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Saturday 23 November 2024
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Slayer introduces the new one-group espresso machine Steam Single: “It will serve as the foundation for future products”

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steam single slayer
Steam Single from the left angle (image provided)

Slayer Espresso Machines recently unveiled the Steam Single, a new one-group espresso machine that combines evolutionary design, accessibility, and premium quality. We talked about the new release directly with the company that explained the new technolocial andavancements of the machine.

What are the technological advancements incorporated in the Steam Single compared to its predecessors, the Steam EP and Steam LP? When exactly the idea of the new Steam Single was born?

“The development of the Steam Single began in earnest in late 2022, though the concept had been considered on and off since the release of the Slayer Steam range. This model marks a milestone for Slayer, as it is the first machine built on a new electronics platform that will serve as the foundation for future products.

steam single
The Steam Single from the right angle (image provided)

A key innovation in the Steam Single is its ability to run from an internal reservoir, a first for the brand, making it more accessible to a wider audience, especially for home use. For those seeking a more traditional setup, the option to plumb in the machine is available through an accessory kit.

The Steam Single also introduces a unique dual flow rate system, enabling users to toggle between two distinct pre-infusion water paths. This level of control ensures a consistent, repeatable experience when brewing espresso, allowing baristas to save and replay their favourite shots throughout the day.

The Steam Single (image provided)

While it draws inspiration from the Steam LP, the Steam Single brings a fresh technical approach, combining user-friendly features with Slayer’s signature commitment to quality and precision.”

What were the primary design challenges faced during the development of the Steam Single, and how were they overcome?

“The initial concept of the Steam Single dates back to the development of the commercial Slayer Steam, but scaling down the proportions of a commercial machine to a smaller, more compact form presented several challenges. The commercial machine’s size and components didn’t translate easily into a smaller format, which required a complete redesign of the overall packaging and technological integration.

The Steam Single with the logo (image provided)

By rethinking these elements, Slayer managed to preserve the high-quality performance expected from the products, while making it more suitable for smaller spaces and individual users.”

Thanks to the machine’s compact intuitive barista dashboard, both home users and baristas are allowed to manually dial in their preferred settings, and record their desired shots. How important is for the Steam Single to be user friendly?

“User-friendliness is essential to the Steam Single’s design, and Slayer’s goal was to make coffee making an enjoyable and accessible experience for everyone. The intuitive barista dashboard allows both home users and professionals to manually dial in their preferred settings and record shots with ease, making it a pleasure to use.

steam slayer
The extraction (image provided)

The fun and satisfaction that comes from making coffee were key drivers behind the design, and Slayer has made sure that the machine offers both ease of use and the precision needed to craft exceptional espresso. By keeping the process enjoyable and straightforward, the brand reinforces its mission to “Make Coffee Better.””

Is the Steam Single machine capable of handling the high demand of chain stores, or is it better suited for smaller coffee corners?

With just one group, the Steam Single has natural limits in terms of capacity. However, its professional-grade build, including commercial-grade boiler elements, ensures that it can deliver consistent performance.

The Steam Single display (image provided)

The addition of an accessory plumbing kit allows it to be adapted for more demanding applications, but overall, the machine is best suited for smaller coffee corners, pop-ups, or even home kitchens. Its design aims to offer professional results in more intimate settings rather than catering to the high demands of chain stores.”

Does the Steam Single offer the ability to monitor its operation, anticipate problems, save energy, and utilize telemetry?

“At launch, the Steam Single does not feature telemetry capabilities, but it does include power-saving functions. These allow the machine to enter a low-power mode during scheduled times, reducing energy consumption when not in use.

The Steam Single display shot counter (image provided)

If the user needs to operate the machine during these periods, it quickly returns to full operating temperature, ensuring minimal downtime. This energy-saving approach aligns with Slayer’s commitment to efficiency, even if telemetry and other advanced monitoring features are not yet available.”

