Coffee tea international 2 2013 en free

52
TEA STANDARDS: SHOULD THEY BE HARMONIZED OR NOT? THE CHEMISTRY OF COFFEE MAX QUIRIN: ‘HELPING OTHERS IS WHAT MAKES ALL YOUR EFFORTS WORTHWHILE’ TEA STANDARDS: SHOULD THEY BE HARMONIZED OR NOT? THE CHEMISTRY OF COFFEE MAX QUIRIN: ‘HELPING OTHERS IS WHAT MAKES ALL YOUR EFFORTS WORTHWHILE’ # 2 (106) 2013 12–14 SEPTEMBER 2013 — MOSCOW

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Transcript of Coffee tea international 2 2013 en free

Page 1: Coffee tea international 2 2013 en free

TEA STANDARDS SHOULD THEY BEHARMONIZED OR NOT

THE CHEMISTRY OF COFFEE

MAX QUIRIN lsquoHELPING OTHERS IS WHAT MAKESALL YOUR EFFORTS WORTHWHILErsquo

TEA STANDARDS SHOULD THEY BEHARMONIZED OR NOT

THE CHEMISTRY OF COFFEE

MAX QUIRIN lsquoHELPING OTHERS IS WHAT MAKESALL YOUR EFFORTS WORTHWHILErsquo 2 (106) 2013

12ndash14 SEPTEMBER 2013 mdash MOSCOW

1

contents

The Land of Dragons and Coffee Days that stick in memory The lsquoBarista rankingrsquo project takes off

2 EDITORIAL

4 NEWS UCTIE

6 PRESSING ISSUETea standards should they be

harmonized or not

7 CALENDAR OF EVENTS

8 NEWS

REVIEWampSTATISTICS16 India tea statistics

17 Sri Lanka tea statistics

18 The Chemistry of Coffee

20 Hot drinks in the Middle East andAfrica Manufacturers Appeal to aYoung Consumer Base

22 Hot drinks in Southeast AsiaCoffee market trends

24 Hot drinks in China China becom-ing a global leader for hot drinkscategories

ECONOMICS26 The Land of Dragons and Coffee

PRIVATE VIEW30 Max Quirin lsquoHelping others is

what makes all your effortsworthwhilersquo or The birdrsquos eye viewof life and coffee

WHO IS WHO32 Filter paper branding ndash I like

36 CAFFITA-CAMA two highly

successful italian companies

HORECA38 Days that stick in memory

41 Pay With Kiss

42 The lsquoBarista rankingrsquo project takes

off

42 Diners shun wine for a nice cup of

tea

43 The amazing Latte Art

44 What should be taught

48 ADVERTISER INDEX

2rsquo2013

10

26 38 50

16 20Hot Drinks in China and some countries in Africa and AsiaIndian tea promotional effort in Russia is at full speed India amp Sri Lanka tea statistics

When we come across persistent myths that

are common among consumers we must

realize that the reason for this persistence is a

torrent of easily accessible but contradictory

information that rushes at people from all sides

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

mental competitionwhich manifests itself as

sellersrsquo desire to stand out from the crowd often

by presenting a competing product in a negative

light To achieve this goal all arguments are wel-

come including spurious ones A fertile ground

for consumer myths is the lack of reliable infor-

mation ndash or to be more precise the inability to

verify claims made by someone selling a product The confusion iscompounded

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

consumers to make sense of at least some of this information

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

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

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

modity has already largely adopted a universal terminology

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

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

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

opment of a common lsquocoordinate systemrsquo available in case of need to

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

tem should have the terminology for describing all known types of raw

ingredients technologies for tea processing chemistry and physics of

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

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

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

book but an international reference manual that would include infor-

mation about every countryrsquos unique approach to the product For

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

is called lsquored tearsquo in China and what that same tea is called in

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

reputable organizations as the International Tea Committee or the

FAO Intergovernmental Group on Tea But in any case the develop-

ment and adoption of such a system must include all principal tea-pro-

ducing and tea-consuming countries After all it is in everyonersquos

interest to prevent the lack of precise terminology frequently used to

advance someonersquos short-term interests from interfering with the

growth of the global market

Ramaz Chanturiya

Editor-in-Chief

ED

ITO

RIA

LEDITORIAL

EstablisherZAO INTERNATIONAL TEA HOUSE

Distributed worldwide among coffee and tea pro-ducers wholesale companies shops and restau-rants Printed in Russia According to the registrationcertificate of mass media П И 777213 from 30thJanuary 2001 Reprinting of materials is allowed onlyby permission of the magazine The reference to themagazine laquoCoffee and tea in Russiaraquo is obligatoryThe editors dont bear any responsibility for reliabili-ty of data placed in advertising blocks or announce-ments The editors point of view may not coincidewith the authors point of view All provided materi-als will not be returned or reviewed

CoffeeampTea International magazine has been included inthe VINITI (AllRussian Institute of Scientific andTechnical Information of the Academy of Sciences Vserossiisky Institut Nauchnoi i Tekhnicheskoi Informatsii(VINITI)) list of synopsis journals and the institutes database Information about the magazine will be annuallypub lished in the laquoUlrichs Periodicals Directoryraquo interna-tional handbook of periodic magazines and ongoingpublications CoffeeampTea International is an appendix tothe CoffeeampTea in Russia magazine

2lsquo2013

Editorial Address

Russia 123060 MoscowBerzarina str 36 building 2 of 214

telfax +7 495 935-87-07Email magazinecoffeetearu

wwwcoffeetearu

Printed in

Tipografia Mospoligraf LLC Moscow

PublisherZAO INTERNATIONAL TEA HOUSE

Chief EditorRAMAZ CHANTURIYA

Deputy Chief EditorSVETLANA BELIKOVA

Computeraided makeupVALENTINA GUSKOVA

Advertising DirectorJULIA CHANTURIYA

Advertising ManagerANNA ANTONOVA

Special Projects ManagerELENA TREGUB

Promotion Manager OLGA DOLGACHEVA

THE EDITORIAL BOARD

Chairman of the Editorial Board

RO CHANTURIYAgeneral director of Rusteacoffee Association

Members of the Editorial Board

SG BELIKOVAdeputy editorinchief of CoffeeampTea in Russia magazine

PhD of Philology Editorial Board Secretary

SV KASIANENKOchairman of the board of directors of Orimi Trade company

IV LISINENKOgeneral director of May Company

A MALCHICchief executive of Montana kofe company

RD PANZHAVAGeorgian Tea Producers Association

M PEYRISInternational Tea Committee

VA TUTELIANHead of the Institute of Nutrition of Russian Academy

of Medical Sciences Member of the Academy

GV SMIRNOVgeneral director of SDC FOODS company

AV ELSONgeneral director of KLD Coffee Importers

Photo on a cover

wwwstockvaultnet

COFFEEampTEA INTERNATIONAL 120132

A ndash advertising materials

General media partner

COFFEEampTEA INTERNATIONAL 220134

NEWS

UNITED COFFEE amp TEAINDUSTRY EVENT NEWS

As part of UCTIE the seminar Specialty coffee as a luxury product will beconducted The speaker draws a parallel between modern approaches to

specialty coffee and luxury goods Today one can observe the re-evaluationof the concept of ldquoluxury productrdquo With coffee it is the same An importantfactor is the social responsibility taken or taken into account during produc-tion and selling The seminar will provide an analysis of prices crises their rea-sons as well as the possibility of their avoidance under the condition that theinterests of all groups of the market are taken into account equally

For thousands of years coffee and tea have been cultivated around the world at times withvery little technical knowledge of either product In this session we will explore the chem-

istry of coffee and tea and venture into investigating differences between these importantbeverages mdash as well as their similarities from a technical perspective A discussion on howthese variables affect quality composition overall taste and physiology factors will be pre-sented The seminar will be coupled with a tasting session to illustrate a number of the topicspresentedSpeaker Joseph Rivera Coffee Scientist (Coffee Intelligence Inc)

unitedcoffeetearu

UNITED COFFEE amp TEA INDUSTRY EVENT(UCTIE)ndash is an international combined cof-fee and tea conference and industrial area for the whole production chain from beanand leaf to a cup It can be considered as the largest event in Russian coffee amp tea seg-ment This Event dated on 12-14 of September in Moscow (Expocenter) is a uniqueplatform for the business development At one time in one place key players and rep-resentatives of tea and coffee industry will meet FREE TICKET and general programare available on the web-site wwwunitedcoffeetearu

Specialty coffee as a luxury product ndash similarities anddistinctive features

unitedcoffeetearu

You work with tea at a store restaurantor coffee shop and you want to expand

your knowledge about tea For examplelearn how to assess the quality of tea Andhow it relates to the technology of its pro-duction Then this workshop is for youThe seminar will be interesting for thosewho work in the tea shop restaurant orcoffee shop and wish to expand their

knowledge about tea For example learnhow to evaluate the quality of tea andhow it relates to the technology of itsproduction Attending the workshop onewill refresh basic knowledge about thetea technology and see how to conduct atasting Speaker David Chanturiya a rec-ognized tea expert with a broad experi-ence Head of the Tea School

Assessment of tea qualityunitedcoffeetearu

Exploring the Chemistry of Coffee and Tea

NEWS

5

It is common knowledge that processingmethod has a great impact on coffee

taste Natural coffee is more bodied andsweet and washed coffee has a refinedtaste and higher acidity Steps within aprocessing method vary from country tocountry Participants will see how pro-cessing is done in Brazil Another factor

contributing to the taste of coffee is thevariety of Arabica It will be possible tocompare varieties from one microclimateand brew a catuai an icatu and a bour-bon The discussion ofeffects frompro-cessing methods onvarietieswill concludethe seminar which is held by Ipanema andSFT TRADING Ltd

Taste of processing An interactivecupping seminar of natural pulpednatural and washed estate Brazilarabicas

Tea and coffeeevolution ndash latestmarketing trends thataffect the consumersbrain heart and walletThe seminar speaker Alexey AndreevGeneral Director of Depot WPF willmake a review of the current Russian andEuropean consumer trends and theirimpact on tea and coffee market Usingas examples some successful case studieson branding Alexey will show how onecan use completely different consumertrends when launching new trademarksupgrading the existing and creating limit-ed production series

unitedcoffeetearu

Coffee The Chemistry of Quality

Coffee under-goes a signifi-cant transfor-mation fromlsquofarm to cuprsquobefore ulti-mately beingserved to con-sumers In this

session this complex journey willbeexploredand overall chemical changes thatoccur from cultivation to final productwillbe discussed Questions such as how doesorigin affect flavor and acidity What roledo sugars proteins and lipids play in quali-ty This is an informative seminar for greenbuyers roasters baristas ndash or anyonewishing to gain a deeper understanding ofcoffee science from bean tocupSpeakerJoseph Rivera Coffee Scientist (CoffeeIntelligence Inc)

unitedcoffeetearu

To Use or Not To UseRobusta in the BlendWe invite you to join the seminar which ishosted by a person who is sure thatRobusta has the right to be used in theblends and is ready to share this knowl-edge with participants A professionalcupping session on evaluation of severalvarious Robustas will take place givingaudience understanding of main cupcharacteristic Speaker Michael WenzelHead of Quality Department of BernhardRothfos (A Company of NeumannKaffee Gruppe)The seminar is conduct-ed with a support of KLD CoffeeImporters company

unitedcoffeetearu

The first day of United Coffeeamp Tea Industry Event on

September 12 an interactivediscussion I want to start roast-ing coffee How will be con-ductedThe purpose of such anevent mdash to gather experiencedprofessionals to share theirknowledge and skills with thebeginners of roasting art TheQ amp A format will allow any-one to consult with experts onthe problems they face in theirpractice

unitedcoffeetearu

I want to start roasting coffee How

unitedcoffeetearu

One of the fastest growing markets in thecoffee business nowadays is the single

serve packs market (capsules and pods)which hasnrsquot received a widespread in Russia

yet At the UCITE Roberto Francia the Sales Manager at IMA Industries Tea amp CoffeeDivision will make a detailed overview of the growth perspectives advantages and disad-vantages of this serve system new technologies and developments in this sphere

Coffee single serve packs marketoverview and perspectives of itsgrowth

unitedcoffeetearu

This practical seminarheld by one of the lead-

ing Italian specialists inespresso will help to under-stand better the Italianapproach towards creationof espresso blends Theseminar will help to answer

the following questionsWhatrsquos the role of Brazilianarabica in a blend How dif-ferent robustas affect thetaste of espresso How touse washed arabicas bestHow different componentscontribute to the taste and

the flavor of espresso Theseminar has been success-fully held for more than 15years all over the world Theseminar is brought by SFT TRADING together withSandalj Trading Com-pany

Taste of Espresso Cup tastingseminar

unitedcoffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

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Te

a I

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Ind

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REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

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th

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ri L

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a B

oa

rd f

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

Bri

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

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CT

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PP

EA

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O A

YO

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ON

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E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 2: Coffee tea international 2 2013 en free

1

contents

The Land of Dragons and Coffee Days that stick in memory The lsquoBarista rankingrsquo project takes off

2 EDITORIAL

4 NEWS UCTIE

6 PRESSING ISSUETea standards should they be

harmonized or not

7 CALENDAR OF EVENTS

8 NEWS

REVIEWampSTATISTICS16 India tea statistics

17 Sri Lanka tea statistics

18 The Chemistry of Coffee

20 Hot drinks in the Middle East andAfrica Manufacturers Appeal to aYoung Consumer Base

22 Hot drinks in Southeast AsiaCoffee market trends

24 Hot drinks in China China becom-ing a global leader for hot drinkscategories

ECONOMICS26 The Land of Dragons and Coffee

PRIVATE VIEW30 Max Quirin lsquoHelping others is

what makes all your effortsworthwhilersquo or The birdrsquos eye viewof life and coffee

WHO IS WHO32 Filter paper branding ndash I like

36 CAFFITA-CAMA two highly

successful italian companies

HORECA38 Days that stick in memory

41 Pay With Kiss

42 The lsquoBarista rankingrsquo project takes

off

42 Diners shun wine for a nice cup of

tea

43 The amazing Latte Art

44 What should be taught

48 ADVERTISER INDEX

2rsquo2013

10

26 38 50

16 20Hot Drinks in China and some countries in Africa and AsiaIndian tea promotional effort in Russia is at full speed India amp Sri Lanka tea statistics

When we come across persistent myths that

are common among consumers we must

realize that the reason for this persistence is a

torrent of easily accessible but contradictory

information that rushes at people from all sides

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

mental competitionwhich manifests itself as

sellersrsquo desire to stand out from the crowd often

by presenting a competing product in a negative

light To achieve this goal all arguments are wel-

come including spurious ones A fertile ground

for consumer myths is the lack of reliable infor-

mation ndash or to be more precise the inability to

verify claims made by someone selling a product The confusion iscompounded

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

consumers to make sense of at least some of this information

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

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

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

modity has already largely adopted a universal terminology

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

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

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

opment of a common lsquocoordinate systemrsquo available in case of need to

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

tem should have the terminology for describing all known types of raw

ingredients technologies for tea processing chemistry and physics of

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

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

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

book but an international reference manual that would include infor-

mation about every countryrsquos unique approach to the product For

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

is called lsquored tearsquo in China and what that same tea is called in

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

reputable organizations as the International Tea Committee or the

FAO Intergovernmental Group on Tea But in any case the develop-

ment and adoption of such a system must include all principal tea-pro-

ducing and tea-consuming countries After all it is in everyonersquos

interest to prevent the lack of precise terminology frequently used to

advance someonersquos short-term interests from interfering with the

growth of the global market

Ramaz Chanturiya

Editor-in-Chief

ED

ITO

RIA

LEDITORIAL

EstablisherZAO INTERNATIONAL TEA HOUSE

Distributed worldwide among coffee and tea pro-ducers wholesale companies shops and restau-rants Printed in Russia According to the registrationcertificate of mass media П И 777213 from 30thJanuary 2001 Reprinting of materials is allowed onlyby permission of the magazine The reference to themagazine laquoCoffee and tea in Russiaraquo is obligatoryThe editors dont bear any responsibility for reliabili-ty of data placed in advertising blocks or announce-ments The editors point of view may not coincidewith the authors point of view All provided materi-als will not be returned or reviewed

