets for the main festival start at €20 for single days, or €30 for both days, plus €20 for the haute cuisine panel. More information is available through the Ljubljana Coffee Festival website.

Comments? Questions? News to share? Contact DCN’s editors here. 

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When Abbey Chiavario decided to open a coffee shop in the front space of her partner’s coffee and espresso technician business, she’d never actually worked in coffee before. Her relative newbie status in the industry gave her the freedom to experiment, or as she describes, “mess around and find out.”

What does that mean? For Chiavario, it means creating a space that surprises and delights. In 2021, she opened Matryoshka Coffee (a nod to the fact the shop is technically within her partner’s shop, kind of like nesting dolls), a 300-square-foot cafe in Nashville, Tennessee, with the goal of fostering community, making coffee fun, and using color to signal that the space is welcoming for all.

In an era where coffee shops embrace minimalism and can tend to look like one another, Matryoshka is full of bright colors and off-the-wall menu offerings: you can order an espresso with a side of Lucky Charms or ramen noodles. Paper garland chains hang off the ceiling while a bright pink menu board boasts drinks like specialty drinks that honor Diane Keaton’s character in the movie “Something’s Gotta Give.” 

As a former Instagram influencer, Chivario knew that if she started a coffee shop, it would be different from others she frequented. The space would be an extension of her identity, and she wouldn’t conform to what others might believe a coffee shop should look like. 

Matryoshka often goes viral on social media because of its unconventional drinks and bright aesthetic. While the industry is shifting to allow for more creative ideas and energies, Matryoshka still stands out for its atmosphere, menu, and ability to have fun with coffee. 

What was your vision for Matryoshka?

I read a book called “Joyful: The Surprising Power of Ordinary Things to Create Extraordinary Happiness” by Ingrid Fetell Lee, and it is all about how your environment can bring joy to people. It talks a lot about things like how an expansive forest makes you feel a certain way or how circles and bubbles and colorful things can [harken feelings] like the element of surprise. 

Our shop is located in an industrial park, and it has very spooky murder vibes if you’ve never been there before. Then, when you find us, it’s fun because the space is very colorful even though it’s really tiny.

I was annoyed that so many shops used only three colors—black, white, and green—and I got tired of it. I wanted to challenge myself to do something different. 

You carried that idea of uniqueness into your drink design. Can you talk more about what’s on your menu? 

The idea behind Matryoshka is to take anybody nervous about entering a coffee shop and make them not feel that way. The concept of not taking anything seriously is the guiding principle for everything we do. My biggest annoyance in the industry is that people take everything so seriously. 

That’s why we created the gas station cappuccino. I feel like a lot of people’s introduction to coffee is that cappuccino you get from a machine at a gas station. 

The idea came to me at a trivia night with my friend. We decided to steam milk with the espresso and the syrup together. So when we make a gas station cappuccino, we put the syrup in the pitcher, pull the shot into the pitcher, dump the milk on top, and steam it all together—and it’s just so good. 

I feel like we’ve done so many stupid things! We made a peanut butter and jelly latte, an iced latte with peanut butter cold foam, strawberry milk, and espresso. We made a Baja Blast matcha (inspired by a Mountain Dew soda flavor available at Taco Bell) with our matcha and rainbow-flavored Nerds candy, which was amazing. 

We have a Dirty Dr. Pepper, which is basically an iced vanilla cappuccino topped with Dr. Pepper. We don’t have a ton of room at the shop, which means we have a small ice maker. I needed a drink that was great cold but didn’t need a ton of ice, so that’s how the drink was born.  

You not only offer creative drinks but also host many creative events—many of which aren’t coffee-related. 

Yeah! We did a pizza shop pop-up inspired by the first t-shirt I ever hired someone to design. I had seen an old-school pizza box on Pinterest, and I loved its design and look. I sent it to a friend and asked, “Can you make me this but make it for my coffee shop?” He made it happen. Then I made a joke about how I should get Costco pizza when we launched it, and then it grew from there. We spent a hundred bucks on pizza, and that was the best hundred dollars I’d ever spent on marketing.

During Pride last year, we built a float using an old jet ski. Then we made t-shirts and hats that said Marty’s Jet Ski Club. We have nothing to do with jet skis, and those shirts don’t even mention we’re a coffee shop, but that’s what makes it fun. 

We also sell Pit Viper sunglasses at the shop and got them to sponsor a throwdown. During the throwdown, we held a contest for the best car noise impersonation, and two people really fought to the death for that one. It was amazing. 

