Mondelez International has announced plans to invest $50 million (£30 million) in its Banbury, UK factory to build two new lines that will manufacture Tassimo beverage capsules. Tassimo is Europe’s fastest growing single-serve system, brewing a wide variety of beverages including Jacobs and Costa coffees and Cadbury hot chocolate.
The decision is part of Mondelez International’s multi-year investment in European manufacturing, under which $1.5 billion has been invested since 2010. The planned investment will create close to 80 roles and coincides with the 50th anniversary of the Banbury factory, which produces coffee brands such as Kenco, Carte Noire and Maxwell House. The Tassimo capsules produced in Banbury will be exported to Western European coffee markets in France and Spain as well as distributed in the UK.
“Tassimo is a key driver of growth for our European coffee business, so this $50 million opportunity is a great one for Banbury,” said Phil Hodges, Senior Vice President, Integrated Supply Chain, Mondelez Europe. “Over the past 18 months, we’ve made similar investments in Bournville and Sheffield, underscoring our commitment to UK manufacturing. The proposed investment is part of our vision to manufacture our products on state-of-the-art lines that will enable us to meet growing demand while increasing our competitiveness.”
Click here to read more Gourmet News stories about coffee.
Continued investment in the plant has created an efficient and modern factory capable of producing both instant and capsule coffees for Mondelez International’s brands. The $50 million investment, conditional on commitments to flexibility and cost competitiveness, will fund two new Tassimo coffee production lines to be installed in 2015.
The Tassimo beverage system, which was developed in Banbury prior to its launch in Europe in 2004, uses barcode technology to calculate the right amount of water, brewing time, and temperature for the specific beverage. Over the past five years, Tassimo achieved strong double-digit growth in Europe through a winning formula of convenience, an unrivalled brand portfolio and quality coffee.
“The proposed investment opportunity demonstrates that, in an increasingly competitive environment, the UK continues to be a prime location for large-scale manufacturing,” said Paul Sinclair, Head of Manufacturing at the Mondelez International Banbury site. “We’re committed to securing this investment for Banbury by increasing flexibility and competitiveness, and we’re excited about showcasing the quality we can deliver to coffee drinkers in the UK and abroad by producing Tassimo in our factory.”
“This investment opportunity in Banbury is part of our ongoing supply chain reinvention plan,” said Hodges. “We’re implementing several such initiatives around the world to capitalize on growing demand, while also reducing costs and improving productivity.”
Mondelez International’s supply chain reinvention plan is expected to deliver $3 billion in gross-productivity savings, $1.5 billion in net savings and $1 billion in incremental cash over the next three years. The investment follows Mondelez Europe’s announced $100 million commitment to build a state-of-the-art biscuit factory in Czech Republic earlier this year, as well as the potential new investment of approximately $100 million for the Bournville chocolate manufacturing site in Birmingham, UK.
Counter Culture Coffee has announced its annual, limited-edition Holiday Coffee featuring harvests from Peru and Ethiopia with a smooth, approachable flavor profile of brown sugar, bittersweet chocolate, and pecan. The coffee is 85 percent Cenfrocafe from Jaén, Peru and 15 percent Idido Washed from Yirgacheffe, Ethiopia. Priced at $14.25/12-ounce box and available as of November 1 on Counter Culture’s website and at all retailers, the coffee is packaged in a sleek recycled paper box printed with linseed oil-based inks conceptualized by Counter Culture’s in-house design team.
This holiday season, Counter Culture will collect a nickel per pound of all coffees sold—including the 2014 Holiday Coffee—to fund forthcoming coffee-growing community betterment initiatives through its SEEDS program (Sustaining Environmental and Educational Development at Source). This holiday allocation reflects a significant increase from the penny per pound Counter Culture donates throughout the year to support improvement projects in coffee-producing communities around the world, including agricultural training and research programs, through SEEDS.
Counter Culture’s SEEDS program was created to structure and define the company’s monetary contributions to projects benefitting its coffee-producing partners and families, who may not be directly related with the coffee itself. Since 2011, SEEDS has supported 12 projects in eight countries and contributed more than $65,000 (not including sales from Holiday Coffee) to coffee-growing communities.