CoffeeampTea International magazine has been included inthe VINITI (AllRussian Institute of Scientific andTechnical Information of the Academy of Sciences Vserossiisky Institut Nauchnoi i Tekhnicheskoi Informatsii(VINITI)) list of synopsis journals and the institutes database Information about the magazine will be annuallypub lished in the laquoUlrichs Periodicals Directoryraquo interna-tional handbook of periodic magazines and ongoingpublications CoffeeampTea International is an appendix tothe CoffeeampTea in Russia magazine

2lsquo2013

Editorial Address

Russia 123060 MoscowBerzarina str 36 building 2 of 214

telfax +7 495 935-87-07Email magazinecoffeetearu

wwwcoffeetearu

Printed in

Tipografia Mospoligraf LLC Moscow

PublisherZAO INTERNATIONAL TEA HOUSE

Chief EditorRAMAZ CHANTURIYA

Deputy Chief EditorSVETLANA BELIKOVA

Computeraided makeupVALENTINA GUSKOVA

Advertising DirectorJULIA CHANTURIYA

Advertising ManagerANNA ANTONOVA

Special Projects ManagerELENA TREGUB

Promotion Manager OLGA DOLGACHEVA

THE EDITORIAL BOARD

Chairman of the Editorial Board

RO CHANTURIYAgeneral director of Rusteacoffee Association

Members of the Editorial Board

SG BELIKOVAdeputy editorinchief of CoffeeampTea in Russia magazine

PhD of Philology Editorial Board Secretary

SV KASIANENKOchairman of the board of directors of Orimi Trade company

IV LISINENKOgeneral director of May Company

A MALCHICchief executive of Montana kofe company

RD PANZHAVAGeorgian Tea Producers Association

M PEYRISInternational Tea Committee

VA TUTELIANHead of the Institute of Nutrition of Russian Academy

of Medical Sciences Member of the Academy

GV SMIRNOVgeneral director of SDC FOODS company

AV ELSONgeneral director of KLD Coffee Importers

Photo on a cover

wwwstockvaultnet

COFFEEampTEA INTERNATIONAL 120132

A ndash advertising materials

General media partner

COFFEEampTEA INTERNATIONAL 220134

NEWS

UNITED COFFEE amp TEAINDUSTRY EVENT NEWS

As part of UCTIE the seminar Specialty coffee as a luxury product will beconducted The speaker draws a parallel between modern approaches to

specialty coffee and luxury goods Today one can observe the re-evaluationof the concept of ldquoluxury productrdquo With coffee it is the same An importantfactor is the social responsibility taken or taken into account during produc-tion and selling The seminar will provide an analysis of prices crises their rea-sons as well as the possibility of their avoidance under the condition that theinterests of all groups of the market are taken into account equally

For thousands of years coffee and tea have been cultivated around the world at times withvery little technical knowledge of either product In this session we will explore the chem-

istry of coffee and tea and venture into investigating differences between these importantbeverages mdash as well as their similarities from a technical perspective A discussion on howthese variables affect quality composition overall taste and physiology factors will be pre-sented The seminar will be coupled with a tasting session to illustrate a number of the topicspresentedSpeaker Joseph Rivera Coffee Scientist (Coffee Intelligence Inc)

unitedcoffeetearu

UNITED COFFEE amp TEA INDUSTRY EVENT(UCTIE)ndash is an international combined cof-fee and tea conference and industrial area for the whole production chain from beanand leaf to a cup It can be considered as the largest event in Russian coffee amp tea seg-ment This Event dated on 12-14 of September in Moscow (Expocenter) is a uniqueplatform for the business development At one time in one place key players and rep-resentatives of tea and coffee industry will meet FREE TICKET and general programare available on the web-site wwwunitedcoffeetearu

Specialty coffee as a luxury product ndash similarities anddistinctive features

unitedcoffeetearu

You work with tea at a store restaurantor coffee shop and you want to expand

your knowledge about tea For examplelearn how to assess the quality of tea Andhow it relates to the technology of its pro-duction Then this workshop is for youThe seminar will be interesting for thosewho work in the tea shop restaurant orcoffee shop and wish to expand their

knowledge about tea For example learnhow to evaluate the quality of tea andhow it relates to the technology of itsproduction Attending the workshop onewill refresh basic knowledge about thetea technology and see how to conduct atasting Speaker David Chanturiya a rec-ognized tea expert with a broad experi-ence Head of the Tea School

Assessment of tea qualityunitedcoffeetearu

Exploring the Chemistry of Coffee and Tea

NEWS

5

It is common knowledge that processingmethod has a great impact on coffee

taste Natural coffee is more bodied andsweet and washed coffee has a refinedtaste and higher acidity Steps within aprocessing method vary from country tocountry Participants will see how pro-cessing is done in Brazil Another factor

contributing to the taste of coffee is thevariety of Arabica It will be possible tocompare varieties from one microclimateand brew a catuai an icatu and a bour-bon The discussion ofeffects frompro-cessing methods onvarietieswill concludethe seminar which is held by Ipanema andSFT TRADING Ltd

Taste of processing An interactivecupping seminar of natural pulpednatural and washed estate Brazilarabicas

Tea and coffeeevolution ndash latestmarketing trends thataffect the consumersbrain heart and walletThe seminar speaker Alexey AndreevGeneral Director of Depot WPF willmake a review of the current Russian andEuropean consumer trends and theirimpact on tea and coffee market Usingas examples some successful case studieson branding Alexey will show how onecan use completely different consumertrends when launching new trademarksupgrading the existing and creating limit-ed production series

unitedcoffeetearu

Coffee The Chemistry of Quality

Coffee under-goes a signifi-cant transfor-mation fromlsquofarm to cuprsquobefore ulti-mately beingserved to con-sumers In this

session this complex journey willbeexploredand overall chemical changes thatoccur from cultivation to final productwillbe discussed Questions such as how doesorigin affect flavor and acidity What roledo sugars proteins and lipids play in quali-ty This is an informative seminar for greenbuyers roasters baristas ndash or anyonewishing to gain a deeper understanding ofcoffee science from bean tocupSpeakerJoseph Rivera Coffee Scientist (CoffeeIntelligence Inc)

unitedcoffeetearu

To Use or Not To UseRobusta in the BlendWe invite you to join the seminar which ishosted by a person who is sure thatRobusta has the right to be used in theblends and is ready to share this knowl-edge with participants A professionalcupping session on evaluation of severalvarious Robustas will take place givingaudience understanding of main cupcharacteristic Speaker Michael WenzelHead of Quality Department of BernhardRothfos (A Company of NeumannKaffee Gruppe)The seminar is conduct-ed with a support of KLD CoffeeImporters company

unitedcoffeetearu

The first day of United Coffeeamp Tea Industry Event on

September 12 an interactivediscussion I want to start roast-ing coffee How will be con-ductedThe purpose of such anevent mdash to gather experiencedprofessionals to share theirknowledge and skills with thebeginners of roasting art TheQ amp A format will allow any-one to consult with experts onthe problems they face in theirpractice

unitedcoffeetearu

I want to start roasting coffee How

unitedcoffeetearu

One of the fastest growing markets in thecoffee business nowadays is the single

serve packs market (capsules and pods)which hasnrsquot received a widespread in Russia

yet At the UCITE Roberto Francia the Sales Manager at IMA Industries Tea amp CoffeeDivision will make a detailed overview of the growth perspectives advantages and disad-vantages of this serve system new technologies and developments in this sphere

Coffee single serve packs marketoverview and perspectives of itsgrowth

unitedcoffeetearu

This practical seminarheld by one of the lead-

ing Italian specialists inespresso will help to under-stand better the Italianapproach towards creationof espresso blends Theseminar will help to answer

the following questionsWhatrsquos the role of Brazilianarabica in a blend How dif-ferent robustas affect thetaste of espresso How touse washed arabicas bestHow different componentscontribute to the taste and

the flavor of espresso Theseminar has been success-fully held for more than 15years all over the world Theseminar is brought by SFT TRADING together withSandalj Trading Com-pany

Taste of Espresso Cup tastingseminar

unitedcoffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

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tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

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COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

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EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 3: Coffee tea international 2 2013 en free

When we come across persistent myths that

are common among consumers we must

realize that the reason for this persistence is a

torrent of easily accessible but contradictory

information that rushes at people from all sides

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

mental competitionwhich manifests itself as

sellersrsquo desire to stand out from the crowd often

by presenting a competing product in a negative

light To achieve this goal all arguments are wel-

come including spurious ones A fertile ground

for consumer myths is the lack of reliable infor-

mation ndash or to be more precise the inability to

verify claims made by someone selling a product The confusion iscompounded

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

consumers to make sense of at least some of this information

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

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

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

modity has already largely adopted a universal terminology

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

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

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

opment of a common lsquocoordinate systemrsquo available in case of need to

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

tem should have the terminology for describing all known types of raw

ingredients technologies for tea processing chemistry and physics of

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

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

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

book but an international reference manual that would include infor-

mation about every countryrsquos unique approach to the product For

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

is called lsquored tearsquo in China and what that same tea is called in

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

reputable organizations as the International Tea Committee or the

FAO Intergovernmental Group on Tea But in any case the develop-

ment and adoption of such a system must include all principal tea-pro-

ducing and tea-consuming countries After all it is in everyonersquos

interest to prevent the lack of precise terminology frequently used to

advance someonersquos short-term interests from interfering with the

growth of the global market

Ramaz Chanturiya

Editor-in-Chief

ED

ITO

RIA

LEDITORIAL

EstablisherZAO INTERNATIONAL TEA HOUSE

Distributed worldwide among coffee and tea pro-ducers wholesale companies shops and restau-rants Printed in Russia According to the registrationcertificate of mass media П И 777213 from 30thJanuary 2001 Reprinting of materials is allowed onlyby permission of the magazine The reference to themagazine laquoCoffee and tea in Russiaraquo is obligatoryThe editors dont bear any responsibility for reliabili-ty of data placed in advertising blocks or announce-ments The editors point of view may not coincidewith the authors point of view All provided materi-als will not be returned or reviewed

CoffeeampTea International magazine has been included inthe VINITI (AllRussian Institute of Scientific andTechnical Information of the Academy of Sciences Vserossiisky Institut Nauchnoi i Tekhnicheskoi Informatsii(VINITI)) list of synopsis journals and the institutes database Information about the magazine will be annuallypub lished in the laquoUlrichs Periodicals Directoryraquo interna-tional handbook of periodic magazines and ongoingpublications CoffeeampTea International is an appendix tothe CoffeeampTea in Russia magazine

2lsquo2013

Editorial Address

Russia 123060 MoscowBerzarina str 36 building 2 of 214

telfax +7 495 935-87-07Email magazinecoffeetearu

wwwcoffeetearu

Printed in

Tipografia Mospoligraf LLC Moscow

PublisherZAO INTERNATIONAL TEA HOUSE

Chief EditorRAMAZ CHANTURIYA

Deputy Chief EditorSVETLANA BELIKOVA

Computeraided makeupVALENTINA GUSKOVA

Advertising DirectorJULIA CHANTURIYA

Advertising ManagerANNA ANTONOVA

Special Projects ManagerELENA TREGUB

Promotion Manager OLGA DOLGACHEVA

THE EDITORIAL BOARD

Chairman of the Editorial Board

RO CHANTURIYAgeneral director of Rusteacoffee Association

Members of the Editorial Board

SG BELIKOVAdeputy editorinchief of CoffeeampTea in Russia magazine

PhD of Philology Editorial Board Secretary

SV KASIANENKOchairman of the board of directors of Orimi Trade company

IV LISINENKOgeneral director of May Company

A MALCHICchief executive of Montana kofe company

RD PANZHAVAGeorgian Tea Producers Association

M PEYRISInternational Tea Committee

VA TUTELIANHead of the Institute of Nutrition of Russian Academy

of Medical Sciences Member of the Academy

GV SMIRNOVgeneral director of SDC FOODS company

AV ELSONgeneral director of KLD Coffee Importers

Photo on a cover

wwwstockvaultnet

COFFEEampTEA INTERNATIONAL 120132

A ndash advertising materials

General media partner

COFFEEampTEA INTERNATIONAL 220134

NEWS

UNITED COFFEE amp TEAINDUSTRY EVENT NEWS

As part of UCTIE the seminar Specialty coffee as a luxury product will beconducted The speaker draws a parallel between modern approaches to

specialty coffee and luxury goods Today one can observe the re-evaluationof the concept of ldquoluxury productrdquo With coffee it is the same An importantfactor is the social responsibility taken or taken into account during produc-tion and selling The seminar will provide an analysis of prices crises their rea-sons as well as the possibility of their avoidance under the condition that theinterests of all groups of the market are taken into account equally

For thousands of years coffee and tea have been cultivated around the world at times withvery little technical knowledge of either product In this session we will explore the chem-

istry of coffee and tea and venture into investigating differences between these importantbeverages mdash as well as their similarities from a technical perspective A discussion on howthese variables affect quality composition overall taste and physiology factors will be pre-sented The seminar will be coupled with a tasting session to illustrate a number of the topicspresentedSpeaker Joseph Rivera Coffee Scientist (Coffee Intelligence Inc)

unitedcoffeetearu

UNITED COFFEE amp TEA INDUSTRY EVENT(UCTIE)ndash is an international combined cof-fee and tea conference and industrial area for the whole production chain from beanand leaf to a cup It can be considered as the largest event in Russian coffee amp tea seg-ment This Event dated on 12-14 of September in Moscow (Expocenter) is a uniqueplatform for the business development At one time in one place key players and rep-resentatives of tea and coffee industry will meet FREE TICKET and general programare available on the web-site wwwunitedcoffeetearu

Specialty coffee as a luxury product ndash similarities anddistinctive features

unitedcoffeetearu

You work with tea at a store restaurantor coffee shop and you want to expand

your knowledge about tea For examplelearn how to assess the quality of tea Andhow it relates to the technology of its pro-duction Then this workshop is for youThe seminar will be interesting for thosewho work in the tea shop restaurant orcoffee shop and wish to expand their

knowledge about tea For example learnhow to evaluate the quality of tea andhow it relates to the technology of itsproduction Attending the workshop onewill refresh basic knowledge about thetea technology and see how to conduct atasting Speaker David Chanturiya a rec-ognized tea expert with a broad experi-ence Head of the Tea School

Assessment of tea qualityunitedcoffeetearu

Exploring the Chemistry of Coffee and Tea

NEWS

5

It is common knowledge that processingmethod has a great impact on coffee

taste Natural coffee is more bodied andsweet and washed coffee has a refinedtaste and higher acidity Steps within aprocessing method vary from country tocountry Participants will see how pro-cessing is done in Brazil Another factor

contributing to the taste of coffee is thevariety of Arabica It will be possible tocompare varieties from one microclimateand brew a catuai an icatu and a bour-bon The discussion ofeffects frompro-cessing methods onvarietieswill concludethe seminar which is held by Ipanema andSFT TRADING Ltd

Taste of processing An interactivecupping seminar of natural pulpednatural and washed estate Brazilarabicas

Tea and coffeeevolution ndash latestmarketing trends thataffect the consumersbrain heart and walletThe seminar speaker Alexey AndreevGeneral Director of Depot WPF willmake a review of the current Russian andEuropean consumer trends and theirimpact on tea and coffee market Usingas examples some successful case studieson branding Alexey will show how onecan use completely different consumertrends when launching new trademarksupgrading the existing and creating limit-ed production series

unitedcoffeetearu

Coffee The Chemistry of Quality

Coffee under-goes a signifi-cant transfor-mation fromlsquofarm to cuprsquobefore ulti-mately beingserved to con-sumers In this

session this complex journey willbeexploredand overall chemical changes thatoccur from cultivation to final productwillbe discussed Questions such as how doesorigin affect flavor and acidity What roledo sugars proteins and lipids play in quali-ty This is an informative seminar for greenbuyers roasters baristas ndash or anyonewishing to gain a deeper understanding ofcoffee science from bean tocupSpeakerJoseph Rivera Coffee Scientist (CoffeeIntelligence Inc)

unitedcoffeetearu

To Use or Not To UseRobusta in the BlendWe invite you to join the seminar which ishosted by a person who is sure thatRobusta has the right to be used in theblends and is ready to share this knowl-edge with participants A professionalcupping session on evaluation of severalvarious Robustas will take place givingaudience understanding of main cupcharacteristic Speaker Michael WenzelHead of Quality Department of BernhardRothfos (A Company of NeumannKaffee Gruppe)The seminar is conduct-ed with a support of KLD CoffeeImporters company

unitedcoffeetearu

The first day of United Coffeeamp Tea Industry Event on

September 12 an interactivediscussion I want to start roast-ing coffee How will be con-ductedThe purpose of such anevent mdash to gather experiencedprofessionals to share theirknowledge and skills with thebeginners of roasting art TheQ amp A format will allow any-one to consult with experts onthe problems they face in theirpractice

unitedcoffeetearu

I want to start roasting coffee How

unitedcoffeetearu

One of the fastest growing markets in thecoffee business nowadays is the single

serve packs market (capsules and pods)which hasnrsquot received a widespread in Russia

yet At the UCITE Roberto Francia the Sales Manager at IMA Industries Tea amp CoffeeDivision will make a detailed overview of the growth perspectives advantages and disad-vantages of this serve system new technologies and developments in this sphere

