TEA STANDARDS: SHOULD THEY BE HARMONIZED OR NOT? THE CHEMISTRY OF COFFEE 12–14 SEPTEMBER 2013 — MOSCOW

MAX QUIRIN: ‘HELPING OTHERS IS WHAT MAKES ALL YOUR EFFORTS WORTHWHILE’

# 2 (106) 2013

contents

№ 2’2013

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Indian tea promotional effort in Russia is at full speed

India & Sri Lanka tea statistics

26 EDITORIAL

4 NEWS UCTIE

Hot drinks in the Middle East and Africa. Manufacturers Appeal to a Young Consumer Base

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harmonized or not?

Hot drinks in China. China becoming a global leader for hot drinks categories

CALENDAR OF EVENTS

ECONOMICS

8 NEWS REVIEW&STATISTICS 16 17 18

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Hot drinks in Southeast Asia. Coffee market trends

Tea standards: should they be

India tea statistics Sri Lanka tea statistics The Chemistry of Coffee

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Days that stick in memory

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6 PRESSING ISSUE

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Hot Drinks in China and some countries in Africa and Asia

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The Land of Dragons and Coffee

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The Land of Dragons and Coffee

PRIVATE VIEW 30

Max Quirin: ‘Helping others is what makes all your efforts worthwhile’ or The bird’s eye view of life and coffee

The ‘Barista ranking’ project takes off

WHO IS WHO? 32 36

Filter paper branding – I like CAFFITA-CAMA: two highly successful italian companies

HORECA 38 41 42

Days that stick in memory Pay With Kiss The ‘Barista ranking’ project takes off

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Diners shun wine for a nice cup of tea

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The amazing Latte Art What should be taught?

48 ADVERTISER INDEX 1

EDITORIAL

№ 2‘2013

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Establisher ZAO INTERNATIONAL TEA HOUSE

hen we come across persistent myths that are common among consumers, we must

Publisher ZAO INTERNATIONAL TEA HOUSE

realize that the reason for this persistence is a torrent of easily accessible but contradictory

Chief Editor RAMAZ CHANTURIYA

information that rushes at people from all sides.

Deputy Chief Editor SVETLANA BELIKOVA

A good number of myths are born of inter-seg-

Computeraided makeup VALENTINA GUSKOVA

mental competition,which manifests itself as sellers’ desire to stand out from the crowd, often

Advertising Director JULIA CHANTURIYA

by presenting a competing product in a negative light. To achieve this goal, all arguments are wel-

Advertising Manager ANNA ANTONOVA

come, including spurious ones. A fertile ground

Special Projects Manager ELENA TREGUB

for consumer myths is the lack of reliable infor-

Promotion Manager OLGA DOLGACHEVA

mation – or, to be more precise, the inability to verify claims made by someone selling a product. The confusion iscompounded

THE EDITORIAL BOARD

by the fact that there are no universally accepted standards that would allow

Chairman of the Editorial Board R.O. CHANTURIYA,

consumers to make sense of at least some of this information.

general director of Rusteacoffee Association

We have asked a panel of experts to discuss the need for an international

Members of the Editorial Board

nomenclature for tea. In my opinion, tea is the product that is more in need of

S.G. BELIKOVA,

systematization, since the market for coffee, a popular exchange-traded com-

deputy editorinchief of Coffee&Tea in Russia magazine, PhD of Philology, Editorial Board Secretary

modity, has already largely adopted a universal terminology.

S.V. KASIANENKO, chairman of the board of directors of Orimi Trade company

You can the expert opinions in the Pressing issue section of our maga-

I.V. LISINENKO,

zine. I, for my part, would like to take this opportunity and stress that

general director of May Company

A. MALCHIC,

a universal nomenclature is not an end in itself. I think that the devel-

chief executive of Montana kofe company

opment of a common ‘coordinate system’, available in case of need to

R.D. PANZHAVA, Georgian Tea Producers Association

any person in any corner of the world, is a pressing problem. This sys-

M. PEYRIS,

tem should have the terminology for describing all known types of raw ingredients, technologies for tea processing, chemistry and physics of

EDITORIAL

the production process, as well as all aspects of sales, storage and

V.A. TUTELIAN, Head of the Institute of Nutrition of Russian Academy of Medical Sciences, Member of the Academy

G.V. SMIRNOV,

brewing. Someone can reply that there are already plenty of books on

general director of SDC FOODS company

these subjects. But that is precisely the problem: what we need is not a

A.V. ELSON, general director of KLD Coffee Importers

book, but an international reference manual that would include inforPhoto on a cover:

mation about every country’s unique approach to the product. For

www.stockvault.net

example, someone can open this manual and find out what kind of tea

Editorial Address:

is called ‘red tea’ in China, and what that same tea is called in

Russia, 123060, Moscow, Berzarina str., 36, building 2, of. 214 tel./fax: +7 495 935-87-07 Email: [email protected], www.coffeetea.ru

Europe, what happens to tea during the brewing process, why some countries brew tea multiple times and others only once, etc. In my opinion, this work should be done under the auspices of such

Printed in

reputable organizations as the International Tea Committee or the

Tipografia Mospoligraf LLC, Moscow

FAO Intergovernmental Group on Tea. But in any case, the development and adoption of such a system must include all principal tea-producing and tea-consuming countries. After all, it is in everyone’s interest to prevent the lack of precise terminology, frequently used to advance someone’s short-term interests, from interfering with the growth of the global market.

Ramaz Chanturiya Editor-in-Chief

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International Tea Committee

COFFEE&TEA INTERNATIONAL # 1/2013

Distributed worldwide among coffee and tea producers, wholesale companies, shops, and restaurants. Printed in Russia. According to the registration certificate of mass media П И №777213 from 30th January, 2001. Reprinting of materials is allowed only by permission of the magazine. The reference to the magazine «Coffee and tea in Russia» is obligatory. The editors don't bear any responsibility for reliability of data placed in advertising blocks or announcements. The editor's point of view may not coincide with the author's point of view. All provided materials will not be returned or reviewed. Coffee&Tea International magazine has been included in the VINITI (AllRussian Institute of Scientific and Technical Information of the Academy of Sciences  Vserossiisky Institut Nauchnoi i Tekhnicheskoi Informatsii (VINITI)) list of synopsis journals and the institute's data base. Information about the magazine will be annually pub lished in the «Ulrich's Periodicals Directory», international handbook of periodic magazines and ongoing publications. Coffee&Tea International is an appendix to the Coffee&Tea in Russia magazine.

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– advertising materials

General media partner

NEWS

UNITED COFFEE & TEA INDUSTRY EVENT NEWS UNITED COFFEE & TEA INDUSTRY EVENT(UCTIE)– is an international combined coffee and tea conference and industrial area for the whole production chain from bean and leaf to a cup. It can be considered as the largest event in Russian coffee & tea segment. This Event, dated on 12-14 of September in Moscow (Expocenter), is a unique platform for the business development. At one time, in one place key players and representatives of tea and coffee industry will meet. FREE TICKET and general program are available on the web-site www.unitedcoffeetea.ru.

Specialty coffee as a luxury product – similarities and distinctive features unitedcoffeetea.ru s part of UCTIE the seminar "Specialty coffee as a luxury product" will be conducted. The speaker draws a parallel between modern approaches to specialty coffee and luxury goods. Today, one can observe the re-evaluation of the concept of “luxury product”. With coffee it is the same. An important factor is the social responsibility taken or taken into account during production and selling. The seminar will provide an analysis of prices crises, their reasons as well as the possibility of their avoidance under the condition that the interests of all groups of the market are taken into account equally.

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Assessment of tea quality unitedcoffeetea.ru ou work with tea at a store, restaurant or coffee shop and you want to expand your knowledge about tea? For example, learn how to assess the quality of tea? And how it relates to the technology of its production? Then this workshop is for you. The seminar will be interesting for those who work in the tea shop, restaurant or coffee shop, and wish to expand their

knowledge about tea. For example, learn how to evaluate the quality of tea, and how it relates to the technology of its production. Attending the workshop one will refresh basic knowledge about the tea technology and see how to conduct a tasting. Speaker: David Chanturiya, a recognized tea expert with a broad experience, Head of the Tea School.

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unitedcoffeetea.ru

Exploring the Chemistry of Coffee and Tea or thousands of years coffee and tea have been cultivated around the world, at times, with very little technical knowledge of either product. In this session we will explore the chemistry of coffee and tea and venture into investigating differences between these important beverages — as well as their similarities from a technical perspective. A discussion on how these variables affect quality, composition, overall taste and physiology factors will be presented. The seminar will be coupled with a tasting session to illustrate a number of the topics presented.Speaker: Joseph Rivera, Coffee Scientist (Coffee Intelligence, Inc.)

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COFFEE&TEA INTERNATIONAL # 2/2013

NEWS

unitedcoffeetea.ru

Tea and coffee evolution – latest marketing trends that affect the consumer's brain, heart and wallet The seminar speaker Alexey Andreev, General Director of Depot WPF, will make a review of the current Russian and European consumer trends and their impact on tea and coffee market. Using as examples some successful case studies on branding Alexey will show how one can use completely different consumer trends when launching new trademarks, upgrading the existing and creating limited production series. unitedcoffeetea.ru

Coffee: The Chemistry of Quality Coffee undergoes a significant transformation from ‘farm to cup’ before ultimately being served to consumers. In this session this complex journey willbe exploredand overall chemical changes that occur from cultivation to final productwill be discussed. Questions such as how does origin affect flavor and acidity? What role do sugars, proteins and lipids play in quality? This is an informative seminar for green buyers, roasters, baristas – or anyone wishing to gain a deeper understanding of coffee science from bean tocup.Speaker: Joseph Rivera Coffee Scientist (Coffee Intelligence, Inc.).

I want to start roasting coffee. How? he first day of United Coffee T & Tea Industry Event, on September 12, an interactive discussion "I want to start roasting coffee. How?" will be conducted.The purpose of such an event — to gather experienced professionals to share their knowledge and skills with the beginners of roasting art. The "Q & A" format will allow anyone to consult with experts on the problems they face in their practice.

Coffee single serve packs market overview and perspectives of its growth unitedcoffeetea.ru ne of the fastest growing markets in the coffee business nowadays is the single serve packs market (capsules and pods), which hasn’t received a widespread in Russia yet. At the UCITE Roberto Francia, the Sales Manager at IMA Industries Tea & Coffee Division will make a detailed overview of the growth perspectives, advantages and disadvantages of this serve system, new technologies and developments in this sphere.

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Taste of Espresso. Cup tasting seminar unitedcoffeetea.ru his practical seminar, held by one of the leading Italian specialists in espresso, will help to understand better the Italian approach towards creation of espresso blends. The seminar will help to answer

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the following questions: What’s the role of Brazilian arabica in a blend? How different robustas affect the taste of espresso? How to use washed arabicas best? How different components contribute to the taste and

the flavor of espresso? The seminar has been successfully held for more than 15 years all over the world The seminar is brought by SFT TRADING together with Sandalj Trading Company.

unitedcoffeetea.ru

To Use or Not To Use Robusta in the Blend? We invite you to join the seminar which is hosted by a person who is sure that Robusta has the right to be used in the blends and is ready to share this knowledge with participants. A professional cupping session on evaluation of several various Robustas will take place giving audience understanding of main cup characteristic. Speaker: Michael Wenzel, Head of Quality Department of Bernhard Rothfos (A Company of Neumann Kaffee Gruppe).The seminar is conducted with a support of KLD Coffee Importers company. unitedcoffeetea.ru

Taste of processing. An interactive cupping seminar of natural, pulped natural and washed estate Brazil arabicas unitedcoffeetea.ru

t is common knowledge that processing Itaste. method has a great impact on coffee Natural coffee is more bodied and sweet, and washed coffee has a refined taste and higher acidity. Steps within a processing method vary from country to country. Participants will see how processing is done in Brazil. Another factor

contributing to the taste of coffee is the variety of Arabica. It will be possible to compare varieties from one microclimate and brew a catuai, an icatu and a bourbon. The discussion ofeffects fromprocessing methods onvarietieswill conclude the seminar which is held by Ipanema and SFT TRADING Ltd.