Counter Culture’s strong relationships with the farmers and communities who create their coffees epitomize its commitment to environmental, social, and fiscal sustainability. Under Coffee Buyer & Sustainability Manger Kim Elena Ionescu’s leadership, Counter Culture encourages all coffee growers to practice organic agriculture on their farms. The company supports farms and co-ops willing to pursue organic certification, which requires effort, money, and a full three years of transition time before the coffee can be labeled organic. Eighty-five percent of the coffee that Counter Culture purchases is certified organic, and the company is constantly working to increase that percentage.
Last year, a portion of Counter Culture’s Holiday Coffee proceeds helped to jumpstart the process required for organic certification for coffee producers from Burundi whose coffee the roaster has purchased for a number of years. Two years ago, the proceeds funded a two-day organic composting workshop in Ethiopia that was attended by 30 farmers from Haru, Idido, and Biloya villages.
Kona Mountain Coffee, retailers of gourmet 100 percent Kona coffee from the company’s own farm in the official Kona Coffee District on the Big Island of Hawaii, is the winner of the Hawaii Coffee Association 2014 Cupping Competition for coffees from Kona, Hawaii. Kona Mountain had the top cupping score of all 42 entries from Kona’s finest coffee farms, once again earning a reputation as the ‘best of the best’ coffee from Kona.
“We have always believed,” said Bill Dwyer, President of Kona Mountain Coffee, LLC in Hawaii, “that it is not enough just to have the best Kona coffee and chocolates in the state of Hawaii. We also need to show the true spirit of aloha each time a visitor steps through our doors. That has always been our highest priority. Winning this cupping competition for gourmet Kona coffees makes our work even more fulfilling because it shows that we are really offering coffee lovers the ‘best of the best.’”
Kona Mountain Coffee retails estate and private reserve 100 percent Kona coffee at a visitor center on the highway from the Kona airport into Kailua Kona on the Big Island of Hawaii, where the coffee is roasted and many of the company’s Hawaii gourmet chocolates and other treats are handmade. There are also two Kona Mountain stores on Oahu in Waikiki at the Hilton Hawaiian Village Rainbow Bazaar, and the Hilton Grand Waikikian. Call toll free at 1.888.432.3276 for information and directions.
At each location, Kona Mountain Coffee offers its own line of gourmet Hawaii chocolates, real Hawaiian macadamia nuts, an ever-changing rainbow of Hawaiian taste treats, and a unique range of other Hawaiian products that make Kona Mountain Coffee shops a must-see destination for all visitors to Hawaii. Farm tours of the Kona farm are available. Call 808.329.5005 for details.
President Bill Dwyer credits the success of Kona Mountain, both in the cupping competition and in the retail market, to the spectacular talents and amazing Spirit of Aloha of his senior management team: wife Stephanie Dwyer, Farm Manager & Master Roaster Mark Santiago, and Retail Operations Manager Mary Frostad.
Though foodservice will account for roughly three-fourths of the projected $48 billion in sales for the U.S. coffee industry in 2014, the retail segment is finding new ways to reach consumers and compete with the restaurant industry for market share. A driving trend in retail coffee innovation and marketing is bringing the coffee shop experience into the consumers’ homes, according to Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice, 8th Edition, a report by market research publisher Packaged Facts.
A key factor in giving consumers a coffee shop experience at home involves bringing favorite coffeehouse and bakery brands into the retail sector. This type of co-branding is effective in garnering instant brand loyalty and recognition—a defining factor in a crowded market. For example, leading fast casual restaurant operator Panera Bread capitalized on its strong following with the brunch/lunch crowd to push its Panera Bread Bakery Blends brand, which offers a variety of flavored ground coffees and is positioned as a premium retail coffee product. Likewise, leading baked goods and coffee chain Dunkin Donuts has capitalized on its success in the coffee category to expand into the retail sector. Meanwhile, Caribou Coffee has made its signature brews available within the retail sector, in addition to providing products to foodservice providers such as hotels, entertainment venues, and e-commerce channels. Even fast food juggernaut McDonalds revealed plans to enter the fray through its McCafé-branded packaged coffees (in whole bean, ground coffee, and single-cup offerings).