Coffee single serve packs marketoverview and perspectives of itsgrowth

unitedcoffeetearu

This practical seminarheld by one of the lead-

ing Italian specialists inespresso will help to under-stand better the Italianapproach towards creationof espresso blends Theseminar will help to answer

the following questionsWhatrsquos the role of Brazilianarabica in a blend How dif-ferent robustas affect thetaste of espresso How touse washed arabicas bestHow different componentscontribute to the taste and

the flavor of espresso Theseminar has been success-fully held for more than 15years all over the world Theseminar is brought by SFT TRADING together withSandalj Trading Com-pany

Taste of Espresso Cup tastingseminar

unitedcoffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

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Te

a I

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ea

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REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

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ri L

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a B

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

Bri

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

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CT

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PP

EA

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O A

YO

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ON

SU

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E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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KS

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RK

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TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 4: Coffee tea international 2 2013 en free

General media partner

COFFEEampTEA INTERNATIONAL 220134

NEWS

UNITED COFFEE amp TEAINDUSTRY EVENT NEWS

As part of UCTIE the seminar Specialty coffee as a luxury product will beconducted The speaker draws a parallel between modern approaches to

specialty coffee and luxury goods Today one can observe the re-evaluationof the concept of ldquoluxury productrdquo With coffee it is the same An importantfactor is the social responsibility taken or taken into account during produc-tion and selling The seminar will provide an analysis of prices crises their rea-sons as well as the possibility of their avoidance under the condition that theinterests of all groups of the market are taken into account equally

For thousands of years coffee and tea have been cultivated around the world at times withvery little technical knowledge of either product In this session we will explore the chem-

istry of coffee and tea and venture into investigating differences between these importantbeverages mdash as well as their similarities from a technical perspective A discussion on howthese variables affect quality composition overall taste and physiology factors will be pre-sented The seminar will be coupled with a tasting session to illustrate a number of the topicspresentedSpeaker Joseph Rivera Coffee Scientist (Coffee Intelligence Inc)

unitedcoffeetearu

UNITED COFFEE amp TEA INDUSTRY EVENT(UCTIE)ndash is an international combined cof-fee and tea conference and industrial area for the whole production chain from beanand leaf to a cup It can be considered as the largest event in Russian coffee amp tea seg-ment This Event dated on 12-14 of September in Moscow (Expocenter) is a uniqueplatform for the business development At one time in one place key players and rep-resentatives of tea and coffee industry will meet FREE TICKET and general programare available on the web-site wwwunitedcoffeetearu

Specialty coffee as a luxury product ndash similarities anddistinctive features

unitedcoffeetearu

You work with tea at a store restaurantor coffee shop and you want to expand

your knowledge about tea For examplelearn how to assess the quality of tea Andhow it relates to the technology of its pro-duction Then this workshop is for youThe seminar will be interesting for thosewho work in the tea shop restaurant orcoffee shop and wish to expand their

knowledge about tea For example learnhow to evaluate the quality of tea andhow it relates to the technology of itsproduction Attending the workshop onewill refresh basic knowledge about thetea technology and see how to conduct atasting Speaker David Chanturiya a rec-ognized tea expert with a broad experi-ence Head of the Tea School

Assessment of tea qualityunitedcoffeetearu

Exploring the Chemistry of Coffee and Tea

NEWS

5

It is common knowledge that processingmethod has a great impact on coffee

taste Natural coffee is more bodied andsweet and washed coffee has a refinedtaste and higher acidity Steps within aprocessing method vary from country tocountry Participants will see how pro-cessing is done in Brazil Another factor

contributing to the taste of coffee is thevariety of Arabica It will be possible tocompare varieties from one microclimateand brew a catuai an icatu and a bour-bon The discussion ofeffects frompro-cessing methods onvarietieswill concludethe seminar which is held by Ipanema andSFT TRADING Ltd

Taste of processing An interactivecupping seminar of natural pulpednatural and washed estate Brazilarabicas

Tea and coffeeevolution ndash latestmarketing trends thataffect the consumersbrain heart and walletThe seminar speaker Alexey AndreevGeneral Director of Depot WPF willmake a review of the current Russian andEuropean consumer trends and theirimpact on tea and coffee market Usingas examples some successful case studieson branding Alexey will show how onecan use completely different consumertrends when launching new trademarksupgrading the existing and creating limit-ed production series

unitedcoffeetearu

Coffee The Chemistry of Quality

Coffee under-goes a signifi-cant transfor-mation fromlsquofarm to cuprsquobefore ulti-mately beingserved to con-sumers In this

session this complex journey willbeexploredand overall chemical changes thatoccur from cultivation to final productwillbe discussed Questions such as how doesorigin affect flavor and acidity What roledo sugars proteins and lipids play in quali-ty This is an informative seminar for greenbuyers roasters baristas ndash or anyonewishing to gain a deeper understanding ofcoffee science from bean tocupSpeakerJoseph Rivera Coffee Scientist (CoffeeIntelligence Inc)

unitedcoffeetearu

To Use or Not To UseRobusta in the BlendWe invite you to join the seminar which ishosted by a person who is sure thatRobusta has the right to be used in theblends and is ready to share this knowl-edge with participants A professionalcupping session on evaluation of severalvarious Robustas will take place givingaudience understanding of main cupcharacteristic Speaker Michael WenzelHead of Quality Department of BernhardRothfos (A Company of NeumannKaffee Gruppe)The seminar is conduct-ed with a support of KLD CoffeeImporters company

unitedcoffeetearu

The first day of United Coffeeamp Tea Industry Event on

September 12 an interactivediscussion I want to start roast-ing coffee How will be con-ductedThe purpose of such anevent mdash to gather experiencedprofessionals to share theirknowledge and skills with thebeginners of roasting art TheQ amp A format will allow any-one to consult with experts onthe problems they face in theirpractice

unitedcoffeetearu

I want to start roasting coffee How

unitedcoffeetearu

One of the fastest growing markets in thecoffee business nowadays is the single

serve packs market (capsules and pods)which hasnrsquot received a widespread in Russia

yet At the UCITE Roberto Francia the Sales Manager at IMA Industries Tea amp CoffeeDivision will make a detailed overview of the growth perspectives advantages and disad-vantages of this serve system new technologies and developments in this sphere

Coffee single serve packs marketoverview and perspectives of itsgrowth

unitedcoffeetearu

This practical seminarheld by one of the lead-

ing Italian specialists inespresso will help to under-stand better the Italianapproach towards creationof espresso blends Theseminar will help to answer

the following questionsWhatrsquos the role of Brazilianarabica in a blend How dif-ferent robustas affect thetaste of espresso How touse washed arabicas bestHow different componentscontribute to the taste and

the flavor of espresso Theseminar has been success-fully held for more than 15years all over the world Theseminar is brought by SFT TRADING together withSandalj Trading Com-pany

Taste of Espresso Cup tastingseminar

unitedcoffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

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rna

tio

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l sa

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s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st

Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

AN

UFA

CT

UR

ER

S A

PP

EA

L T

O A

YO

UN

G C

ON

SU

ME

R B

AS

E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

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COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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Mo

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An

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 5: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 220134

NEWS

UNITED COFFEE amp TEAINDUSTRY EVENT NEWS

As part of UCTIE the seminar Specialty coffee as a luxury product will beconducted The speaker draws a parallel between modern approaches to

specialty coffee and luxury goods Today one can observe the re-evaluationof the concept of ldquoluxury productrdquo With coffee it is the same An importantfactor is the social responsibility taken or taken into account during produc-tion and selling The seminar will provide an analysis of prices crises their rea-sons as well as the possibility of their avoidance under the condition that theinterests of all groups of the market are taken into account equally

For thousands of years coffee and tea have been cultivated around the world at times withvery little technical knowledge of either product In this session we will explore the chem-

istry of coffee and tea and venture into investigating differences between these importantbeverages mdash as well as their similarities from a technical perspective A discussion on howthese variables affect quality composition overall taste and physiology factors will be pre-sented The seminar will be coupled with a tasting session to illustrate a number of the topicspresentedSpeaker Joseph Rivera Coffee Scientist (Coffee Intelligence Inc)

unitedcoffeetearu

UNITED COFFEE amp TEA INDUSTRY EVENT(UCTIE)ndash is an international combined cof-fee and tea conference and industrial area for the whole production chain from beanand leaf to a cup It can be considered as the largest event in Russian coffee amp tea seg-ment This Event dated on 12-14 of September in Moscow (Expocenter) is a uniqueplatform for the business development At one time in one place key players and rep-resentatives of tea and coffee industry will meet FREE TICKET and general programare available on the web-site wwwunitedcoffeetearu

Specialty coffee as a luxury product ndash similarities anddistinctive features

unitedcoffeetearu

You work with tea at a store restaurantor coffee shop and you want to expand

your knowledge about tea For examplelearn how to assess the quality of tea Andhow it relates to the technology of its pro-duction Then this workshop is for youThe seminar will be interesting for thosewho work in the tea shop restaurant orcoffee shop and wish to expand their

knowledge about tea For example learnhow to evaluate the quality of tea andhow it relates to the technology of itsproduction Attending the workshop onewill refresh basic knowledge about thetea technology and see how to conduct atasting Speaker David Chanturiya a rec-ognized tea expert with a broad experi-ence Head of the Tea School

Assessment of tea qualityunitedcoffeetearu

Exploring the Chemistry of Coffee and Tea

NEWS

5

It is common knowledge that processingmethod has a great impact on coffee

taste Natural coffee is more bodied andsweet and washed coffee has a refinedtaste and higher acidity Steps within aprocessing method vary from country tocountry Participants will see how pro-cessing is done in Brazil Another factor

contributing to the taste of coffee is thevariety of Arabica It will be possible tocompare varieties from one microclimateand brew a catuai an icatu and a bour-bon The discussion ofeffects frompro-cessing methods onvarietieswill concludethe seminar which is held by Ipanema andSFT TRADING Ltd

Taste of processing An interactivecupping seminar of natural pulpednatural and washed estate Brazilarabicas

Tea and coffeeevolution ndash latestmarketing trends thataffect the consumersbrain heart and walletThe seminar speaker Alexey AndreevGeneral Director of Depot WPF willmake a review of the current Russian andEuropean consumer trends and theirimpact on tea and coffee market Usingas examples some successful case studieson branding Alexey will show how onecan use completely different consumertrends when launching new trademarksupgrading the existing and creating limit-ed production series

unitedcoffeetearu

Coffee The Chemistry of Quality

Coffee under-goes a signifi-cant transfor-mation fromlsquofarm to cuprsquobefore ulti-mately beingserved to con-sumers In this

session this complex journey willbeexploredand overall chemical changes thatoccur from cultivation to final productwillbe discussed Questions such as how doesorigin affect flavor and acidity What roledo sugars proteins and lipids play in quali-ty This is an informative seminar for greenbuyers roasters baristas ndash or anyonewishing to gain a deeper understanding ofcoffee science from bean tocupSpeakerJoseph Rivera Coffee Scientist (CoffeeIntelligence Inc)

unitedcoffeetearu

To Use or Not To UseRobusta in the BlendWe invite you to join the seminar which ishosted by a person who is sure thatRobusta has the right to be used in theblends and is ready to share this knowl-edge with participants A professionalcupping session on evaluation of severalvarious Robustas will take place givingaudience understanding of main cupcharacteristic Speaker Michael WenzelHead of Quality Department of BernhardRothfos (A Company of NeumannKaffee Gruppe)The seminar is conduct-ed with a support of KLD CoffeeImporters company

unitedcoffeetearu

The first day of United Coffeeamp Tea Industry Event on

September 12 an interactivediscussion I want to start roast-ing coffee How will be con-ductedThe purpose of such anevent mdash to gather experiencedprofessionals to share theirknowledge and skills with thebeginners of roasting art TheQ amp A format will allow any-one to consult with experts onthe problems they face in theirpractice

unitedcoffeetearu

I want to start roasting coffee How

unitedcoffeetearu

One of the fastest growing markets in thecoffee business nowadays is the single

serve packs market (capsules and pods)which hasnrsquot received a widespread in Russia

yet At the UCITE Roberto Francia the Sales Manager at IMA Industries Tea amp CoffeeDivision will make a detailed overview of the growth perspectives advantages and disad-vantages of this serve system new technologies and developments in this sphere

Coffee single serve packs marketoverview and perspectives of itsgrowth

unitedcoffeetearu

This practical seminarheld by one of the lead-

ing Italian specialists inespresso will help to under-stand better the Italianapproach towards creationof espresso blends Theseminar will help to answer

the following questionsWhatrsquos the role of Brazilianarabica in a blend How dif-ferent robustas affect thetaste of espresso How touse washed arabicas bestHow different componentscontribute to the taste and

the flavor of espresso Theseminar has been success-fully held for more than 15years all over the world Theseminar is brought by SFT TRADING together withSandalj Trading Com-pany

Taste of Espresso Cup tastingseminar

unitedcoffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

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tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

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COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 6: Coffee tea international 2 2013 en free

NEWS

5

It is common knowledge that processingmethod has a great impact on coffee

taste Natural coffee is more bodied andsweet and washed coffee has a refinedtaste and higher acidity Steps within aprocessing method vary from country tocountry Participants will see how pro-cessing is done in Brazil Another factor

contributing to the taste of coffee is thevariety of Arabica It will be possible tocompare varieties from one microclimateand brew a catuai an icatu and a bour-bon The discussion ofeffects frompro-cessing methods onvarietieswill concludethe seminar which is held by Ipanema andSFT TRADING Ltd

Taste of processing An interactivecupping seminar of natural pulpednatural and washed estate Brazilarabicas

Tea and coffeeevolution ndash latestmarketing trends thataffect the consumersbrain heart and walletThe seminar speaker Alexey AndreevGeneral Director of Depot WPF willmake a review of the current Russian andEuropean consumer trends and theirimpact on tea and coffee market Usingas examples some successful case studieson branding Alexey will show how onecan use completely different consumertrends when launching new trademarksupgrading the existing and creating limit-ed production series

unitedcoffeetearu

Coffee The Chemistry of Quality

Coffee under-goes a signifi-cant transfor-mation fromlsquofarm to cuprsquobefore ulti-mately beingserved to con-sumers In this

session this complex journey willbeexploredand overall chemical changes thatoccur from cultivation to final productwillbe discussed Questions such as how doesorigin affect flavor and acidity What roledo sugars proteins and lipids play in quali-ty This is an informative seminar for greenbuyers roasters baristas ndash or anyonewishing to gain a deeper understanding ofcoffee science from bean tocupSpeakerJoseph Rivera Coffee Scientist (CoffeeIntelligence Inc)

unitedcoffeetearu

To Use or Not To UseRobusta in the BlendWe invite you to join the seminar which ishosted by a person who is sure thatRobusta has the right to be used in theblends and is ready to share this knowl-edge with participants A professionalcupping session on evaluation of severalvarious Robustas will take place givingaudience understanding of main cupcharacteristic Speaker Michael WenzelHead of Quality Department of BernhardRothfos (A Company of NeumannKaffee Gruppe)The seminar is conduct-ed with a support of KLD CoffeeImporters company

unitedcoffeetearu

The first day of United Coffeeamp Tea Industry Event on

September 12 an interactivediscussion I want to start roast-ing coffee How will be con-ductedThe purpose of such anevent mdash to gather experiencedprofessionals to share theirknowledge and skills with thebeginners of roasting art TheQ amp A format will allow any-one to consult with experts onthe problems they face in theirpractice

unitedcoffeetearu

I want to start roasting coffee How

unitedcoffeetearu

One of the fastest growing markets in thecoffee business nowadays is the single

serve packs market (capsules and pods)which hasnrsquot received a widespread in Russia

yet At the UCITE Roberto Francia the Sales Manager at IMA Industries Tea amp CoffeeDivision will make a detailed overview of the growth perspectives advantages and disad-vantages of this serve system new technologies and developments in this sphere