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NEWS

Pressing issue:

TEA STANDARDS: should they be harmonized or not? Aliona Velichko

Classification of tea is a very complicated and often confusing matter. It has happened so that Europe, United Sates and tea producing countires from Asia and Afrika use the same approach to classification of tea which was formed historically. While Chinese have their own approach to classification of tea and don't want to change it. And CIS countires are wondering what to do with the approach that they have inherited from Soviet times. Globalisation of the tea market brings forward the necessity of speaking with each other using the same tea words that mean the same and not wondering when hearing "black tea" is it red in Chinese classification or black in European one or smth else? Is it time already for creating universal international classification of tea that could be used by all countires? If yo think YES, then what could be done in this direction? How such work could be coordinated and by whom? JOSEPH P SIMRANY, President, Tea Association of the USA, Inc.: – Personally, I am comfortable with the various systems used by individual tea producing countries despite the lack of uniformity and question the likelihood that any organization, despite its credibility, could hope to convince all tea producing countries that they should adopt a uniform system. The systems that are in place have been developed over centuries and reflect the uniqueness of the teas being grown, harvested, processed and sold in countries around the world. While I understand the benefits of a single system in terms of clarity of the sale particularly if ever an on-line global tea auction is adopted, most tea professionals are very familiar with the descriptive language being used by each of the major tea producers so it does not currently cause any major problems. Also, even if there was a single system of classification, that would not eliminate the need for an organoleptic evaluation of the teas before a sale could be finalized particularly if the buyer was seeking to purchase a specialty tea as opposed to a mediocre tea used primarily in a blend.

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JEM McDOWALL, Vice President (Trading), Universal Commodities (Tea) Trading Inc.:

The primary responsibility for clearing up confusion about tea is equally shared by retailers, wholesalers, the Trade Associations and the Tea Boards in the consuming and producing countries. This will be a long term but eventually consumers will become less confused about the various tea offerings available to them. For several years the Tea Association of the USA has encouraged the various Tea Boards to play a bigger role in this challenge. They should have a vested interest in educating consumers about tea in general and specifically the teas that are available from their country as it could very well result in increasing their share of market. Many of the specialty tea merchants are doing an excellent job of consumer education via their beautiful websites because they are convinced greater education in crucial to increasing their revenue. Finally, it is my personal belief that a little bit of mystery surrounding tea keeps consumer interest in tea high. There is a lifetime of learning about tea available to true tea aficionados which will keep them involved in the category for decades.

COFFEE&TEA INTERNATIONAL # 2/2013

– The classification of tea is very fragmented (even among Asia/Europe/US/ Africa) due to the individual nature of farmers and national industries plus many variations in processing techniques. To be honest I do not think there is much chance of this changing for the existing reasons above, but in addition because tea producers are also starting to produce artisan teas with their own “branding” and USP. If anything there is likely to be some scope for very large industrial producers to “harmonise” but as the system “works” for those involved in the industry then there appears little interest.

MANUJA PEIRIS, Chief Executive, International Tea Committee: – There is currently universal classification and I believe it works very well. I do not think it is complicating or confusing at all. Tea has always remained global and those who work with China will be fully aware of the description of grades there.

CALENDAR OF EVENTS June 2013 – February 2014

26–28 June 2013

16–19 September 2013

All materials are provided by support of WWW.COFFEETEA.RU

28–31 January 2014

SCAE WORLD OF COFFEE WORLD FOOD MOSCOW UPALKOVKA/ UPAKITALIA

Country: Russia City: Moscow Company Page: www.world-food.ru

19–21 September 2013

EU’VEND & COFFEENA

Country: Russia City: Moscow Company Page: www.upakowka.ru

10–14 February 2014

PRODEXPO

Country: France City: Nice Company Page: www.scae.com

9–11 August 2013

CAFE SHOW CHINA Country: China City: Beijing Company Page: www.facebook.com/chinacafeshow

12–14 September 2013

UNITED COFFEE & TEA INDUSTRY EVENT

Country: Germany City: Koeln Company Page: www.euvend-coffeena.com

Country: Russia City: Moscow Company Page: www.prod-expo.ru

18–22 October 2013

11–13 February 2014

HOST

TEA & COFFEE WORLD CUP

Country: Italy Город: Milan Company Page: www.host.fieramilano.it

21–24 November 2013

SEOUL INTERNATIONAL CAFE SHOW Country: Russia City: Moscow Company Page: www.unitedcoffeetea.ru

Country: South Korea City: Seoul Company Page: www.cafeshow.co.kr

Country: Poland City: Warsawa Company Page: www.tcworldcup.com

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NEWS

World of coffee ends on a high Press-release of SCAE

urope’s largest coffee industry event, SCAE World of Coffee, Nice 2013, ended on a high note with the announcement of the winners of the four world coffee competitions, which took place at The Acropolis - Palais des Expositions. The three-day event was packed with: workshops, competitions, the World Roasters Summit, forums and the trade fair also produced a number of other winners throughout the show including the New Product of the Show Awards, the SCAE Awards for Excellence and the SCAE Coffee Photography Competition. World Coffee Events (WCE), a sister company to SCAE, announced the 2013 World Latte Art Champion, 2013 World Coffee in Good Spirits Champion, 2013 World Cup Tasters Champion and the first-ever World Coffee Roasting Champion. A total of 28 National Latte Art Champions, 21 National Coffee in Good Spirits Champions and 35 National Cup Tasting Champions competed in these events. With the World Coffee Roasting Championship taking place for the first time at this year’s World of Coffee, there were 11 National Roasting Champions taking part. The 2013 World Latte Champion is Hisako Yoshikawa from Ogawa Coffee Co. LTD., JAPAN and the 2013 World Coffee in Good

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COFFEE&TEA INTERNATIONAL # 2/2013

Spirits Champion is Victor Delpierre from CafJs Richard, FRANCE. Together with the 2013 World Cup Taster Champion Lajos Horvath from HUNGARY and the 2013 World Coffee Roasting Champion Naoki Goto from JAPAN. The annual SCAE Awards for Excellence were also presented at the show. Sponsored by BUNN the awards were presented by SCAE Board Member, Lina Chiodo from BUNN. The five awards were as follows: Young Entrepreneur, the winner: Aysin Aydogdu. Changing Lives at Origin, the winner: Dethlev Cordts. The Innovation Award, the winner: Jacu Coffee Roastery. The Passionate Educator, the winner: Daniela Nowitzki. Lifetime Achievement: this year the judges decided to award two Lifetime Achievement Awards to: Colin Smith (Smith’s Coffee, UK) and Trygve Klingenberg (Solberg and Hansen, Norway). SCAE’s Annual Coffee Photography Competition received the most entries this year and made for a very intersting exhibition at the show. The exhibition was attended by a large number of visitors and exhibitors from Russia, including Coffee & Tea International and Coffee & Tea in Russia magazines.

have been to China many times before, but a recent visit to Pu’er (Yunnan province) was an unexpected discovery. This town, located in the Southwestern China, near the border with Myanmar and Laos, was hosting the annual International Tea Convention, scheduled to coincide with the magnificent Pu’er Tea Festival. As is the case with everything in China, the organizers spared no expense. The Festival opening ceremony alone resembled the opening of the Olympic games, with 500 participants and 5000 spectators! Artists representing 15 ethnic groups that live in the province performed on a gigantic open-air stage wearing folk costumes, singing, dancing, celebrating tea… it was truly unforgettable. This was the perfect place to see the true diversity and enormity of China. Some ethnic groups, such as Va, do not even fit our concept of a typical Chinese person. The delegation representing the Rusteacoffee Association was small but very professional: this time it consisted of Nicolai Kabanov (Tea Company No. 1, Nadin), Evgenia Tuchina (Ahmad Tea) and yours truly. We fit right in with an international contingent of tea industry professionals from Great Britain, USA, Canada, India, Italy, Morocco, Dubai, Belgium, France, Turkey and other countries. The Yunnnan province is one of the most well-known tea-growing provinces in China, and this region predictably generates a lot of interest. On the one hand, it produces one of the most expensive and sought after teas in the world, the tea that shares its name with the provincial capital – the Pu’er tea. On the other hand, this traditionally tea-growing region is gradually becoming known for its coffee production. Yes, you heard it right: they grow coffee around Pu’er now, and, according to industry experts, of a quite respectable quality. You could have guessed it during a visit to the

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Once more about China Ramaz Chanturiya

modern local science complex that used to be dedicated entirely to the chemical analysis of tea, but now has one of its floors “occupied” by coffee. The trend is likely to continue: just think about the fact that the modest airport in Pu’er has just four shops, onlyone of which is selling tea, and the other threenot only sell, but also serve excellent coffee. By the way, coffee consumption in China is growing explosively, and practically all coffee from Pu’eris consumed domestically. The host of the event, the Tea Committee of the China's Chamber of Commerce for Import&Export of Agricultural Products, scheduled the events to allow the guests not only to learn about the tea industry of the region but also to experience the culture of the ethnic minorities that live in this wonderful land. Many of us got to try making tea bricks by hand (or, rather, by foot, as it’s been done for thousands of years) as well as to jump over bamboo sticks as part of a traditional dance performed by young women of the Va people. Trips such as this one are especially fruitful, in my opinion, and not only because you get to see plantations and processing plants. More importantly, you get to immerse yourself in the world of tea, and people are a crucial part of that world. Only during such trips can you meet colleagues from places not normally associated with tea, such as Alaska, Australia and Venezuela, and get to understand their point of view on what is happening in various tea markets. Besides, you acquire a deeper understanding of the country that supplies your tea.I am confident that such trips are useful from the marketing point of view as well: an exchange of ideas between different markets allows us to find new opportunities to promote our products and sometimes even makes us aware of new trends. With the trip behind us, it’s time to reflect on what we’ve learned…

Indian tea promotional effort in Russia is at full speed

coffeetea.ru

n December 3, 2012, the Tea Board of India launched the Program for promotion of the Indian tea on the Russian market. This effort is supported by the Rusteacofee Association. In 2013 the Program will include several events aimed at strengthening the image of the principal tea-growing regions of India, such as Assam, Nilgiri, Darjeeling and others. The first event that took place as part of the Program was ‘The Grand Indian Tea Party’, held in the popular historical park ‘Sokolniki’ in Moscow on February 23 and 24, 2013. In the center of the park, under the bright warm sun, a huge elephant greeted the guests and invited them to taste delicious Indian tea from plantations in Assam, Nilgiri and Darjeeling. Moscovites and visitors brought their families to the park during the weekend to relax, skate and just stroll around. Everyone was pleasantly surprised to find a new attraction: an endless supply of a flavorful hot beverage from such brands as ‘Indu’, ‘Lisma’ and ‘Nargis’. Right in the middle of the park the event organizers built a “miniature India” with sunny plantations, festive garlands, complimentary magnets bearing the logos of the famous Indian tea-growing regions. The guests were taking lots of pictures, people walked over from the skating rink with their skates still on to have a glass of the tasty beverage – a drop of the hot Indian sun. The event brought great joy to everyone: children, young people and older visitors, who recalled the wonderful taste of Indian tea from long ago and rejoiced at finding that it is coming back to them.

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Another part of the project was the creation of a Facebook page for Indian tea; the goal is to disseminate information about Indian tea and to attract new fans and followers (the page already has more than 8000 friends). The owners of the page immediately started a competition called ‘Closer to India’ that will crown its winner as a ‘Tea Expert’. To enter the competition, citizens of Russia and the Ukraine submitted original works: essays about their love of tea, stories and memories of trips to India, colorful photographs and fun videoclips. A professional jury, consisting of representatives of such companies as Ahmad Tea, Nargis Tea, Kayan Tea, the Alyona Velichko Tea Studio, the ‘Tea and Coffee in Russia’ magazine, the www.teatips.ru web portal and the Just Natural Art Studio, has already selected the winner, who will go on a fantastic voyage to visit India’s tea-growing regions, during which he will post daily updates on the Facebook page. The winner will learn a lot about tea, share the impressions of the journey and, after coming back home, will rightfully receive the honorary title of ‘Tea Expert’. The next event of the Program is a charitable auction of first-harvest plantation teas from Darjeeling. The aim of the auction is to attract the attention of the Russian audience to highquality Indian tea varieties and allow as many tea fans as possible to understand and appreciate their taste.

NEWS

The best companies was named in Ukraine

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orimitrade.ru

he "Orimi Trade in Ukraine" company, which is the Ukranian branch of Orimi Trade Llc, has won the national award "Made-in-Ukraine-2013" as the best producer in Ukraine in the tea and coffee category. The National B2B award was established to mark out in public the achievements of food and drink producers and to reward the best of the worthy. The initiator and organizer of the awards is the retail and wholesale portal TradeMaster. For months, experts of TradeMaster held a survey among retail chains in Ukraine. The retailers which are based on practical experience can most accurately identify those producers who bring the largest retail chain turnover in a particular category.