On a grander scale, co-branding of retail coffee goes beyond coffee shop brands to align with other indulgent brand. The bold, rich flavor of coffee provides a natural balance to indulgent sweet notes—making partnerships with decadent, palette-pleasing brands a natural fit. Such partnerships create brand recognition and cross-merchandising opportunities, notes Packaged Facts research director David Sprinkle. As recently as February 2014, major moves such as doughnut company Krispy Kreme’s launch of ready-to-drink coffee beverages at more than 900 Walmart locations rippled across the retail landscape. Other recognizable foodservice brands—Godiva, Entenmann’s, Cold Stone Creamery—have capitalized on their reputations to launch retail coffee products with flavor-rich, decadent, and even premium positioning.
Building off coffeehouse expectations for a wide variety of options, retail coffee manufacturers are also embracing variety. Limited edition offerings or seasonal flavors are an easy way to satisfy the need for variety and keep consumers engaged with the brand.
On July 18, 2014, MauiGrown Coffee reaffirmed its coveted place in the coffee world by capturing first place for its Maui Mokka® – Natural at Hawaii Coffee Association’s 6th Statewide Coffee Cupping Competition held in Kealakekua on the Big Island of Hawaii.
The 2014 field included 77 total entries. The Commercial Division included 22 entries, 12 of which came from the District of Maui. In the Commercial Division, MauiGrown Coffee’s Maui Mokka – Natural and Aloha Hills Kona Coffee tied for first place with a score of 87.3 out of 100. MauiGrown Coffee also took second place in the Maui District Division for Maui Mokka – Natural.
According to the Maui Coffee Association’s 2014 Cupping Committee, the quality of coffees entered in this year’s competition was of the highest level, and they commended the winners for being an accomplished group of farmers who raise great Hawaiian coffee.
“Great coffee doesn’t just happen,” said Kimo Falconer, President of MauiGrown Coffee. “It takes a dedicated team of farm workers to produce award-winning coffee, and I couldn’t be prouder of our Maui Mokka team.”
The Maui Mokka variety of coffee originated in Yemen and was planted on the Kaanapali Estate by Pioneer Mill 25 years ago. Today, it is one of four exceptional coffee varietals grown and harvested in West Maui.
Maui Mokka’s small, roundish chubby beans produce a cup delightfully fused with a range of subtle chocolate flavors. During this year’s cupping competition, judges described the Maui Mokka varietal as “a winey, sparkly coffee with good acidity, nice body and hints of a fruit and nut bar. It has notes of boysenberry and blackberry and tones of cocoa and bittersweet chocolate and finishes like a good port and a cigar.”
According to Falconer, the soil and nutrition, the water cycle and the sun are just part of the process of producing a sweet coffee cherry.
“We allow the coffee cherries to stay on the tree until they turn purple which produces the maximum amount of sugars concentrated into the fruit,” said Falconer. “After harvesting we let the coffee age for almost six months in the coffee pulp to bring out the various fruit flavors. The coffee bean is then milled, bagged and sent off to our customers worldwide.”
“Roasting is also critical to bringing out the maximum flavor of the coffee,” said Jeff Ferguson, Co-owner and Manager of the MauiGrown Coffee Company Store. “We invite the public to taste the fruits of our labor at our store in Lahaina. We offer a medium roast and a dark roast to please all palates.”
For information, visit www.MauiGrownGreenCoffee.com or contact Kimo Falconer at firstname.lastname@example.org or 808-357-1204. The MauiGrown Coffee Company Store is located at 277 Lahainaluna Road in Lahaina, Maui adjacent to the historic Pioneer Mill smokestack, call 808-661-2728 or visit www.MauiGrownCoffee.com for information and/or store hours or to order online.
Boyd’s Coffee®, the oldest family-owned coffee company in the Pacific Northwest, is ready to chill with its new line of cold beverages, which includes Boyd’s Iced Tea, Boyd’s Ice Cap™ and Boyd’s Iced Coffee. This new line enhances and continues Boyd’s authentic, high-quality-for-the-everyman experience with compelling merchandising and easy-to-operate, energy-efficient equipment options.
Boyd’s Iced Tea
Backed by a 114-year history as a tea purveyor, Boyd’s emphasizes the fresh-brew experience with its rebranded line of Iced Tea with eight flavors including Original Brew (black tea), Green Tea, Tropical Tea and Raspberry Herbal. The addition of Torani® syrups such as Cane Sugar Sweetener, Raspberry, Peach and Blackberry create limitless options for operators. In addition, fresh-brewed iced tea is the number one purchased beverage in restaurants and is significantly more profitable for operators than the bag-in-box option.