Coffee single serve packs marketoverview and perspectives of itsgrowth

unitedcoffeetearu

This practical seminarheld by one of the lead-

ing Italian specialists inespresso will help to under-stand better the Italianapproach towards creationof espresso blends Theseminar will help to answer

the following questionsWhatrsquos the role of Brazilianarabica in a blend How dif-ferent robustas affect thetaste of espresso How touse washed arabicas bestHow different componentscontribute to the taste and

the flavor of espresso Theseminar has been success-fully held for more than 15years all over the world Theseminar is brought by SFT TRADING together withSandalj Trading Com-pany

Taste of Espresso Cup tastingseminar

unitedcoffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

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ed

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tist

ica

l d

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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INK

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AN

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CT

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ER

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PP

EA

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O A

YO

UN

G C

ON

SU

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E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

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efe

rH

ea

d o

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s amp

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od

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ice

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TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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rga

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aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 7: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

NEWS

6

TEA STANDARDS should they be harmonized or not

Pressing issue

Classification of tea is a very complicated and often confusing matter It has happened so that EuropeUnited Sates and tea producing countires from Asia and Afrika use the same approach to classificationof tea which was formed historically While Chinese have their own approach to classification of tea anddont want to change it And CIS countires are wondering what to do with the approach that they haveinherited from Soviet times Globalisation of the tea market brings forward the necessity of speakingwith each other using the same tea words that mean the same and not wondering when hearing blacktea is it red in Chinese classification or black in European one or smth else Is it time already for cre-ating universal international classification of tea that could be used by all countires If yo think YESthen what could be done in this direction How such work could be coordinated and by whom

Aliona Velichko

JOSEPH PSIMRANYPresident Tea Association ofthe USA Inc

ndash Personally I am comfort-able with the various systemsused by individual tea produc-ing countries despite the lackof uniformity and questionthe likelihood that any organi-zation despite its credibilitycould hope to convince all teaproducing countries that theyshould adopt a uniform sys-tem The systems that are inplace have been developedover centuries and reflect theuniqueness of the teas beinggrown harvested processedand sold in countries aroundthe worldWhile I understand the bene-fits of a single system in termsof clarity of the sale particu-larly if ever an on-line globaltea auction is adopted mosttea professionals are veryfamiliar with the descriptivelanguage being used by eachof the major tea producers soit does not currently cause anymajor problems Also even ifthere was a single system ofclassification that would noteliminate the need for anorganoleptic evaluation of theteas before a sale could befinalized particularly if thebuyer was seeking to pur-chase a specialty tea asopposed to a mediocre teaused primarily in a blend

JEM McDOWALL Vice President(Trading) UniversalCommodities (Tea)Trading Inc

ndash The classification of tea isvery fragmented (evenamong AsiaEuropeUSAfrica) due to the individualnature of farmers andnational industries plus manyvariations in processing tech-niquesTo be honest I do not thinkthere is much chance of thischanging for the existing rea-sons above but in additionbecause tea producers arealso starting to produce arti-san teas with their ownldquobrandingrdquo and USP If any-thing there is likely to besome scope for very largeindustrial producers to ldquohar-moniserdquo but as the systemldquoworksrdquo for those involved inthe industry then thereappears little interest

MANUJA PEIRIS Chief ExecutiveInternational TeaCommittee

ndash There is currently universalclassification and I believe itworks very wellI do not think it is complicat-ing or confusing at allTea has always remainedglobal and those who workwith China will be fully awareof the description of gradesthere

The primary responsibility for clearing up confusion about tea is equallyshared by retailers wholesalers the Trade Associations and the TeaBoards in the consuming and producing countries This will be a longterm but eventually consumers will become less confused about the var-ious tea offerings available to themFor several years the Tea Association of the USA has encouraged the var-ious Tea Boards to play a bigger role in this challenge They should havea vested interest in educating consumers about tea in general and specif-ically the teas that are available from their country as it could very wellresult in increasing their share of market Many of the specialty tea mer-chants are doing an excellent job of consumer education via their beau-tiful websites because they are convinced greater education in crucial toincreasing their revenueFinally it is my personal belief that a little bit of mystery surrounding teakeeps consumer interest in tea high There is a lifetime of learning abouttea available to true tea aficionados which will keep them involved in thecategory for decades

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

AN

UFA

CT

UR

ER

S A

PP

EA

L T

O A

YO

UN

G C

ON

SU

ME

R B

AS

E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

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ge

s amp

Fo

od

serv

ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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G A

GL

OB

AL

LE

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IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 8: Coffee tea international 2 2013 en free

7

CALENDAR OF EVENTSJune 2013 ndash February 2014

All materials are provided by support ofWWWCOFFEETEARU

26ndash28 June 2013

Country FranceCity NiceCompany Page wwwscaecom

SCAE WORLD OF COFFEE

19ndash21 September2013

Country GermanyCity KoelnCompany Page wwweuvend-coffeenacom

EUrsquoVEND amp COFFEENA

9ndash11 August 2013

Country ChinaCity BeijingCompany Pagewwwfacebookcomchinacafeshow

CAFE SHOW CHINA

28ndash31 January 2014

Country RussiaCity MoscowCompany Page wwwupakowkaru

UPALKOVKAUPAKITALIA

10ndash14 February 2014

Country RussiaCity MoscowCompany Page wwwprod-exporu

PRODEXPO

11ndash13 February 2014

Country PolandCity WarsawaCompany Page wwwtcworldcupcom

TEA amp COFFEE WORLD CUP

16ndash19 September2013

18ndash22 October2013

Country ItalyГород MilanCompany Page wwwhostfieramilanoit

HOST

21ndash24 November 2013

Country South KoreaCity SeoulCompany Page wwwcafeshowcokr

SEOULINTERNATIONAL CAFESHOW

12ndash14 September 2013

Country RussiaCity MoscowCompany Page wwwunitedcoffeetearu

UNITED COFFEE amp TEAINDUSTRY EVENT

WORLD FOOD MOSCOW

Country RussiaCity MoscowCompany Page wwwworld-foodru

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

AN

UFA

CT

UR

ER

S A

PP

EA

L T

O A

YO

UN

G C

ON

SU

ME

R B

AS

E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

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s amp

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od

serv

ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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MIN

G A

GL

OB

AL

LE

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EG

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IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 9: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

NEWS

8

World of coffee ends on a high

Europersquos largest coffee industry event SCAE World of CoffeeNice 2013 ended on a high note with the announcement of

the winners of the four world coffee competitions which tookplace at The Acropolis - Palais des Expositions The three-dayevent was packed with workshops competitions the WorldRoasters Summit forums and the trade fair also produced a num-ber of other winners throughout the show including the NewProduct of the Show Awards the SCAE Awards for Excellence andthe SCAE Coffee Photography CompetitionWorld Coffee Events (WCE) a sister company to SCAEannounced the 2013 World Latte Art Champion 2013 WorldCoffee in Good Spirits Champion 2013 World Cup TastersChampion and the first-ever World Coffee Roasting ChampionA total of 28 National Latte Art Champions 21 National Coffee inGood Spirits Champions and 35 National Cup Tasting Championscompeted in these events With the World Coffee RoastingChampionship taking place for the first time at this yearrsquos Worldof Coffee there were 11 National Roasting Champions takingpartThe 2013 World Latte Champion is Hisako Yoshikawa from OgawaCoffee Co LTD JAPAN and the 2013 World Coffee in Good

Spirits Champion is Victor Delpierre from CafJs Richard FRANCETogether with the 2013 World Cup Taster Champion Lajos Horvathfrom HUNGARY and the 2013 World Coffee Roasting ChampionNaoki Goto from JAPANThe annual SCAE Awards for Excellence were also presented at theshow Sponsored by BUNN the awards were presented by SCAEBoard Member Lina Chiodo from BUNN The five awards were as followsYoung Entrepreneur the winner Aysin AydogduChanging Lives at Origin the winner Dethlev CordtsThe Innovation Award the winner Jacu Coffee RoasteryThe Passionate Educator the winner Daniela NowitzkiLifetime Achievement this year the judges decided to award twoLifetime Achievement Awards to Colin Smith (Smithrsquos CoffeeUK) and Trygve Klingenberg (Solberg and Hansen Norway)SCAErsquos Annual Coffee Photography Competition received themost entries this year and made for a very intersting exhibition atthe show The exhibition was attended by a large number of visitors andexhibitors from Russia including Coffee amp Tea International andCoffee amp Tea in Russia magazines

Press-release of SCAE

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

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COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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ET

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EN

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COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 10: Coffee tea international 2 2013 en free

modern local science complex that used to be dedicatedentirely to the chemical analysis of tea but now has one of itsfloors ldquooccupiedrdquo by coffee The trend is likely to continuejust think about the fact that the modest airport in Pursquoer hasjust four shops onlyone of which is selling tea and the otherthreenot only sell but also serve excellent coffee By the waycoffee consumption in China is growing explosively andpractically all coffee from Pursquoeris consumed domesticallyThe host of the event the Tea Committee of the ChinasChamber of Commerce for ImportampExport of AgriculturalProducts scheduled the events to allow the guests not onlyto learn about the tea industry of the region but also to expe-rience the culture of the ethnic minorities that live in thiswonderful land Many of us got to try making tea bricks byhand (or rather by foot as itrsquos been done for thousands ofyears) as well as to jump over bamboo sticks as part of a tra-ditional dance performed by young women of the Va peopleTrips such as this one are especially fruitful in my opinionand not only because you get to see plantations and process-ing plants More importantly you get to immerse yourself inthe world of tea and people are a crucial part of that worldOnly during such trips can you meet colleagues from placesnot normally associated with tea such as Alaska Australiaand Venezuela and get to understand their point of view onwhat is happening in various tea markets Besides youacquire a deeper understanding of the country that suppliesyour teaI am confident that such trips are useful from themarketing point of view as well an exchange of ideasbetween different markets allows us to find new opportuni-ties to promote our products and sometimes even makes usaware of new trendsWith the trip behind us itrsquos time to reflect on what wersquovelearnedhellip

Ihave been to China many times before but a recentvisit to Pursquoer (Yunnan province) was an unexpected

discovery This town located in the SouthwesternChina near the border with Myanmar and Laos washosting the annual International Tea Conventionscheduled to coincide with the magnificent Pursquoer TeaFestival As is the case with everything in China theorganizers spared no expense The Festival openingceremony alone resembled the opening of theOlympic games with 500 participants and 5000 spec-tators Artists representing 15 ethnic groups that live inthe province performed on a gigantic open-air stagewearing folk costumes singing dancing celebratingteahellip it was truly unforgettable This was the perfectplace to see the true diversity and enormity of ChinaSome ethnic groups such as Va do not even fit ourconcept of a typical Chinese personThe delegation representing the RusteacoffeeAssociation was small but very professional this timeit consisted of Nicolai Kabanov (Tea Company No 1Nadin) Evgenia Tuchina (Ahmad Tea) and yours trulyWe fit right in with an international contingent of teaindustry professionals from Great Britain USACanada India Italy Morocco Dubai BelgiumFrance Turkey and other countries The Yunnnanprovince is one of the most well-known tea-growingprovinces in China and this region predictably genera-tes a lot of interest On the one hand it produces oneof the most expensive and sought after teas in theworld the tea that shares its name with the provincialcapital ndash the Pursquoer tea On the other hand this tradi-tionally tea-growing region is gradually becomingknown for its coffee production Yes you heard itright they grow coffee around Pursquoer now andaccording to industry experts of a quite respectablequality You could have guessed it during a visit to the

Once more about ChinaRamaz Chanturiya

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

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tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

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s amp

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od

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ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

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Be

ve

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aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 11: Coffee tea international 2 2013 en free

Indian tea promotional effort inRussia is at full speed coffeetearu

On December 3 2012 the Tea Board of India launched the Program for promotion of theIndian 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 imageof 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 lsquoThe Grand Indian Tea Partyrsquo heldin the popular historical park lsquoSokolnikirsquo in Moscow on February 23 and 24 2013 In the centerof the park under the bright warm sun a huge elephant greeted the guests and invited themto taste delicious Indian tea from plantations in Assam Nilgiri and Darjeeling Moscovites andvisitors brought their families to the park during the weekend to relax skate and just strollaround Everyone was pleasantly surprised to find a new attraction an endless supply of a fla-vorful hot beverage from such brands as lsquoIndursquo lsquoLismarsquo and lsquoNargisrsquo Right in the middle of thepark the event organizers built a ldquominiature Indiardquo with sunny plantations festive garlandscomplimentary magnets bearing the logos of the famous Indian tea-growing regions Theguests were taking lots of pictures people walked over from the skating rink with their skatesstill on to have a glass of the tasty beverage ndash a drop of the hot Indian sun The event broughtgreat joy to everyone children young people and older visitors who recalled the wonderfultaste of Indian tea from long ago and rejoiced at finding that it is coming back to them

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

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rna

tio

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s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st

Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

AN

UFA

CT

UR

ER

S A

PP

EA

L T

O A

YO

UN

G C

ON

SU

ME

R B

AS

E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

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COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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Mo

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An

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

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a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 12: Coffee tea international 2 2013 en free

Another part of the project was the creation of a Facebook page for Indian tea the goal isto disseminate information about Indian tea and to attract new fans and followers (the pagealready has more than 8000 friends) The owners of the page immediately started a competi-tion called lsquoCloser to Indiarsquo that will crown its winner as a lsquoTea Expertrsquo To enter the competi-tion citizens of Russia and the Ukraine submitted original works essays about their love oftea stories and memories of trips to India colorful photographs and fun videoclips A profes-sional jury consisting of representatives of such companies as Ahmad Tea Nargis Tea KayanTea the Alyona Velichko Tea Studio the lsquoTea and Coffee in Russiarsquo magazine thewwwteatipsru web portal and the Just Natural Art Studio has already selected the winnerwho will go on a fantastic voyage to visit Indiarsquos tea-growing regions during which he will postdaily updates on the Facebook page The winner will learn a lot about tea share the impres-sions of the journey and after coming back home will rightfully receive the honorary title oflsquoTea Expertrsquo

The next event of the Program is a charitable auction of first-harvest plantation teas fromDarjeeling The aim of the auction is to attract the attention of the Russian audience to high-quality Indian tea varieties and allow as many tea fans as possible to understand and appre-ciate their taste

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

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REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

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REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

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An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 13: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

NEWS

12

The best companies was named in Ukraine

orimitraderu

The Orimi Trade in Ukraine company which is the Ukranian branch ofOrimi Trade Llc has won the national award Made-in-Ukraine-2013 as

the best producer in Ukraine in the tea and coffee categoryThe National B2B award was established to mark out in public the achieve-ments of food and drink producers and to reward the best of the worthyThe initiator and organizer of the awards is the retail and wholesale portalTradeMaster For months experts of TradeMaster held a survey among retailchains in Ukraine The retailers which are based on practical experience canmost accurately identify those producers who bring the largest retail chainturnover in a particular category

Demand for orthodox tea mayboost indian tea exportsHaving witnessed an over seven percent drop in 2012Indian tea exports are expected to grow by over nine per-cent in 2013 According to Shri MGVK Bhanu Chairmanof the Tea Board of India who spoke to reporters at aseminar on Tea and Health the growth in exports will beaided by a strong demand for orthodox tea in the CIScountries and Iran India is likely to export over 220 millionkg (mkg) of tea in 2013 compared with 201 mkg in 2012Tea exports from India stood at 215 mkg in 2011Orthodox varietyExport of Indiarsquos orthodox tea to Iranwitnessed a dip in 2012 in the wake of sanctions imposedby the US and the European Union on Iran ldquoWith the sit-uation in Iran improving tea exports are likely to increaseto 20 million kg this yearrdquo Mr Bhanu statedPrices The lower demand from Iran led to some producerscutting down the production of orthodox tea which ledto firming up of prices According to Mr Bhanu in 2013the prices of orthodox tea are likely to remain firm due toa steady demand from CIS countries and Iran