How does the Steam Single balance innovation with the traditional aspects of espresso machine design and functionality?

“The Steam Single, like all Slayer products, is centered around the joy of coffee making. It integrates advanced technology, such as the dual flow rate system and internal reservoir, while maintaining the fundamental principles of espresso making that the brand is known for. The design ensures that every user interaction supports a seamless, enjoyable coffee-making experience.

The machine from the front (image provided)

Slayer’s commitment to innovation is balanced by the respect for the traditions of espresso, ensuring that the Steam Single remains true to the brand’s core values of craftsmanship and quality, while introducing modern features that enhance the process.”

The right angle (image provided)

How does Slayer plan to continue its legacy of innovation in the specialty coffee industry over the next few years?

“Slayer’s future innovations will continue to focus on making coffee better for everyone. The next generation of products, built on the same electronics platform as the Steam Single, will further explore new ways to improve the coffee-making process.

The Steam Single (image provided)

Slayer’s commitment to pushing the boundaries of what is possible in specialty coffee remains strong, and the brand will continue to introduce new machines that make it easier and more enjoyable for baristas and coffee enthusiasts alike to craft exceptional espresso.”

VEA Group is born from the merger of Carimali, Elektra, Heylo, and Bellezza

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vea
Il logo di VEA Group

CHIGNOLO D’ISOLA, Italy – VEA Group SpA is born: a new entity formed through the merger by incorporation of Elektra Srl, Heylo Srl, and Bellezza Srl into Carimali SpA. Effective November 1, 2024, VEA Group will inherit all rights and obligations of the merged companies, ensuring the seamless continuation of all pre-existing legal relationships, assets, and liabilities. This significant step reflects the company’s ongoing commitment to innovation, excellence, and leadership in coffee technology.

The merger will further enhance operational efficiency, boosting synergies and simplifying the commercial offering of the brands. VEA Group will continue to build on the strengths of each brand while offering a wide product and service portfolio.

“This reorganization is a natural evolution of our business,” said Umberto Doglioni Majer, CEO of VEA Group. “It allows us to leverage our expertise, resources, and passion across all of our brands. By uniting in one company we can offer better solutions to our customers while maintaining the distinct heritage and excellence each brand represents. This strategic move also positions us to invest further in product development and continue leading the coffee industry.”

Particular attention has been given to ensuring a smooth transition for customers, business partners, and employees while the shareholding structure remains unchanged. This merger marks the beginning of a new chapter as VEA Group focuses on developing its vision of innovation, sustainability and global growth.

IMF Roasters showcases italian innovation and sustainability at Gulfood Manufacturing in Dubai: a decade of global growth in the coffee industry

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imf
IMF at Gulfood Manufacturing in Dubai (image provided)

OCCHIOBELLO, Italy – IMF strengthens its presence in Dubai by taking part in the Gulfood Manufacturing, main destination to see the future of the food industry – from new ingredients and advanced technologies to integrated supply chain solutions and breakthrough developments driving the industry forward – at Dubai World Trade Centre, from 5 – 7 November 2024.

5th to 7th of November IMF will be present at the Gulfood Manufacturing at booth S3- C55, Shk Saeed Hall 3

Over the past ten years, IMF has grown exponentially, not only because of the technology it offers, but also because of its ability to adapt to the needs of the international market. The company, while maintaining 100% of its production in Italy, exports over 60% of its turnover to foreign markets, consolidating its global presence also thanks to efficient technical assistance.

This approach has enabled the company to gain a loyal customer base in Europe, Asia, the Middle East and the Americas.

IMF’s expansion is the result of a targeted strategy, which has seen the entire team focus on a common direction, based on technological innovation, sustainability and attention to the specific needs of customers all over the world.

All IMF models are equipped with a special system for recirculating clean warm air through a dual function heating chamber, able to generate the energy required for the roasting process while reducing emissions at the same time, yet ensuring significant energy savings and important reduction in production costs.