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scotsman.com

No time for tea as uk turns into a nation of coffee-lovers Britons are supposed to be known for their love of a good cup of tea. But a new study has revealed that coffee is threatening to overtake tea as the UK’s national drink – with the average person forking out more than Ј1,000 on the caffeinated beverage every year. More than eighty percent of the population drink coffee every day, consuming an average of 2.32 cups a day. Two per cent of the people admit to downing six or more cups in 24 hours. “Tea has traditionally been the UK’s favorite hot drink, but our findings show that we are also very much a nation of coffee drinkers nowadays,” said David Black of Consumer Intelligence, which carried out the study. “Brits have really taken to the coffee shop culture in recent years and many of us find it difficult to get through a day without at least one trip to our local coffee shop.” Case study. Rachel Hamada, a freelance editor from Edinburgh, drinks around three cups of coffee on an average day. “I try to make most of my coffee at home as I work from home. I tend to buy high-quality coffee but aim for it not to be too expensive. Asda has a really amazing Ethiopian coffee in their finest range, but it’s often on special offer, so it costs the same as the more basic versions. When I do go out, I usually get coffee from independent coffee shops such as Wellington Coffee on George Street in Edinburgh or Artisan Roast on Broughton Street. On the odd occasion that I do go to Starbucks, I get a flat white as I prefer a small coffee with flavor to big Starbucks buckets of sweet milk, which I think are gradually going out of favor as people have finally discovered how high in calories they are.”

Demand for orthodox tea may boost indian tea exports Having witnessed an over seven percent drop in 2012, Indian tea exports are expected to grow by over nine percent in 2013. According to Shri M.G.V.K. Bhanu, Chairman of the Tea Board of India, who spoke to reporters at a seminar on Tea and Health, the growth in exports will be aided by a strong demand for orthodox tea in the CIS countries and Iran. India is likely to export over 220 million kg (mkg) of tea in 2013, compared with 201 mkg in 2012. Tea exports from India stood at 215 mkg in 2011. Orthodox variety.Export of India’s orthodox tea to Iran witnessed a dip in 2012 in the wake of sanctions imposed by the US and the European Union on Iran. “With the situation in Iran improving, tea exports are likely to increase to 20 million kg this year,” Mr. Bhanu stated. Prices. The lower demand from Iran led to some producers cutting down the production of orthodox tea, which led to firming up of prices. According to Mr. Bhanu, in 2013 the prices of orthodox tea are likely to remain firm due to a steady demand from CIS countries and Iran.

Production. India’s tea production is expected to be marginally up at 1,115 mkg in 2013 (Jan-Dec). The country produced nearly 1,112 mkg in 2012 – a more than 3 mkg dip compared to 2011. First flush. The decline in production was primarily due to inconsistent weather in the Assam Valley and other teagrowing areas of North India. Although the early season (first flush) tea production was almost stagnant at last years’ level due to poor rains in North India, there has been some improvement in rains after March 15. “We expect to exceed the production level achieved in 2011,” Mr. Bhanu said. thehindubusinessline.com

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NEWS

Tea & Coffee World Cup Singapore Review coffeetea.ru

atering to the growing Asian market, exhibitors and attendees from across the globe converged in Singapore for the industry’s original buying and selling coffee and tea trade show. This year’s Tea & Coffee World Cup Asia returned to Singapore, a bustling cosmopolis known for its beauty, cleanliness, businessfriendly attitude and divergent ethnicities. With its array of international cuisines, Singapore is also a foodie's dream! The 17th TC World Cup took place February 28 through March 2nd at Singapore Expo. Companies included a mix of first-time and seasoned exhibitors including Ahlstrom, Balung Plantation, Bosch, Brambati, Cablevey, Glatfelter, Gutmann Aluminum Draht GmbH, H@lssen & Lyon, Interfil S.r.l., Marden Edwards, Neuhaus Neotec, Premier’s Tea, Printcare, Rychiger, SSP Limited, Teamac, Yamanaka and Zwirnerei a.d. Wutach. For the first time, TC World Cup featured roasting classes with roasters provided by Buhler AG, Probat Werke and Toper International. Green coffee for the roasting classes was supplied by Olam International, Mercon Coffee Group and Coffindo Ltd. Grinders were sponsored by Bunn Corp. and Bodum. TC World Cup offered a number of educational classes as well as tastings over the course of the three-day exhibition and symposium. Classes varied between beginner/intermediate and advanced levels.

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Carl Leonard, vp, green coffee and tea, Community Coffee Co., taught the specialty coffee cupping and grading classes. Some of the coffees cupped included Brazil Santos Bourbon and Papua New Guinea. The tea blending/brewing classes were led by Stepas Parulis, business development manager, Europe, Adagio Teas. Jay Shree hosted Darjeeling and Assam tea tastings, while Wild&Bare tea tastings focused on artisan teas from China. Talk in the aisles focused on the coffee leaf rust epidemic that is sweeping through Central America, the Colombian coffee workers strike, new tea packaging methods and new tea origins such as Malaysia and Sri Lanka that are working hard to raise their worldwide profiles. At the heart of it, TC World Cup is a machinery show. Exhibitors are encouraged to bring their equipment, if possible, to the show in order to show the machines in action to attendees. No matter the industry, nothing helps sell a product better than demonstrations in front of would-be buyers (just ask retailers). In fact, during the show, Buhler sold its newest roaster! TC World Cup Europe takes place February 11-13, 2014 in Warsaw, Poland and exhibitors are already signing up. Stay tuned for details on the educational classes, discussions, tastings and exhibitor listings. We hope to see you there!

13

NEWS

Singapore Alliance hosted coffee and tea industry Julia Chanturiya

The first-of-its-kind Event in Southeast Asia, CafJ Asia 2013, showcasing cafeteria equipment and supplies, in alliance with another premiere exhibition International Coffee & Tea Industry Expo 2013 which focused on the upstream sector of the coffee and tea industry was held in Marina Bay Sands, Singapore from 14-16 March 2013. The concurrent exhibitions marked a gathering of the tea and coffee industries in South East Asia with 95 exhibitors from 22 countries. The 3-day event teemed with networking events and the first-ever Asia Coffee Summit for the trade and fun-filled activities for the public, of everything coffee and tea. The Asia Coffee Summit examined issues and concerns in sustainable practices of the coffee industry and discussed the implementation of sustainable practices which have become increasingly important in the global coffee industry. The crPme de la crPme of baristas also battled it out at the Singapore National Barista Championship 2013, the Singapore Latte Art Championship and The Cup Tasters Championship. There were also workshops and labs conducted by top manufacturers, including PROBAT, Diedrich

14

COFFEE&TEA INTERNATIONAL # 2/2013

NEWS

Manufacturing and Neuhaus Neotec. During the Event there were organized various Tasting Sessions for trade and media visitors.The Brew Bar that offered different tasting and visual experiences. Singapore Coffee Association (SCA) and its members noted the growing trend of cafes adopting different brewing methods such as Pouring, Chemex, Aeropress and Siphon out-

side the standard Espresso. The Brew Bar at CafJ Asia 2013 operated for all 3 days. SCA’s members brewed their amazing coffee offerings at Brew Bar. They also showcased their skills in hand brew and feature various coffee origins. The espresso bar was presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCA's booth. The Event showed that there are indeed huge business opportunities in the market! Asia has been the springboard for industry players to tap into this booming tea and cafJ industries. CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategic platforms where alliances will be formed and businesses transacted.

15

REVIEW&STATISTICS

India tea statistics TEA AREA AS ON 31–12–2011 & PRODUCTION IN 2011–12 STATE / DISTRICTS

Area under tea ( in Th. Hectares)

Production (Million Kgs)

285.83 36.38 322.21 17.82 72.92 24.36 115.10

531.26 50.00 581.26 9.02 147.59 112.82 269.43

22.30

14.90

459.61 80.46 37.14 2.14 119.74 579.35

865.59 162.79 61.62 5.46 229.87 1095.46

Assam Valley Cachar Total Assam Darjeeling Dooars Terai Total West Bengal Other North Indian States (Includes Tripura, Uttarakhand, Bihar, Manipur, Sikkim, Arunachal Pradesh, Himachal Pradesh, Nagaland, Meghalaya, Mizoram and Orissa) TOTAL NORTH INDIA Tamil Nadu Kerala Karnataka TOTAL SOUTH INDIA ALL TOTAL

ESTIMATED CONSUMPTION OF TEA IN INDIA

Figures in M.Kgs

YEAR

Domestic Consumption (Estd)

2009-10

838

2010-11

856

2011-12

873

2012-13

890 Source: ORG-India Study report

Source: Tea Board of India

Coffee & Tea International says thanks to the Tea Board of India for the kindly provided statistical data.

IMPORT OF TEA INTO INDIA Financial Year

Calendar Year

YEAR

Quantity (M.Kgs.)

CIF Value ( Crores)

2007 – 2008 2008 – 2009 2009 — 2010 2010 — 2011 2011 — 2012 2012 – 2013 (Apr-Dec)(P) 2011 – 2012 (Apr-Dec)

16.75 22.03 25.84 19.26 19.21 17.88 16.94

108.07 181.45 214.44 186.82 186.04 229.21 166.04

Unit Price CIF Value Unit Price ( /Kg) (Mill US$) (US$/Kg)

64.51 82.36 82.97 97.02 96.85 128.22 98.02

1.60 1.79 1.74 2.13 2.02 2.35 2.08

2007 2008 2009 2010 2011 (R) 2012 (P)

Quantity (M.Kgs.)

CIF Value ( Crores)

Unit Price ( /Kg)

CIF Value (Mill US$)

Unit Price (US$/Kg)

15.99 20.28 25.67 20.04 21.17 20.50

104.60 161.97 216.03 184.94 206.54 253.60

65.43 79.90 84.16 92.26 97.57 123.71

25.27 37.31 44.64 40.46 44.30 47.45

1.58 1.84 1.74 2.02 2.09 2.31

Source: Tea Board of India

PRODUCTION (REGION- WISE) : Financial Year YEAR 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (April-Jan)(E) 2011-12 (April-Jan)

Quantity in Million Kgs

North India

South India

Total

758.27 734.03 734.38 728.52 865.59 852.75 838.28

228.75 238.74 256.80 238.21 229.87 206.45 201.75

987.02 972.77 991.18 966.73 1095.46 1059.20 1040.03 Source: Tea Board of India

(E) Estimated and subject to revision

Source: Tea Board of India

Calendar Year YEAR

Quantity in Million Kgs

North India

South India

Total

764.74 733.92 734.87 723.03 875.57 880.10 2.66 2.69

221.69 246.90 244.13 243.37 240.15 231.66 19.11 16.20

986.43 980.82 979.00 966.40 1115.72 1111.76 21.77 18.89

2007 2008 2009 2010 2011 2012 (P) 2013(E) (Jan) 2012(P) (Jan)

Source: Tea Board of India

(E) Estimated and subject to revision

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012–13 (APRIL–DECEMBER) APRIL TO DECEMBER, 2012(P) NAME OF THE COUNTRIES Russian Federation Kazakhstan Ukraine Other CIS Total CIS United Kingdom Netherlands Germany Ireland Poland U.S.A. Canada U.A.E. Iran Iraq Saudi Arabia A.R.E. Turkey Afghanistan Singapore Sri Lanka Kenya Japan Pakistan Australia Other Countries Total

Qty (M.Kgs.) 30.14 8.87 1.24 0.60 40.85 15.79 1.98 6.25 1.90 2.72 8.25 0.68 14.83 11.79 0.05 1.67 7.36 0.26 0.40 0.27 1.19 2.20 2.68 17.95 2.77 14.54 156.38

Value (Rs. Crs.) 519.25 171.30 18.77 9.93 719.25 291.19 55.51 145.76 61.49 40.55 230.83 19.02 260.51 284.94 0.57 43.98 81.90 5.18 4.36 6.24 20.81 24.88 108.64 169.02 99.30 388.76 3062.69

Value UP (M US $.) (Rs/Kg.) 95.26 31.43 3.44 1.86 131.99 53.42 10.18 26.74 11.28 7.44 42.35 3.49 47.79 52.28 0.10 8.07 15.03 0.95 0.80 1.15 3.82 4.57 19.93 31.01 18.22 71.28 561.89

(P) – Provisional and subject to revision

16

26.87 39.47 45.01 41.02 38.85 42.05 35.27

YEAR

COFFEE&TEA INTERNATIONAL # 2/2013

172.27 193.14 150.91 165.50 176.07 184.39 280.01 233.09 323.35 149.33 279.67 278.48 175.71 241.66 124.87 263.97 111.29 199.17 109.57 231.49 175.42 112.87 405.41 94.15 358.18 267.37 195.85

APRIL TO DECEMBER, 2011 UP ($/Kg.)

Qty (M.Kgs.)

Value (Rs. Crs.)