Boyd’s Ice Cap™
The whimsical and refreshing Ice Cap™ line captures the nostalgia of childhood summers, featuring an updated, fresh design and innovative flavor options. With frozen coffee drinks growing in popularity, especially with millennial consumers, Boyd’s offers a combination of coffee-based flavors, such as French Vanilla and Mocha, and fruit-based flavors, including Cherry Smart Bomb and Strawberry Banana Smoothie.
Boyd’s Iced Coffee
As iced coffee drinks continue to build a following among all consumers, and particularly among millennials, Boyd’s Coffee offers shelf-stable iced coffee beverages available in Kona Blend Mocha and Kona Blend French Vanilla. Iced coffee is a well-liked beverage in all dayparts as well as year-round.
The Iced Tea replaces the company’s former Island Mist® product, and the new Ice Cap was formerly Coffee House Freezers®.
Boyd’s Coffee provides everything operators need for a highly profitable beverage program, including reliable, space-saving, easy-to-operate, energy-efficient equipment as well as visually appealing merchandising from posters to equipment dressing and flavor labels. For information about Boyd Coffee Company’s products and services, call 800-545-4077 or visit www.boyds.com.
Building on its reputation as one of Michigan’s leading coffee roasters and nut distributors, Ferris Coffee & Nut Company today announced it has acquired Holland, Mich.‐based JP’s Coffee. The move bolsters Ferris Coffee’s increasing commitment to high-end beverages while providing JP’s new potential markets and additional resources for future growth.
Best known for its classic coffeehouse feel, JP’s has been serving customers for more than 20 years. The store offers a large selection of whole bean coffees, fresh-baked treats, and loose leaf tea served by its staff of trained baristas. JP’s Coffee will remain an independent location and continue to operate under the JP’s brand and the direction of the Company founder, Jack Groot, while benefiting from the added resources, team and national reach of Ferris Coffee. The Midwest Barista School at JP’s will also continue its commitment to developing exceptional industry professionals from around the world.
Ferris Coffee will use the acquisition to help spark new approaches to its efforts in high-end beverages as it looks to build on more than 90 years of success. According to Ferris Coffee, the addition of JP’s brings new, world-class coffee and service expertise, as well as important insights into the intersection of coffee and community.
“Adding JP’s Coffee is a great move for our organization and our customers given our highly complementary locations, values and strong community commitment,” said John VanTongeren, President and Owner of Ferris Coffee. “Ultimately, we both view coffee as a relational beverage that brings people together. This move will improve both companies while setting a strong foundation for growth.”
In addition to his continuing leadership role at JP’s Coffee, Jack Groot will be named Director of Retail Operations for Ferris Coffee. In that role, Groot will oversee Ferris’ growing retail operations and continue to train and develop new talent through JP’s Midwest Barista School. His experience will also provide invaluable insight as Ferris Coffee opens its flagship coffee bar onGrand Rapids’ west side this summer. No staff changes are planned at either company.
“West Michigan has always been home to both of our businesses. We share the same values and the same service-first culture, so we see no better place to invest and grow together than in Michigan,” said Groot. “We are excited to partner withFerris Coffee, as our similar cultures and complementary service strengths make this transaction a natural fit. We see great opportunity in combining to create an organization focused on quality coffee with enormous potential for future success.”
Discovery Communications and Single Cup Coffee announced today an innovative new line of Keurig®-compatible single serve coffee cups inspired by the hit TLC series, Cake Boss. The line, debuting this month on TLCstore.com, starts with the smooth, medium roast Buddy’s Blend as the perfect complement to your favorite dessert.
Famous around the globe for the creativity he brings to the world of baking, the Cake Boss himself, Buddy Valastro, has infused this rich, smooth, Cake Boss coffee with the tastes of his favorite bakery creations to create seven flavored coffee originals, including Hazelnut Biscotti, Chocolate Cannoli, Italian Rum Cake and more.
“Whether at home, in my bakery or on the road, I don’t start my morning without a hot cup of coffee,” said Valastro. “I’ve been working with TLC and the coffee pros at Single Cup Coffee to create a variety of coffee flavors unique to Cake Boss that can satisfy both the sweet tooth and coffee craving.”
