Sweetener solutions satisfy consumer tastes

Known for leading the successful campaign for India’s independence from British rule and inspiring movements for civil rights and freedom across the world, Mahātmā Gandhi is quoted for saying, “Action expresses priorities.”

Likewise, when it comes to trends influencing the beverage market, consumers’ preferences for various sweeteners is being expressed through their drink purchases.

“There is a notable inclination toward natural sweeteners rather than synthetic alternatives,” says Linnea Halter, marketing coordinator at Global Organics, Cambridge, Mass. “In addition to cane sugar, consumers are choosing organic sweeteners including honey, agave syrup and coconut nectar. These sweeteners typically have lower glycemic indices than standard white sugar and are more nutrient-rich.”

Amber McKinzie, product marketing manager for sugar reduction at Cargill, Minneapolis, notes that sugar remains the most scrutinized sweetener, but artificial sweeteners aren’t far behind.

“Shoppers rank promises of ‘no artificial sweeteners’ among the most influential on purchase decisions but claims around sugar content — including ‘no added sugar,’ ‘reduced sugar’ and ‘sugar-free’ — also carry weight with large numbers of shoppers,” she says, citing 2024 Cargill proprietary consumer research.

“Most importantly, consumers are following through with actions,” McKinzie continues. “Innova’s database of product launches finds significant sales growth associated with many of the same sweetener-related claims. Beverages positioned as ‘low sugar’ delivered a double-digit 11% CAGR from 2019-2024, while sales for drinks with a ‘sugar-free’ claim posted an even more impressive 18% CAGR over the same period.”

Thom King, chief innovations officer at Icon Foods, Portland, Ore., says that sugar reduction remains a “massive” trend impacting consumer behaviors.

“People want less sugar in their beverages and they also want a clean label. Less sugar, no aspartame, no sucralose — and they want it to taste great,” he explains.

“As far as trends that influence the sweeteners market, gut health continues to be a priority to consumers,” King continues. “Prebiotic fibers support gut health and pair brilliantly with high-intensity sweeteners because of their characteristics that coat the tongue and allow for sweeteners to work their way across the palate, giving it the full sensory effect.”

Janae Kuc-Langford, marketing manager of beverage and nutrition categories at Ingredion, Westchester, Ill., points to health and wellness macro trends as reshaping the sweeteners market as consumers seek better-for-you options.

“According to an Ingredion proprietary sugar reduction study, 79% of U.S. consumers believe limiting sugar is important for their health,” she says. “Our Ingredion proprietary ATLAS research further reveals that 68% of consumers consider sugar-free claims important across food and beverage categories in North America.”

Crafted with real black tea, almond milk, and a touch of cinnamon and cane sugar, Califia Farm’s Chai Almond Latte is made with simple plant-based ingredients, is dairy-free, soy-free and gluten-free. Image courtesy Califia Farms

A variety of solutions

As consumers’ views of sweeteners have shifted in recent years, experts highlight how beverage manufacturers are turning to a variety of sweeteners in new product development.

Global Organics’ Halter explains how beverage-makers are choosing natural sweeteners to fit into clean label trends.

“Coconut nectar, prized for its low glycemic index and unique caramel flavor, is a favored option as it adds sweetness while enhancing taste, making it ideal for smoothies, energy drinks and flavored waters,” she says. “Agave syrup is another natural sweetener that is gaining popularity. With a low glycemic index and a neutral, sweet flavor profile … it is a versatile choice for reducing sugar in popular applications such as cocktails, teas and flavored drinks.

“Additionally, there is a growing trend of using agave inulin, a blend of agave inulin and sweet agave powder, for its sweetening properties and functional benefits that support gut health, making it suitable for functional beverages like fiber drinks and smoothies,” Halter continues.

Ihab Bishay, senior director of sweeteners at Itasca, Ill.-based Ajinomoto Health & Nutrition North America Inc., highlights how research and development teams are working to find diverse solutions that meet consumer demands for lower sugar content without compromising taste.

“Beverage manufacturers are using more and more sweeteners like aspartame and monk fruit to reduce sugar while preserving its sweet flavor,” Bishay says. “Taste and texture continue to be the major challenges associated with sugar reduction, which is creating white space for technological innovation, addressing this with upcycling, functional ingredients and fermentation.”

Cargill’s McKinzie points to stevia-based solutions as being featured prominently in beverage products, thanks to its sweet taste, zero-calories and artificial-free status.

“Today, Cargill’s sugar-reduction toolkit includes Truvia and ViaTech stevia leaf extracts, as well as fermentation-derived EverSweet stevia sweetener,” McKinzie says. “Thanks to its high sweetness, potency and clean taste, a small amount of EverSweet goes a long way in beverage formulations.

“With EverSweet, you get a cleaner, sweeter taste, with more upfront sweetness and less sweetness linger,” she continues. “Compare it to a Reb A-based stevia product, and the difference in off-notes and sweetness perception is night and day.”

McKinzie adds that erythritol is another key ingredient being used in many reduced-sugar beverage formulations.

“It pairs well with stevia and is used in many high-performing beverages,” she explains. “A combination of Truvia and Zerose erythritol may provide plenty of sweetening power for modest sugar reductions. For deeper sugar reductions, ViaTech or EverSweet may be a better choice, and for the most challenging formulations, our most advanced sweetener system, EverSweet stevia sweetener + ClearFlo natural flavor, is a game-changer.”

Icon Food’s King, notes that, in addition to organic Reb M stevia, there’s a growing interest in novel, protein-based sweeteners like thaumatin.

“We’re seeing more news about it and more major brands taking a look at using these clean label, plant-based protein sweeteners,” King explains. “Thaumatin is derived from the katemfe fruit and works best at very low inclusion levels of less than 0.05% as it is 2,000 to 5,000 times sweeter than sugar.

“Used in a small amount, it works as a natural sweetness modifier that boosts stevia and other high-intensity sweeteners to create a lingering sweet effect, allowing manufacturers to adjust the sweetness curve for the perfect flavor,” he continues. “I think we’ll start seeing more of these novel, protein-, plant-based sweeteners like thaumatin.”

King also anticipates the proliferation of allulose-based beverages as the industry moves closer to approving the sweetener in the EU. “I think once approved in the EU, Canada and Whole Foods, the market will catch up in adopting allulose as it’s a very functional sweetener that hasn’t gotten enough credit yet,” he says.

Crafted with USDA Certified Organic flavors and extracts, free from calories and artificial sweeteners, Nixie Organic Zero Sugar Sodas recently launched in Classic Cola, Root Beer and Ginger Ale flavors. Image courtesy Nixie

Mixing and mingling

As beverage-makers continue to develop sweetness profiles that cater to consumer preferences for healthier, natural and low calorie options, experts highlight how sweetener blending is being used in formulations.

Icon Food’s King explains that blending is essential to beverage formulations.

“It’s rare to find a new carbonated soft drink that just uses a single sweetener input because the taste experience is so different from what consumers expect with a full sugar beverage,” he says. “Often beverages that only use a single sweetener like stevia or monk fruit have a thin mouthfeel where the taste experience evaporates almost immediately. You drink it and it’s gone.

“Using fibers to extend the taste helps a lot, but fibers do more than just improve mouthfeel, they also aid in flavor conduction to make sure that sweetness is carried through the entire consumption of the beverage,” King continues.

Global Organics’ Halter also notes that sweetener blending can improve mouthfeel, especially in beverages that require a creamy or smooth consistency.

“Some sweeteners can alter the viscosity of a beverage,” she explains. “For example, combining agave syrup with sugar can enhance the thickness and body of syrups and smoothies.”

Halter adds that certain sweeteners have preservative properties, helping to extend shelf life.

“Blends can maintain flavor stability over time, which is crucial for bottled beverages,” she says. “Some sweeteners can help stabilize the pH of a beverage, which is important for maintaining taste and preventing spoilage.

“Blending also allows manufacturers to cater to health-conscious consumers by creating beverages that are labeled as ‘low-calorie’ or ‘naturally sweetened,’ which can enhance marketability,” Halter continues.

Cargill’s McKinzie says that, to attain higher levels of sugar reduction, sweetener blending is almost required.