3.16 3.54 2.77 3.10 3.23 3.38 5.14 4.28 5.93 2.74 5.13 5.11 3.22 4.43 2.29 4.84 2.04 3.65 2.01 4.25 3.22 2.07 7.44 1.73 6.57 4.90 3.59

33.60 8.84 1.43 1.95 45.82 18.12 3.11 5.68 1.45 3.23 10.41 1.36 13.73 9.36 2.85 4.85 0.07 0.43 0.27 3.27 2.23 2.52 20.60 2.64 17.65 169.65

429.25 153.28 17.12 37.92 637.57 287.53 70.90 145.47 41.28 41.32 260.32 26.27 242.27 188.00 43.69 43.26 1.07 4.73 5.88 44.14 15.65 87.88 134.50 75.64 220.20 2617.57

Value UP (M US $.) (Rs/Kg.) 91.17 32.58 3.64 8.06 135.45 61.07 15.06 30.90 8.77 8.78 55.29 5.58 51.46 39.93 9.28 9.19 0.23 1.00 1.25 9.38 3.32 18.67 28.57 16.07 46.73 555.98

127.75 173.43 119.63 194.46 139.15 158.70 227.78 256.14 284.47 127.86 249.98 192.66 176.39 200.82 153.21 89.17 147.82 110.31 213.97 135.17 70.06 349.23 65.29 286.98 124.76 154.29

UP ($/Kg.) 2.71 3.68 2.54 4.13 2.96 3.37 4.84 2.44 6.04 2.72 5.31 4.09 3.75 4.27 3.25 1.89 3.14 2.34 4.54 2.87 1.49 7.42 1.39 6.10 2.65 3.28

Source: Tea Board of India

REVIEW&STATISTICS

TEA PRICES NORTH INDIA YEAR 2006 2007 2008 2009 2010 2011 2012

SOUTH INDIA

ALL INDIA

Qty (M.Kgs)

Avg. Price(Rs./kg)

Qty (M.Kgs)

Avg. Price(Rs./kg)

Qty (M.Kgs)

364.51 381.87 390.28 376.09 378.21 390.72 367.81

71.62 73.37 95.27 114.86 119.51 117.19 135.59

134.56 132.53 156.07 141.69 151.85 151.44 147.18

50.79 49.70 66.27 81.03 67.69 70.17 87.39

499.07 514.40 546.35 517.78 530.06 542.16 514.99

Avg. Price(Rs./kg) 66.01 67.27 86.99 105.60 104.66 104.06 121.81 Source: Tea Board of India

Sri Lanka tea statistics TOTAL TEA PRODUCTION 2011-2012 YEAR

EXPORTS OF TEA 2011-2012 (QTY. & VALUE)

Qty. (Kg)

2011 2012

327,531,903 328,397,034

YEAR 2011 2012

WithoutRe-exports Qty. (Kg) Value (SLRs) 303,162,995 306,039,566

With Re-exports Qty. (Kg) Value (SLRs)

151,776,528,069 169,014,879,514

322,560,605 319,946,572

164,853,925,862 180,430,287,064

Source: SLTB Reports

Coffee & Tea International says thanks to the Sri Lanka Tea Board for the kindly provided statistical data.

ANNUAL AVERAGE TEA PRICES 2008-2012 Avg. Unit Price (SLRs/Kg)

YEAR 2008

310.81

2009

360.45

2010

370.61

2011

359.89

2012

391.64

Source: SL Customs

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUT RE-EXPORTS) 2011-2012 (QTY.) Top 10 Destinations

2011 Qty. (Kg)

Russia Iran Syria Iraq UAE Turkey Azerbaijan Japan Kuwait Ukraine

Source: CBA

49,131,811 30,939,076 28,758,711 22,624,063 21,760,692 19,172,898 11,970,697 11,647,988 9,116,394 8,091,584

Top 10 Destinations Russia Iran Syria Iraq Turkey Libya UAE Azerbaijan Japan Jordan

2012 Qty. (Kg) 47,250,313 38,125,937 24,718,795 23,483,363 23,131,102 16,325,958 11,582,777 10,591,385 9,545,484 9,397,691 Source: SL Customs

Source: SL Customs

ELEVATION WISE TEA PRODUCTION 2008-2012 High — Qty. (Kg)

YEAR 2008 2009 2010 2011 2012

84,407,202 72,963,048 79,128,872 78,219,788 73,642,587

Medium — Qty. (Kg) 49,013,454 44,844,250 56,130,563 52,590,795 52,633,129

Low — Qty. (Kg)

Total — Qty. (Kg)

185,276,798 173,324,695 196,166,852 196,721,320 202,121,318

318,697,454 291,131,993 331,426,287 327,531,903 328,397,034 Source: SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated percapita consumption

1.334 Kg. (111.21g x 12)

Source: Household Income and Expenditure Survey — 2009/10 (Final Report), Department of Census and Statistics, Sri Lanka Estimated population 2011

20.869 Millions3

Source: Statistical Data Sheet 2012, Department of Census and Statistics, Sri Lanka Estimated Consumption

27.850 MKg

Source: Department of Census & Statistics

17

REVIEW&STATISTICS

The Chemistry of Coffee

Joseph A. Rivera holds a degree in food chemistry and is the founder of www.coffeechemistry.com. He is the former Director of Science & Technology at the Specialty Coffee Association of America (SCAA) and will be presenting at the United Coffee & Tea event in Moscow. He can be reached at [email protected]

Joseph A. Rivera

For millions the start of the day begins with a morning cup of coffee and the stimulating effects the come along with it. Although today we can easily identify coffee in its beverage form – coffee has not always been this way. Throughout history, coffee has taken on several physical transformations, initially serving as an energy source when nomadic tribes combined coffee berries with animal fat as an early form of an energy bar. Later, it was consumed as a wine, then a tea and finally to the beverage we’ve come to love today. Since its inception coffee has always been a product of great mystery, having been discovered accidentally in wild forests of Abyssinia (Ethiopia) before being distributed across every continent on the globe. But although coffee has been in existence for thousands of years, it’s only been in the past half century or so that scientists have been able to truly identify and understand this beverage. To date scientist have identified over 1,000 unique chemical compounds, which when compared to other products such as wine or chocolate, pale in comparison to that of coffee. Luckily through advancements in technology much of coffee’s chemical make-up has been unlocked and we now have a better understanding of the chemistry contained within these mystical beans.

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COFFEE&TEA INTERNATIONAL # 2/2013

REVIEW&STATISTICS

CAFFEINE

For many, coffee drinking is simply a delivery medium for a potent alkaloid we have come to identify as caffeine or technically as 1,3,7 – trimethylxanthine. Although caffeine is strongly associated with coffee, its production within the plant kingdom is not exclusive and is seen throughout several other plants in nature. Within coffee Arabica makes up approximately three-quarters of world coffee production and contains about 1.2% caffeine. While the remaining twenty-five percent is made up of the higher caffeine containing Robusta, with about 2.2% caffeine and typically used in lower quality blends. There are also a number of other caffeine containing products such as mate, which is traditionally consumed in parts of Uruguay and Argentina — contains less than one percent caffeine by weight. Whereas, tea or Camellia sinesis which originated in China, contains almost three times the concentration of caffeine by weight than Arabica coffee. But overall tea beverages contain less caffeine than coffee since less weight (leafs) are required to prepare a proper infusion. Of all the compounds found in coffee – caffeine is perhaps the most interesting. Thus far humans are the only living creatures on Earth that readily seek caffeine for both its stimulatory and psychological effects. For all other life forms, caffeine is a potent toxin. As such scientists believe that caffeine, with its intensely bitter taste, has evolved as a primitive defense mechanism for coffee ensuring its survival in the wild for thousands of years. It’s no surprise then, that the caffeine content of the more “robust” Robusta species is almost double that of the more delicate Arabica. The belief is that as insects attack the coffee cherry, they are immediately deterred by the bitter taste of caffeine and simply move on to the next crop. Since Arabica is typically grown at higher altitudes than Robusta, where the attack of insects is reduced, Arabica has evolved to produce less caffeine. With caffeine playing such an important role in the plants survival, one may also expect it to play an equal level of importance during coffee roasting. Turns out, the fate of this imperative compound is far from spectacular. Although caffeine sublimes (evaporates) at o roughly 178 C, model studies have shown that caffeine readily survives the roasting process o even at temperature far exceeding 200 C. Though the reasons for this remain unclear, but it is believed that caffeine’s strong complex with other compounds within coffee matrix create a strong retention that prevent it from further sublimation and ultimately decomposition.

TRIGONELLINE

Another less known alkaloid that shadows in the light of caffeine is that of trigonelline. In Arabica coffee, trigonelline concentrations make up roughly 1% by weight with a slightly less concentration of 0.7% in Robusta. Although its concentration is slightly less than that of caffeine, trigonelline plays a significant role in the development of important flavour compounds during roasting. But unlike that of caffeine, which survives the roasting process, trigonelline readily decomposes as temperatures approach 160oC. Model studies have shown that at 160oC sixty percent of the initial trigonelline is decomposed, leading to the formation of carbon dioxide, water and the development of a large class of aromatic compounds called pyridines. These heterocyclic compounds play an important role in flavor and are responsible for producing the caramel/roasty- like aromas commonly found in coffee. Overall production of these class of roasty pyridines are proportional to its degree of roast – with darker roasts having higher levels than lighter roasts.

LIPIDS

Lipids or the oils typically found in coffee also play an important role in coffee quality. Technically all lipids contain a three carbon structure (as shown) with any number of side chains as shown with the ‘R’ in the diagram. As a result thousands of different lipids can created with this simple basic structure. Within coffee bean most of the lipids exist in the form of coffee oil and is located within the endosperm of the cherry. Since it composition is similar to that of vegetable cooking oils, it’s no surprise that the vast majority of coffee oil remain relatively unchanged even at the elevated temperatures found in roasting. Both Arabica and robusta coffee contain appreciable amounts of lipids ranging from 15-17% and 10-11.5%, respectively. But

because Arabica contains more lipids than Robusta, many believe this stark difference is one reason responsible for quality difference between both species. Thus far, the claim has remained unconfirmed, until Swiss scientists recently discovered a direct correlation between lipid content and overall cup quality. It turns out that as lipid content increases within the bean, so does overall cup quality. This quality may be explained by the fact that higher levels of lipids tend to provide better and fuller mouthfeel as well as greater aromatic character.

PROTEINS

Much like lipids which represent a large family of compounds so do proteins. In coffee protein content for green Arabica and Robusta coffee are quite similar and range anywhere between 10-13%. Although concentrations can vary from bean to bean, its believed that factors such as maturity, postprocessing and improper storage may have a significant effect on the form of proteins within the bean. During roasting, proteins combine with carbohydrates in what is perhaps the most important reaction for all thermally processed foods — the Maillard Reaction. These set of reactions, discovered by a French chemist in 1910, is what is largely responsible for transforming the mere handful of compounds found in green coffee to the complex matrix that coffee is today. o As temperatures reach 150 C, the Maillard Reaction propels free proteins in coffee to combine with sugars, ultimately leading to the formation of hundreds of important aromatic compounds. Of these, pyrazines and pyridines have the greatest aromatic contribution and are responsible for the distinct maize/nutty/roasty aromas found in coffee. The reaction also leads to the formation of brown-colored polymetric — melanoidins — the compounds responsible for coffee’s color. Coincidentally, this is the same set of reaction that give rise to the alluring aromas we generate when toasting a loaf of bread or grilling a piece of steak and numerous other thermally processed products. There are literally hundreds of factors that affect the Maillard Reaction – all of which are beyond the scope of this introductory article. But as one can see with some many chemical reactions occurring within the coffee bean, we are still on a long journey to fully understanding the chemistry behind this wonderful beverage.

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COFFEE&TEA INTERNATIONAL # 2/2013

Faced with entrenched local brands in categories with many years of local tradition, hot drinks multinationals seek to lure a newer generation to more Westernized brands and variants of coffee and tea.

DEMOGRAPHICS IN THE REGION FAVOUR THE YOUNG

By Brian Morgan, Beverages Analyst

HOT DRINKS

MANUFACTURERS APPEAL TO A YOUNG CONSUMER BASE

REVIEW&STATISTICS

For example, Morocco continues to have a median age of just 26 years-old in 2010 and a median age of 30 years-old being projected for 2020. Consumers in their 20s accounted for 19% of the total population in 2010, while teenagers accounted for a further 13% share. Unlike most Western countries where birth rates are declining, Saudi Arabia continues to experience rapid population growth of around 3% per annum; higher than the global rate of 1.5%. In 2010, children and young people under the age of 24 years represented the two largest demographic groups, accounting for a combined 58% share of the Kingdom's total population. This young consumer base is increasingly gaining access to the internet and satellite TV, with this having a major influence on their preferences. These consumers are becoming increasingly brand conscious and aspirational, with a strong interest in Western lifestyle trends.