Now you can have your cake and drink it too with eight blends including:
“Cake Boss coffees offer a fresh take on what we expect from our existing single serve coffee lines,” said Tim Cook, President of Single Cup Coffee. “The Cake Boss Coffee line is bringing in brand new flavors inspired by the delicious Italian pastries and cakes seen on the show. It’s a very exciting product line that you just have to taste for yourself.
Cake Boss Coffee will be supplied and distributed across North America by specialty coffee company Single Cup Coffee. Retailers across the US and Canada will begin stocking the product in spring 2014
New episodes of Buddy’s hit series NEXT GREAT BAKER and BAKERY BOSS will air this summer on TLC.” For more information on Cake Boss Coffee and Single Cup Coffee, visit SingleCC.com.
The Rogers Family Company, a family-owned, Lincoln-Calif.-based roaster, packager, grower and seller of gourmet coffee products, has filed a lawsuit against Keurig Green Mountain, Inc., formerly known as Green Mountain Coffee Roasters, Inc. and successor to GMCR’s former wholly-owned subsidiary, Keurig, Inc. in the United States District Court for the Eastern District of California for violations of federal and California antitrust and unfair competition laws.
Rogers’ lawsuit follows its victory in a ruling March 12 by the United States Court of Appeals for the Federal Circuit. The Court of Appeals rejected Keurig’s appeal and affirmed the U.S. District Court’s 2013 decision (District of Massachusetts) that granted Rogers summary judgment that it did not infringe Keurig patents and that Rogers’ OneCup single serve product is unique. The Rogers Family Company (www.rogersfamilyco.com) launched OneCup – which uses a mesh filter instead of a plastic brewing pod – in fall 2011. The Rogers family last year launched OneCup BIO which is 97 percent biodegradable.
“We filed this lawsuit to end Keurig’s anticompetitive practices which deny consumers access to our and other competitors’ products,” said Rogers Family Company President Jon B. Rogers. “Our goal is to ensure that consumers in the single-serve coffee market have access to a free and open marketplace, in which they are provided the opportunity to select a wide range of products based upon whatever factors are most important to them, such as price, quality, and commitment to social and environmental responsibility. No single company should be permitted to control consumer choice or prices through illegal, anti-competitive conduct.”
In the suit which will seek damages as determined by the trial, The Rogers family alleges that Keurig has used its monopoly power in the single-serve coffee brewer and coffee pod markets to require its distribution partners to enter into exclusive anticompetitive agreements designed to maintain Keurig’s monopoly power by excluding competition. In addition, Keurig has announced plans to launch a new line in 2014 of Single-Serve Brewers – Keurig 2.0 – that Keurig has stated will contain lockout technology to prevent Keurig 2.0 brewers from functioning with competitors’ coffee pod products. According to Keurig, the Keurig 2.0 brewers would replace its existing lines of Keurig brewers that function with competing coffee pod products. In addition, Rogers’ lawsuit alleges that Keurig has made false, disparaging comments about Rogers’ coffee pod products and has already begun to try to persuade distributors and retailers not to purchase Rogers’ and other competitors’ coffee pods based on representations that they will not function with the forthcoming Keurig 2.0 brewers.
The Rogers Family Company asserts that Keurig’s actions have harmed and will continue to harm consumers by restricting consumer choice and by allowing Keurig to impose supra competitive prices for its pod products.
The legal case – which involves a $4 billion coffee company approximately 25 times larger than the relatively small Rogers Family Co. – has been followed nationally because of the high stakes not only for the industry but also for consumers. The single-serve market is the fastest-growing segment of the multi-billion dollar coffee industry which is second only to oil as a commodity.
Keurig filed its lawsuit against Rogers in 2011. And on May 24, 2013, U.S. District Judge F. Dennis Saylor, IV of the District of Massachusetts ruled that Rogers did not infringe the three patents asserted by Keurig. Keurig appealed to the Federal Circuit.
“When Keurig sued us they told our customers and the industry that our products infringed their patents, that we copied their design and that consumers should not use our products,” added Jon B. Rogers. “I said that the Keurig complaint was without merit and the court agreed with my assessment and granted judgment in our favor on all claims. This is a great victory not only for our customers but for all coffee consumers.”