Accurate profile control and roasting parameters settings are guaranteed by the integrated management software, both on industrial models for massive production as well as smaller capacity specialty roasters, particularly suited for specialty coffee treatment.

imf
Industrial complete plant (IMF credit)

Continuous innovation at the service of roasters, made in Italy technology, eco-sustainability and great knowledge of green coffee characterize the offer of IMF, that invites its customers and all professionals in the sector to its Booth S3-C51, Shk Saeed Hall 3 at Dubai World Trade Centre.

Nescafé Fusion system enables food service providers to deliver personalized coffee experiences

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Nescafé Fusion
Nescafé Fusion, Nescafé Iced Caramel Macchiato (credits: Nestlé)

VEVEY, Switzerland – Nestlé Professional, Nestlé’s business-to-business and out-of-home expert, is expanding its Nescafé Fusion system, a range of coffee machines that offer a wide variety of personalized drink options, from hot or cold, to whole roasted beans or instant, to dairy or plant-based milks for white cups. Offices, hotels, convenience stores as well as education and healthcare institutions consider coffee essential for their customers and employees and look to offer a wider range of beverage choices.

Due to the growing demand for cold coffee, especially among younger generations, having an iced beverage option is as important as having a hot one. Food service providers need to answer to this rising consumer demand by having both hot and cold options available at the same time, in a convenient, easy-to-use and personalized manner. But this can be challenging.

Delivering on that need, Nescafé Fusion provides espresso-based beverages, filter coffee and popular iced drinks, like lattes, cappuccinos, and mochas. Food service providers can choose from 14 different coffee machine models based on their business size, cup capacity, counter space and consumer needs. The Nescafé Fusion range has already been launched in 15 markets across Asia, Europe and Latin America and is now being rolled out to an additional 60 markets. The range was developed under the leadership of Nestlé’s R&D teams in Orbe, Switzerland, combining system expertise and coffee know-how.

“As the demand for cold beverages increases, particularly among younger generations, our food service providers need to adapt and cater to this trend by offering a versatile menu of both hot and iced beverages,” said Reinhold Jakobi, Global Head of Nestlé Professional. “Nescafé Fusion delivers customizable coffee experiences while reflecting our commitment to sustainability.”

In addition to being easy to operate and providing different coffee menu options, the Nescafé Fusion machines use up to 30% recycled plastic¹ and can achieve energy savings of up to 60%² compared to previous Nescafé machines. The machines use hot water to pre-heat the brewing chamber on demand, replacing heating fans.

To help them decide which Nescafé Fusion machine best fits their business needs, food service providers can use the Lifecycle Assessment Tool to assess a machine’s emissions, water usage, resource impact and more³. This tool provides region-specific data for Europe, North America, Latin America, and Asia.

Telemetry is embedded into Nescafé Fusion machines for troubleshooting, machine settings and beverage calibrations. Nestlé Professional technical experts receive issue reports on a real-time basis, reducing the need for travel to check or maintain the systems.

As all aspects of sustainability are important, Nestlé Professional customers can trace the coffee from the region it was grown to where it was roasted and packed via the “Trace my Coffee” pilot program, launched in Spain and the Netherlands and soon to be launched in the UK and Portugal.

¹ The % is evaluated on total weight of plastic used.
² Compared to previous models, valid for bean to cup models
³ The environmental footprint values given are indicative only. All results are based on a combination of data sources, including public data, Nestlé data, machine manufacturer data and Quantis data. This means that the life cycle assessment covers all specific Nestlé Professional results regarding coffee, cup and machine.

Yum China reports 3Q total revenues of $3.07B (+5%)

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Yum China KFC China CSR
Yum China logo

SHANGHAI, China – On November 4, 2024, Yum China Holdings, Inc. reported unaudited results for the third quarter ended September 30, 2024. Yum China is the largest restaurant company in China. It has approximately 400,000 employees and operates over 15,000 restaurants under six brands across around 2,200 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China.