Production Indiarsquos tea production is expected to be mar-ginally up at 1115 mkg in 2013 (Jan-Dec) The country pro-duced nearly 1112 mkg in 2012 ndash a more than 3 mkg dipcompared to 2011First flush The decline in production was primarily due toinconsistent weather in the Assam Valley and other tea-growing areas of North India Although the early season (firstflush) tea production was almost stagnant at last yearsrsquo leveldue to poor rains in North India there has been someimprovement in rains after March 15 ldquoWe expect to exceedthe production level achieved in 2011rdquo Mr Bhanu said

thehindubusinesslinecom

Britons are supposed to be known for their love of a good cup of teaBut a new study has revealed that coffee is threatening to overtake teaas the UKrsquos national drink ndash with the average person forking out morethan Ј1000 on the caffeinated beverage every yearMore than eighty percent of the population drink coffee every dayconsuming an average of 232 cups a day Two per cent of the peopleadmit to downing six or more cups in 24 hoursldquoTea has traditionally been the UKrsquos favorite hot drink but our findingsshow that we are also very much a nation of coffee drinkers nowa-daysrdquo said David Black of Consumer Intelligence which carried out thestudy ldquoBrits have really taken to the coffee shop culture in recent yearsand many of us find it difficult to get through a day without at least onetrip to our local coffee shoprdquoCase study Rachel Hamada a freelance editor from Edinburgh drinksaround three cups of coffee on an average day ldquoI try to make most ofmy coffee at home as I work from home I tend to buy high-quality cof-fee but aim for it not to be too expensive Asda has a really amazingEthiopian coffee in their finest range but itrsquos often on special offer soit costs the same as the more basic versions When I do go out I usual-ly get coffee from independent coffee shops such as WellingtonCoffee on George Street in Edinburgh or Artisan Roast on BroughtonStreet On the odd occasion that I do go to Starbucks I get a flat whiteas I prefer a small coffee with flavor to big Starbucks buckets of sweetmilk which I think are gradually going out of favor as people have final-ly discovered how high in calories they arerdquo

scotsmancom

No time for tea as uk turnsinto a nation of coffee-lovers

A

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

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pro

vid

ed

sta

tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

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REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

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KS

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EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 14: Coffee tea international 2 2013 en free

NEWS

13

Tea amp Coffee World Cup Singapore Review

Catering to the growing Asian market exhibitors and attendeesfrom across the globe converged in Singapore for the industryrsquos

original buying and selling coffee and tea trade showThis yearrsquos Tea amp Coffee World Cup Asia returned to Singapore abustling cosmopolis known for its beauty cleanliness business-friendly attitude and divergent ethnicities With its array of interna-tional cuisines Singapore is also a foodies dream The 17th TC WorldCup took place February 28 through March 2nd at Singapore ExpoCompanies included a mix of first-time and seasoned exhibitorsincluding Ahlstrom Balung Plantation Bosch Brambati CableveyGlatfelter Gutmann Aluminum Draht GmbH Hlssen amp LyonInterfil Srl Marden Edwards Neuhaus Neotec Premierrsquos TeaPrintcare Rychiger SSP Limited Teamac Yamanaka and Zwirnereiad WutachFor the first time TC World Cup featured roasting classes with roasters provided by Buhler AG Probat Werke and ToperInternational Green coffee for the roasting classes was supplied byOlam International Mercon Coffee Group and Coffindo LtdGrinders were sponsored by Bunn Corp and BodumTC World Cup offered a number of educational classes as well astastings over the course of the three-day exhibition and symposiumClasses varied between beginnerintermediate and advanced levels

Carl Leonard vp green coffee and tea Community Coffee Cotaught the specialty coffee cupping and grading classes Some ofthe coffees cupped included Brazil Santos Bourbon and Papua NewGuinea The tea blendingbrewing classes were led by Stepas Parulisbusiness development manager Europe Adagio Teas Jay Shreehosted Darjeeling and Assam tea tastings while WildampBare tea tast-ings focused on artisan teas from ChinaTalk in the aisles focused on the coffee leaf rust epidemic that issweeping through Central America the Colombian coffee workersstrike new tea packaging methods and new tea origins such asMalaysia and Sri Lanka that are working hard to raise their world-wide profilesAt the heart of it TC World Cup is a machinery show Exhibitors areencouraged to bring their equipment if possible to the show inorder to show the machines in action to attendees No matter theindustry nothing helps sell a product better than demonstrations infront of would-be buyers (just ask retailers) In fact during theshow Buhler sold its newest roasterTC World Cup Europe takes place February 11-13 2014 in WarsawPoland and exhibitors are already signing up Stay tuned for detailson the educational classes discussions tastings and exhibitor list-ings We hope to see you there

coffeetearu

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

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tio

na

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tha

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s to

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ea

Bo

ard

of

Ind

ia f

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the

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REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

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s to

th

e S

ri L

an

ka

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a B

oa

rd f

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the

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

Bri

an

Mo

rga

n

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An

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

AN

UFA

CT

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S A

PP

EA

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O A

YO

UN

G C

ON

SU

ME

R B

AS

E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 15: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

NEWS

14

The first-of-its-kind Event in Southeast AsiaCafJ Asia 2013 showcasing cafeteria equip-ment and supplies in alliance with another

premiere exhibition International Coffee amp TeaIndustry Expo 2013 which focused on the upstreamsector of the coffee and tea industry was held inMarina Bay Sands Singapore from 14-16 March2013The concurrent exhibitions marked a gathering ofthe tea and coffee industries in South East Asia with95 exhibitors from 22 countriesThe 3-day event teemed with networking events andthe first-ever Asia Coffee Summit for the trade andfun-filled activities for the public of everything cof-fee and tea The Asia Coffee Summit examinedissues and concerns in sustainable practices of thecoffee industry and discussed the implementation ofsustainable practices which have become increasing-ly important in the global coffee industry The crPmede la crPme of baristas also battled it out at theSingapore National Barista Championship 2013 theSingapore Latte Art Championship and The CupTasters ChampionshipThere were also workshops and labs conducted bytop manufacturers including PROBAT Diedrich

Singapore Alliance hosted coffee and tea industry

Julia Chanturiya

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

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COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

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st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 16: Coffee tea international 2 2013 en free

NEWS

15

Manufacturing and Neuhaus Neotec During the Event there were organized various Tasting Sessions for trade and media vis-itorsThe Brew Bar that offered different tasting and visual experiences Singapore Coffee Association (SCA) and its membersnoted 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 SCArsquos members brewed their amazing cof-fee offerings at Brew Bar They also showcased their skills in hand brew and feature various coffee origins The espresso barwas presented by the Singapore Coffee Association and its members also presented different espresso coffees at SCAs booth The Event showed that there are indeed huge business opportunities in the market Asia has been the springboard for indus-try players to tap into this booming tea and cafJ industries CafJ Asia 2013 and ICT Industry Expo 2013 will be the strategicplatforms where alliances will be formed and businesses transacted

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

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na

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tha

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s to

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ea

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ard

of

Ind

ia f

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the

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REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

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Te

a I

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s to

th

e S

ri L

an

ka

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a B

oa

rd f

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

Bri

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

DR

INK

SM

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UFA

CT

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PP

EA

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O A

YO

UN

G C

ON

SU

ME

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E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

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DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 17: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e T

ea

Bo

ard

of

Ind

ia f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

REVIEWampSTATISTICS

16

TEA AREA AS ON 31ndash12ndash2011 amp PRODUCTION IN 2011ndash12

Assam Valley 28583 53126Cachar 3638 5000Total Assam 32221 58126Darjeeling 1782 902Dooars 7292 14759Terai 2436 11282Total West Bengal 11510 26943Other North Indian States (Includes Tripura Uttarakhand Bihar Manipur Sikkim Arunachal Pradesh Himachal Pradesh Nagaland Meghalaya Mizoram and Orissa)

2230 1490

TOTAL NORTH INDIA 45961 86559Tamil Nadu 8046 16279Kerala 3714 6162Karnataka 214 546TOTAL SOUTH INDIA 11974 22987ALL TOTAL 57935 109546

STATE DISTRICTS Area under tea ( in Th Hectares)

Production(Million Kgs)

India tea statistics

Financial YearIMPORT OF TEA INTO INDIA

2007 ndash 2008 1675 10807 6451 2687 1602008 ndash 2009 2203 18145 8236 3947 1792009 mdash 2010 2584 21444 8297 4501 1742010 mdash 2011 1926 18682 9702 4102 2132011 mdash 2012 1921 18604 9685 3885 2022012 ndash 2013 (Apr-Dec)(P) 1788 22921 12822 4205 2352011 ndash 2012 (Apr-Dec) 1694 16604 9802 3527 208

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

MAJOR COUNTRY WISE EXPORTS OF TEA FROM INDIA DURING 2012ndash13 (APRILndashDECEMBER)

Russian Federation 3014 51925 9526 17227 316 3360 42925 9117 12775 271Kazakhstan 887 17130 3143 19314 354 884 15328 3258 17343 368Ukraine 124 1877 344 15091 277 143 1712 364 11963 254Other CIS 060 993 186 16550 310 195 3792 806 19446 413Total CIS 4085 71925 13199 17607 323 4582 63757 13545 13915 296United Kingdom 1579 29119 5342 18439 338 1812 28753 6107 15870 337Netherlands 198 5551 1018 28001 514 311 7090 1506 22778 484Germany 625 14576 2674 23309 428 568 14547 3090 25614 244Ireland 190 6149 1128 32335 593 145 4128 877 28447 604Poland 272 4055 744 14933 274 323 4132 878 12786 272USA 825 23083 4235 27967 513 1041 26032 5529 24998 531Canada 068 1902 349 27848 511 136 2627 558 19266 409UAE 1483 26051 4779 17571 322 1373 24227 5146 17639 375Iran 1179 28494 5228 24166 443 936 18800 3993 20082 427Iraq 005 057 010 12487 229 - - - - -Saudi Arabia 167 4398 807 26397 484 285 4369 928 15321 325ARE 736 8190 1503 11129 204 485 4326 919 8917 189Turkey 026 518 095 19917 365 007 107 023 14782 314Afghanistan 040 436 080 10957 201 043 473 100 11031 234Singapore 027 624 115 23149 425 027 588 125 21397 454Sri Lanka 119 2081 382 17542 322 327 4414 938 13517 287Kenya 220 2488 457 11287 207 223 1565 332 7006 149Japan 268 10864 1993 40541 744 252 8788 1867 34923 742Pakistan 1795 16902 3101 9415 173 2060 13450 2857 6529 139Australia 277 9930 1822 35818 657 264 7564 1607 28698 610Other Countries 1454 38876 7128 26737 490 1765 22020 4673 12476 265Total 15638 306269 56189 19585 359 16965 261757 55598 15429 328

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

Qty(MKgs)

Value(Rs Crs)

Value(M US $)

UP(RsKg)

UP($Kg)

NAME OF THECOUNTRIES

APRIL TO DECEMBER 2012(P) APRIL TO DECEMBER 2011

Source Tea Board of India

Unit Price( Kg)

Calendar Year

2007 1599 10460 6543 2527 1582008 2028 16197 7990 3731 1842009 2567 21603 8416 4464 1742010 2004 18494 9226 4046 2022011 (R) 2117 20654 9757 4430 2092012 (P) 2050 25360 12371 4745 231

YEAR Quantity(MKgs)

CIF Value( Crores)

CIF Value(Mill US$)

Unit Price(US$Kg)

Source Tea Board of India

Unit Price( Kg)

(E) Estimated and subject to revision

PRODUCTION (REGION- WISE) Calendar Year Quantity in Million Kgs

2007 76474 22169 986432008 73392 24690 980822009 73487 24413 979002010 72303 24337 966402011 87557 24015 1115722012 (P) 88010 23166 1111762013(E) (Jan) 266 1911 21772012(P) (Jan) 269 1620 1889

YEAR North India South India Total

Source Tea Board of India(E) Estimated and subject to revision

Financial Year Quantity in Million Kgs

2007-08 75827 22875 987022008-09 73403 23874 972772009-10 73438 25680 991182010-11 72852 23821 966732011-12 86559 22987 1095462012-13 (April-Jan)(E) 85275 20645 1059202011-12 (April-Jan) 83828 20175 104003

YEAR North India South India Total

Source Tea Board of India

Source Tea Board of India

ESTIMATED CONSUMPTION OF TEA IN INDIA

2009-10 838

2010-11 856

2011-12 873

2012-13 890

YEARDomestic

Consumption(Estd)

Source ORG-India Study report

(P) ndash Provisional and subject to revision

Figuresin MKgs

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

ed

sta

tist

ica

l d

ata

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

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ge

s amp

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od

serv

ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

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Be

ve

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aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 18: Coffee tea international 2 2013 en free

REVIEWampSTATISTICS

Sri Lanka tea statistics

Russia 49131811Iran 30939076Syria 28758711Iraq 22624063UAE 21760692Turkey 19172898Azerbaijan 11970697Japan 11647988Kuwait 9116394Ukraine 8091584

Top 10Destinations 2011 Qty (Kg)

Source SL Customs

ANNUAL AVERAGE TEAPRICES 2008-2012

2008 31081

2009 36045

2010 37061

2011 35989

2012 39164

YEAR Avg Unit Price(SLRsKg)

Source CBA

Russia 47250313Iran 38125937Syria 24718795Iraq 23483363Turkey 23131102Libya 16325958UAE 11582777Azerbaijan 10591385Japan 9545484Jordan 9397691

Top 10Destinations 2012 Qty (Kg)

Source SL Customs

TOTAL TEAPRODUCTION 2011-2012

2011 3275319032012 328397034

YEAR Qty (Kg)

Source SLTB Reports

EXPORTS OF TEA 2011-2012 (QTY amp VALUE)

2011 303162995 151776528069 322560605 1648539258622012 306039566 169014879514 319946572 180430287064

YEARWithoutRe-exports With Re-exports

Qty (Kg) Value (SLRs) Qty (Kg) Value (SLRs)

Source SL Customs

TEA PRICES

2006 36451 7162 13456 5079 49907 66012007 38187 7337 13253 4970 51440 67272008 39028 9527 15607 6627 54635 86992009 37609 11486 14169 8103 51778 105602010 37821 11951 15185 6769 53006 104662011 39072 11719 15144 7017 54216 104062012 36781 13559 14718 8739 51499 12181

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

Qty(MKgs)

AvgPrice(Rskg)

YEAR

NORTH INDIA SOUTH INDIA ALL INDIA

Source Tea Board of India

ELEVATION WISE TEA PRODUCTION 2008-2012

2008 84407202 49013454 185276798 3186974542009 72963048 44844250 173324695 2911319932010 79128872 56130563 196166852 3314262872011 78219788 52590795 196721320 3275319032012 73642587 52633129 202121318 328397034

High mdash Qty (Kg) Medium mdash Qty (Kg) Low mdash Qty (Kg) Total mdash Qty (Kg)YEAR

Source SLTB Reports

CONSUMPTION OF TEA IN SRI LANKA (LATEST SURVEY)

Estimated

percapita

consumption 1334 Kg (11121g x 12)

SourceHousehold Income and

Expenditure Survey mdash 200910

(Final Report) Department of

Census and Statistics Sri Lanka

Estimated

population 2011 20869 Millions3

Source Statistical Data Sheet 2012

Department of Census and

Statistics Sri Lanka

Estimated Consumption 27850 MKg

Source Department of Census amp Statistics

17

MAJOR DESTINATIONS OF SL TEA EXPORTS (WITHOUTRE-EXPORTS) 2011-2012 (QTY)

Co

ffe

e amp

Te

a I

nte

rna

tio

na

l sa

ys

tha

nk

s to

th

e S

ri L

an

ka

Te

a B

oa

rd f

or

the

kin

dly

pro

vid

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sta

tist

ica

l d

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COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

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KS

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EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

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rga

n

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ve

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aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 19: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

REVIEWampSTATISTICS

18

The Chemistry of Coffee

For millions the start of the day begins with a morning cup of coffee and the stimu-lating effects the come along with it Although today we can easily identify coffeein its beverage form ndash coffee has not always been this way Throughout history cof-fee has taken on several physical transformations initially serving as an energysource when nomadic tribes combined coffee berries with animal fat as an earlyform of an energy bar Later it was consumed as a wine then a tea and finally tothe beverage wersquove come to love today Since its inception coffee has always beena product of great mystery having been discovered accidentally in wild forests ofAbyssinia (Ethiopia) before being distributed across every continent on the globe But although coffee has been in existence for thousands of years itrsquos only been inthe past half century or so that scientists have been able to truly identify and under-stand this beverage To date scientist have identified over 1000 unique chemicalcompounds which when compared to other products such as wine or chocolatepale in comparison to that of coffee Luckily through advancements in technologymuch of coffeersquos chemical make-up has been unlocked and we now have a betterunderstanding of the chemistry contained within these mystical beans