“Erythritol, for example, boosts stevia’s up-front sweetness, rounds out its sweetness profile, and helps build back mouthfeel, without adding to the calorie load,” she explains. “As a further bonus, in the U.S., when used as a flavor modifier at an inclusion level of 2.5% or lower, erythritol may appear on ingredient statements as ‘natural flavor.’”

Ajinomoto’s Bishay highlights how combining different sweeteners allows the formulator to get closer to the overall taste profile of sugar.

“By combining different sweeteners, manufacturers can mask any unpleasant aftertastes and mimic the taste of sugar,” he explains. “Flavor scientists carefully stack different high-potency sweeteners to balance and mask any off-notes or aftertastes characteristic of any one sweetener. This technique helps keep product labels as ‘clean’ as possible while reducing sugar content and meeting consumer expectations for taste and texture.”

Flavor scientists carefully stack different high-potency sweeteners to balance and mask any off-notes or aftertastes characteristic of any one sweetener. This technique helps keep product labels as ‘clean’ as possible while reducing sugar content and meeting consumer expectations for taste and texture.

A sweeter future

Although taste determines the success of any product, experts anticipate that factors including sugar and calorie reduction, as well as clean label trends will continue to influence the sweetener market going forward.

Icon Food’s King expects that sweetener blends will continue to be the preferred choice for beverage manufacturers.

“Not only are they formulated to replicate the taste and mouthfeel consumers expect from sugar, they offer cost advantages as well as reducing the margin for error,” King says. “By adding one sweetening system instead of separate ingredients, it can provide greater consistency in your product and mitigate risk.”

Ajinomoto’s Bishay predicts that growing health and wellness trends will only further impact the market.

“Consumers are increasingly interested in the ingredients of the products they consume, and as the desire to reduce sugar intake grows, so does the demand for better-tasting, better-for-you options,” he explains. “Consumers are also looking to reduce sugar for long-term health versus just weight loss. This entails a holistic focus on immune health, digestive health, gut health, and more which is why functional sweeteners are gaining consumer excitement.”

Cargill’s McKinzie notes that another trend to watch out for centers on sustainability.

“Many beverage manufacturers have set bold sustainability goals around water, land use and carbon emissions,” she explains. “Ingredient sourcing will play a major role in their ability to meet those targets.”

Johnny Salazar, category manager for agave, honey and date syrup at Global Organics, lists several factors that he believes will hold major influence on the sweetener market going forward.

Looking ahead, Salazar anticipates that “consumer preferences in which health needs and diets will become a priority.” Meanwhile, technological advancements will help reduce aftertaste and enhance functionality in formulations, he says.

Other influencers include economic factors that “will spin off in costs of raw material and supply chain stability, sustainability and environmental concerns, such as water usage, land use and overall carbon footprint,” Salazer says.

“These factors will influence how sweeteners are developed and consumed in the coming years,” he concludes.



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Posted on Categories Alcohol

Suntory talks trends and innovation in travel retail

Suntory Global Spirits, the owner of brands including Jim Beam Bourbon, Laphroaig Scotch and Yamazaki Japanese whisky, has been “investing heavily” in global travel retail (GTR) as it looks to capitalise on the post-pandemic recovery in global travellers.

Ashish Gandham, the managing director of the company’s GTR business, sat down with Just Drinks to discuss trends in the channel, the differences with domestic retail shoppers and why ‘premiumisation’ can be a troublesome term to throw around.

Henry Mathieu (HM): How has Suntory’s travel-retail business fared since the pandemic?

Ashish Gandham (AG): For the category as such, the anticipation was there that by 2024, travel retail as a category for all industries, especially alco-bev, will be back by 2024 at the same levels that it was pre-pandemic.

That includes passengers back at the same levels, their spending will be back, and so on and so forth, so overall value as well. What we’ve seen is passengers are back to at a higher level compared to pre-pandemic. Some pockets are leading the growth, some pockets are slightly lagging behind due to mix of nationalities that are travelling or not travelling. Overall, the channel and the category has recovered. 2023 and early 2024, all indications that the category is back and has surpassed pre-pandemic levels pretty much everywhere.

HM: Would you say the category is fully beyond the Covid hangover then?

AG: Would we say that the Chinese travellers are back in the same numbers? Maybe not. There are some ups and downs. However, if you include Hainan as part of the travel-retail space that was created during the pandemic and has continued to add a certain value, that’s one.

Indians, as a nationality, are travelling more than they used to. They’re covering up some of the gaps we have from the Chinese nationality and other travellers, as well as their spend. Some of the other nationalities in Asia like the Vietnamese are spending a lot more than they would have initially and they’re travelling more so the natural growth of certain emerging markets and their nationalities has helped compensate some of the others.

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Also, post-pandemic, there was a natural trend where people started travelling more than what they would have and what we saw was almost like revenge travel that started. Even today, for example, airlines are at capacity and adding capacity. There are more orders in terms of backlogs, in terms of plane orders. If you look at it, a couple of new players have emerged in the airlines industry.

There are certain nuances where, in the initial phase of recovery, we saw average basket spend go up significantly. Penetration was high, footfalls were high, conversion was high and average basket spend too, so the quality of passengers was higher. Those were the first ones to travel, the affluent or business travellers got onto planes first, and hence their propensity to spend was higher and that was reflected. Over time that has plateaued, or in some locations that has started going backwards, back to pre-pandemic levels. So, when I say the category has come back at an overall level, value-wise, when I speak to most of my customers, everybody tells me that their retail sales value is higher than pre-pandemic.

HM: Have some of these numbers fallen off more recently?

AG: Now, what they’re saying is, in the last six months, penetration numbers have started dropping. That means fewer people are walking into the store. Airports are busier and they have more passengers but not everybody is walking into the store. As soon as the quality of passenger has dropped, penetration numbers have started dropping.

Conversion is up still but the average basket spend has dropped as well, so there are ups and downs in the algorithm, but overall, it is still a positive sign for the industry.

HM: What effect has the partial return of Chinese travellers had on the GTR market in the last year or so?

AG: At an overall level, there is some impact. It is not as big as to impact the overall category negatively. There are other nationalities that have helped, or the absolute percentage spending of certain nationalities going up has helped, but in pockets, like, for example, Singapore or Thailand, in those locations, the number of Chinese travellers, if they are down, the impact on those particular locations has been significantly higher.

Overall, the number of Chinese travellers hasn’t yet hit pre-pandemic levels across all locations. Hainan became a viable source of duty-free products for the Chinese through the pandemic. If you look at the pyramid, initially, the Chinese [who were travelling] outside China to get luxury products, duty-free products, were getting the same thing available in Hainan.

Ashish Gandham, MD of global travel retail at Suntory Global Spirits
Ashish Gandham, MD of global travel retail at Suntory Global Spirits

Now the expectation was, as travel opens up, you will still see at the top of the pyramid that the more affluent travellers and consumers still travel abroad. We started seeing that, whether they were travelling to Japan because the Yen has weakened, or they were still travelling to the usual destinations, transiting in Dubai, going to Paris, London, etc.

We started seeing that the bulk of the travellers were split. Some were still going to Hainan and then the macroeconomic situation in China meant that curve did not continue long enough for a full recovery of the Chinese traveller in terms of pure tax numbers. Even if they are travelling now, the macroeconomic situation back home is also impacting their spending patterns. A Chinese traveller typically bought a slightly more elevated offering, whether it was in from another state or an exclusive so that spending has slowed down. Even if they are travelling, they are not spending at the same level.

HM: Is ‘premiumisation’ still a key aspect of Suntory’s strategy despite the presence of more less affluent travellers?

AG: Normally what premiumisation would mean is people talking about pricing and taking price on existing core products. In 2021 and 2022, as the category was bouncing back post-pandemic, we saw there was more demand than supply. There was also COGS (cost of goods sold) inflation, so combining those two factors, the natural tendency was to take price. A lot of categories saw pricing accelerate. If that is the paradigm of premiumisation, I think that will be tempered for sure.

The overall trend of premiumisation, however, will continue in a different way. Firstly, travel-retail shoppers still expect deeper, richer experiences. They are in a slightly more exploratory and elevated state. Compared to the domestic market, consumers or shoppers tend to spend a bit more in travel retail. That is a great tenet to hold on to. If we can convince them that this product is great value for money – and when I say value for money, it does not mean a discount but value for money for what they are paying, getting the requisite value from an emotional perspective – then they will continue to upgrade versus domestic. That premiumisation trend will continue.