Yum China Holdings: Third Quarter Highlights:

  • Total system sales grew 4% year over year (“YoY”), excluding foreign currency translation (“F/X”). The growth was primarily attributable to 7% of net new unit contribution.2
  • Total store count reached 15,861 as of September 30, 2024, including 11,283 KFC stores and 3,606 Pizza Hut stores. The Company opened 438 net new stores in the third quarter. 145 net new stores, or 33%, were opened by franchisees.
  • Total revenues increased 5% YoY to $3.07 billion, an all-time quarter high (a 4% increase excluding F/X).
  • Delivery sales grew 18% YoY, maintaining the double-digit annual growth Yum China has sustained over the past decade. Delivery contributed approximately 40% of KFC and Pizza Hut’s Company sales.
  • Same-store sales reached 97% of the prior year’s level, improved from 96% in the second quarter. Same-store transactions grew 1% YoY, the seventh consecutive quarter of growth.
  • Operating profit grew 15% YoY to $371 million (a 14% increase excluding F/X). Core operating profit1 grew 18% YoY.
  • OP margin3 was 12.1%, an increase of 100 basis points YoY, supported by resilient restaurant margins and savings in G&A expenses.
  • Restaurant margin was 17.0%, steady YoY. Excluding $15 million in items affecting comparability, restaurant margin increased by 50 basis points YoY, driven by improved operational efficiencies.
  • Diluted EPS increased 33% YoY to $0.77 (a 32% increase excluding F/X). Excluding the impact of the mark-to-market equity investments in the third quarter of 2024 and 2023, Diluted EPS increased 19% YoY.
  • Digital sales4 reached $2.61 billion, with digital ordering accounting for approximately 90% of total Company sales.
  • Total membership of KFC and Pizza Hut exceeded 510 million. Member sales accounted for approximately 64% of KFC and Pizza Hut’s system sales in aggregate.
  • Yum China returned $248 million to shareholders in the third quarter, through $187 million in share repurchases and $61 million in cash dividends. In the first nine months, the Company returned $1.24 billion to shareholders, nearly three times the amount returned in the same period last year.

Joey Wat, CEO of Yum China, commented, “We delivered strong results again in the third quarter. Operating profit increased by 15%, core operating profit grew 18%, and diluted EPS increased by 33%. OP margin expanded by 100 basis points, and restaurant margin improved year-over-year on a comparable basis. We also achieved seven consecutive quarters of same-store transaction growth and decade-long double-digit delivery sales growth. Our RGM 2.0 strategy is executing effectively, with a dual focus on operational efficiency and innovation. Savings generated from improved efficiency allowed us to reinvest in food innovation and our value-for-money offerings, driving incremental traffic to our stores. Same-store sales index improved sequentially for both KFC and Pizza Hut. These results demonstrate the effectiveness of our strategy and our ability to outperform in a challenging and fluid environment.”

The international jury of experts for the Ernesto Illy International Coffee Award has been announced

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illycaffè Ernesto Illy International Award
The illycaffè logo

TRIESTE, Italy – illycaffè has announced the jury that will select the winner of the “Best of the Best” award at the Ernesto Illy International Coffee Award 2024. This prestigious recognition, named in honor of Ernesto Illy – son of the company’s founder- celebrates over 30 years of virtuous collaboration with coffee producers. Producers from nine countries – Brazil, Costa Rica, El Salvador, Ethiopia, Guatemala, Honduras, India, Nicaragua, and Rwanda – have earned spots in the final, with three producers representing each country.

The international jury will gather in New York on November 12 to taste and evaluate the coffees, which were selected by illycaffè’s quality laboratories based on rigorous quality and sustainability criteria throughout the 2023/2024 harvest.