Joseph A Rivera

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

Joseph A Rivera holds a degree in food chemistry and isthe founder of wwwcoffeechemistrycom He is the for-mer Director of Science amp Technology at the SpecialtyCoffee Association of America (SCAA) and will be pre-senting at the United Coffee amp Tea event in Moscow Hecan be reached at jriveracoffeechemistrycom

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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INK

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EA

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O A

YO

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ON

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REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

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efe

rH

ea

d o

f B

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s amp

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od

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ice

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RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

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ve

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es

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aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 20: Coffee tea international 2 2013 en free

REVIEWampSTATISTICS

19

CAFFEINE

For many coffee drinking is simply a deliv-ery medium for a potent alkaloid we havecome to identify as caffeine or technically as137 ndash trimethylxanthine Although caffeineis strongly associated with coffee its produc-tion within the plant kingdom is not exclusiveand is seen throughout several other plants innature Within coffee Arabica makes upapproximately three-quarters of world coffeeproduction and contains about 12 caffeineWhile the remaining twenty-five percent ismade up of the higher caffeine containingRobusta with about 22 caffeine and typi-cally used in lower quality blends

There are also a number of other caffeinecontaining products such as mate which istraditionally consumed in parts of Uruguayand Argentina mdash contains less than one per-cent caffeine by weight Whereas tea orCamellia sinesis which originated in Chinacontains almost three times the concentrationof caffeine by weight than Arabica coffeeBut overall tea beverages contain less caffeinethan coffee since less weight (leafs) arerequired to prepare a proper infusion

Of all the compounds found in coffee ndashcaffeine is perhaps the most interesting Thusfar humans are the only living creatures onEarth that readily seek caffeine for both itsstimulatory and psychological effects For allother life forms caffeine is a potent toxin Assuch scientists believe that caffeine with itsintensely bitter taste has evolved as a primi-tive defense mechanism for coffee ensuringits survival in the wild for thousands of yearsItrsquos no surprise then that the caffeine contentof the more ldquorobustrdquo Robusta species isalmost double that of the more delicateArabica The belief is that as insects attack thecoffee cherry they are immediately deterredby the bitter taste of caffeine and simplymove on to the next crop Since Arabica is typ-ically grown at higher altitudes than Robustawhere the attack of insects is reducedArabica has evolved to produce less caffeine

With caffeine playing such an importantrole in the plants survival one may also expectit to play an equal level of importance duringcoffee roasting Turns out the fate of thisimperative compound is far from spectacularAlthough caffeine sublimes (evaporates) atroughly 178oC model studies have shown thatcaffeine readily survives the roasting processeven at temperature far exceeding 200oCThough the reasons for this remain unclearbut it is believed that caffeinersquos strong com-plex with other compounds within coffeematrix create a strong retention that prevent itfrom further sublimation and ultimatelydecomposition

TRIGONELLINE

Another less known alkaloid that shadowsin the light of caffeine is that of trigonellineIn Arabica coffee trigonelline concentrationsmake up roughly 1 by weight with a slightlyless concentration of 07 in RobustaAlthough its concentration is slightly less thanthat of caffeine trigonelline plays a signifi-cant role in the development of importantflavour compounds during roasting Butunlike that of caffeine which survives theroasting process trigonelline readily decom-poses as temperatures approach 160oCModel studies have shown that at 160oC sixtypercent of the initial trigonelline is decom-posed leading to the formation of carbondioxide water and the development of a largeclass of aromatic compounds called pyridinesThese heterocyclic compounds play an impor-tant role in flavor and are responsible for pro-ducing the caramelroasty- like aromas com-monly found in coffee Overall production ofthese class of roasty pyridines are proportion-al to its degree of roast ndash with darker roastshaving higher levels than lighter roasts

LIPIDS

Lipids or the oils typically found in coffeealso play an important role in coffee qualityTechnically all lipids contain a three carbonstructure (as shown) with any number of sidechains as shown with the lsquoRrsquo in the diagramAs a result thousands of different lipids cancreated with this simple basic structure

Within coffee bean most of the lipids existin the form of coffee oil and is located withinthe endosperm of the cherry Since it compo-sition is similar to that of vegetable cookingoils itrsquos no surprise that the vast majority ofcoffee oil remain relatively unchanged even atthe elevated temperatures found in roasting

Both Arabica and robusta coffee containappreciable amounts of lipids ranging from15-17 and 10-115 respectively But

because Arabica contains more lipids thanRobusta many believe this stark difference isone reason responsible for quality differencebetween both species Thus far the claim hasremained unconfirmed until Swiss scientistsrecently discovered a direct correlationbetween lipid content and overall cup qualityIt turns out that as lipid content increaseswithin the bean so does overall cup qualityThis quality may be explained by the fact thathigher levels of lipids tend to provide betterand fuller mouthfeel as well as greater aro-matic character

PROTEINS

Much like lipids which represent a largefamily of compounds so do proteins In cof-fee protein content for green Arabica andRobusta coffee are quite similar and rangeanywhere between 10-13 Although con-centrations can vary from bean to bean itsbelieved that factors such as maturity post-processing and improper storage may havea significant effect on the form of proteinswithin the bean

During roasting proteins combine withcarbohydrates in what is perhaps the mostimportant reaction for all thermallyprocessed foods mdash the Maillard ReactionThese set of reactions discovered by aFrench chemist in 1910 is what is largelyresponsible for transforming the merehandful of compounds found in green cof-fee to the complex matrix that coffee istoday

As temperatures reach 150oC theMaillard Reaction propels free proteins incoffee to combine with sugars ultimatelyleading to the formation of hundreds ofimportant aromatic compounds Of thesepyrazines and pyridines have the greatestaromatic contribution and are responsiblefor the distinct maizenuttyroasty aromasfound in coffee The reaction also leads tothe formation of brown-colored polymetric mdashmelanoidins mdash the compounds responsiblefor coffeersquos color Coincidentally this is thesame set of reaction that give rise to thealluring aromas we generate when toastinga loaf of bread or grilling a piece of steakand numerous other thermally processedproducts There are literally hundreds offactors that affect the Maillard Reaction ndashall of which are beyond the scope of thisintroductory article But as one can see withsome many chemical reactions occurringwithin the coffee bean we are still on a longjourney to fully understanding the chemistrybehind this wonderful beverage

By

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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INK

SM

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UFA

CT

UR

ER

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PP

EA

L T

O A

YO

UN

G C

ON

SU

ME

R B

AS

E

REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

era

ge

s amp

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od

serv

ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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MIN

G A

GL

OB

AL

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 21: Coffee tea international 2 2013 en free

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Faced with entrenched local brands in categorieswith many years of local tradition hot drinks multi-nationals seek to lure a newer generation to moreWesternized brands and variants of coffee and tea

DEMOGRAPHICS IN THEREGION FAVOUR THEYOUNG

For example Morocco con-tinues to have a median age ofjust 26 years-old in 2010 and amedian age of 30 years-oldbeing projected for 2020Consumers in their 20saccounted for 19 of the totalpopulation in 2010 whileteenagers accounted for a fur-ther 13 share

Unlike most Western coun-tries where birth rates aredeclining Saudi Arabia contin-ues to experience rapid popu-lation growth of around 3per annum higher than theglobal rate of 15 In 2010children and young peopleunder the age of 24 years rep-resented the two largestdemographic groups account-ing for a combined 58 shareof the Kingdoms total popula-tion

This young consumer baseis increasingly gaining access tothe internet and satellite TVwith this having a major influ-ence on their preferencesThese consumers are becomingincreasingly brand consciousand aspirational with a stronginterest in Western lifestyletrends

ON-TRADE CULTUREPopulation growth con-

tributes to volume growthacross all hot drinks categorieswhereas the high presence ofH

OT

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CT

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EA

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YO

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ON

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REVIEWampSTATISTICS

COFFEEampTEA INTERNATIONAL 2201320

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

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ge

s amp

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od

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ice

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RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

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SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

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Mo

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Be

ve

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aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

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REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 22: Coffee tea international 2 2013 en free

young people in a country has an impacton consumption trends Younger con-sumers for example drive sales in theon-trade channel as they tend to spendmore time in cafйs than older ones Thesteady opening of new cafйs hasbrought a selection of more upscaleproducts including foreign teas and dif-ferent types of coffee beans to theregion and helped to attract new con-sumer groups like students and women

Moreover as the lifestyles of youngergenerations become increasinglyWesternised this creates a great poten-tial for non-traditional products such aschocolate-based drinks for adults greentea instant coffee or ItalianFrench stylecoffee At the same time however asconsumers continue to choose productsclosely associated with Middle Easternculture such as black tea or Arabic stylefresh ground coffee they are more likelyto opt for branded packaged products

OPPORTUNITY FORINTERNATIONAL BRANDS ANDSTYLES

Younger consumers in the Middle Eastand Africa also tend to be less traditionalin their preferences than earlier genera-tions particularly in urban areas InMorocco they notably shifted awayfrom traditional gunpowder tea for at-home consumption and increasingly

opted for coffee with this partly due totheir exposure to coffee in the on-tradeConsequently coffee gained share fromtea with off-trade volume growth of65 in comparison to just 3 growthfor tea in 2011-2012 These consumersalso embraced the convenience and quickenergy burst offered by instant coffeedriving strong growth in this area

The high proportion of youngstersamong several Middle Eastern andAfrican populations also creates a pros-perous ground for new product launchesThis consumer base will begin to wel-come products that are not closelyaligned with Middle Eastern culture suchas green tea However young consumersare not expected to give up traditionaltraits and although dynamic growth insome novel categories might lead togrowth slowing down in more maturecategories sales of black tea and freshground coffee will continue to be veryhigh Within tea although loose tea willremain the largest category tea bags willdisplay faster growth In coffee freshground coffee will continue to see thefastest growth but growth will be drivenmainly by espresso and filter coffeerather than Arabic coffee which is moresaturated Leading global brands stand tobenefit from their high international pro-files and reputation for quality in thesecategories

in the Middle East and Africa

6

4

2

0

2

4

6

8

Кофе

Чай

200708 09 200910 201011 201112 2012132008

Hot Drinks dynamies in Middle East and AfricaData for 2012-2013 is a forecast

Source Euromonitor International

21

REVIEWampSTATISTICS

Coffee

Tea

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

era

ge

s amp

Fo

od

serv

ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 23: Coffee tea international 2 2013 en free

A RICH VARIED COFFEE CULTURECoffee has a long history in Southeast Asia with Dutch

traders bringing coffee cultivation to Indonesia in the 17th centu-ry while French colonists introduced coffee to Vietnam in themid-19th century Both nations have remained major coffee pro-ducers ever since with Vietnam the number two coffee produc-er behind only Brazil and Indonesia close behind at numberfour trailing Colombia Southeast Asiarsquos role in producing therobusta beans that make up much of the worldrsquos instant coffeeis even greater with four nations among the top ten global pro-ducers led by global number one Vietnam In terms of local con-sumption Indonesia leads all countries in the region with150000 tonnes sold in 2012 followed by Thailand at 125000 andVietnam with around 75000

Though instant coffee accounts for around 58 of total salesin Southeast Asia by volume this actually understates its impor-tance in the region where it is overwhelmingly preferred to freshcoffee in every market except for Vietnam and Indonesia wherefresh-ground coffee served strong and often very sweet is thepreferred preparation Even in Indonesia however coffee ismost often prepared as ldquokopi tubrukrdquo in which boiling water isadded to fresh coffee mixed with sugar producing a beveragesomewhat similar to Turkish coffee Kopi tubruk preparations areeven sold in single-serve sachets similar to instant coffee thesole difference being that the fresh coffee used in kopi tubrukdoes not dissolve

INSTANT COFFEE BRANDINGThis preference for instant single-serve coffee often heavily

sweetened has opened the door to a wide array of product inno-vations with consumers across the region generally highly recep-tive to instant products in 2-in-1 3-in-1 4-in-1 and other variantsoffering both new flavours and increasingly added functionalityIn stark contrast with the growing push for artisanal ldquosingleestaterdquo coffees and exotic whole bean varieties in many devel-oped markets demand for instant coffee has surged inSoutheast Asia particularly among young people looking forconvenience and fun indulgent flavours As a result marketingand product development strategies more closely resemble thoseof soft drinks companies with flavours and effective brandingvital to success

In Indonesia for instance 3-in-1 instant coffees with addedginseng have become popular in the last 3-4 years More recentlaunches have gone still further piling on the flavours and tak-ing cues from popular desserts These new product launchesinclude Santos Jaya Abadirsquos ABC Brownies which was introduced

Now a US$32 billion market Southeast Asia has long been hometo a thriving diverse coffee culture with continued economicgrowth fueling strong spending growth in recent years The tenstates of the Association of Southeast Asian Nations (ASEAN)mdashBrunei Cambodia Indonesia Laos Malaysia Myanmar thePhilippines Singapore Thailand and Vietnammdashhave combinedfor better than 11 annual coffee spending growth in constantUS dollar terms While instant coffee remains the drink of choicethroughout much of the region with Thailand in particular theseventh-largest instant coffee market in the world by value freshcoffee consumption is expanding rapidly thanks in part to therapid evolution of coffee house culture across the region All toldthe region promises to be one of the most compelling in the worldfor coffee producers over the next five years

Mic

ha

el

Sc

ha

efe

rH

ea

d o

f B

ev

era

ge

s amp

Fo

od

serv

ice

HO

TD

RIN

KS

CO

FF

EE

MA

RK

ET

TR

EN

DS

COFFEEampTEA INTERNATIONAL 2201322

REVIEWampSTATISTICS

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 24: Coffee tea international 2 2013 en free

REVIEWampSTATISTICS

23

in 2010 and ABC STMJ which was introduced in 2011 ABCBrownies features added ingredients such a caramel and choco-late while STMJ features milk egg honey and ginger as addedingredients The latter product takes its name from the tradi-tional drink ldquoSusu Telur Madu Jaherdquo which translates appropri-ately enough to ldquomilk egg honey gingerrdquo and is popular as astamina-booster

Consumers have also increasingly looked to instant coffees asa source of added functionality Coffees with added collagen(for beauty health) can be found across the region while inThailand ldquoslimming coffeesrdquo have become quite popular TheFitnй Coffee line for instance now includes an array of variantssuch as Fitnй instant coffee with cereal and L-Carnitine andFitnй instant coffee with 3200mg fibre and collagen as well asFitnй instant coffee with apple extract pomegranate and pinebark Not to be outdone runaway instant coffee categoryleader Nestlй responded to this trend with the introduction ofNescafй Protect Proslim made with white bean extract claimedto lower both cholesterol and blood sugar All told coffee con-tinues to evolve in the direction of a packaged manufacturedbranded product rather than an artisanal item The recentgrowth of coffee shops however has added a new element tothis trend with a subset of consumers continuing to develop ataste for more exotic higher-quality coffee

COFFEE SHOPSCoffee shops have long existed in Southeast

Asia particularly on the Malay peninsula and inVietnam Kopitiam (the name comes from acombination of the Malay word for ldquocoffeerdquo andthe Hokkien Chinese word for ldquoshoprdquo) are foundthroughout both Singapore and Malaysia forinstance Outlets and menus tend to be simplesometimes consisting of just a small kiosk servinglocal coffee (often with evaporated milk) plus aselection of food items like charcoal-grilled toastwith kaya (a type of jam made from eggs andcoconut) soft-boiled eggs and nasi lemak atype of fried rice made with coconut and chillipaste Prices are invariably low with a cup ofcoffee available for around US$1 well belowprices charged at Starbucks and other specialistcoffee shop chains

In Vietnam meanwhile coffee shops arewidespread serving strong affordable coffee

and serving as a centre of social life One suchoperator coffee roaster Trung Nguyen hasactually become one of the first franchisedoperations to find success in Vietnam with itsnetwork of cafes has grown to more than 650outlets across the country while the compa-nys lines of fresh ground and instant coffeenow account for more than 30 of total retailsales in Vietnam Alongside a small number ofTrung Nguyen cafes now operating outside ofVietnam the company has begun sellingbranded retail coffees in foreign markets atthe same time it continues to work to improvethe perception of robusta coffee long consid-ered inferior to arabica beans in terms of tasteyet accounting for the vast majority ofVietnams (and by extension TrungNguyens) coffee output