HM: Is that a distinguishing feature between GTR customers and domestic retail consumers generally?

Ashish Gandham: What happens typically [in] traditional off-trade in domestic markets, you are either in a ‘stock-up’ mode or you have an immediate need. In that space, what a consumer does is buy a regular product that they drink every day for stocking up, or something that they can share with their friends.

Cut to travel retail, the occasions that consumers and shoppers tell us they are looking for, as they are travelling, is gifting for business stakeholders or family members, or for themselves. That would mean you’re trying to pick up something that is not your regular stuff and that means you’re spending higher.

HM: When do you estimate volume sales will return to pre-pandemic levels?

AG: I think this year will be an inflection point. In the last six months, the situation has changed dramatically. Two or three factors have contributed. We are still seeing passenger growth and I talked about how fewer people are walking into the store but they’re also looking at different things and macroeconomic situations indicate consumers will start looking at value for money in a different way. They’re also trying to maximise their allowances so a greater percentage of people will continue to buy regular products but at a slightly valued discount compared to domestic markets.

A bottle of Laphroaig whisky, part of the Suntory Global Spirits portfolio. Credit: Suntory Global Spirits

Also, supply situations have eased. That means the demand and supply dynamic has shifted. That has also been exacerbated by domestic markets, where some of the domestic markets are seeing consumption slow down. All of that has meant there is more stock available, there is more product available, there are promotions and offers back on the shelf. Brands which are getting the balance right between those promotions and the demand will start to see more traction.

I would assume that by 2024 end, you will see volumes back to pre-pandemic level but the volume-to-value mix for this year particularly will be different. Overall, by the end of 2024, the category size versus pre-pandemic is still expected to be a lot higher but the volume will be back.

HM: What is Suntory Global Spirits’ innovation strategy for GTR?

AG: We are relatively young in this space, in travel retail. If you think about it, globally, before the Courvoisier divestiture, we were number three in the world in travel retail. When we started, let’s say 2019, we were number seven coming out of the pandemic. We recovered faster, getting up to number six. Our recovery in this channel has been faster because we have historically had more headroom to grow. We also realised this is a channel which lends beautifully to what we want to do as a company.

If you look at what our CEO says, we want to be the most admired premium spirits company in the world. The way we will do this is by bringing quality product but also creating rich experiences and, when you talk about product and experiences together, innovation needs to sit at the heart of it. In travel retail, why we’ve grown faster is because we’ve started investing in travel retail more than what we have historically for us. Travel retail is a brand-building channel. We will look to grow the scale of our presence in travel retail and it will be an exemplification of the Suntory Global Spirits strategy, which is about getting quality products, innovative products and to deliver rich experiences in this channel.

HM: What products and brands are you looking to prioritise?

AG: Innovation will remain crucial at both product and experience level and we will continue to invest in this channel at a category and product level. With Courvoisier being divested out of, we are a whisk(e)y company. We understand whisk(e)y better than most other competitors.

In terms of whisk(e)y, we want to make sure that we lead the way when it comes to what kind of innovations consumers are looking for. A lot of consumers are still in an explorative state in terms of whisk(e)y, what kind of whisk(e)y they like, and constantly their repertoire is widening. They’re constantly trying different products. For us, owning the innovation space within the whisk(e)y category is going to be crucial. We will look at all price brackets, give authentic products that have provenance, whether it is an American whiskey or a Japanese whisky but, across price ladders, we will be able to bring those innovations and that will be one of the key focus areas for us.

HM: How have you been dealing with volatile supply costs and inflationary pressures?

AG: I would say supply logistics is going to be a facet of business that we will need to get better at managing. That’s going to be a reality. It’s not constrained to alco-bev, it’s across the board. What that would mean is there are certain decisions that we’ll make in terms of what kind of product and what kind of pricing we are able to afford for our products when we make it available to our consumers.

A bottle from Suntory Global Spirits’ Maker’s Mark Wood Finishing Series. Credit: Suntory Global Spirits

I think overall, post-pandemic, we saw logistics costs go up dramatically. We also saw inflation was at an all-time high and hence input costs in terms of raw material were also high. Have we seen that flatten a bit? Yes. I think every company will agree. Have they gone away completely? No, there is still inflation and there are still challenges. You still see port congestions, demand outstripping supply in terms of containers, etc. There are still going to be some inflationary costs that we need to manage and that’s going to be business imperative to manage over time.

HM: Are these the biggest challenges that you’re likely to face over the next 18 months or so?

AG: If we look at our industry as alco-bev and within travel retail as well, the biggest element that we need to really focus on is driving consumption. We need to get to the heart of what is the consumer expecting [and] what is the sweet spot of what they’re willing to pay for a certain product.

We need to get closer to understanding their data and their insights. The top two or three customers that we have, people who’ve been in the industry, we met during TFWA (Tax Free World Association) in Singapore, and the single biggest thing we said that we aren’t doing very well, in spite of all the technological advances, is using data effectively.

We take a look at data at a certain level but we are not looking at consumer data and consumer insights effectively. The biggest thing to be done is understand what consumers are looking for, getting deeper in those insights, getting closer to the consumer, so that we can offer the best possible product at the best possible price.






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Coffee News Club: Week of September 3rd

Does your morning coffee glow? It might be microplastics. Plus, someone in New Mexico really doesn’t like Starbucks, and big companies are expanding their coffee buying beyond Brazil and Vietnam.

‘The World’s Coffee Mostly Comes From Two Countries. That’s a Problem’ – via Bloomberg

Nearly half of all coffee grown worldwide comes from either Brazil or Vietnam and when bad weather hits both countries simultaneously—which happened this year—coffee prices skyrocket. Due partially to unpredictable weather patterns, robusta futures reached their highest peak since the 1970s, while arabica prices increased 30% in 2024.

As the impact of climate change worsens, relying on just two countries to produce more than half the world’s coffee is risky. Many coffee multinationals are turning to smaller producing countries to hedge their bets, according to Ilena Peng and Tarso Veloso reporting for Bloomberg.

Starbucks is financing loans to producers in Rwanda, Peru, and Tanzania; green trader Volcafe raised $60 million to expand its operations in East Africa; and Nespresso and Lavazza have programs to revive production in countries where coffee farming once thrived but has since declined like Cuba, the Democratic Republic of Congo, Zimbabwe, and more. Illy, meanwhile, has restarted purchasing coffee from African countries from where it used to source, as well as “expanding procurement from current suppliers outside Brazil and Vietnam.”

“There is an urgency now, because this year proves that the impact of climate change cannot be underestimated,” Andrea Illy, CEO of Illycaffe, told Bloomberg. “It is starting to change the market itself.”

Although specialty coffee drinkers have likely had coffees from many of the countries listed above, larger brands tend to source most of their coffee catalogs from Brazil and Vietnam. Big brands might also feel the pressure to compete with specialty coffee: According to the National Coffee Association, almost half of all American adults now drink specialty coffee daily.

The shift away from Brazil and Vietnam benefits producers in countries like Honduras, many of whom have increased their production to meet demand. However, despite the boom, Bloomberg reports that farmers in Honduras are dealing with higher production costs and lower profit margins. 

In other countries, price increases have led farmers to focus on specialty “because it is deemed much more profitable to the farmers in general,” said Praewa Boonyawan, a coffee producer in Thailand. “There is certainly a higher demand on the consumer side.”

Read the full story here.

‘The Coffee Farmer Thriving Index Says ‘Listen to the Farmers” – via Daily Coffee News

Farmers in Rwanda and Uganda are struggling, according to a report from the social impact assessment company 60 Decibels. 

In partnership with the Irish nonprofit Small Foundation, 60 Decibels conducted phone interviews with thousands of coffee producers in Uganda and Rwanda to produce the Coffee Farmer Thriving Index. This new report, the company says, offers a “standardized and holistic measure of farmer wellbeing.”

More than a third of the Ugandan producers reported they made no profit the previous year, while 21% lost money. The report states that farmers “are vulnerable to market fluctuations and climate conditions, which makes harvest seasons unpredictable.”