The Ernesto Illy International Coffee Award 2024 jury includes Massimo Bottura, Chef Patron of Osteria Francescana and Casa Maria Luigia and founder of Food for Soul, a non-profit organization combatting food waste and social isolation. In recognition of his humanitarian and environmental efforts, Bottura was appointed Goodwill Ambassador for the United Nations Environment Programme in 2020 and most recently as SDG Advocate. In 2020 Osteria Francescana was awarded the prestigious Michelin Green Star for sustainability; Viki Geunes, chef and owner of restaurant Zilte in Antwerp, holder of three Michelin stars, known for his creative and visually stunning dishes; Felipe Rodrigues, Head Chef of the Rosewood Complex in São Paulo and one of South America’s leading chefs, with experience working under top European and Peruvian chefs.

Three professional tasters, Vanúsia Nogueira, Executive Director of the International Coffee Organization (ICO) and daughter of coffee producer, with extensive experience in quality coffee markets; Felipe Isaza, Arabica Q Grader and member of the Board of Directors of the Coffee Quality Institute, who has served as an international juror at numerous tastings; Dessalegn Oljirra Gemeda, Ethiopian coffee consultant and Q Grader, with a background working for the Ethiopian Coffee & Tea Authority, Ethiopian Coffee Exchange, and Oxfam.

And three expert journalists, Vanessa Zocchetti, editor-in-chief of the lifestyle section of Madame Figaro, who writes on gastronomy and design; Sebastian Späth, editor-in-chief of Germany´s leading food and lifestyle magazine Falstaff, with a great expertise in art, cuisine, fashion, and design; Josh Condon, editor-in-chief of Robb Report, a leading luxury magazine.

This multidisciplinary jury combines culinary, technical, and journalistic expertise to assess the complex nuances of the world’s finest coffees and choose the “Best of the Best.”

In addition, consumers will have the chance to participate by tasting the 9 finalist coffees and voting for their favorite in a series of blind tastings held at illy flagship stores worldwide. The coffee with the most votes will receive the “Coffee Lovers’ Choice” award.

BRC reports 3Q revenue of $98.2M (-2.3%), adjusted EBITDA of $7.1M

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Black Rifle Coffee Company BRC WhiteHawk
BRCC Logo (PRNewsfoto/Black Rifle Coffee Company)

SALT LAKE CITY, Utah, USA – BRC Inc., a Veteran-founded, mission-driven premium beverage company, today announced financial results for the third quarter of fiscal year 2024. Third quarter 2024 revenue decreased 2.3% to $98.2 million from $100.5 million in the third quarter of 2023. Wholesale revenue increased 3.5% to $63.7 million in the third quarter of 2024 from $61.5 million in the third quarter of 2023.

Direct-to-Consumer (“DTC”) revenue decreased 11.4% to $29.0 million in the third quarter of 2024 from $32.8 million during the third quarter of 2023. Revenue from Black Rifle Coffee shops (“Outposts”) decreased 11.4% to $5.5 million in the third quarter of 2024 from $6.2 million in the third quarter of 2023.

The Wholesale channel performance was primarily driven by continued penetration into the Food, Drug and Mass (“FDM”) market and growth in our Ready-to-Drink (“RTD”) product. RTD product sales increased through national distributors and retail accounts as our All Commodity Volume (“ACV”) percentage increased 530 basis points to 47.3%.

The decrease in DTC performance was primarily due to lower customer acquisition as we strategically shifted advertising spend to other areas of the business with higher returns. Outpost revenue decreased due to lower transaction volumes.

Gross profit of BRC Inc. increased to $41.3 million in the third quarter of 2024 from $34.1 million in the third quarter of 2023, an increase of 21.4% year over year, with gross margin increasing 820 basis points to 42.1% from 33.9% for the third quarter of 2023, driven by product mix shift, productivity improvements in our RTD products, lowering warehousing costs, and favorable changes in inventory reserves.

Marketing expenses increased 22.4% to $10.1 million in the third quarter of 2024 from $8.3 million in the third quarter of 2023. As a percentage of revenue, marketing expenses increased 210 basis points to 10.3% in the third quarter of 2024 as compared to 8.2% in the third quarter of 2023 as due to our expansion of partnerships, including our engagement with UFC, higher advertising spend, incremental shopper marketing, and an increase in trade promotions.