At the same time the arrival of players suchas Starbucks and Costa Coffee has spurred thegrowth of a more modern coffee shop experi-

ence with comfortable chairs air-conditioning and espressodrinks Far from driving out traditional cafes in many markets ithas encouraged the growth of cafй culture in general with thecombined category now approaching US$18 billion in Vietnamwith Malaysia following close behind at US$17 billion While thenumbers are smaller in other markets in the region stronggrowth is the rule throughout suggesting years of steadygrowth ahead for high-end coffee shops

GOING FORWARDDespite widespread popularity and a long tradition of coffee

production and preparation in multiple markets in the region itis worth noting that overall coffee consumption in southeastAsia remains relatively low relative to markets elsewheremdashwhileconsumers in high-income Singapore consume around 500 cupsof coffee per capita each year comparable to markets such asFrance or Austria Indonesian consumers drink just 30 similar toIndia or Bolivia This suggests the strong growth forecast for theregion over the next five yearsmdashvalue sales are expected toexpand 6 annually from 2012 to 2017 in constant prices reach-ing US$42 billionmdashcould be just the beginning While the conve-nience and versatility of instant coffee will continue to dominatein the near-term fresh coffee will emerge as a high-value nichewith demand for premium coffee set to rise further over thenext ten years

in Southeast AsiaCoffee market dynamics in Southeast Asia

Data for 2017 is a forecast

Source Euromonitor International

Coffee in foodservice Southeast AsiaData for 2017 is a forecast

Source Euromonitor International

Thailand Philippines Indonesia Malaysia Vietnam

Ret

ail v

alu

e U

S$

mn

Vietnam Indonesia Singapore Malaysia Thailand

mn

cu

ps

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 25: Coffee tea international 2 2013 en free

A SHIFT IN TEA CONSUMPTIONChinas tea market is even larger when one factors in the large

amount of unbranded unpackaged teas commonly sold in tradi-tional tea shops or marketplaces These teas are not included inEuromonitor Internationals coverage of packaged tea But at thesame time there is a shift underway towards more convenient andpackaged tea varieties especially among a younger generation

Instant tea was an emerging category in China with a valuegrowth above 50 in 2010 In fact according to trade sources thisproduct is full of sugar for a sweet flavour that runs counter to tra-ditional tea preparation but it is quite popular among young girlstudents One major reason is its cup-size package The thick andslightly rough surface of the cup can warm the hands of the cus-tomer as well as prevent the hot temperature from hurting the skinso that students feel it is fashionable to take the drink to classroomsor to meet friends

TEA PURCHASING MOVES TOWARDS CHAINED TEASPECIALISTS

Chinese customers are gradually switching from independenttea shops to chained tea specialists in order to purchase high quali-ty packaged tea Most tea specialists are owned by tea manufactur-ers that have their own processing factories Furthermore thesemanufacturers also purchase high quality tea outside their ownplants and use it for their own labels An increasing number of cus-tomers believe that the quality of tea in famous tea specialists ismore trustworthy than that in traditional small tea shopsMeanwhile in order to attract different customer groups productsare separated into premium standard and economy with differentqualities packages and prices

The strategy of using chained tea shops to legitimize brands islearned from Tenfu Group a Taiwan company with the largestnumber of chained tea specialists in China Many domestic tea man-ufacturers have begun to open tea specialists by themselves or bycooperating with local distributors Meanwhile with the penetra-tion of chained hypermarkets and supermarkets to third tier citiesand towns more hot drinks products are taken by these distributorsto more customers

The mushrooming of chained tea specialists in the future isexpected to stimulate the growth of packaged tea as all the prod-ucts sold by these specialists are packaged and labelled with thetrade mark of the specialist retailer More customers will choose tobuy tea products in these specialists than in small tea shops orsupermarkets as they trust the profession and quality of productsH

OT

DR

INK

SREVIEWampSTATISTICS

24 COFFEEampTEA INTERNATIONAL 22013

By

Bri

an

Mo

rga

n

Be

ve

rag

es

An

aly

st China represented the fastest growing marketfor tea in total volume terms in 2010 and isexpected to pass India in total volume sales in2011 Meanwhile traditional tea powerhousesJapan and the United Kingdom are expected tosee slight sales declines recovering in 2013and 2015 respectively In part this has to dowith the lingering effects of the global econom-ic downturn in these countries coupled withcontinued commodity price pressures in 2011and 2012 But China has remained largelyimmune to these pressures and is emerging asthe primary engine that will drive future globalgrowth in several hot drinks categories

CH

INA

BE

CO

MIN

G A

GL

OB

AL

LE

AD

ER

FO

R H

OT

DR

INK

SC

AT

EG

OR

IES

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 26: Coffee tea international 2 2013 en free

REVIEWampSTATISTICS

there Furthermore chained specialists areexpected to provide more service like deco-rated gift packages product delivery oreven VIP service for important customers

LARGE DOMESTIC MARKET FOROTHER HOT DRINKS

China is far and away the global leader intotal volume sales of other hot drinks withnearly four times the total volume sales ofsecond ranked Argentina in 2010 Most ofChinas share of the other hot drinks marketis dominated by other plant-based hotdrinks which includes products like soybeanmilk powder and instant oat drinks As mostproducts like soybean milk powder in other

hot drinks are considered low priced andhealthy these products are popular in sec-ond and third tier cities

Most customers take other hot drinks asa kind of breakfast or snack at tea breaksmaking them predominantly retail purchas-es Supermarkets and hypermarkets are themajor channels for the sales of other hotdrinks There are also shelves for gift boxesof soybean milk powder or instant oatdrinks to attract customers who buy giftsfor family members like senior parents andkids

As soybean drinks are traditional Chinesedrinks with a long history most leadingplayers in the market are domestic manu-

facturers However with the developmentof soy milk grinders at home and RTDdrinks the growth of soy milk powder ischallenged Therefore in 2010 leading man-ufacturers were expanding their productionlines of RTD products and increasing invest-ment in the research of maintaining fresh-ness of RTD soy milks Meanwhile interna-tional players also launched RTD productslike Milo in order to target the same break-fast and snack occasions Chinas expansivelead in this category is sure to continue butthe diversity of products and players is alsoset to grow beyond the existing domesticleaders offering new spaces for interna-tional and new local manufacturers alike

25

in China

Market Size Historic Retail Volume tonnes

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 719 1064 1829 2807 3524 4078

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

CATEGORIES GEOGRAPHIES 2009 20102007 2008 2011 2012

Source Euromonitor International

Instant Tea China 6697 9638 1 6791 2 4999 3 1193 3 6095

Market Size Historic Retail Value RSP US$ mn Constant 2012 Prices Fixed 2012 Exchange RatesYear on Year Growth ()

CATEGORIES GEOGRAPHIES 2007-08 2008-09 2009-10 2010-11 2011-12

Source Euromonitor International

Instant Tea China 439 742 489 248 157

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

GEOGRAPHIES CATEGORIES COMPANIES 2012

Source Euromonitor International

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

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

GEOGRAPHIES CATEGORIES BRAND COMPANY NAME (GBO) 2012

Source Euromonitor International

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 5

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 27: Coffee tea international 2 2013 en free

THE LAND of Dragons and Coffee

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

In January of 2013 I visited Vietnamas a part of a delegation that includ-ed employees of SFT Trading andrepresentatives of coffee roasters Ihad never been to Vietnam before soI dug up some historical and statis-tical data before my tripLegend has it that the Vietnamesepeople trace their lineage back to adragon You can certainly find anabundance of dragons in Vietnamthey fill the shelves of souvenirshops feature prominently in folkcelebrations and even shrubs alongroadways are trimmed to resembledragons In the last few years anoth-er word came to be associated withVietnam lsquocoffeersquo Friends returningfrom trips to Vietnam would alwaysmention coffee Searching my mem-ory I recalled that had first heardabout Vietnamese coffee in the late1980s about 30 years ago

Andrei Savinov 1

General Director CSC laquoSFT Tradingraquo

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

26

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 28: Coffee tea international 2 2013 en free

A LITTLE BIT OF HISTORYAs it turns out coffee pro-

duction in Vietnam started in themiddle of the 19th century butfor over 100 years its share in thecountryrsquos economy was negligi-ble By the time of unification in1975 the total coffee-growingarea was 20000 hectares andthe annual production was at thelevel of 100000 bags practicallynothing

Starting in 2010 annual pro-duction has been keeping steadyat about 20+ mln bags a 200-fold () increase and coffeeplantations grew more than 30-fold and now occupy more than600000 hectares TodayVietnam is the world leader inRobusta production and holdsthe second place in overall coffeeproduction (Brazil holds thefirst)

What happened in Vietnamduring the last quarter of the 20thcentury and at the beginning ofthe 21st is nothing short of a ldquocof-fee miraclerdquo Of course the main factor hereis the governmental policy of designating riceand coffee as the two most promising exportcommodities and dedicating considerableresources to boost their production This was acompletely rational and effective course ofaction under the centralized economy Thereis also no doubt that this choice was justifiedby the presence of favorable growing condi-tions fertile soils elevations of 500-700 m

which are typical for Robusta production theoptimal combination of the amounts of day-light and precipitation significant waterresources available for irrigation

At the same time we must credit the deci-sive role of agricultural reforms of the 1980sand 1990s as a result of these reforms largestate-owned collective farms were disbandedand the land became the property of thosewho actually cultivated it

A LITTLE BIT MORE INFORMATIONABOUT THE CURRENT STATE OFTHE INDUSTRY

The primary coffee-growing regions inVietnam are on the Central plateau intheDakLak LamDong GiaLai DakNongandKonTum provinces Arabica makes up lessthan 5 of the total coffee production(under 1 mln bags annually) One-third ofArabica-growing areas are in the Lam Dong

province Coffee is harvestedonce a year (September toDecemberJanuary) More than85 of production comes fromsmall farms (1-2 hectares)

Internal consumption isinsignificant at 15 mln bags (5of production) Lately there hasbeen an increase in consumptionprimarily due to rising consump-tion of instant coffee by youngpeople Some estimates of therate of consumption growth areas high as 10 annuallyNonetheless it is unlikely thatinternal consumption will haveany significant impact on exportvolume in the next several years

The Vietnamese Ministry ofAgriculture has approved a blue-print for the development of thecoffee industry until 2020 withsome projections as far as 2030The goal is to reduce coffee-growing areas to 500000hectares by 2020 and further to479000 hectares by 2030forthe total reduction of 20-

1The author wishes to thank Atlantic Commodities Vietnam Ltd (ACOM) for the help in organizing visits to coffee plantations and processing plants

ECONOMICS

27

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

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38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

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a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

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In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 29: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

ECONOMICS

28

25 To compensate the plan provides forthe use of modern agricultural methods thereplacement of old and low-yield coffeeplants an increase in yield anexpansionofthe production of certified coffee ndash inother words a push towards sustainabilityin-coffeeproduction Another item in the plan isan increase in Arabica production in suitableareas Essentially we are talking about a shiftfrom extensive to intensive developmentstrategy

AND NOW MY PERSONAL

OBSERVATIONShelliphellipalthough of course since my trip to

Vietnam was so short everything I say hereshould be taken with a grain of salt

Even though the state has officially leftthe business of agriculture its influenceremains very strong Governmental andquasi-governmental organizations still con-trol the bulk of the exports and can manipu-late exports to suit the statersquos interests thishas significant impact on domestic pricesInflation in the country remains high as doesthe cost of money (it is interesting to notethat the current rate of inflation and the costof credit in Vietnam are very similar to thosefound in Russia)

This means that credit is out of reach forthe majority of small farms The market isdominated by middlemen who frequentlygive farmers loans secured by future cropsUnder these conditions access to advancedagrotechnologies is to put it mildly a pipedream Given the current level of Arabicaprices farmers worry more about survivalthan about increasing production

The easiest solution is to clear-cut foreststo make space for new plantations The gov-ernment of course considers such practicesillegal but does nothing to stop them Thisleads to the destruction of the ecosystemwhich will inevitably have negative conse-quences for the future generations

For the middlemen quality doesnrsquot mat-ter ndash itrsquos the concern of the exporter Andthe exporter has dilapidated equipment andworries about keeping up the shipments soquality once again falls by the wayside

At the same time things arenrsquot all thatbad It is undeniable that the overall qualityof coffee exported from Vietnam has risenconsiderably For example a few years agothe content of black and broken beans inRobusta shipments was considered accept-able at 5 now this figure is down to 2

In general it is misleading to apply thelabel Vietnamese coffee to all coffee flow-ing to international markets from VietnamThere are so many varieties that you can getcoffee of practically any quality as long asyou are prepared to pay the appropriateprice

The demand for high-quality VietnameseRobusta continues to increase For example

of the total Robusta exports by AtlanticCommodities VietnamLtd (ACOM) 20 iscomprised by the so-called wet-polishedRobusta after the parchment is removedthe beans are mixed with water and runthrough the depulping machine one moretime to ensure that as much skin as possibleis removed This gives the beans a neutraltaste but at the same time adds body whichmakes them suitable for use in coffeeblends Coffee processed in this way is US$200-300 more expensive than the ldquoconven-tionalrdquo Vietnamese Robusta but the price iscomparable to unwashed Robusta fromUganda or India and the variety of uses forthis type of coffee is much greater

The situation is similar when it comes toArabica The market is flooded with defec-tive Arabica produced using incorrect dryingprocedure the layer of beans spread fordrying is more than 50cm thick and thismakes it difficult to ensure uniform dryingin addition the beans acquire the smell ofsmoke At the same time there is Arabica ofvastly superior quality produced using mod-ern equipment and strict quality control pro-cedures this Arabica is considered by somebuyers as a possible substitute for theCentral American varieties The difference inprice can be as large as US$ 300-500 perton but in my opinion it is justified Ontodayrsquos market it is not so easy to findgood-quality and relatively cheap Arabicathat is available practically year-round

The main thing I learned during my trip isthis in todayrsquos Vietnam you can get mass-market coffee of virtually any quality youdesire all thatrsquos required is that you knowexactly what level of quality you need andare ready to pay the premium that is appro-priate for that quality but at the same timeallows you to keep your prices competitive

Also I brought home a dragon It lives onmy shelf now reminding me of VietnamAfter all coffee comes and goes but drag-onshellip Dragons live forever

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 30: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

PRIVATE VIEW

30

You fully discover the world of coffee only whenyou stop selling your coffee to local exporters andstart exporting it yourself Thatrsquos when you really get toknow various coffee markets understand their demandsrealize the role of coffee quality For me the life-changingevents were my joining PROCAFE to learn more aboutexporting coffee and then my election to the Board ofDirectors of the Association of Producers and Exporters ofCoffee (ANACAFE) the National Coffee Association ofGuatemala an organization with considerable politicalpower When a group of coffee growers people who weremuch older and much more experienced then I was (I wasonly 33 years old at the time) offered to support my elec-tion to the post of the Vice-President and then thePresident of the Association I thought lsquoI have a chance tobe the head of one of the most influential organizations inthe country the position with a real power If I do not seizethis opportunity I will never again have the moral right tocomplain about the way things are run in the governmentor in the private sectorrsquo

Never be afraid to openly state your opinion Myrule is to always be open about what I consider to beimportant and right for the coffee industry Whether dur-ing discussions of coffee prices with representatives ofLatin American coffee-producing countries or during polit-ical debates ndash people have always liked my openness and

Max Quirin the immediate past President of theSpecialty Coffee Association of America (SCAA)is an extraordinary person This becomes evi-dent when we look at his accomplishments Hewas the youngest President of the NationalCoffee Association of Guatemala and thenbecame the head of the American associationThis is the first time this post was held by some-one who is not American and who grows coffeefor living He is admired by others he is fascinat-ed by life and life is fascinated by him hedelights in being a pilot and in diving in playingtennis with his son and having conversationswith his daughter ndash and of course in coffee Hesays lsquowersquo much more often than lsquoIrsquo because heplaces the good of the team above his own MaxQuirin shared with us his stories and thoughtsabout life coffee andhellip flying