Other key takeaways include:

  • Nearly a third of Ugandan coffee farmers are “food stressed,” which the  Integrated Food Security Phase Classification defines as “households have minimally adequate food consumption but are unable to afford some essential non-food expenditures.”
  • Forty-six percent of Ugandan farmers reported they couldn’t save any money in the past year, saying they would find it challenging to get emergency funds.
  • Just 19% of respondents had reliable access to agricultural extension services like education or training programs and reported having even lower access to other essential services like credit (11%) and insurance (2%). Farmers associated with a cooperative had more access to such services than independent farmers.

The report’s authors note that even within one country like Uganda, farmers have myriad different experiences and circumstances, and any conclusions or recommendations must be seen with that context in mind. “Therefore, we have no universal recommendation to improve farmer wellbeing beyond this: listen to the farmers. They know if they are thriving or barely surviving, and they know what they need.”

Read the full story here.

‘Starbucks to Charbucks: Taos Chafes at Coffee Chain’ – via Reuters

When residents wish to object to a new corporate development in their small town, they have a few choices: organize a petition, threaten a boycott, or protest. Or, for one (or many) anonymous residents of Taos, New Mexico, there seems to be another option: arson.

A development site for a new Starbucks in the New Mexico town has been attacked twice, with both incidents determined to be arson, or intentionally setting a fire. The events led locals to nickname the project “Charbucks.” 

The development would be the first drive-thru Starbucks in Taos, a mountain town with a history of militant opposition to corporate chains. As Andrew Hay reported for Reuters: “From the 1680 Indigenous Pueblo Revolt against Spanish settlement, to the 1847 Taos Revolt against U.S. occupation and more recently an arson attack on a development tycoon and opposition to a billionaire’s ski resort development, Taos locals have resisted outside forces.”

The town, known for its art and ski scenes and the Taos Pueblo UNESCO World Heritage Site, has experienced an influx of remote workers since 2020, widening the area’s social inequalities. The Taos town council supported the new development because it would bring jobs and tax revenue. 

However, opening a new Starbucks wouldn’t help solve a critical housing issue, said coffee shop owner Andrea Mayer. “People are showing up saying ‘I’d love to work here, I can’t afford to live here,’” Meyer said.

Police told Reuters they believed they knew the culprit (or culprits) but lacked the evidence needed to make an arrest.

Locals believe the attacks are rooted in trying to deter the brand from building a new location but are divided on the extreme tactic. “We don’t know who did it, but we loved it,” Todd Lazar, a holistic healer, told Reuters. Others, like Pablo Flores, who owns a specialty coffee roaster in town, are more circumspect. “Taos is changing and if you don’t like the way it’s changing, do not support that business,” he said. However, “Don’t burn it down, that’s not cool.”

Read the full story here.

More News

Coffee Traders Rush to Ship Beans Ahead of EU Deforestation Law‘ – via Bloomberg

Colorado Specialty Coffee Company Files for Chapter 11 Bankruptcy‘ – via Daily Coffee News

City Recycles More Than 2.3 Million Coffee Pods’ – via BBC News

Soaring Coffee Prices Force Roasters to Add Lower-cost Beans to Blends’ – via Financial Times

New ICE Platform to Trace Cocoa, Coffee Deforestation From Space‘ – via Bloomberg

Attention All Roasters, Read the Business of Roasting Report’ – via Daily Coffee News

Ethiopia Faces Market Losses Due to Ban on Coffee Exports to Producing Countries’ – via Capital

Coffee Growers Association Campaigns to Protect Authenticity of the Cerrado Mineiro Origin‘ – via Tea & Coffee Trade Journal

Is Coffee Good For You?

In past issues of the newsletter, we told you there could be microplastics in your coffee, leaching out from disposable coffee cups. A study from 2022 found that drinking a single cup of to-go coffee every week could cause you to consume 90,000 microplastic particles every year.

Microplastics testing equipment is usually expensive and cumbersome, but researchers at the University of British Columbia have built a portable, affordable device to let you check what’s in your morning coffee, according to Darryl Greer for the Toronto Star.

The 3D-printed device allows users to test liquid samples: any microplastics will glow! The device also will run an algorithm to analyze and calculate the number of microplastics in the sample. Results are then sent to a smartphone. 

According to creator Tianxi Yang, an assistant professor in the faculty of land and food systems, the goal is to raise awareness of microplastics in their everyday life. “I think the micro and nanoplastics detection is very meaningful because it allows people to realize how much micro and nanoplastics they’re being exposed to, even though they may not notice,” Yang told the Toronto Star.

The dangers of microplastics to human health are still being researched, and scientists are wary of linking them to specific diseases. However, microplastics have been shown to damage human cells, can breach the blood-brain barrier, and have been found in our arteries and our lungs.

Beyond the Headlines

‘The Human Cost of Coffee: Rescuing Slave Workers in Brazil’s Farms’ by Joana Moncau and Rodrigo Hernandez

‘The Pesticides Underpinning Coffee’s Healthy Image’ by Fionn Pooler

‘It’s Time to Start Talking About Human Resources in Coffee’ by Eric Grimm





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NBWA ‘Beer Purchasers’ Index’ Shows Beer Contracting as Summer Ends – ProBrewer

Hopes of a strong summer for beer sales are beginning to fade as most signs are pointing to flat or down sales for the summer months. The National Beer Wholesalers Association (NBWA) has just released the Beer Purchasers’ Index (BPI) for August 2024, which shows “a downshift in distributor sentiment to a more cautious outlook for the beer industry heading into the end of summer,” the NBWA said in a statement.

Imports had the highest index in August 2024 with a reading of 55, but that was still six points lower than the August 2023 reading of 61.

An index of 50 or greater in a segment means volumes in that segment are expanding and an index less than 50 indicates that volumes in that segment are contracting.

The craft index at 23 for August 2024 continues to signal contraction and is twelve points lower than the August 2023 reading at 35.

The August BPI reading for beer overall of 40 “follows a trend for the post-Covid marketplace; the past three years have all seen August BPI readings in the 40s, according to the NBWA.

You can see the NBWA Press Release and BPI reading for all categories here.



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Posted on Categories Alcohol

Constellation issues profit warning after wine-and-spirits impairment

Constellation Brands today (3 September) issued a profit warning after revealing it expects an up to $2.5bn impairment on its wine-and-spirits unit.

The Casa Noble Tequila maker blamed the expected impairment on “continued negative trends primarily in its US wholesale market” as it sees “declines in both the overall wine market and its mainstream premium wine brands”.

Constellation has also consequently cut its forecast for its annual net sales growth from between 6% and 7% to 4% and 6%.

The US-based group had formerly expected its net sales from wine and spirits to range from a 0.5% decline to 0.5% growth. It now expects to see the segment’s sales drop between 4% and 6%.

The Meiomi Wines producer also projected a significant drag on its reported earnings per share following the wine and spirits impairment, which it said will range from $1.5bn to $2.5bn.

Constellation’s prior outlook had forecast reported EPS to range from $14.63 to $14.93, while now it expects this to range between $3.05 to $7.92 per share.

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Comparable EPS is expected to see a minor increase from the $13.50 to $13.80 range to $13.60 to $13.80.

Constellation also reported it now expects its enterprise operating income to fall as a result of the impairment. It had forecast growth of between 10% and 12% but is now predicting a decline of between 36% and 68%. Comparable enterprise operating income is forecast to rise 8% to 9%, down from an earlier forecast of growth of 8% to 10%.

In a note to clients today (3 September) following Constellation’s announcement, Bernstein analyst Nadine Sarwat said many investors are now seeing the company’s wine and spirits unit “as a litmus test for management’s ability to deliver on its promises and/or make an executive decision regarding selling it”.

In beer, the Modelo brand owner in the US said it expected to see net sales growth dip one percentage point from prior expectations – from between 7% and 9% to 6% and 8%.

In a statement, Constellation president and CEO Bill Newlands said “the commercial and operational execution initiatives” introduced earlier this year within its wine-and-spirits business “are improving the performance of our largest brands, but we continue to face incremental category headwinds further affecting our outlook for this fiscal year”.

Speaking on beer volumes, Newlands added: “While ongoing macroeconomic headwinds, particularly rising unemployment, have led to a recent deceleration in the rate of growth of consumer demand for our products, we are on track to deliver a solid mid-single-digit volume increase this fiscal year for our beer business…

“These trends have been most notable in the top five states for our beer business, which account for just over half of our volumes; however, we continue to see volume growth within the low to mid-single-digit range in these states and within the high single-digit range on average across the rest of the country. Importantly, our beer brands remain strong and loyalty among our core consumers is resilient with only some marginal shifts to value packs and value-oriented channels.”