ON-TRADE CULTURE Population growth contributes to volume growth across all hot drinks categories, whereas the high presence of

REVIEW&STATISTICS

in the Middle East and Africa Hot Drinks dynamies in Middle East and Africa Data for 2012-2013 is a forecast 8

%

6 4 Кофе Coffee

2

Tea Чай

0 2

200708

200809

200910

201011

201112

201213

4 6 Source: Euromonitor International

young people in a country has an impact on consumption trends. Younger consumers, for example, drive sales in the on-trade channel, as they tend to spend more time in cafйs than older ones. The steady opening of new cafйs has brought a selection of more upscale products including foreign teas and different types of coffee beans to the region and helped to attract new consumer groups like students and women. Moreover, as the lifestyles of younger generations become increasingly Westernised, this creates a great potential for non-traditional products, such as chocolate-based drinks for adults, green tea, instant coffee or Italian/French style coffee. At the same time however, as consumers continue to choose products closely associated with Middle Eastern culture, such as black tea or Arabic style fresh ground coffee, they are more likely to opt for branded packaged products.

OPPORTUNITY FOR INTERNATIONAL BRANDS AND STYLES Younger consumers in the Middle East and Africa also tend to be less traditional in their preferences than earlier generations, particularly in urban areas. In Morocco, they notably shifted away from traditional gunpowder tea for athome consumption and increasingly

opted for coffee, with this partly due to their exposure to coffee in the on-trade. Consequently, coffee gained share from tea with off-trade volume growth of 6,5% in comparison to just 3% growth for tea in 2011-2012. These consumers also embraced the convenience and quick energy burst offered by instant coffee, driving strong growth in this area. The high proportion of youngsters among several Middle Eastern and African populations also creates a prosperous ground for new product launches. This consumer base will begin to welcome products that are not closely aligned with Middle Eastern culture, such as green tea. However, young consumers are not expected to give up traditional traits, and although dynamic growth in some novel categories might lead to growth slowing down in more mature categories, sales of black tea and fresh ground coffee will continue to be very high. Within tea, although loose tea will remain the largest category, tea bags will display faster growth. In coffee, fresh ground coffee will continue to see the fastest growth, but growth will be driven mainly by espresso and filter coffee, rather than Arabic coffee, which is more saturated. Leading global brands stand to benefit from their high international profiles and reputation for quality in these categories.

21

REVIEW&STATISTICS

Now a US$3.2 billion market, Southeast Asia has long been home to a thriving, diverse coffee culture, with continued economic growth fueling strong spending growth in recent years. The ten states of the Association of Southeast Asian Nations (ASEAN)— Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—have combined for better than 11% annual coffee spending growth in constant US dollar terms. While instant coffee remains the drink of choice throughout much of the region, with Thailand in particular the seventh-largest instant coffee market in the world by value, fresh coffee consumption is expanding rapidly, thanks in part to the rapid evolution of coffee house culture across the region. All told, the region promises to be one of the most compelling in the world for coffee producers over the next five years.

22

Michael Schaefer Head of Beverages & Foodservice

COFFEE MARKET TRENDS

HOT DRINKS

A RICH, VARIED COFFEE CULTURE

COFFEE&TEA INTERNATIONAL # 2/2013

Coffee has a long history in Southeast Asia, with Dutch traders bringing coffee cultivation to Indonesia in the 17th century, while French colonists introduced coffee to Vietnam in the mid-19th century. Both nations have remained major coffee producers ever since, with Vietnam the number two coffee producer, behind only Brazil, and Indonesia close behind at number four, trailing Colombia. Southeast Asia’s role in producing the robusta beans that make up much of the world’s instant coffee is even greater, with four nations among the top ten global producers, led by global number one Vietnam. In terms of local consumption, Indonesia leads all countries in the region with 150,000 tonnes sold in 2012, followed by Thailand at 125,000 and Vietnam with around 75,000. Though instant coffee accounts for around 58% of total sales in Southeast Asia by volume, this actually understates its importance in the region, where it is overwhelmingly preferred to fresh coffee in every market except for Vietnam and Indonesia, where fresh-ground coffee, served strong and often very sweet, is the preferred preparation. Even in Indonesia, however, coffee is most often prepared as “kopi tubruk,” in which boiling water is added to fresh coffee mixed with sugar, producing a beverage somewhat similar to Turkish coffee. Kopi tubruk preparations are even sold in single-serve sachets similar to instant coffee, the sole difference being that the fresh coffee used in kopi tubruk does not dissolve.

INSTANT COFFEE BRANDING This preference for instant, single-serve coffee, often heavily sweetened has opened the door to a wide array of product innovations, with consumers across the region generally highly receptive to instant products in 2-in-1, 3-in-1, 4-in-1 and other variants offering both new flavours and increasingly added functionality. In stark contrast with the growing push for artisanal, “single estate” coffees and exotic whole bean varieties in many developed markets, demand for instant coffee has surged in Southeast Asia, particularly among young people looking for convenience and fun, indulgent flavours. As a result, marketing and product development strategies more closely resemble those of soft drinks companies, with flavours and effective branding vital to success. In Indonesia, for instance, 3-in-1 instant coffees with added ginseng have become popular in the last 3-4 years. More recent launches have gone still further, piling on the flavours, and taking cues from popular desserts. These new product launches include Santos Jaya Abadi’s ABC Brownies, which was introduced

REVIEW&STATISTICS

in Southeast Asia and serving as a centre of social life. One such operator, coffee roaster Trung Nguyen, has actually become one of the first franchised operations to find success in Vietnam, with its network of cafes has grown to more than 650 outlets across the country, while the company's lines of fresh ground and instant coffee now account for more than 30% of total retail sales in Vietnam. Alongside a small number of Trung Nguyen cafes now operating outside of Vietnam, the company has begun selling branded retail coffees in foreign markets; at the same time, it continues to work to improve the perception of robusta coffee, long considered inferior to arabica beans in terms of taste, yet accounting for the vast majority of Vietnam's (and, by extension, Trung Nguyen's) coffee output. Thailand Philippines Indonesia Malaysia Vietnam At the same time, the arrival of players such as Starbucks and Costa Coffee has spurred the Source: Euromonitor International growth of a more modern coffee shop experiin 2010, and ABC STMJ, which was introduced in 2011. ABC ence, with comfortable chairs, air-conditioning, and espresso Brownies features added ingredients such a caramel and chocodrinks. Far from driving out traditional cafes, in many markets it late, while STMJ features milk, egg, honey and ginger as added has encouraged the growth of cafй culture in general, with the ingredients. The latter product takes its name from the tradicombined category now approaching US$1.8 billion in Vietnam, tional drink “Susu Telur Madu Jahe,” which translates, appropriwith Malaysia following close behind at US$1.7 billion. While the ately enough, to “milk, egg, honey, ginger,” and is popular as a numbers are smaller in other markets in the region, strong stamina-booster. growth is the rule throughout, suggesting years of steady Consumers have also increasingly looked to instant coffees as growth ahead for high-end coffee shops. a source of added functionality. Coffees with added collagen (for beauty health) can be found across the region, while in GOING FORWARD Thailand “slimming coffees” have become quite popular. The Despite widespread popularity and a long tradition of coffee Fitnй Coffee line, for instance, now includes an array of variants production and preparation in multiple markets in the region, it such as Fitnй instant coffee with cereal and L-Carnitine and is worth noting that overall coffee consumption in southeast Fitnй instant coffee with 3,200mg fibre and collagen as well as Asia remains relatively low relative to markets elsewhere—while Fitnй instant coffee with apple extract, pomegranate and pine consumers in high-income Singapore consume around 500 cups bark. Not to be outdone, runaway instant coffee category of coffee per capita each year, comparable to markets such as leader Nestlй responded to this trend with the introduction of France or Austria, Indonesian consumers drink just 30, similar to Nescafй Protect Proslim, made with white bean extract, claimed India or Bolivia. This suggests the strong growth forecast for the to lower both cholesterol and blood sugar. All told, coffee conregion over the next five years—value sales are expected to tinues to evolve in the direction of a packaged, manufactured, expand 6% annually from 2012 to 2017 in constant prices, reachbranded product, rather than an artisanal item. The recent ing US$4.2 billion—could be just the beginning. While the convegrowth of coffee shops, however, has added a new element to nience and versatility of instant coffee will continue to dominate this trend, with a subset of consumers continuing to develop a in the near-term, fresh coffee will emerge as a high-value niche, taste for more exotic, higher-quality coffee. with demand for premium coffee set to rise further over the Retail value, US$ mn

Coffee market dynamics in Southeast Asia Data for 2017 is a forecast

next ten years.

COFFEE SHOPS

Coffee in foodservice, Southeast Asia Data for 2017 is a forecast

mn cups

Coffee shops have long existed in Southeast Asia, particularly on the Malay peninsula and in Vietnam. Kopitiam (the name comes from a combination of the Malay word for “coffee” and the Hokkien Chinese word for “shop”) are found throughout both Singapore and Malaysia, for instance. Outlets and menus tend to be simple, sometimes consisting of just a small kiosk serving local coffee (often with evaporated milk), plus a selection of food items like charcoal-grilled toast with kaya (a type of jam made from eggs and coconut), soft-boiled eggs, and nasi lemak, a type of fried rice made with coconut and chilli paste. Prices are invariably low, with a cup of coffee available for around US$1, well below prices charged at Starbucks and other specialist coffee shop chains. In Vietnam, meanwhile, coffee shops are widespread, serving strong, affordable coffee,

Vietnam

Indonesia

Singapore

Malaysia

Thailand

Source: Euromonitor International

23

HOT DRINKS 24

COFFEE&TEA INTERNATIONAL # 2/2013

By Brian Morgan, Beverages Analyst

CHINA BECOMING A GLOBAL LEADER FOR HOT DRINKS CATEGORIES

REVIEW&STATISTICS

China represented the fastest growing market for tea in total volume terms in 2010, and is expected to pass India in total volume sales in 2011. Meanwhile traditional tea powerhouses Japan and the United Kingdom are expected to see slight sales declines, recovering in 2013 and 2015, respectively. In part this has to do with the lingering effects of the global economic downturn in these countries, coupled with continued commodity price pressures in 2011 and 2012. But China has remained largely immune to these pressures, and is emerging as the primary engine that will drive future global growth in several hot drinks categories.

A SHIFT IN TEA CONSUMPTION China's tea market is even larger when one factors in the large amount of unbranded, unpackaged teas commonly sold in traditional tea shops or marketplaces. These teas are not included in Euromonitor International's coverage of packaged tea. But at the same time, there is a shift underway towards more convenient and packaged tea varieties, especially among a younger generation. Instant tea was an emerging category in China with a value growth above 50% in 2010. In fact, according to trade sources, this product is full of sugar for a sweet flavour that runs counter to traditional tea preparation, but it is quite popular among young girl students. One major reason is its cup-size package. The thick and slightly rough surface of the cup can warm the hands of the customer as well as prevent the hot temperature from hurting the skin, so that students feel it is fashionable to take the drink to classrooms or to meet friends.

TEA PURCHASING MOVES TOWARDS CHAINED TEA SPECIALISTS Chinese customers are gradually switching from independent tea shops to chained tea specialists in order to purchase high quality packaged tea. Most tea specialists are owned by tea manufacturers that have their own processing factories. Furthermore, these manufacturers also purchase high quality tea outside their own plants and use it for their own labels. An increasing number of customers believe that the quality of tea in famous tea specialists is more trustworthy than that in traditional small tea shops. Meanwhile, in order to attract different customer groups, products are separated into premium, standard and economy with different qualities, packages and prices. The strategy of using chained tea shops to legitimize brands is learned from Tenfu Group, a Taiwan company with the largest number of chained tea specialists in China. Many domestic tea manufacturers have begun to open tea specialists by themselves or by cooperating with local distributors. Meanwhile, with the penetration of chained hypermarkets and supermarkets to third tier cities and towns, more hot drinks products are taken by these distributors to more customers. The mushrooming of chained tea specialists in the future is expected to stimulate the growth of packaged tea, as all the products sold by these specialists are packaged and labelled with the trade mark of the specialist retailer. More customers will choose to buy tea products in these specialists than in small tea shops or supermarkets, as they trust the profession and quality of products

REVIEW&STATISTICS

in China there. Furthermore, chained specialists are expected to provide more service like decorated gift packages, product delivery or even VIP service for important customers.

LARGE DOMESTIC MARKET FOR OTHER HOT DRINKS China is far and away the global leader in total volume sales of other hot drinks, with nearly four times the total volume sales of second ranked Argentina in 2010. Most of China's share of the other hot drinks market is dominated by other plant-based hot drinks, which includes products like soybean milk powder and instant oat drinks. As most products like soybean milk powder in other

hot drinks are considered low priced and healthy, these products are popular in second and third tier cities. Most customers take other hot drinks as a kind of breakfast or snack at tea breaks, making them predominantly retail purchases. Supermarkets and hypermarkets are the major channels for the sales of other hot drinks. There are also shelves for gift boxes of soybean milk powder or instant oat drinks to attract customers who buy gifts for family members like senior parents and kids. As soybean drinks are traditional Chinese drinks with a long history, most leading players in the market are domestic manu-

facturers. However, with the development of soy milk grinders at home and RTD drinks, the growth of soy milk powder is challenged. Therefore, in 2010 leading manufacturers were expanding their production lines of RTD products and increasing investment in the research of maintaining freshness of RTD soy milks. Meanwhile, international players also launched RTD products like Milo, in order to target the same breakfast and snack occasions. China's expansive lead in this category is sure to continue, but the diversity of products and players is also set to grow beyond the existing domestic leaders, offering new spaces for international and new local manufacturers alike.