We’re doing all these things that people in the industry do, but we’re just doing them way less seriously. So many non-coffee people come to our events, and that’s what I want. I want people who’ve never experienced a coffee industry event to have fun. 

You were once a social media influencer. How do you think about creating a digital identity for Matryoshka? 

I make sure that everything I post is something I would say in real life. Sometimes I swear, and sometimes I don’t use proper grammar—I’m just not worried about it. I don’t post every day because I don’t think that people need to be inundated with the stuff that I have to say. I try to look at what I enjoy looking at while idly scrolling because that’s how people consume things on the internet.

As a media consumer, I get annoyed if you post every day. So that’s how I govern myself on the internet. Is what you’re saying unique? Does it make sense? Is it interesting? Are you delivering it in a way that is captivating to an audience, or are you just posting words? You have to be a person.

I am online quite a bit for my business, but I don’t want to feel pressure to be on there. It’s interesting to balance that because when we do post, we almost always see a direct correlation in higher sales. But at the end of the day, if I don’t want to post, I’m not going to post because I don’t think that’s healthy for me. It’s not sustainable, and it’s not interesting.

You’ve approached your shop with the mindset of what you’ve described as “mess around and find out,” which means giving yourself space to experiment, do unexpected things, and create what makes you happy. You sell drinks based on popular sodas; you sell sunglasses just for fun; you’ve sold hats that say “Queers for Oat Milk.” Do you notice other shops lightening up or being more playful and unserious with their approach to coffee?

Totally. I think we’re entering a wave where coffee is more creative, and people are trying new techniques. I went to Chicago in April for the SCA Expo and visited Dayglow Coffee, which was a life-changing experience. Their drinks are so beautiful and thoughtful.

They have two separate menus: one has regular espresso drinks, and the other has specialty drinks, almost like a cocktail menu. They’re doing crazy shit, and they’re doing it really, really well. I’m also experimenting, and experimentation and having fun is where the coffee industry is going, and I’m very grateful that I’m entering coffee right now. 

You can have a really good espresso menu, but you can also flex. Why not have fun and combine what you like to showcase your talent?

What is it like for customers who enter Matryoshka for the first time?

A lot of people, when they come to the shop for the first time, get one of our sweeter drinks—but they always try to qualify themselves [almost like they’re apologizing for wanting something sweet], and I don’t want them to feel like they need to do that.

I also don’t like entering a new space and being completely unfamiliar with the drinks on the menu and then feeling like I’m stupid for not knowing. All the people who are making drinks for me started at one point as new coffee drinkers—judging customers for their drink orders or not educating them with patience is the best way to make somebody hate the coffee industry. 

When building Matryoshka, I thought about all the times I couldn’t hold a conversation about coffee. I’ve trained my staff that we want people to feel like they can ask us questions. I think we do a good job at that. We try to demystify it all and answer questions honestly.

For example, a person might come in and order a caramel latte, and we tell them, “Yeah, go for it!” But maybe they’re like, “No, I’m just kidding. I want a cappuccino,” implying that a caramel latte is bad or makes you not a true coffee drinker. 

But homemade caramel is one of the best flavors in the world, and if you disagree with that, that’s really sad for you. We want people to know that they can have what they want. 

If you don’t want caramel, don’t order it! But don’t yuck someone else’s yum.

With 7-Eleven serving value-focused coffee across 85,000 stores globally, the proposed deal for Japan’s Seven & i Holdings would significantly bolster the Canadian convenience store group’s coffee to-go reach

7-Eleven operates 85,000 stores globally, including 23,000 in Japan and approximately 13,000 in the US | Photo credit: 7-Eleven

Canadian convenience store giant Alimentation Couche-Tard has sent a ‘friendly, non-binding proposal’ to acquire 7-Eleven owner Seven & i Holdings Co., Ltd. 

 

The proposed deal for Seven & i would see Couche-Tard acquire 7-Eleven’s 85,000 stores globally, including 23,000 in Japan and approximately 13,000 in the US. 

 

Coffee is a key part of 7-Eleven’s convenience retail offering and its acquisition would significantly boost Alimentation Couche-Tard’s value-focused hot and cold beverage reach.  

While Couche-Tard did not disclose the sum of its offer, news of the deal prompted shares of Seven & i to jump by 23% on 19 August 2024, valuing the retail conglomerate at approximately ¥5.6trn ($38bn). 