On Constellation’s comments on beer, Sarwat added: “A bull might be relieved that the weakness is ‘just’ cyclical rather than structural (whether for overall beer or imports specifically). But a bear would argue that a recovery of volumes is now a question of the economy and remains difficult to predict.”

In July, Newlands said he expected “improvements” in wine and spirits net sales in its financial year.

Earlier in April, the group has made investments in 11 “premium and above” wines, to help turn around the weak performance in the segment.

Constellation’s second-quarter fiscal 2025 results are due on 3 October 2024.






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Lester:  “August Has Found A New Equilibrium” – Beer Business Daily – beer industry news and numbers

Lester:  “August Has Found A New Equilibrium”

Dear Client:  The latest Beer Purchasers’ Index from the NBWA for the month of August saw total beer register an index of 40, bringing a five-month streak of 50 or higher BPI readings to a close.  Looking at beer segments, the month was slim on expansion or improvement. Imports were the only segment to hit … Continue reading “Lester:  “August Has Found A New Equilibrium””

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Brown-Forman CISO Sailaja Kotra-Turner talks cybersecurity

Brown-Forman, the owner of Jack Daniel’s whiskey and Herradura Tequila, was founded in 1870 but, like any modern company facing cybersecurity threats, it has to spend resources securing its systems and data.

However, the company has not been immune to security incidents. In 2020, the threat actors REvil ransomware breached the distiller’s systems and exfiltrated data, following which Brown-Forman invested further in its IT infrastructure.

Just Drinks sat down with Sailaja Kotra-Turner, Brown-Forman’s chief information security officer and director of global infrastructure, to talk threats and mitigating risks.

Conor Reynolds (CR): What’s a brief definition of your role at Brown-Forman?

Sailaja Kotra-Turner (SK-T): My role is security, infrastructure and operations. That’s three wings to it. Operations is combined for both security and infrastructure but I also have network servers, workstations, all that part as well, and also the security engineering, access management and governance.

CR: What types of cyber threat do you deal with?

SK-T: ​​​​​​​Areas of cybersecurity my team deals with is engineering, which is, figuring out where the new threats are and what tools and process improvements are needed. Anything that needs to be done in order to stay current with the threat landscape across the board. 

For example, we had CrowdStrike recently. We were not directly impacted by it. However, we’re also very cognisant of the fact that anybody could be impacted by a similar issue because the whole security landscape right now is very interconnected. We use third-party vendor software, whether it’s for finance like SAP or Workday for our people management.

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We’re still dependent on so many vendors, any vendor making a mistake on their end and we will be impacted one way or another. Some of the conversations that are happening right now within my team is: ‘What can we do to minimise the risk of that happening? How do we mitigate it? And what kind of plans do we need to be prepared with?’ And, more accurately, ‘okay, we have some plans, are they adequate for this new type of issue that we have not had to face in the past?’

CR: How does the threat landscape change and how quickly are new threats developing?

SK-T: ​​​​​​​As fast as we’re coming up with ways to protect ourselves, technology improvements work in all directions unfortunately. Those technology improvements are also making more attacks, more difficult attacks, more skilled attacks. Two or three years ago, I would have said you need a certain level of knowledge to be a hacker. Thanks to generative AI, now you don’t need that.

You know, ten years ago I remember first training about phishing, when we told people ‘Hey, look for grammar. That word is spelled wrong.’ We don’t see that anymore. Phishing now is so immaculate, it’s very easy. So, we’re constantly training people about how do you recognise the newest phishing, not phishing as it was ten years ago. Now we look more for tone language. Does it sound like the person you’re talking about?

CR: How big a threat is phishing these days?

SK-T: ​​​​​​​At this point, 90% plus of phishing attacks actually should be caught technologically. We use Google (Gmail), but it doesn’t matter whether it’s Google, Microsoft or whatever platform we’re using, at the end of the day 90% of phishing attacks actually are caught internally.

They’re caught by technology. The end user will not see them. We actually had a real-life test of that when, I think it was back in February where Google’s spam filters did not work for a day or two, and we saw a huge spike in the number of phishing emails that actually hit people’s desks, and the number of people that clicked on it and clicked on them definitely went up.

So, we’re actually training our end users for phishing, specifically on what I call the more difficult, the ones that look extremely realistic and have passed the basic filters.

Brown-Forman corporate logo
Credit: T. Schneider / Shutterstock.com

I’ve always believed that phishing exercises are a training mechanism, an awareness mechanism, not a punitive mechanism. Because the large part of what we’re really trying to do is recognise it sufficiently but, more importantly, if you do actually click on a phish, please let us know, because we have so many layers of protection a person clicking on a phishing email can be the start of a larger attack but it doesn’t have to be. The more important part in the phishing training for me is the reporting.

CR: You mentioned generative AI earlier. What impact is that having?

SK-T: Phishing has gotten better because generative AI can be used to write that phishing email. You have to be a little tricky about it, know what prompts to use but, at the end of the day, it can do it. 

Generative AI can write code for you. They have some basic protections, so, if you say ‘help me make an attack against company X’, it will say I’m not going to do that. But if you’re smart enough to know how to use the generative AI system and there’s lots of examples online where you can do that, you definitely can get the code for that.

It’s a whole different type of training that we’re having to do now.

Social engineering across the board is easier again. Generative AI can use a video clip to generate – and these are all free tools by the way – a voice or even video likeness of a person. I don’t know if you heard this story from a few months ago, where there was a guy that was on a meeting and actually authorised, like, half a million dollars or something like that and every other person in the meeting was an AI-generated, I’m going to say, ‘participant’ for lack of a better way, that were made to look like his co-workers. Now that’s a bit of an extreme example but those are things that are now doable. 

Our training has to keep pace with that. Now, we’re not looking at grammar errors. Now, if you’re looking at a video of a person talking, what do you watch for to make sure it’s real and not AI, what are the things to watch for? It’s a whole different type of training that we’re having to do now.

CR: Do you think we will hit a point where it’s so realistic it’s hard to tell the difference in online calls?

SK-T: ​​​​​​​Yes and that’s why we need to strengthen our processes. We cannot rely on just detection. Because no matter how good we think we are at detection, at the end of the day as human beings we will make mistakes.

It could be that I’m attending a meeting on my phone, which I know a lot of people do and you cannot catch those little telltale signs, which are so minute that you have to watch for them.

CR: How can Brown-Forman protect against that type of cybersecurity attack?

SK-T: We rely mostly for security on what is called layers of protection. [The] old-fashioned name was defence in depth, the military term. What we’re basically talking about is we have multiple layers, multiple gates that we try to stop people from moving laterally. 

The first gate is that the people, you know, make sure you understand whether it’s real or not. That’s all that phishing training and stuff. That’s level one. 

Some people will click on those emails. Some people will fall for it. It’s not the end of the world. It should not be because then we have other layers that will stop it. In the case of phishing, it could be software that’s residing on people’s workstations that will actually detect malicious software and try to stop it there. If it passes that, there’s another layer and another layer. 

For some of the stuff, it’s actually processes. For bank information, if people are actually sending bank information by email we actually tell people to pick up the phone and call somebody you know that you have a known phone number for, don’t reply to that email. If you have a different email or whatever official process there, use that official process.

CR: As the points of data collection increase in manufacturing, what are the challenges Brown-Forman faces?

SK-T: ​​​​​​​We collect a lot of data. We collect data for use in running our business, okay, so that’s on the data science, data analytics, and the platforms used to build that so let’s set that aside. That’s one set of data, the other set of data, from a security perspective, is: what are our systems doing? It’s all the log data and the body of data that’s collected in either scenario is huge.

I’ve talked about the downsides of AI earlier, now let’s talk about the positive. What AI does for us in the security space or in the data science space is it looks at all the data and tries to find patterns that are useful. You know, the security space, a useful pattern generates an alert that says, this one doesn’t look right, take a look at this it’s anomalous data. We do have sims that will actually do that for us and that creates dashboards, alerts and a super-concentrated look at it.