Market Size. Historic. Retail. Volume, tonnes CATEGORIES

GEOGRAPHIES

'2007

'2008

'2009

'2010

'2011

'2012

Instant Tea

China

71,9

106,4

182,9

280,7

352,4

407,8

Source:

Euromonitor International

Market Size. Historic. Retail Value RSP. US$ mn. Constant 2012 Prices. Fixed 2012 Exchange Rates CATEGORIES

GEOGRAPHIES

Instant Tea

China

'2007 669,7

'2008

'2009

'2010

963,8

1 679,1

2 499,9

'2011

'2012

3 119,3

3 609,5

Source:

Euromonitor International

Market Size. Historic. Retail Value RSP. US$ mn. Constant 2012 Prices. Fixed 2012 Exchange Rates. Year, on Year Growth (%) CATEGORIES

GEOGRAPHIES

2007-08

2008-09

2009-10

2010-11

2011-12

Instant Tea

China

43,9

74,2

48,9

24,8

15,7

Source:

Euromonitor International

Company Shares Ranking (by Global Brand Owner). Historic. Retail Value RSP GEOGRAPHIES

CATEGORIES

COMPANIES

2012

China

Instant Tea

Guangdong Strong (Group) Co Ltd

1

China

Instant Tea

Zhejiang Xiangpiaopiao Co Ltd

2

China

Instant Tea

Zhejiang Dahaoda Food Co Ltd

3

China

Instant Tea

Unilever Group

4

China

Instant Tea

China Mengniu Dairy Co Ltd

5 Source:

Euromonitor International

Brand Shares Ranking (by Global Brand Name). Historic. Retail Value RSP CATEGORIES

BRAND

COMPANY NAME (GBO)

China

Instant Tea

U-loveit

Guangdong Strong (Group) Co Ltd

1

China

Instant Tea

Xiangpiaopiao

Zhejiang Xiangpiaopiao Co Ltd

2

China

Instant Tea

Xiang Yue Taiwan Milk Tea

Zhejiang Dahaoda Food Co Ltd

3

China

Instant Tea

Lipton

Unilever Group

4

China

Instant Tea

Mengniu

China Mengniu Dairy Co Ltd

GEOGRAPHIES

Source:

2012

5 Euromonitor International

25

ECONOMICS

THE LAND of Dragons and Coffee Andrei Savinov 1 General Director, CSC «SFT Trading»

In January of 2013 I visited Vietnam as a part of a delegation that included employees of SFT Trading and representatives of coffee roasters. I had never been to Vietnam before, so I dug up some historical and statistical data before my trip. Legend has it that the Vietnamese people trace their lineage back to a dragon. You can certainly find an abundance of dragons in Vietnam: they fill the shelves of souvenir shops, feature prominently in folk celebrations, and even shrubs along roadways are trimmed to resemble dragons. In the last few years another word came to be associated with Vietnam: ‘coffee’. Friends returning from trips to Vietnam would always mention coffee. Searching my memory, I recalled that had first heard about Vietnamese coffee in the late 1980s, about 30 years ago. 26

COFFEE&TEA INTERNATIONAL # 2/2013

ECONOMICS

A LITTLE BIT OF HISTORY As it turns out, coffee production in Vietnam started in the middle of the 19th century, but for over 100 years its share in the country’s economy was negligible. By the time of unification in 1975 the total coffee-growing area was 20,000 hectares, and the annual production was at the level of 100,000 bags, practically nothing. Starting in 2010, annual production has been keeping steady at about 20+ mln bags, a 200fold (!) increase, and coffee plantations grew more than 30fold and now occupy more than 600,000 hectares. Today Vietnam is the world leader in Robusta production and holds the second place in overall coffee production (Brazil holds the first). What happened in Vietnam during the last quarter of the 20th century and at the beginning of the 21st is nothing short of a “coffee miracle”. Of course, the main factor here is the governmental policy of designating rice and coffee as the two most promising export commodities and dedicating considerable resources to boost their production. This was a completely rational and effective course of action under the centralized economy. There is also no doubt that this choice was justified by the presence of favorable growing conditions: fertile soils, elevations of 500-700 m,

1

which are typical for Robusta production, the optimal combination of the amounts of daylight and precipitation, significant water resources available for irrigation. At the same time, we must credit the decisive role of agricultural reforms of the 1980s and 1990s: as a result of these reforms, large state-owned collective farms were disbanded and the land became the property of those who actually cultivated it.

A LITTLE BIT MORE INFORMATION ABOUT THE CURRENT STATE OF THE INDUSTRY The primary coffee-growing regions in Vietnam are on the Central plateau in theDakLak, LamDong, GiaLai, DakNong andKonTum provinces. Arabica makes up less than 5% of the total coffee production (under 1 mln bags annually). One-third of Arabica-growing areas are in the Lam Dong province. Coffee is harvested once a year (September to December/January). More than 85% of production comes from small farms (1-2 hectares). Internal consumption is insignificant at 1.5 mln bags (5% of production). Lately there has been an increase in consumption, primarily due to rising consumption of instant coffee by young people. Some estimates of the rate of consumption growth are as high as 10% annually. Nonetheless, it is unlikely that internal consumption will have any significant impact on export volume in the next several years. The Vietnamese Ministry of Agriculture has approved a blueprint for the development of the coffee industry until 2020 with some projections as far as 2030. The goal is to reduce coffeegrowing areas to 500,000 hectares by 2020 and further to 479,000 hectares by 2030, forthe total reduction of 20-

The author wishes to thank Atlantic Commodities Vietnam Ltd. (ACOM) for the help in organizing visits to coffee plantations and processing plants.

27

ECONOMICS

25%. To compensate, the plan provides for the use of modern agricultural methods, the replacement of old and low-yield coffee plants, an increase in yield, anexpansion ofthe production of certified coffee – in other words, a push towards sustainabilityincoffeeproduction. Another item in the plan is an increase in Arabica production in suitable areas. Essentially, we are talking about a shift from extensive to intensive development strategy.

AND NOW, MY PERSONAL OBSERVATIONS…

…although, of course, since my trip to Vietnam was so short, everything I say here should be taken with a grain of salt. Even though the state has officially left the business of agriculture, its influence remains very strong. Governmental and quasi-governmental organizations still control the bulk of the exports and can manipulate exports to suit the state’s interests; this has significant impact on domestic prices. Inflation in the country remains high, as does the cost of money (it is interesting to note that the current rate of inflation and the cost of credit in Vietnam are very similar to those found in Russia). This means that credit is out of reach for the majority of small farms. The market is dominated by middlemen, who frequently give farmers loans secured by future crops. Under these conditions, access to advanced agrotechnologies is, to put it mildly, a pipe dream. Given the current level of Arabica prices, farmers worry more about survival than about increasing production. The easiest solution is to clear-cut forests to make space for new plantations. The government, of course, considers such practices illegal, but does nothing to stop them. This leads to the destruction of the ecosystem, which will inevitably have negative consequences for the future generations.

28

For the middlemen, quality doesn’t matter – it’s the concern of the exporter. And the exporter has dilapidated equipment and worries about keeping up the shipments, so quality, once again, falls by the wayside. At the same time, things aren’t all that bad. It is undeniable that the overall quality of coffee exported from Vietnam has risen considerably. For example, a few years ago, the content of black and broken beans in Robusta shipments was considered acceptable at 5%; now, this figure is down to 2%. In general, it is misleading to apply the label Vietnamese coffee to all coffee flowing to international markets from Vietnam. There are so many varieties that you can get coffee of practically any quality, as long as you are prepared to pay the appropriate price. The demand for high-quality Vietnamese Robusta continues to increase. For example,

COFFEE&TEA INTERNATIONAL # 2/2013

of the total Robusta exports by Atlantic Commodities VietnamLtd. (ACOM), 20% is comprised by the so-called wet-polished Robusta: after the parchment is removed, the beans are mixed with water and run through the depulping machine one more time to ensure that as much skin as possible is removed. This gives the beans a neutral taste but at the same time adds body, which makes them suitable for use in coffee blends. Coffee processed in this way is US$ 200-300 more expensive than the “conventional” Vietnamese Robusta, but the price is comparable to unwashed Robusta from Uganda or India and the variety of uses for this type of coffee is much greater. The situation is similar when it comes to Arabica. The market is flooded with defective Arabica produced using incorrect drying procedure: the layer of beans spread for drying is more than 50cm thick, and this makes it difficult to ensure uniform drying; in addition, the beans acquire the smell of smoke. At the same time, there is Arabica of vastly superior quality, produced using modern equipment and strict quality control procedures; this Arabica is considered by some buyers as a possible substitute for the Central American varieties. The difference in price can be as large as US$ 300-500 per ton, but, in my opinion, it is justified. On today’s market, it is not so easy to find good-quality and relatively cheap Arabica that is available practically year-round. The main thing I learned during my trip is this: in today’s Vietnam, you can get massmarket coffee of virtually any quality you desire: all that’s required is that you know exactly what level of quality you need and are ready to pay the premium that is appropriate for that quality, but at the same time allows you to keep your prices competitive. Also, I brought home a dragon. It lives on my shelf now, reminding me of Vietnam. After all, coffee comes and goes, but dragons… Dragons live forever.

PRIVATE VIEW

Max Quirin:

‘Helping others is what makes all your efforts worthwhile’ AlyonaVelichko

Max Quirin, the immediate past President of the Specialty Coffee Association of America (SCAA), is an extraordinary person. This becomes evident when we look at his accomplishments. He was the youngest President of the National Coffee Association of Guatemala, and then became the head of the American association. This is the first time this post was held by someone who is not American and who grows coffee for living. He is admired by others, he is fascinated by life and life is fascinated by him: he delights in being a pilot and in diving, in playing tennis with his son and having conversations with his daughter – and, of course, in coffee. He says ‘we’ much more often than ‘I’, because he places the good of the team above his own. Max Quirin shared with us his stories and thoughts about life, coffee and… flying.

OR

The bird’s eye view of life and coffee 30

COFFEE&TEA INTERNATIONAL # 2/2013

You fully discover the world of coffee only when you stop selling your coffee to local exporters and start exporting it yourself. That’s when you really get to know various coffee markets, understand their demands, realize the role of coffee quality. For me, the life-changing events were my joining PROCAFE to learn more about exporting coffee and then my election to the Board of Directors of the Association of Producers and Exporters of Coffee (ANACAFE), the National Coffee Association of Guatemala, an organization with considerable political power. When a group of coffee growers, people who were much older and much more experienced then I was (I was only 33 years old at the time), offered to support my election to the post of the Vice-President and then the President of the Association, I thought, ‘I have a chance to be the head of one of the most influential organizations in the country, the position with a real power. If I do not seize this opportunity, I will never again have the moral right to complain about the way things are run in the government or in the private sector’. Never be afraid to openly state your opinion. My rule is to always be open about what I consider to be important and right for the coffee industry. Whether during discussions of coffee prices with representatives of Latin American coffee-producing countries or during political debates – people have always liked my openness and