Salaries, wages and benefits expenses increased 19.0% to $16.5 million in the third quarter of 2024 from $13.9 million in the third quarter of 2023. As a percentage of revenue, salaries, wages and benefits expenses increased 300 basis points to 16.9% in the third quarter of 2024 as compared to 13.8% for the third quarter of 2023. The increase was related to a reduction in incentive compensation in the third quarter of 2023.

General and administrative (“G&A”) expenses decreased 36.7% to $12.3 million in the third quarter of 2024 from $19.5 million in the third quarter of 2023. As a percentage of revenue, G&A decreased 680 basis points to 12.5% in the third quarter of 2024 as compared to 19.4% in the third quarter of 2023 due to reductions in our corporate infrastructure and support that were inefficient or duplicative, including professional services, information technology, and office space.

Net loss of BRC Inc. for the third quarter of 2024 was $1.4 million and Adjusted EBITDA was $7.1 million. This compares to net loss of $10.7 million and Adjusted EBITDA of $6.2 million in the third quarter of 2023.

Costa re-opens Greenwich Peninsular store in London

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Costa Coffee Tarleton Excel London
Costa Coffee logo

HIGH WYCOMBE, UK – Costa Coffee has re-opened its refreshed Greenwich Peninsular store in London on 30th October 2024, showcasing an exciting new coffee experience for the local community and visitors. The uplifted store offers customers an enhanced interior, with refreshed furniture and a new layout to the counter space. The store is ideal for those looking to stay in and enjoy a beverage or a lunchtime bite with the new upgraded, warm and bright environment.

Additionally, with more charging points available throughout the store, it becomes the perfect spot for work meetings or casual catchups with friends without the worry of low battery.

Vicki Bell, Area Manager, Costa Coffee comments: “We’re thrilled to introduce a new way to experience Costa Coffee at our upgraded Greenwich Peninsular store. With a fresh and inviting atmosphere, this store is a great place for the local community to come together.”

The Greenwich Peninsular Costa Coffee store is open from 6am to 9pm Monday to Friday, 7am to 9pm Saturday and 7am to 7pm on Sunday.

Costa Coffee is also announcing the launch of an exciting prize draw, offering coffee lovers the chance to win the “Ultimate Costa Christmas Catch-Up Card,” which grants them 60 complimentary drinks, equating to 30 catchups to enjoy.

The prize draw, available for Costa Club members via the app, will run from Thursday 31st October to Wednesday 18th December, with 10 Ultimate Costa Christmas Catch-Up Cards given away each week. Additionally, thousands of runner-up prizes will be awarded, with 200 ‘catch-ups’ up for grabs each week— offering Costa Club members 2 free drinks loaded directly onto their app.

To take part in this exciting draw, customers must access the prize draw exclusively through the Costa Club app. All members need to do is simply enter their details for a chance to win the Ultimate Costa Christmas Catch-Up Card or one of the many runner-up prizes.

Hasbro and Scooter’s Coffee bring the sweet adventures of Candy Land to life with new character-inspired menu items

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Scooter’s Coffee Hasbro
Scooter's Coffee logo

OMAHA, Neb., USA – This holiday season, Mr. Mint, Queen Frostine, Jolly Gumdrop, Gramma Nutt, and King Candy are bringing the magical and nostalgic world of CANDY LAND to Scooter’s Coffee, under license from Hasbro, a leading toy and game company.