The facade of the Brown-Forman Corp. building in Louisville, Kentucky, 23 February 2020. Credit: Alexey Stiop / Shutterstock.com

The data generated, for me, from a security perspective is very useful. But yes, there’s such a huge amount of data that it’s not easy to make sure that we have all the data we need and to parse through that data, so we rely on a security incident and event management system to do that. 

On the data science side, that’s where it gets more interesting as we talk more and more about the proliferation of AI and wanting to use AI tools. Any AI system is only as secure as the underlying data. We can set up all kinds of access on the AI tool itself but, if the underlying data is not secure and people can access it without being authorised to do so, the system overall is not going to be secure. A lot of our focus now is on improving data governance and data security, because that will address a large part of the concern with AI security.

CR: In 2020, the REvil ransomware gang hit Brown-Forman and a significant amount of data was taken. What lessons did you learn from that cybersecurity incident?

SK-T: From a personal part, for anyone that’s on the security team a breach is a major growth and learning opportunity.

When we get stress-tested we learn so much during that process it’s actually kind of amazing because those learnings are what make the company better.

It’s a little bit of a joke when I say a company that’s most secure is about three to six months after a breach. Because they take all those learnings, they invest in the security. They make things a whole lot better. It’s about six months ish, they actually have all those in place and it’s the most secure it will ever be. Then things start to kind of level off again.

CR: Is all the security done in-house or do you work with external partners?

SK-T: We do work with a lot of third-party security firms that can range from we have a managed service provider that does our security operation centre stuff. We have some level of managed service providers again for a lot of the, what I call, run-maintain-operation activities, like doing vulnerability scans, making sure they get patched things like that.

Being in cybersecurity, we cannot just focus on the technical aspects. We need to be actually enmeshed in the business.

We have internal teams that do the engineering and architecture because that requires knowledge of Brown-Forman, both the business as well as the history of Brown-Forman and what we do. That part is almost completely internal.

Then, on the other hand, we have external providers for penetration testing, for risk assessments, again, that’s to preserve a level of segregation of duties and objectivity. We don’t want our own teams doing those assessments because we get a much more realistic picture from external providers, so, a kind of an audit function there. 

The one thing I’ll say about cybersecurity today is it’s broad. Being in cybersecurity, we cannot just focus on the technical aspects.  

We need to be actually enmeshed in the business because any risk that comes up in the world will have a cyber component to it. It’s not always about hacking. It’s about helping the company deal with any threat that might come up that has a cyber component to it.






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The RTD coffee market is changing: What roasters need to know

The ready-to-drink (RTD) coffee segment is flourishing. Projected to be valued at US $43.8 billion by 2028, growth is outpacing that of the global coffee industry. More and more roasters have started to capitalise on this booming market and create their own canned and bottled coffee products to offer more choice than ever before.

Convenience was the initial driving force behind RTD coffee’s explosive popularity. While it continues to fuel market growth, consumer demand has evolved over the last few years in the wake of inflation and wider changes in the coffee market. Quality, price, and different sensory experiences are now equally important purchasing factors. If roasters want to keep up in the RTD sector, they need to stay ahead of the curve.

Ancis Romanovskis, CEO of Rocket Bean Roastery, and Jordi Mestre, founder and co-owner of Nomad Coffee, provide their insight on what roasters must know about changing trends in the RTD market.

You may also like our article on why coffee shops should pay attention to cold brew safety.

The evolution of RTD coffee

Despite its sudden surge in popularity in recent years, RTD coffee has been around for some time. In the 1960s, canned coffee vending machines were common in Japan. Three decades later, off the back of the chain’s wildly successful blended Frappuccino, Starbucks partnered with Pepsi to launch an RTD version in US grocery stores. 

The drink was an instant hit, so other beverage companies soon followed suit. In Europe, illycaffé partnered with Coca-Cola to debut the “iIlly Issimo” range in 2007. Food company Mars released two Galaxy-branded coffee drinks five years later in the UK, and Jimmy’s Iced Coffee RTD beverages also launched in the UK the same year.

It would take a few more years, however, before specialty coffee embraced RTD. A pivotal moment came when US roaster La Colombe released its “Draft Latte” in March 2016. Within 18 months of the launch, the Draft Latte comprised more than 1% of the total US RTD coffee market share – making it the fastest-growing RTD coffee drink in the country.

Innovation was key to this success. La Colombe partnered with a local Philadelphia business to create the “Innovalve”, which injects nitrous oxide directly into each latte can to produce a foamy, smooth texture.

Since then, many specialty roasters have developed their own RTD beverages to sell in coffee shops and grocery retailers. Product diversification and innovation continue to lead market growth, with flavoured drinks, plant milks, and functional ingredients receiving plenty of interest from consumers.

Market growth is dependent on region

RTD coffee is clearly popular, but the level of market growth varies across different regions. The Asia-Pacific RTD coffee market was valued at US $14.75 billion in 2019, which comprised more than half of RTD coffee’s total global market value that year. Total US retail sales for coffee and RTD coffee, meanwhile, are estimated to reach US $19.7 billion in 2024, according to data analyst firm Mintel.

Jordi Mestre is the founder and co-owner of Nomad Coffee in Barcelona, Spain.

“There are very few options for RTD coffee in Spain,” he explains. This inevitably presents roasters with an opportunity to capitalise on a lucrative market, especially as convenience and quality become increasingly important to consumers.

“We launched a redesigned recipe for our Iced Coffee and Iced Latte drinks, which we adjusted last year to offer a high-quality, easy-drinking RTD coffee option,” he adds.

Ancis Romanovskis is the CEO of Rocket Bean Roastery in Riga, Latvia.

“Baltic grocery stores don’t offer a vast selection of RTD coffee, but options have been available for some time,” he explains. “However, specialty coffee remains a rare find in this region.”

Ancis tells me that in 2019, Rocket Bean partnered with cold coffee solutions company Hardtank to create its own range of high-quality RTD products. “Year after year, demand for specialty RTD coffee continues to grow, and we aim to meet it,” he adds.

Consumer preferences are always evolving

Once believed to be a “summer” drink, cold and RTD coffee is now a year-round beverage.

“As we’re in the Nordic region of Europe, our warm climate is fleeting,” Ancis tells me. “Despite this, sales of RTD coffee remain strong throughout the year, demonstrating continued demand even outside of summer.”

As key RTD coffee markets mature, consumer demand has shifted. Quality has always been a priority, but following record rates of inflation and rising food and energy costs over the last two years, coffee drinkers are more price-conscious than ever before.

Offering affordable, accessible, yet premium RTD coffee options helps roasters stay competitive, especially among Gen Z consumers who have the highest spending power in the coffee industry. This demographic also lives increasingly on-the-go lifestyles, so convenience is one of the biggest drivers of their coffee purchasing decisions.

Health is also a major influencing factor on consumer behaviour. According to a 2024 McKinsey study, 56% of Gen Z consumers in the US say their fitness is a “very high priority”, compared to 40% of US consumers overall

This interest extends to the RTD coffee market. The National Coffee Association’s latest National Coffee Data Trends report states that 21% of surveyed coffee drinkers believe cold brew coffee is healthier than other types of coffee.

“With our RTD products, our focus has been on catering to a diverse range of customers and their specific needs,” Ancis says. “Most of our products are sugar-free and oat milk-based.”

As consumers want more customisable, functional, and environmentally-sustainable products, roasters have launched dairy-free RTD options which have captured a large share of the market.

How roasters can find success in the RTD segment

One of the most effective ways for roasters and coffee shops to tap into the burgeoning RTD market is to make their own cold brew or coffee concentrates in-house. Traditionally, this meant steeping ground coffee in water for up to 24 hours.

Not only is this practice time and labour-intensive, it can also create the same flavour profile no matter which coffee is used. To offer new and exciting sensory experiences, manufacturers have developed new machines that extract concentrates in a much shorter time frame

Ancis recalls how Rocket Bean spent years testing various cold brew systems to refine its RTD products.

“From 2013 to 2015, we experimented with cold brew drips,” he says. “But in 2019, we were introduced to Hardtank, and were quickly impressed by the quality and cleanliness of the flavour profiles it produces.”

New cold brew and concentrate systems have revolutionised how coffee shops and roasters create RTD drinks. Innovative vacuum and vibration technology increases extraction efficiency, which massively reduces total brew time and changes the overall sensory experience.