PRIVATE VIEW

have tried to support our position as much as they could. It wasn’t easy to turn ANACAFE into one of the most powerful organizations in Guatemala. Nonetheless, we managed to get to the point where no legislation could be passed in the country without ANACAFE’s approval. My task was to keep the legislators informed of the Association’s position. And if a bill was bad for the coffee producers, we made sure that the bill didn’t become law. The President of the country, all members of the Cabinet and legislators immediately returned ANACAFE’s phone calls. How did we manage to do it? It’s just that at some point people realized how important coffee was for the economic and social development of the country, how much of a driving force it was. We had to work 16-hour days, 6 days a week, directing all our efforts at improving the lives of coffee farmers, knowing that what is good for them is good for the country. It was fascinating work, because we believed in our mission and didn’t wait for people to thank us. As a result, ANACAFE adopted a marketing strategy that is still in place today. No one had done this before. Our development model was later adopted by many other coffee-producing countries. It is always important to be clear about your goals and to fight to achieve them. We at the National Association were constantly reminded of the truth of this statement as we understood clearly what our industry needed in order to grow. At every international conference where coffee policy was discussed, we insisted that the only way the coffee market can grow is through an increased demand for high quality coffee; we vigorously opposed the attempts to raise coffee prices by keeping coffee in storage longer and thus artificially reducing supply. Quite often during these meetings we found ourselves isolated, facing pressure and even hostility from other coffee-growing countries. But we prevailed. My subsequent entry to the Board of Directors of the SCAA was a natural continuation on the path to that goal. Experience shows that it is possible to have a very modest education

and still deal successfully with lawyers, economists and other professionals, many of whom have prestigious degrees. Life experience, the sense of responsibility and the strength of your convictions allow you to make much more effective and logical decisions when dealing with these professionals. It’s like being a parent: you learn from your own experience, and with every action you must prove to your children that you are worthy of being their father. Truly, lifeisourbestteacher. I often feel happy. Piloting a plane always brings me great joy… When I am flying, it is as if I become closer to God — the world looks so breathtakingly beautiful from up above. I frequently fly around the country, and when I land, I enjoy a different, earthly beauty. We have a family ranch, and a few hours spent walking through our plantations have a healing effect on me. I look at our land and think about all the work we did, the decisions we made, the great responsibility for developing the ranch. You stand in an open field, happy about the rain that helps young oil palm trees grow, and you feel great joy. Another cause for joy is when an important meeting goes as planned and you manage to get people to understand what needs to be done. And what happiness it is to spend time with children, broadening their horizons through all kinds of educational games and trips! Life always gives us reasons to be happy. To be an industry leader is a great responsibility, first of all because you need to have a clear vision of the path that the people you represent must follow.You have to set your goals and priorities, to communicate them to your group in a way that would ensure understanding, cooperation and support. Of course, the goal should be to benefit the majority, not just this or that individual. If you only work for your own benefit, very soon you lose the trust of the people around you. To be a leader is to stick to the decisions you made and to be able to produce arguments in their defense, because there will always be opposition. If you cannot offer people

broader horizons and a brighter future, you cannot be a leader. People will follow you only if they feel and believe that in doing so their situation will change for the better. It is important to set your goals. But the way you go about reaching them is just as important. My experience shows that honesty and respect for others bring you respect and recognition in return, even when you fail to accomplish everything you wanted. You must always strive for quality in your work – satisfaction and pride come from knowing that you do this not just to please someone, but because you believe in what you do. When we manage to assemble a team of people who represent every link in the coffee production chain, that is, people who believe in shared goals, we benefit not only collectively, but also individually. People need to hear about goals and strategies not just for the coming year, but for the next five or even ten years. When I joined the SCAA, I told people right away that we as an organization exist to serve the needs of our coffee industry, to share knowledge, to bring all important players together to the negotiating table, to discuss challenges that we all face. If we can build a platform for this kind of dialogue, starting with the integration of the International Relations Council 1, then we know we are moving in the right direction. Every man has his own reasons to keep going, and people often ask me about mine. My friends keep telling me that a rational person would never spend so much time helping other people develop their business instead of making money for himself. But my incentive for going forward is my children. I want them to be proud of their father, and this takes hard work… I once came across an interesting article titled ‘What Motivates the Motivator?’ It got me thinking, and I realized that I am my own best motivator. I keep convincing myself over and over again that all this work for the development of the coffee industry and for the benefit of others is worth every last bit of my efforts.

1

International Relations Council (IRC) is an advisory body of the SCAA. Itsmembersare coffee associations from various countries and regions, such as SCAE, SCAJ, Coffee Association of Canada, associations representing Hawaii, Indonesia, Africa, Brazil, Panama, Costa Rica, Guatemala, IWCA and many others. We hope that the Council will become the primary international forum for the discussion of all matters related to the coffee industry. – M.Quirin

31

WHO IS WHO?

FILTER PAPER BRANDING – I LIKE

arketers of single serve coffee pods and pads have benefited from filter paper branding for some years now. The number of brand owners using filter paper branding directly on their pods or pads has been growing well above the market rate over the last years. This has been driven mainly by brand owners seeking to reinforce the consumer brand experience but also by new technical solu-

M

32

tions developed by specialty paper suppliers like Glatfelter that offer unique possibilities of putting promotions, logos or patterns directly on filter paper…. For many years Glatfelter, one of the most well-known producers of high quality filter paper, has supported customers with options to differentiate their brands. “We at Glatfelter have always taken needs of our customers very seriously. As product differ-

COFFEE&TEA INTERNATIONAL # 2/2013

entiation is one of the major drivers brand owners, which face fierce competition on the shelf, we try to provide them with new options they can use to make their product unique,” says Fabrice Werner, Sales & Marketing Director of Glatfelter’s Composite Fibers Business Unit. “We are very excited about being able to provide different filter paper branding options. To get it right we have put in place

A

WHO IS WHO?

innovation efforts. Several investments online and off the paper machines have resulted in a variety of technologies ranging from Waterjet to the crispy clear imaging of WoW (white on white) printing that is extremely flexible and suitable also for low order sizes. This great flexibility has enabled development in new areas like HORECA where inscriptions like DECAF or this side up are being used to support quality and insure the consumer brews the perfect coffee. In teabags, while established and used by a few brand owners around the world, the concept of direct filter paper branding has not yet taken off, as many teabag producers have historically favored the branding on the tag rather than the paper. However, it seems the idea of filter paper branding is now gaining momentum among tea brand owners. An exciting and dynamic concept that has captured the imagination of both industry and brand leaders is Glatfelter’s unique Reveal Technology, which gives the potential of changing the way we look at teabags. A non-visible image is added to

cross industry innovation teams with key suppliers, which developed and tailor fit the technologies. Hence we have enabled our clients to communicate their brand messages and therewith make their teabags talk. Our innovation and investments have paid off with a +30% growth rate over the last year,” reveals Kai Wulff, General Sales Manager for the food and beverage products at Glatfelter. Thus, ever since the movement was started by Glatfelter, filter paper branding has been on the forefront of Glatfelter’s

the filter paper which will as if by magic only appear once the teabag is placed into a suitable aqueous medium such as when making a cup of tea. One of our key customers has used this Reveal option for a most brilliant Dip and Win promotion where consumers had the opportunity to win some valuable prizes if they revealed a winning image on their bag. Much like the golden ticket idea from Charlie in the chocolate factory of Roald Dahl’s novel this created quite a buzz. Glatfelter’s Reveal technology helps rekindle and inspire interest in the fine art of tea brewing with its infuse to enthuse possibilities. One can now think of a Valentines hearts edition or Halloween pumpkins appearing on the teabag. The possibilities opening up through branding technology are manifold. From seasonal greetings, to information, to targeting specific groups such as children everything is possible. This way consumers can only say: “Teabags – I like!”

34

COFFEE&TEA INTERNATIONAL # 2/2013

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO?

CAFFITA-CAMA: TWO HIGHLY SUCCESSFUL ITALIAN COMPANIES A

nnovation and flexibility are common factors between Caffita and Cama, two Italian companies that have rapidly built their success by achieving ongoing international growth. Following a few years focused on R&D, Caffita System's first production site for manufacturing and marketing coffee capsules was opened near Bologna in 2004. Another facility opened near Milan a few years later with corporate business soaring high, underpinned by a cutting-edge product. Various research and development steps led to the creation of a combined semi-open system covered by international patents and comprising both machines and capsules that merge innovative technology, flexible use and attractive design. Caffita capsules and technology offer market leaders in the coffee industry flexible packaging for “their own type of capsule” so as to meet their market requirements, as well as the taste of local consumers with a tailor-made solution. Andrea Clementini, CEO at Caffita System, clearly explained the company’s key competitive factor: “We prepare coffee that is appreciated worldwide because we adapt our capsules to suit the taste of each country.” In fact, the particular Caffitaly System capsule structure is designed for packaging any type of coffee, ranging from the excellent Italian espresso to long black coffee and caffи crema, satisfying even the most sophisticated taste buds. The product range also includes delicious drinks, such as Lemon Tea, Leaf Tea, Camomile, Barley, Herbal Tea, Milk Drink and Cocoa. True to the highest quality standards for manufacturing and packaging, Caffita System has chosen reliable partners to offer both clients and consumers a superior product from every standpoint. “We are particularly keen on guaranteeing top quality standards for processing and packaging our capsules,” said Giovanni Accursi, Maintenance & Technologies Director. "When the time came to select a partner for secondary packaging, we chose the Cama Group, a leader in the field of packaging systems, with extensive experience in the specific niche of coffee capsules.” For over 30 years Cama has specialized in supplying automated production complete with a new generation of innovative products with advanced electronics and technology features. Cama’s

I

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machinery utilizes proven robotic and machinery technologies customized to offer wide-ranging packaging solutions designed to meet specific packaging requirements. The company steadily focuses on developing flexible systems with high production speed in a limited space, based on the principle of "lean production," with a unique range of packaging machines and robotized systems. In addition to the extensive choice of systems/solutions, the principal added value offered by Cama is undoubtedly its role as “global consultant”, offering customers a wide range of technical solutions by combining the competences of the packaging machines and robotics sector with precise targeted advice on the choice of cardboard/paperboard to be used, type of packaging and definition of payback investment plans. The ultimate nine production lines installed by Cama in Caffita facilities are based on this supply concept. The systems have been designed according to an innovative technical solution featuring a compact layout to comply with customers’ space requirements, along with flexible product configuration for the various formats required. These “monoblock” solutions provide extremely compact, high-speed, customized packaging. Inside a single frame machine, flat blanks are formed, coffee capsules are placed in the carton and finally the various configurations of cartons/pack patterns are closed in the final station. These highly flexible lines can package up to 500 capsules per minute and allows capsule loading in special configurations for optimal package size and subsequent insertion into cartons containing 8 to 96 pieces. Giovanni Accursi closed by saying: “Cama has always assisted us, especially during the most complex phases of system calibration, thus proving to be a reliable partner.” The technical solutions provided by Cama to the customer and Caffita's trust in its supplier have led to a lasting partnership, underpinning the successful growth of both companies. This unquestionably excellent matching of innovative spirit and Italian flexibility has also gained international acknowledgement.

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coffeetea.ru

Days that he 25th Annual Coffee Event, organized by the Specialty Coffee Association of America in Boston, has terminated. As part of this Event there were many activities conducted: the SCAA 5th Symposium, USA Barista Championship, which celebrated its 10th anniversary, as well as activities coincided with the 25th anniversary of the Coffee Kids (a non-governmental organization aimed to support families of farmers who work on coffee plantations) and the 10th anniversary of the International Women’s Coffee Alliance. The event was attended by more than 7,000 professional market participants, who came to Boston not only from the USA but also from all over the world. Russia was presented by 18 people – traders, roasters, producers of coffee

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roasting equipment, distributors, baristas and others. High spirits reigned during all the activities through all the days of the Event. There were held numerous competitions in different types of coffee excellence, educational seminars, special events honored to the mentioned anniversaries, as well as the Rainforest Alliance and Coffee Quolity Institute activities. On Monday morning, April 15, the participants of the Boston 6 days Coffee Event were getting ready to leave, and everything would be completed as usual. But after many guests have left, at 15:40 local time here, in Boston, at the venue of another interesting sport event — a marathon, there were two explosions. Serene mood melted away like smoke... It remains only a sense of solidarity with the victims and mourning for the dead...

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HoReCa News

Pay With Kiss huffingtonpost.com offee drinkers at a Sydney cafe can grab the nearest attractive and willing person, pucker up, and consider their bill paid, thanks to a new Pay with a Kiss promotion.

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"We’re bringing romance back! Take your partner to the cafй from 9-11am in June and surprise them with a kiss when you order your coffee. We’re not accepting your money, just your kisses," reads a post on Metro St James' Facebook page. The French-themed shop, which has been open for just three months, included a video featuring several couples earning their cups of coffee by way of their lips. In the clip, a waiter warns one couple that he has to observe a real kiss for them to qualify for the promotion. (It's unclear whether he is trying to suggest there should be some tongue involved.)

He goes on to say that if they try to fake it he'll know because he's kind of a specialist. More than one Facebook user asked whether customers could arrive alone and just make out with the staff.

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The Barista ranking project takes off baristaranking.ru s part of the effort to implement the blueprint developed by the Advisory Council on the Development of Specialty Coffee Market in Russia, the Coffee and Tea in Russia magazine kicked off a project called Barista Ranking. Barista Ranking is a uniform method for gauging the competency and activity level of those Russian baristas who take part in professional competitions. ‘This will be a full-fledged national database of baristas, focusing on those who have chosen this profession as their career path and work every day to raise their skill

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level’, says Elena Tregub, special projects manager at Coffee and Tea in Russia. The project is aimed at boosting the prestige of the barista profession and creating opportunities for professional growth. ‘We will provide financial rewards to baristas who at least once a year achieve the top ranking in any of the categories’, continues Ms. Tregub. The ranking will be determined on the basis of the results of competitions that are registered with the project. ‘As of right now, the organizers of any competition can submit a registration form to us. The only condition is that the competition be opened to all, i.e. that any barista can take part in it’, comments Ms. Tregub. In addition to competition placements, the ranking formula takes into account the professional level of the jury and the size of the prize fund. The first competition that took place as part of the Barista Ranking project was the Moscow Qualifying Barista Championship, held on January 22-23, 2013.