Your adventure to the Candy Castle begins when you Scoot On Around to one of the 825+ Scooter’s Coffee locations in 30 states nationwide. New menu items are now available that bring together the sweet adventure of CANDY LAND with new and returning holiday flavors including:

  • The Mr. Mint Mocha, enhancing our signature mocha with a cool kick of peppermint topped with whipped cream and peppermint chips (served hot, iced, or blended)
  • The Mr. Mint Hot Chocolate, combining chocolate and peppermint for a classic holiday treat topped with whipped cream and peppermint chips
  • The Queen Frostine Sugar Cookie Latte, adding a sparkling new touch to a returning winter favorite with rich white mocha and buttery, slightly spiced cookie flavors (served hot, iced, or blended)
  • The Queen Frostine Sugar Cookie, a buttery melt-in-your-mouth sugar cookie with cream cheese frosting and blue sugar crystals
  • The Gramma Nutt Latte, a warm and comforting creation featuring cinnamon, brown sugar, and hazelnut flavors with espresso (served hot, iced, or blended)
  • The Gramma Nutt Cold Brew, featuring our slow-steeped cold brew mixed with cinnamon, brown sugar, and hazelnut topped with hazelnut cold foam and salted toffee sprinkles
  • The Jolly Gumdrop Smoothie, a colorful frosty confection blending tart cherry with our rich smoothie base and topped with whipped cream and gumdrops
  • The King Candy Cake Bite, infusing white cake with fizzy popping candy and coating each bite with white candy, finished with crunchy candy and a sprinkle of shimmering gold on top
  • New kid’s offerings including a gingerbread-themed Kid’s Combo Box, a Jolly Gumdrop Lil’ Smiley™ Smoothie, and a kid’s temperature Mr. Mint Hot Chocolate

Exclusive Scooter’s Coffee and CANDY LAND merchandise is available at scooterscoffee.com including CANDY LAND themed tumblers (large and kid’s sizes), striped pajamas for the whole family, and warm and cozy beanies.

CANDY LAND tumblers are available at participating Scooter’s Coffee locations while supplies last.

Candy Land® and Hasbro and all related trademarks and logos are trademarks of Hasbro, Inc. ©2024 Hasbro.

Futures markets began the month on a low note, Vietnam’s coffee areas escaped largely unscathed from passage of tropical storm

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ICE coffee arabica robusta futures Intercontinental Exchangemarkets futures London prices exports CRSP amendments Vietnam NYSE Exchange Arabica Arabica robusta Sucden coffee market
The ICE logo

MILAN — Coffee futures fell down at the turn of the month. On Friday, 1 November, both exchanges closed in negative territory for the second consecutive day, pushed down by weather updates from the world’s two largest producers. Also contributing to price pressure was the performance of the real, the Brazilian currency, at its lowest level against the dollar in more than two and a half months.

In New York, the contract for December delivery lost 295 points to end the week at 242.95 cents, 545 points (-2.2 percent) below the close of Friday, 25 October and 940 points below the weekly high of 252.35 cents recorded on Monday 28 October.

Ice Robusta’s futures contract for January delivery fell $90 to settle at $4,279, down $132 (-3%) from the previous Friday.

London also reached its weekly highs on Monday 28 October, when the main contract closed at $4,502.

In Vietnam, Tropical Storm Trami briefly touched down in central Vietnam, but the coffee harvest, now only 5% complete, escaped largely unscathed, subtly affecting local coffee prices.

Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount range of $10-$30 per ton to the January contract, report local sources.

Vietnam’s coffee production this year (Arabica+Robusta) is expected to be around 26-27 million bags, below the USDA’s initial estimate of 29 million bags compiled in May, when the impact of the drought was not yet fully assessed.

According to Safras & Mercado, the rise in Robusta prices is prompting Vietnamese growers to expand acreage and improve farm management.

A few years ago, when prices were less than half than today, coffee growing had lost ground to pepper and durian.

The trend has reversed in the last two years. According to Vicofa, the total area under coffee had risen to 718,000 hectares at the end of 2023 and is expected to expand further by the end of 2024.

If the weather is more favourable next year, the larger areas and the increased productivity made possible by higher investments in agricultural inputs should favour a significant recovery in production beginning from the 2025/26 harvest.