In a press release, Seven & i confirmed it had received the preliminary acquisition proposal and formed a Special Committee of the Board of Directors to review. 

Founded in the US in 1927, 7-Eleven began selling fresh-brewed coffee in the US in 1964 and holds claim to inventing the coffee to-go format with ‘coffee by the cup’. Today, 7-Eleven maintains a focus on value, with some beverages costing less than $2 for 7Rewards loyalty members.

In 2014, the convenience chain was reported to be selling more than one million cups of coffee globally every day. According to Fairtrade, 7-Eleven sold 80 million cups of coffee in Australia alone during 2022. 

In 2009, the convenience store chain further developed its food and beverage proposition with the launch of 7CAFÉ in Hong Kong, a sit-in café concept serving barista-prepared beverages and hot meals. 7CAFÉ, which serves 100% Rainforest Alliance-certified arabica coffee, is now present within 700 7-Eleven stores in Hong Kong and has also launched Malaysia and Singapore. 

In 2023, 7-Eleven rolled out self-serve bean-to-cup coffee machines across its US stores, offering customers a choice of origins, blends and decaf, milks and syrups, alongside a nitro and iced coffee range. 

Alimentation Couche-Tard operates more than 16,700 convenience, quick service and petrol station outlets in North America, Europe and Asia through its Circle K, Couche-Tard and Ingo quick-service businesses.  

Its largest business, Circle K, is one of the largest convenience brands with a coffee offer in North America, with more than 7,100 stores across the US and a further 2,100 in Canada, serving over 120 million cups of coffee annually via its bean-to-cup self-serve coffee machines.  

Couche-Tard, which will see Chief Operating Officer Alex Miller assume the CEO role in September 2023, continues to significantly invest in its coffee offer despite scrapping Circle K’s in-store beverage subscription in the US in April 2024. 

In January 2023, Circle K launched a nationwide marketing campaign in the US to ‘bust perceptions on convenience store coffee’, with consumers taking part in a blind coffee tasting giving it a ‘resounding vote of confidence’ in its products.   

Originally founded in the US, 7-Eleven launched in Japan in 1974. Japanese supermarket chain and Seven-Eleven Japan parent company Ito-Yokado acquired a 70% controlling stake in the business in 1991, before making it a wholly owned subsidiary of its newly formed Seven & i Holdings company in 2005. 

Seven & i, which also has interests in supermarkets, financial services, franchised restaurants and entertainment, posted 2023 revenues of ¥17.8trn ($127.2bn).

Latte art has become a staple of specialty coffee. Most consumers expect baristas to pour intricate, crisp designs on their milk-based beverages – and for good reason. Higher prices paid for specialty coffee means visual appeal and attention to detail are important factors in the overall customer experience. In fact, a study from the Journal of Sensory Studies found that people are often happy to pay up to 13% more for high-quality latte art.

Alongside the rise of the “home barista” and the explosive growth of the prosumer market, more and more consumers have invested in making café-quality drinks themselves. Learning to pour latte art at home can be one of the biggest challenges, but with the support of local baristas and online educational content, it’s certainly achievable with plenty of practice.

Even with all the necessary skills, however, home baristas still need to use high-quality equipment to get the best results. Traditionally, this meant buying a single-group espresso machine, which, of course, isn’t the most affordable option for most people.

To cater to growing demand, new technology is helping consumers create high-contrast latte art designs at home. Jamie Wang, Senior Product Manager at DREO, and Anthony Douglas, 2022 World Barista Champion and Head of Research & Development at Axil Coffee Roasters, provide their insight.

You may also like our article on which milk is best for latte art.

Why latte art is now the norm

Over the past two decades, latte art has become one of the most recognisable symbols of specialty coffee culture. Carefully-crafted hearts, tulips, florettes, or swans (or sometimes more complex patterns) on top of milk-based drinks are considered an essential part of the specialty coffee shop experience.

Baristas spend months learning the necessary skills to pour latte art, which starts with properly steaming milk. When the steam wand is placed at the optimal angle and depth under the surface of the milk, proteins and fats work together to trap small air bubbles within the liquid, which we refer to as microfoam. 

The next step is then pouring the steamed milk into espresso to create latte art, which is a skill that can take months to master. The hallmark of high-quality latte art includes:

• Symmetrical designs that cover at least three-quarters of the surface of the drink
• High colour contrast between espresso and milk
• Crisp, clean, and well-defined lines

One of the reasons that latte art is so appealing to both consumers and café owners is that it easily conveys the level of precision and care that baristas invest into their job roles. Moreover, many baristas enjoy pouring a wide range of latte art patterns to hone their skills even further.