Diners shun wine for a nice cup of tea independent.ie pecialty teas are becoming the drink of choice in top-notch restaurants. Any time is teatime at a growing number of top restaurants around the world as chefs encourage diners to swap that glass of something for a nice cup of tea. Restaurateurs are hailing tea as the new wine, claiming that it is better suited to bring out the flavor of their dishes than many red or white wines. Analysts believe it is only a matter of time before Starbucks branches out into tea, following its acquisition last autumn of a US-based tea shop chain called Teavana. Unilever, the group behind PG Tips and Lipton, has also looked into opening a chain of tea cafJs. Meanwhile, Costa and Caffe Nero have recently increased their selections of specialty teas in an attempt to diversify. Health fears are also boosting tea sales, with green and white teas favored for their antioxidants. Richard Vines, who chairs the World’s 50 Best Restaurants awards, says, “People are drinking tea instead of alcohol at the end of a meal, so they are demanding a choice from restaurateurs.” He predicts that tea-pairing – matching different teas to certain foods – “will become a bit of a fashion”, adding: “And why not? Tea has such distinctive flavors.” Lalani& Co., a British boutique tea importer, recently launched a course to train tea sommeliers. “The tea renaissance looks at seasonality and provenance. You can focus on particular gardens, producers, the day tea is picked, and how the soil makes a difference to flavor, structure, and quality,” owner NadeemLalani says. “You enjoy tea just like a fine wine or a whiskey.” Oddly, given its history, the US is helping to drive the tea revival. Wholesale tea sales in the US have grown from $1.84 bln in 1990 to $8.2 bln in 2011, and the retail industry is worth $27 bln, according to the Tea Association of the USA. That accounts for more than half of tea’s global $50 bln market.

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The amazing Latte Art twistedsifter.com

ANCAP cups born from passion for quality 100% made in Italy

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ith its precious and unmistakable flavour, espresso and cappuccino are between the most popular symbols of Italian style in the world. A symbol that Ancap, primary company, in Italy, for the production of high-quality porcelain, is committed to support every day alongside passionate professionals. And it does so by proposing, for coffee roasters, the widest range of coffee and cappuccino cups for professional with high quality and attention to detail, in a variety of shapes, sizes and decors. The proposals are the result of an extreme flexibility combined with production efficiency for high quality and sophisticated customizations. Functional products of Ancap do not renounce to a captivating and distinctive aesthetic always bringing a unique signature taste, refinement and Italian style. Recently ANCAP introduced into the assortment a multi-cromatic proposal. This has been studied to valorize even aestheticaly a product that, for its personality, wants to have a strong identity. The originality of the proposal is to allow an infinite range of combinations, playing on the valorisation of the cup rather than the saucer, or only the handle, combining contrasting or complementary colors. "MILLECOLORI" is the name of this new collection. It offers the possibility to choose and play with various colors, finding in the combined beverage-cup the best interpretation to offer a perfect sensory perception. “MILLECOLORI” is available in two lines, vibrant shades "BRILLANTI" and soft shades "PASTELLO". Playful triumph of bright colors on porcelain cups extremely shiny and bright, "BRILLANTI” is available in eight vivid colours: Orange, yellow, blue, green, caramel, Brown, blue, black. “PASTELLO” is available in six colours: Powder Pink, cream yellow, coral, Sage Green, pistachio green, white butter: Six shades, soft and delicate colour, but always with personality. With its perfect, professional tools Ancap joins professionals, promoting and exporting around the world the culture of coffee and quality "Made in Italy“.

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azuki Yamamoto is a Japense artist currently living and working in Osaka. Using a simple toothpick, Kazuki creates wonderful latte art portraits for customers of Cafe10g. Yamamoto also posts his latte art on Twitter (@george_10g) where he has amassed over 85,000 followers, all fascinated by his latest creations. While growing in popularity in the Western world, latte art seems to be more commonplace in Japan, where many coffee shops add an artistic flair to their fresh brews. To see more, be sure to follow Kazuki on Twitter.

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What should be taught?

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In one of my previous articles I mentioned that all efforts aimed at setting up the tea service (for example, in a restaurant) will prove futile if they are frustrated by the establishment’s personnel. This frustration can take the form of a deliberate sabotage (caused by a lack of incentives) orit can be unintentional (due to a lack of training). There is little that can be done to fix a problem of the first kind; so let’s focus on the content and methodology of tea personnel training. Butfirst, threeremarks.

Denis Shumakov

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First of all, given the current high turnover of restaurant personnel, it makes no economic sense for an establishment to invest in a long and comprehensive (and thus, expensive) training program for its tea staff. It would do better by offering short and intensive training sessions supplemented by high-quality reference materials. Today, there are no general-purpose publications of this kind, although materials that have a more local focus (and are tied to particular product offerings) can be put together in-house, by the establishment itself (not so likely) or by the tea vendor (more likely). Comprehensive tea training should be a part of the curriculum at hospitality industry schools. Tea establishments occasionally express interest in such training, and matters frequently go as far as developing a training program – but I have never seen such a project advance beyond the planning stage. As far as I know, no one in the world today offers serious and systematic training for tea service personnel. Second, tea training must be a part of a comprehensive study of beverages and beverage service in the restaurant industry. Specialists who focus exclusively on tea, without at minimum having knowledge of alcohol and coffee, will end up being a liability for the establishment. Third, the job of a tea specialist in a restaurant differs little from the job of a waiter, a bartender or a sommelier. For the most part, this work is invisible to the patrons, who interact with the specialist only for very short (but very information-intensive) intervals – and their judgments of the quality of the specialist’s work are formed as a result of such “brief encounters”. Thus, specialized tea training requires basic hospitality training as its foundation. In light of the above, the goal of specialized tea personnel training (regardless of where it is offered) must be to prepare specialists capable of effectively working with tea in the hospitality industry – and this means planning and performing tea service in a hotel, a cafJ or a restaurant, tak-

ing into account the goals, the “ideology” and the concept of the establishment. The theoretical portion of such a training program may include the following topics. General facts about tea. This knowledge has little practical use, generally for superficial interaction with patrons. But it is the foundation of all other training, just as Materials Science is for engineers. Tea in contemporary gastronomic culture. In order to provide an adequate tea service, one needs to understand the place of tea in the gastronomic culture reproduced within the establishment. It is just as important to match the characteristics of tea to the mood and condition of the guests: speaking crudely, tea service at a rural hotel on the banks of the Volga river must be different from the tea service at an Alpine ski resort. Tea in the HoReCa industry. A tea specialist must have at least a basic knowledge of the history of tea in the food service industry, be an expert on the latest and the most successful (fashionable) tea products, as well as understand the historical roots of his particular form of tea service and the ways in which this tea service relates to general tea service trends at other establishments. Planning tea service at food service establishments. The planning process must includethe discovery of (or a plan for shaping) the preferences of the customers, the selection of a tea strategy, the development of the methods of serving tea and the achievement of a good fit between tea and the rest of the establishment’s menu. Of course, the planning must take into consideration the specific format of the establishment – the process should produce different results for a cafJ, a bar or a restaurant. The best training methodology here is the study of specific real-world examples. The visual appeal of the tea service. The best way to learn methods of making the tea service more attractive and visually appealing is to study a wide selection of photographs. A detailed examination of 30-50 images

from various cafJs and restaurants should be sufficient for a good coverage of the topic. The profitability of the tea service. This is pure accounting. A tea specialist must have a good knowledge of all direct and indirect expenses that make up the total cost of the tea service in a restaurant. The criteria for tea and teaware selection. This is essentially a set of formal characteristics supplemented with examples and opportunities to personally try out different tea and teaware varieties. Technological aspects of the tea service. This includes the study of the technical aspects of tea handling at restaurants, from purchasing and storing dry tea to disposing of used tea leaves and washing the teaware, with a special focus on brewing, of course. This topic can also include various criteria and methods for optimizing the tea service. Teaching (prospective) customers about tea. After studying this topic, the future tea specialist must be able to do three things. First, to compose an informative tea carte; second, to develop promotional materials; and third, to knowledgeably interact with customers.

*** Of course, the training of a restaurant tea specialist requires extensive hands-on practice (ideally verging on drilling). The practice must focus on developing the following skills: Determining the variety and the quality of tea by its appearance and aroma. No big secrets here – essentially, one needs to develop the ability to gauge the quality of the tea supplied to the restaurant. At a minimum, this includes the ability to determine the type of a tea by its appearance (ideally, one must also know all specific varieties used by the establishment) and to identify spoiled tea. The content and design of the tea carte. The first part is the composition of a tea carte for a particular establishment (including prices and other establishment-specific information); the assortment may be tied to a particular supplier or, ideally, be supplier-independent. The second part is

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the design of the carte with the given parameters: the number of pages, the layout, the number of languages (one or two), the format of tea descriptions. The third part is the design of promotional materials for the tea service at the establishment. The design of the tea service, brewing and serving of tea. This is the central component of the training program, but it is relatively simple to conduct: given a set of teaware, an assortment of teas and supplemental products, the trainee needs to fully arrange several tea services. The care of teaware. Even though the vast majority of restaurants have dedicated dishwashing staff, the tea specialist must know the proper way to care for the teaware “entrusted” to him and be able to perform all the necessary operations himself. It should be emphasized that proper care is more than just washing: the tea specialist is fully responsible for the cleanliness, safety and appearance of teaware. Hospitality training. This can be the final part of the program and can take the form of a conversation over tea (prepared and served by the trainee).

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*** The tea specialist training program described above may seem too intensive; but in reality (and given good-quality supplemental materials) the full training will take no more than 10-20 class hours (even allowing for additional breadth and depth of coverage). Enjoy your tea!

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ADVERTISER INDEX

CAMA GROUP

AHMAD TEA LTD.

AHMAD TEA LTD. Phone: +44(0)23 8027 8900 Fax: +44(0)23 8025 5867 www.ahmadtea.com Official distributor in Russia: «SDC-FOODS» Ltd. www.ahmadtea.ru [email protected] Moscow: Phone: +7(495) 234 69 91 Fax: +7 (495) 234 69 95

ZWIRNEREI A.D. WUTACH GmbH

Cama Group 23846 Garbagnate Monastero Via Como, 9 – Italy Tel: +39 031 879811 Fax: +39 031 856373 [email protected] www.camagroup.com

OPTIMA CONSUMER GmbH

OPTIMA CONSUMER GmbH Geschwister Scholl Strasse 89, 74523 Schw@bisch Hall, Germany Phone: +49 791 94606-0 Fax: +49 791 94606-3019 www.optima-consumer.com [email protected]

Zwirnerei a. d. Wutach GmbH P.O. Box 1163, .. 79780 Stuhlingen/ Germany Phone +49 7744 9396-0 Fax +49 7744 9396-20 [email protected] www.zwirnerei-wutach.com

ELISENTAL

DRAHTWERK ELISENTAL W. Erdmann GmbH & Co Werdohler Str. 40 58809 Neuenrade P.O. Box 1260, 58804 Neuenrade, Germany Phone: +49 2392 697-35 Fax: +49 2392 697-39 [email protected] www. elisental.de

ANCAP S.p.A.

Ancap S.p.A. — via Libia, 1 37066 Sommacampagna (VR) Phone: 045.82.93.088 [email protected] www.ancap.it

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contact: GLATFELTER Gernsbach GmbH & Co. KG Phone: +49 7224 66 0 [email protected] Russian contact: GLATFELTER Russia Phone: +7 495 984 97 94 [email protected] www.glatfelter.com

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS 9 Pushkarev Pereulok Moscow, 107045, Russia Phone: +7 (495) 223 0348 Fax: +7 (495) 223 0349 [email protected] www.kld-coffee.ru facebook.com/KLDCoffeeImporters

TEAMAC S.r.L.

TEAMAC S.r.L. ViaMenghini,1 40054 Budrio(BO), Italy Phone: +390516926276 Fax: +390516926277 [email protected] Agent in Russia: OOO Kayan Street 26 Bakinskikh Komissarov — 9, Office 21, Moscow 119571 Phone: +7 495 434 5157/7164/3384 [email protected]

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ORIMI TRADE, Llc.

ORIMI TRADE, Llc. 3, Tobolskaya str., St. Petersburg, 194044, Russia Phone: (812) 346 82 40 Fax: (812) 542 15 01 [email protected] www.orimitrade.ru