“Coffee tastes sweeter and lighter, so it’s easier to drink,” Jordi says. “Traditional cold brew is more syrupy and heavy.”

He explains that the countertop Baby Hardtank – which received the 2021 and 2022 SCA Best New Product award and the 2023 Coffee Innovation award – uses patented recirculation and cold extraction technology to brew up to four litres of RTD coffee in under an hour. The machine constantly recirculates the liquid to result in a cleaner-tasting flavour profile with a higher extraction yield. It can also be used to brew tea, cascara, and cocktails to offer customers a more diverse range of RTD beverages.

Leveraging new technology to maintain margins

Following the pandemic, roasters and coffee shops have grappled with rising costs and inflationary pressures. Forced closures during Covid-19 added strain to businesses, while ongoing conflict in Ukraine pushed food and energy prices to record highs

In early July 2024, arabica prices edged over a two-year high – largely the result of growing supply shortages in Vietnam and Indonesia. Robusta futures also reached record highs over the past few months, driven by rising demand, unfavourable weather conditions in Brazil and Vietnam, and conflict in the Middle East.

To manage increasingly tighter margins, roasters and cafés are looking for more ways to cut costs and improve operational efficiency. At the same time, they still need to offer their customers high-quality and differentiated products to stay competitive, including RTD coffee.

But investing in equipment upfront can be costly, so leveraging the resources and expertise of co-packing partners is a smart move. Moreover, with cold brew safety becoming an increasingly pressing concern, roasters need to make sure they meet strict health and safety standards.

Ancis explains how Rocket Bean works with Hardtank to produce larger quantities of RTD products at its private label production and packaging facility in Opole, Poland.

“We’re always looking to improve our products without compromising on quality,” Anics adds. “It was clear to us that RTD canned coffee was the best option.” 

For smaller-scale operations, coffee businesses are investing in countertop solutions that improve consistency and efficiency. Ancis says the Baby Hardtank allows users to fine tune their recipes to prepare RTD coffee in less than 45 minutes. This can help roasters and coffee shops to streamline operations, reduce labour costs, and free up time to focus on other areas of their business.

Staying ahead in the RTD coffee market

Trends in the RTD market are constantly developing and changing. By embracing new cold coffee technology, roasters can stay ahead of them to meet ever-evolving demand. 

But the need to match consumer expectations for quality and consistency will forever remain a priority. This means roasters need to keep this in mind if they want to stand out.

“You have to be critical of your RTD products,” Ancis says. “Leverage new technology like the Baby Hardtank to your advantage and source excellent coffee to achieve your desired results.”

Understanding how to tap into local and regional market preferences is essential. If RTD milk-based products are particularly popular, roasting to medium or darker profiles or using blends will result in more complementary flavour profiles. 

Customers who prefer to drink their coffee black, meanwhile, may be looking for single origin options or more interesting tasting notes. Lighter roast profiles and washed processed coffees may work better in these cases.

Moreover, as interest in exclusive varieties and experimental processing increases, using high-scoring or “funkier” coffees is an effective way for roasters to offer a unique RTD experience to their customers.

RTD coffee is only growing, with demand from younger consumers leading the way. If roasters want to find success in this market, keeping up with the latest trends and innovation is crucial.

Quality and convenience will always be important. But now more than ever, roasters and coffee shops need to provide differentiated experiences to stand out in an increasingly competitive market.

Enjoyed this? Then read our article on why long brew times are no longer the norm for cold coffee.

Photo credits: Hardtank

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

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The 9 Most Iconic and Cringe-Inducing Booze Cameos in Film and TV

Art imitates life, and to that end, booze brands are a constant in film and television. While some of the labels you’ll see are fictional creations like Heisler Beer, many productions elect to keep a stronger semblance of reality by incorporating products viewers could feasibly purchase for themselves. And it’s a lucrative affair: Even though the vast majority of brands don’t directly pay for placement in film and TV — it’s more common for them to loan products in exchange for free advertising — the product placement industry has been valued at a whopping $23 billion.

While some placements (either paid or organic) fit right into the fictional world they’re written into, others read more ridiculous. Below, we explore some of the most over-the-top drink appearances in modern film and television to determine if they’re iconic or just plain cringe-worthy.

Budweiser: ‘That’s My Boy’ (2012)

Budweiser is no stranger to the silver screen. The American-style lager has had cam’eos in everything from “Back to the Future” to “Top Gun,” but perhaps no film has featured more of the beer than Adam Sandler’s comedy “That’s My Boy.” Sandler’s character Donny Berger drinks so much of the stuff that viewers see him with a can more than they see him without one. And when the brew isn’t present, Donny’s wearing a Budweiser T-shirt to remind viewers of his preferred brand. The 114-minute movie is essentially one long Budweiser commercial.


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Verdict: Over-the-top cringe.

Bud Light: ‘Transformers: Age of Extinction’ (2014)

Aside from being known for having too many installments and excessive CGI, the “Transformers” saga is guilty of some pretty obvious product placements. The 2014 installment starring Mark Wahlberg is no exception: In one of the final battle scenes, Wahlberg’s character crashes an alien space mobile into a civilian’s car and hops out of the vehicle, only to land in a sea of Bud Light bottles — all with their labels conveniently facing the camera. Wahlberg then smashes one bottle’s top off on the car and chugs its contents. While the scene is on theme, Bud Light is just one of dozens of brands prominently featured in the movie, putting this placement firmly in cringe territory.

Verdict: 3-D cringe.

Corona: The ‘Fast & Furious’ Franchise (2001-present)

While some beverage brands are mere props for some productions, others are full-fledged characters. In the case of “Fast & Furious,” Corona is family. The Mexican lager makes several appearances in the 11-film franchise and has come to symbolize togetherness within the Toretto crew. The beer is first shown in the first film at a gathering after the crew evades a threat in Los Angeles. “You can have any brew you want,” Vin Diesel’s character Dominic Toretto says to Paul Walker’s Brian O’Conner as he approaches with an armful of beer. “As long as it’s Corona.”

The beer continues to appear at the crew’s reunions, and acts as a point of differentiation between the good guys and the bad guys — who prefer Belgian ale — in “Furious 7.” Notably, the only installments where the beer is absent are those in which the crew is not intact, including “The Fate of the Furious,” the first in the series to premiere following Paul Walker’s 2013 passing. Interestingly, Corona has never paid a dime for its beers to be featured in the films. Instead, it’s estimated that the brewery has enjoyed what would have cost a whopping $15 million in advertising for free.

Verdict: Absolutely iconic.

Domaine de la Romanée-Conti: ‘The Gentlemen’ (2024)

In Guy Ritchie’s 2024 series “The Gentlemen” — based on his 2019 film of the same name — wealth is practically a character in itself. This is especially apparent in one episode when an American billionaire orders a bottle of 2002 Domaine de la Romanée-Conti (DRC). The Burgundy, which typically sells for a cool $31,000, is made by one of the world’s most prestigious producers and enjoys a placement front-and-center in the roughly three-minute scene. To get the billionaire to stop sniffing around his estate, the show’s protagonist offers him five cases of DRC ‘82 and two cases of the ‘45 vintage from the property’s wine cellar. (In case you don’t have a calculator nearby, that’s roughly $3.9 million.)

Verdict: Elegant and iconic.

Heineken: ‘Skyfall’ (2012)

Espionage skills aside, James Bond is most known for his Martini — shaken, not stirred. That’s why some fans were up in arms when the spy swapped his usual order in favor of a Heineken in 2012’s “Skyfall.” Why the change? The simple answer: cash. Heineken has been a partner of the 007 franchise since 1997, and in 2012, the brand shelled out an additional $45 million for a mere seven seconds of screen time. The deal also came with an agreement for Daniel Craig to promote the brew in real life in a series of Bond-themed advertisements. And it paid off: According to The Drinks Business, Heineken sales swelled by 5.3 percent the year the film debuted.

Verdict: Controversial, but not necessarily cringy.

Kahlúa: ‘The Big Lebowski’ (1998)

It’s practically impossible to think of “The Big Lebowski” and not envision a White Russian. The cocktail — which stars vodka, coffee liqueur, and half-and-half — is The Dude’s preferred libation, and he takes down approximately nine of them throughout the film. While the standard cocktail’s recipe simply calls for any coffee liqueur, most people (The Dude included) prefer Kahlúa, which can be spotted on his bar cart in the movie’s opening sequence. The film inspired thousands of viewers to try the cocktail, leading to a 26 percent spike in Kahlúa sales in 1998.