Latte art at home: An ongoing trend

Following forced business closures during the pandemic, more and more consumers started to make coffee at home. To replicate café-quality drinks, many invested in online courses and educational content to improve their brewing techniques and latte art skills.

Anthony Douglas is the 2022 World Barista Champion and the Head of Research & Development at Axil Coffee Roasters in Melbourne, Australia. He emphasises how latte art is often considered “one of the more fun” aspects of coffee preparation for home baristas, which only adds to its popularity.

“You can see just how much your skills improve, and for a lot of people, a visually-pleasing coffee is a sign of quality,” he says.

The proliferation of latte art pictures and videos on social media platforms (notably Instagram and TikTok) has helped to drive this trend, too. Research from Foresight Factory shows the number of “photogenic” coffee posts on Instagram has increased by 4,500% since 2015, and a significant number of these feature the #latteart hashtag.

But affordability can be a barrier

Acquiring the necessary skills to pour latte art is certainly important, but these efforts are in vain if home baristas don’t invest in high-quality equipment.

Traditionally, handheld electronic whisks were the only option for consumers to froth milk at home. In addition to the French press trick, however, they often result in foam that is too dry and stiff.

Jamie Wang is the Senior Product Manager at DREO – a smart appliance manufacturer. He explains why it’s so important to achieve the right foam consistency when pouring latte art.

“When mixed with espresso, microfoam should integrate seamlessly to create a uniform texture and flavour profile throughout the drink, as opposed to traditional foam which can be overly airy and separates easily from the coffee,” he says. “The smooth texture of microfoam provides a silky mouthfeel that coats the palate and enhances the overall drinking experience.”

The high pressure produced by espresso machines means using a steam wand results in optimal levels of microfoam. While there is a growing number of single-group machines available on the market, most come with a high price tag that isn’t affordable to many home baristas.

What’s more, some home machines (particularly bean-to-cup systems) have smaller or fewer boilers. In turn, they can take significantly longer to steam milk, and don’t usually perform to the same standard as their more expensive counterparts.

“For most coffee enthusiasts, savouring a barista-quality cup at home is one of the biggest highlights of their day,” Jamie says. “As the coffee industry evolves, systems like capsule machines and fully-automatic coffee brewers have made it easier for more people to prepare high-quality coffee at home.

“However, for those who prefer milk in their coffee, there are very few lower price-point home-use products which produce silky microfoam without requiring expert foaming skills,” he adds.

How new innovation is making latte art more accessible

As part of the push to improve quality standards in both coffee shops and at home, more and more equipment manufacturers are developing new and innovative products to reach a wider range of people.

“For a lot of consumers and home baristas, the quality of microfoam can make or break milk-based drinks,” Anthony tells me. “Solutions that are accessible and affordable like the DREO BaristaMaker Milk Frother can minimise inconsistencies and improve the at-home coffee experience.

“The BaristaMaker Milk Frother also doesn’t dilute milk with water like a steam wand, which maximises sweetness and enhances mouthfeel,” he adds. “From my experience, as long as you choose the right settings, it will consistently produce the results you need.”

To replicate barista-level latte art, these products need to be designed with the science behind milk foaming in mind, as Jamie explains.

“We worked with a dedicated team of food scientists to focus on protein and fat contents, as well as temperature,” he says. “As temperature increases from 38°C to 55°C (or 100°F to 130°F), proteins start to denature and interact with air bubbles to provide initial stability. 

“At this stage, the patented impeller tip – which also includes a stainless steel mesh screen designed to break up air bubbles into sizes smaller than 0.5mm – introduces air into the liquid,” he adds.

Incorporating the right amount of air at the optimal temperature range, however, is key to producing the best microfoam.

“Proteins are optimally denatured within 55°C to 65°C (130°F to 150°F), which means they can stabilise air bubbles to create a dense, creamy microfoam,” Jamie says. “At around 60°C (140°F), the impeller tip reduces its rotation speed to stop aeration and break up bubbles.”

Accounting for different consumer needs

With the surge in popularity of plant milks over the past decade or so, it’s become more common for consumers to order dairy alternatives in their milk-based drinks. According to data from World Coffee Portal, over 28% of customers at UK branded coffee shops ordered oat milk – which makes it the most popular plant milk in the country.

To accommodate for different protein-to-fat ratios, baristas use different steaming and pouring techniques to create high-quality latte art with a range of plant milks. For example, as oat milk has a low protein content, it usually needs to be steamed for a longer period of time than cow’s milk to create stable microfoam.

“Without sufficient protein to act as a stabilising agent, microfoam tends to disintegrate more quickly, which leads to suboptimal beverage texture and appearance,” Jamie explains. “To address this, the DREO BaristaMaker Milk Frother includes customisable programmes that take the specific protein structure and content of different plant milks into account. 

“By adjusting parameters such as temperature and agitation speed, we can compensate for lower protein contents and improve microfoam stability,” he adds.

In addition to using a wider variety of milks, more and more consumers want to prepare a more diverse range of drinks at home – which means adding different amounts of microfoam.

“For multiple layers of foam, our algorithm can control the speed and duration of aeration and heating, which creates different textures suitable for different beverages, including flat whites and cappuccinos,” Jamie says.

Getting the best results with latte art at home

Pouring café-quality latte art at home requires practice, patience, and dedication. On top of using high-quality milk and investing in the right equipment, Anthony shares his best tips.

“You need to keep your milk integrated right up until you pour,” he says. “As milk sits, the foam is constantly separating from the liquid, so if you don’t fully incorporate them, the foam will stay behind in the jug when you pour – compromising the texture and appearance of your drink.”

To avoid this issue, baristas “polish” steamed milk by gently tapping and swirling the pitcher for a few seconds, which also creates a glossy finish to the milk.

“Integrate the milk by swirling the jug until the foam and milk are fully combined,” he adds. “This means that when you pour the milk, you will be able to create latte art.”

More and more consumers want to pour café-quality latte art at home, and now more than ever, an espresso machine isn’t a necessity. As manufacturers continue to innovate, home baristas and coffee enthusiasts can more easily create excellent latte art designs.

For the wider industry, this comes with a number of benefits. Ultimately, it allows consumers to become more skilled and knowledgeable, and helps to make specialty coffee more accessible.

Enjoyed this? Then read our article on the history of latte art.

Photo credits: DREO

Perfect Daily Grind

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

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A Chinese company called Linkbar is quickly gaining steam on Asian markets with its first two commercial products, both geared for commercial cafes. 

One is a steam-free milk frothing and dispenser called Double Favor and the other is a countertop dispensing system called Single Touch. 

Linkbar has recently engaged with brand ambassadors in numerous international markets and expects United States availability of both the flagship products soon. 

Double Favor

The Double Favor system heats and froths without steam while allowing baristas to program the temperature and consistency of milk.

The steam-free system dodges incidental dilution with water for what the company claims is a creamier, more full-bodied milk.

The system works with plant-based and dairy milks and can be installed on mobile coffee counters. Pricing for the United States has not yet been determined, while the retail price for Double Favor in China is CNY 36,800 (approximately $5,150 as of this writing).

Single Touch

Products within the Single Touch series require permanent installation into a stationary countertop. They include the Single Touch Milk (ST-Milk), Single Touch Coffee (ST-Coffee) and Single Touch Tea (ST-Tea).

Linkbar Single Touch units.

The ST-Coffee dispenses brewed coffee from an under-counter container. The system can heat and maintain temperatures set by the barista but does not brew the coffee.

Overseas, both the ST-Coffee and ST-Tea are sold for CNY 40,000 ($5,600); the ST-Milk goes for CNY 43,000 ($6,020).

Linkbar owner Bo He co-founded the company with YiWei Yuan in Hefei, Anhui Province, China, where the production facilities are also located.

With eyes on international markets, the company has partnered with renowned baristas Joe Yang from the United States and Liang Fan from China as brand ambassadors.

Fan is the 2023 World Latte Art Champion from China. Portland, Oregon-based Yang’s many professional accolades include the 2023 U.S. Brewers Cup Championship and the 2024 U.S. Latte Art Championship.

“Linkbar will continue to focus on innovating and developing coffee equipment, and may soon begin to concentrate on coffee grinding and extraction technologies,” Louise Law, brand marketing and sales manager for Linkbar, told Daily Coffee News. “The core concept of Linkbar is straightforward: We aim to connect various bar equipment in an interesting way, to cater to the needs of diverse coffee and tea beverage scenarios.”

Comments? Questions? News to share? Contact DCN’s editors here.