Verdict: Undeniably iconic.

Mountain Dew: ‘Transformers’ (2007) and

‘Transformers: Revenge of the Fallen’ (2009)

It’s been established that director Michael Bay is an avid fan of giving beverage brands screen time, Mountain Dew included. In the series’ first film, the bright green soda can be spotted in a refrigerator on Air Force One, which is opened by a flight attendant retrieving Ding Dongs (another odd placement) for the president. Later on, a Mountain Dew vending machine turns into a robot, aptly named Dispensor. And in the sequel, another Dew-dispensing machine can be seen in a college dorm room.

Verdict: More tastefully executed, but still cringy.

Pepsi: ‘World War Z’ (2013)

Of all the ridiculous on-screen booze cameos, Pepsi’s appearance in Brad Pitt’s 2013 zombie apocalypse movie “World War Z” is in a league of its own. During the film’s climax, Pitt’s character takes a break from evading zombies inside a hospital to hit the break room for a can of Pepsi. It’s the middle of the apocalypse and the entire human race is depending on you staying alive, but sure, have a Pepsi. We’ll wait.

Verdict: Catastrophically cringe.

Vitaminwater: ‘Gossip Girl’ (2007-2012)

While some product placements last only a few seconds and are so subtle you might blink and miss them, Vitaminwater’s role in “Gossip Girl” is not one of them. The trendy “vitamin and nutrient-enhanced water” brand shot to stardom in the late 2000s and quickly established a brand deal with The CW, the network airing the now-iconic teen drama. Most of Season 2 is dappled with Vitaminwater appearances: Bottles can be seen in almost every shot during the premiere’s Vitaminwater White Party, and nine episodes later, teen model Agnes Andrews orders a fruit punch-flavored Revive to help cure her hangover. While she’s waiting for her bottle, she conveniently waits next to a tower of, you guessed it, Vitaminwater. The line even made a comeback in Season 4 with the Vitaminwater Zero and the Vitaminwater Design Competition (a real thing, at the time) that Blair Waldorf’s fashion-designer mom was supposedly participating in. We could keep going, but you get the point.

Verdict: So cringy it’s almost camp.

*Image retrieved from Rawpixel.com via stock.adobe.com



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It’s Time to Start Talking About Human Resources in Coffee

Welcome to The Coffee Human Resource column.

Throughout my career, I’ve been an eternal critical optimist: I see the issues holding back our industry but fundamentally believe we have the power to make things better—something I’ve seen and been part of firsthand. 

I’ve had the privilege of collaborating with some of my favorite people to test out creative solutions to industry issues. For example, I helped run Glitter Cat Barista, a platform and resource bank, and we worked with over 100 coffee professionals and enthusiasts of marginalized identities to change the competitive coffee landscape.

I worked with two of my longtime colleagues to start Ghost Town Oats, an oat milk brand that challenged the largely cishet white male narrative of oat milk. We crowdfunded our business, making hundreds of coffee professionals stakeholders in the fast-growing oat milk category. I’ve witnessed my generation of coffee professionals find a terrific balance between being highly outspoken and action-oriented. They’ve forced me and many others to get uncomfortable, and we’re better off for it.

Much of the work I’ve been proud to do has focused on community building and increasing representation, and I’ve loved it all. The work I’ve done has often felt like painting houses. There’s tremendous joy in splashing bold and vibrant colors on the exteriors of homes surrounded by duller, greyer, homogenous structures. 

Although I’ve been in coffee for 16 years, over the past four years, I’ve realized that I’m much more interested in the foundations of these houses. As a business owner, I know what it’s like to have to temporarily patch up structural issues while dealing with fires, floods, and all manner of compounding disasters. I relish the opportunity to build strongly from the ground up or retrofit structures to reinforce the house and have it last for decades. 

It’s become clear to me how I can best serve a coffee community full of houses that need structural support: by devoting myself to human resources. I believe that taking a targeted approach to human resources is essential in the responsible building and scaling of coffee businesses. 

Throughout my career, I’ve been an eternal critical optimist: I see the issues holding back our industry but fundamentally believe we have the power to make things better—something I’ve seen and been part of firsthand.

In 2020, I started my HR deep dive. I got certified as an Associate Professional in Human Resources. Since I’ve been certified, I’ve consulted for coffee businesses of many different sizes and taught workplace safety classes. My client-based work digs deep into handbooks, policies, compensation, succession planning, and conflict management. I continue to do coursework for additional certifications, which will allow me to provide even more specialized HR services.

So today, as an introduction to this column, I’m here to make the case for why you should think about human resources for your coffee business whether you’re opening up your fifth location or just getting started. 

No Longer Operating on Vibes

The case for investing in human resources becomes evident considering the current labor landscape of retail coffee in the United States. Retail businesses across all sectors, including coffee, are understaffed and turnover is high. Instagram accounts dedicated to exposing workplace harm and inequities proliferate. Unionization pushes have exploded since the onset of the COVID-19 pandemic. 

These public airings of grievances have laid bare widespread systemic workplace issues. They’ve also given us highly organized and thoughtfully presented blueprints for the basic needs of the retail coffee workforce through union-run Instagram accounts and press interviews. We can see from these countless examples that the calls almost always come from inside the house. Every coffee business, no matter what size, needs to be thinking about human resources.

It makes sense that HR isn’t at the top of most business owners’ minds. Every small coffee business owner I’ve ever met often has to approach things like culture building and setting employee standards by winging it, especially in the beginning. Most business owners usually start with similar intentions: serve great coffee to their community without necessarily thinking about employee wellness, interpersonal communication, conflict resolution, or labor laws. 

They’re often operating on vibes. Perhaps they’ve provided their neighborhoods with something new and exciting. They’ve maybe been lucky enough to find a great staff that makes their shop feel like a second home for their customers. Against many odds, their new business just seems to work. Sometimes, the vibes are so resonant that they feel they have no choice but to duplicate those vibes as a business scales, changes, or opens a second, third, and fourth location. 

The duplication of vibes is often mistaken for creating a company culture. It simply cannot account for the complexity of human interactions and needs as a business matures.

Whether scaling up or expanding the scope of a solo shop, retail coffee businesses need strong people policies. This is not just some well-wishing proposition for running a kinder company. An engaged workforce is more productive and makes higher sales. Unhappy workers leave for better opportunities, and the quantifiable turnover costs are higher than you think. In the transparent information age, you may think that what goes on between you and your employees is fully behind closed doors, but your internal employer brand will often affect your external customer-facing brand, for better or worse

The duplication of vibes is often mistaken for creating a company culture. It simply cannot account for the complexity of human interactions and needs as a business matures.

Investing in HR isn’t just good for workers; it’s also crucial for founders. Committing to great people policies early on or at any stage of running a small coffee business can go a long way toward improving mental health outcomes for founders, who are more prone to having mental health issues.

I want coffee businesses to be better places to work for hourly and salaried employees and easier places for business owners to operate. Rather than think of human resources as cumbersome or unnecessary, I think it’s a tool that gives clarity and shape to workplaces and ultimately results in more engaged workers and less burdened employers.  

This ongoing column will explore the issues within the issues, addressing topics such as de-escalation tactics, financial transparency, radical candor, and the evolving needs of a diverse workforce. The aim here will be to demystify important workplace issues and invite critical discussions on what makes coffee businesses better.

And I intend to make this fun! I’m a voracious consumer of books, music, television, and film. Popular culture gives us countless opportunities to learn from human behavior and think critically about how we function (or don’t!) in workplaces. In addition to relevant research, you can look forward to accompanying analyses of “Survivor,” Sarah MacLachlan, nunsploitation films, and queer pop music. 

I want you to start thinking about human resources for your coffee business and not be afraid to engage with these topics. I hope you’ll join me here, on Instagram, and on LinkedIn to contribute to a long overdue discussion for retail coffee businesses. I invite you to approach these topics with curiosity, a critical eye, and a good sense of humor. Through turns thoughtful, adventurous, and, at times, silly, I believe we can exchange innovative ideas that will improve the industry we love. 





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