MaxQuirin

lsquoHelping others iswhat makes all yourefforts worthwhilersquo

ORThe birdrsquos eye view

of life and coffee

AlyonaVelichko

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 31: Coffee tea international 2 2013 en free

PRIVATE VIEW

31

have tried to support our position asmuch as they could

It wasnrsquot easy to turn ANACAFEinto one of the most powerful orga-nizations in Guatemala Nonethelesswe managed to get to the point whereno legislation could be passed in thecountry without ANACAFErsquos approvalMy task was to keep the legislatorsinformed of the Associationrsquos positionAnd if a bill was bad for the coffee pro-ducers we made sure that the bill did-nrsquot become law The President of thecountry all members of the Cabinetand legislators immediately returnedANACAFErsquos phone calls How did wemanage to do it Itrsquos just that at somepoint people realized how importantcoffee was for the economic and socialdevelopment of the country howmuch of a driving force it was We hadto work 16-hour days 6 days a weekdirecting all our efforts at improvingthe lives of coffee farmers knowingthat what is good for them is good forthe country It was fascinating workbecause we believed in our mission anddidnrsquot wait for people to thank us As aresult ANACAFE adopted a marketingstrategy that is still in place today Noone had done this before Our develop-ment model was later adopted by manyother coffee-producing countries

It is always important to be clearabout your goals and to fight toachieve them We at the NationalAssociation were constantly remindedof the truth of this statement as weunderstood clearly what our industryneeded in order to grow At everyinternational conference where coffeepolicy was discussed we insisted thatthe only way the coffee market cangrow is through an increased demandfor high quality coffee we vigorouslyopposed the attempts to raise coffeeprices by keeping coffee in storagelonger and thus artificially reducingsupply Quite often during these meet-ings we found ourselves isolated fac-ing pressure and even hostility fromother coffee-growing countries Butwe prevailed My subsequent entry tothe Board of Directors of the SCAAwas a natural continuation on the pathto that goal

Experience shows that it is possi-ble to have a very modest education

and still deal successfully withlawyers economists and other pro-fessionals many of whom haveprestigious degrees Life experiencethe sense of responsibility and thestrength of your convictions allow youto make much more effective and log-ical decisions when dealing with theseprofessionals Itrsquos like being a parentyou learn from your own experienceand with every action you must proveto your children that you are worthy ofbeing their father Truly lifeisourbest-teacher

I often feel happy Piloting aplane always brings me great joyhellipWhen I am flying it is as if I becomecloser to God mdash the world looks sobreathtakingly beautiful from upabove I frequently fly around thecountry and when I land I enjoy a dif-ferent earthly beauty We have a fam-ily ranch and a few hours spent walk-ing through our plantations have ahealing effect on me I look at our landand think about all the work we didthe decisions we made the greatresponsibility for developing the ranchYou stand in an open field happyabout the rain that helps young oilpalm trees grow and you feel greatjoy Another cause for joy is when animportant meeting goes as plannedand you manage to get people tounderstand what needs to be doneAnd what happiness it is to spend timewith children broadening their hori-zons through all kinds of educationalgames and trips Life always gives usreasons to be happy

To be an industry leader is agreat responsibility first of allbecause you need to have a clearvision of the path that the peopleyou represent must followYou haveto set your goals and priorities to com-municate them to your group in a waythat would ensure understandingcooperation and support Of coursethe goal should be to benefit themajority not just this or that individualIf you only work for your own benefitvery soon you lose the trust of the peo-ple around you To be a leader is tostick to the decisions you made and tobe able to produce arguments in theirdefense because there will always beopposition If you cannot offer people

broader horizons and a brighterfuture you cannot be a leader Peoplewill follow you only if they feel andbelieve that in doing so their situationwill change for the better

It is important to set your goalsBut the way you go about reachingthem is just as important My experi-ence shows that honesty and respectfor others bring you respect andrecognition in return even when youfail to accomplish everything youwanted You must always strive forquality in your work ndash satisfaction andpride come from knowing that you dothis not just to please someone butbecause you believe in what you do

When we manage to assemble ateam of people who representevery link in the coffee productionchain that is people who believe inshared goals we benefit not onlycollectively but also individuallyPeople need to hear about goals andstrategies not just for the coming yearbut for the next five or even ten yearsWhen I joined the SCAA I told peopleright away that we as an organizationexist to serve the needs of our coffeeindustry to share knowledge to bringall important players together to thenegotiating table to discuss challengesthat we all face If we can build a plat-form for this kind of dialogue startingwith the integration of theInternational Relations Council1 thenwe know we are moving in the rightdirection

Every man has his own reasonsto keep going and people often askme about mine My friends keeptelling me that a rational person wouldnever spend so much time helpingother people develop their businessinstead of making money for himselfBut my incentive for going forward ismy children I want them to be proudof their father and this takes hardworkhellip I once came across an interest-ing article titled lsquoWhat Motivates theMotivatorrsquo It got me thinking and Irealized that I am my own best motiva-tor I keep convincing myself over andover again that all this work for thedevelopment of the coffee industryand for the benefit of others is worthevery last bit of my efforts

1International 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 becomethe primary international forum for the discussion of all matters related to the coffee industry ndash MQuirin

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 32: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

32

Marketers of single serve coffeepods and pads have benefitedfrom filter paper branding for

some years now The number of brand own-ers using filter paper branding directly ontheir pods or pads has been growing wellabove the market rate over the last yearsThis has been driven mainly by brand ownersseeking to reinforce the consumer brandexperience but also by new technical solu-

tions developed by specialty paper supplierslike Glatfelter that offer unique possibilitiesof putting promotions logos or patternsdirectly on filter paperhellip

For many years Glatfelter one of themost well-known producers of high qualityfilter paper has supported customers withoptions to differentiate their brands ldquoWe atGlatfelter have always taken needs of ourcustomers very seriously As product differ-

entiation is one of the major drivers brandowners which face fierce competition onthe shelf we try to provide them with newoptions they can use to make their productuniquerdquo says Fabrice Werner Sales ampMarketing Director of GlatfelterrsquosComposite Fibers Business Unit

ldquoWe are very excited about being able toprovide different filter paper brandingoptions To get it right we have put in place

FILTER PAPER BRANDING ndash I LIKEA

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 33: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

WHO IS WHO

34

cross industry innovation teams with keysuppliers which developed and tailor fit thetechnologies Hence we have enabled ourclients to communicate their brand mes-sages and therewith make their teabagstalk Our innovation and investments havepaid off with a +30 growth rate over thelast yearrdquo reveals Kai Wulff General SalesManager for the food and beverage prod-ucts at Glatfelter

Thus ever since the movement wasstarted by Glatfelter filter paper brandinghas been on the forefront of Glatfelterrsquos

innovation efforts Several investmentsonline and off the paper machines haveresulted in a variety of technologies rangingfrom Waterjet to the crispy clear imaging ofWoW (white on white) printing that isextremely flexible and suitable also for loworder sizes This great flexibility has enableddevelopment in new areas like HORECAwhere inscriptions like DECAF or this side upare being used to support quality and insurethe consumer brews the perfect coffee Inteabags while established and used by afew brand owners around the world theconcept of direct filter paper branding hasnot yet taken off as many teabag produc-ers have historically favored the branding onthe tag rather than the paper However itseems the idea of filter paper branding isnow gaining momentum among tea brandowners

An exciting and dynamic concept thathas captured the imagination of bothindustry and brand leaders is Glatfelterrsquosunique Reveal Technology which gives thepotential of changing the way we look atteabags A non-visible image is added to

the filter paper which will as if by magiconly appear once the teabag is placed into asuitable aqueous medium such as whenmaking a cup of tea One of our key cus-tomers has used this Reveal option for amost brilliant Dip and Win promotion whereconsumers had the opportunity to winsome valuable prizes if they revealed a win-ning image on their bag Much like thegolden ticket idea from Charlie in thechocolate factory of Roald Dahlrsquos novel thiscreated quite a buzz

Glatfelterrsquos Reveal technology helpsrekindle and inspire interest in the fine art oftea brewing with its infuse to enthuse possi-bilities

One can now think of a Valentines heartsedition or Halloween pumpkins appearingon the teabag The possibilities opening upthrough branding technology are manifoldFrom seasonal greetings to information totargeting specific groups such as childreneverything is possible This way consumerscan only say ldquoTeabags ndash I likerdquo

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 34: Coffee tea international 2 2013 en free

NO BETTER WAY FOR A HEALTHY TEA CUP

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 35: Coffee tea international 2 2013 en free

WHO IS WHO

Innovation and flexibility are common fac-tors between Caffita and Cama two Italiancompanies that have rapidly built their suc-

cess by achieving ongoing international growth Following a few years focused on RampD

Caffita Systems first production site for manu-facturing and marketing coffee capsules wasopened near Bologna in 2004 Another facilityopened near Milan a few years later with corpo-rate business soaring high underpinned by a cut-ting-edge product Various research and devel-opment steps led to the creation of a combinedsemi-open system covered by internationalpatents and comprising both machines and cap-sules that merge innovative technology flexibleuse and attractive design Caffita capsules andtechnology offer market leaders in the coffeeindustry flexible packaging for ldquotheir own type of capsulerdquo so as tomeet their market requirements as well as the taste of local con-sumers with a tailor-made solution Andrea Clementini CEO atCaffita System clearly explained the companyrsquos key competitivefactor ldquoWe prepare coffee that is appreciated worldwide becausewe adapt our capsules to suit the taste of each countryrdquo

In fact the particular Caffitaly System capsule structure isdesigned for packaging any type of coffee ranging from theexcellent Italian espresso to long black coffee and caffи cremasatisfying even the most sophisticated taste buds The productrange also includes delicious drinks such as Lemon Tea Leaf TeaCamomile Barley Herbal Tea Milk Drink and Cocoa

True to the highest quality standards for manufacturing andpackaging Caffita System has chosen reliable partners to offerboth clients and consumers a superior product from every stand-point ldquoWe are particularly keen on guaranteeing top quality stan-dards for processing and packaging our capsulesrdquo said GiovanniAccursi Maintenance amp Technologies Director When the timecame to select a partner for secondary packaging we chose theCama Group a leader in the field of packaging systems withextensive experience in the specific niche of coffee capsulesrdquo

For over 30 years Cama has specialized in supplying automatedproduction complete with a new generation of innovative prod-ucts with advanced electronics and technology features Camarsquos

machinery utilizes proven robotic and machinery technologies cus-tomized to offer wide-ranging packaging solutions designed tomeet specific packaging requirements The company steadilyfocuses on developing flexible systems with high productionspeed in a limited space based on the principle of lean produc-tion with a unique range of packaging machines and robotizedsystems In addition to the extensive choice of systemssolutionsthe principal added value offered by Cama is undoubtedly its roleas ldquoglobal consultantrdquo offering customers a wide range of techni-cal solutions by combining the competences of the packagingmachines and robotics sector with precise targeted advice on thechoice of cardboardpaperboard to be used type of packagingand definition of payback investment plans

The ultimate nine production lines installed by Cama in Caffitafacilities are based on this supply concept The systems have beendesigned according to an innovative technical solution featuring acompact layout to comply with customersrsquo space requirementsalong with flexible product configuration for the various formatsrequired These ldquomonoblockrdquo solutions provide extremely com-pact high-speed customized packaging Inside a single framemachine flat blanks are formed coffee capsules are placed in thecarton and finally the various configurations of cartonspack pat-terns are closed in the final station

These highly flexible lines can package up to 500 capsules perminute and allows capsule loading in special configurations foroptimal package size and subsequent insertion into cartons con-

taining 8 to 96 piecesGiovanni Accursi closed bysaying ldquoCama has alwaysassisted us especially dur-ing the most complex phas-es of system calibrationthus proving to be a reliablepartnerrdquo

The technical solutionsprovided by Cama to thecustomer and Caffitastrust in its supplier have ledto a lasting partnershipunderpinning the success-ful growth of both compa-nies This unquestionablyexcellent matching ofinnovative spirit and Italianflexibility has also gainedinternational acknowled-gement

36 COFFEEampTEA INTERNATIONAL 22013

CAFFITA-CAMATWO HIGHLY SUCCESSFULITALIAN COMPANIES A

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 36: Coffee tea international 2 2013 en free

Ho

ReC

a

38

Days that coffeetearu

HoR

eCa

The 25th Annual Coffee Event orga-nized by the Specialty Coffee

Association of America in Boston has ter-minatedAs part of this Event there were manyactivities conducted the SCAA 5thSymposium USA Barista Championshipwhich celebrated its 10th anniversary aswell as activities coincided with the 25thanniversary of the Coffee Kids (a non-gov-ernmental organization aimed to supportfamilies of farmers who work on coffeeplantations) and the 10th anniversary ofthe International Womenrsquos CoffeeAllianceThe event was attended by more than7000 professional market participantswho came to Boston not only from theUSA but also from all over the worldRussia was presented by 18 people ndashtraders roasters producers of coffee

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 37: Coffee tea international 2 2013 en free

stick inmemory

roasting equipment distributors baris-tas and others High spirits reigned during all the activi-ties through all the days of the EventThere were held numerous competitions indifferent types of coffee excellence educa-tional seminars special events honored tothe mentioned anniversaries as well as theRainforest Alliance and Coffee QuolityInstitute activities On Monday morning April 15 the partic-ipants of the Boston 6 days Coffee Eventwere getting ready to leave and every-thing would be completed as usual Butafter many guests have left at 1540 localtime here in Boston at the venue ofanother interesting sport event mdash amarathon there were two explosionsSerene mood melted away like smokeIt remains only a sense of solidarity withthe victims and mourning for the dead

39

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 38: Coffee tea international 2 2013 en free

41

Coffee drinkers at a Sydney cafe cangrab the nearest attractive and will-

ing person pucker up and considertheir bill paid thanks to a new Pay witha Kiss promotion

Wersquore bringing romance back Takeyour partner to the cafй from 9-11am inJune and surprise them with a kiss whenyou order your coffee Wersquore not accept-ing your money just your kisses readsa post on Metro St James FacebookpageThe French-themed shop which hasbeen open for just three months includ-ed a video featuring several couplesearning their cups of coffee by way oftheir lipsIn the clip a waiter warns one couplethat he has to observe a real kiss forthem to qualify for the promotion (Itsunclear whether he is trying to suggestthere should be some tongue involved)

He goes on to say that if they try to fakeit hell know because hes kind of a spe-cialistMore than one Facebook user askedwhether customers could arrive aloneand just make out with the staff

huffingtonpostcom

Pay With Kiss

HoReCa News

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 39: Coffee tea international 2 2013 en free

Ho

ReC

a

COFFEEampTEA INTERNATIONAL 2201342

HoR

eCa

As part of the effortto implement the

blueprint developed bythe Advisory Council onthe Development ofSpecialty Coffee Marketin Russia the Coffee andTea in Russia magazinekicked off a projectcalled Barista RankingBarista Ranking is a uni-form method for gaugingthe competency andactivity level of those

Russian baristas who take part in professional competi-tions lsquoThis will be a full-fledged national database of baris-tas focusing on those who have chosen this profession astheir career path and work every day to raise their skill

levelrsquo says Elena Tregub special projects manager atCoffee and Tea in Russia The project is aimed at boostingthe prestige of the barista profession and creating opportu-nities for professional growth lsquoWe will provide financialrewards to baristas who at least once a year achieve the topranking in any of the categoriesrsquo continues Ms TregubThe ranking will be determined on the basis of the results ofcompetitions that are registered with the project lsquoAs ofright now the organizers of any competition can submit aregistration form to us The only condition is that the com-petition be opened to all ie that any barista can take partin itrsquo comments Ms TregubIn addition to competition placements the ranking formulatakes into account the professional level of the jury and thesize of the prize fundThe first competition that took place as part of the BaristaRanking project was the Moscow Qualifying BaristaChampionship held on January 22-23 2013

The Barista ranking project takes offbaristarankingru

Specialty teas are becoming thedrink of choice in top-notch

restaurants Any time is teatimeat a growing number of toprestaurants around the world aschefs encourage diners to swapthat glass of something for a nicecup of tea Restaurateurs arehailing tea as the new wineclaiming that it is better suitedto bring out the flavor of theirdishes than many red or whitewinesAnalysts believe it is only a matterof time before Starbucks branchesout into tea following its acquisi-tion last autumn of a US-based teashop chain called TeavanaUnilever the group behind PGTips and Lipton has also lookedinto opening a chain of tea cafJsMeanwhile Costa and Caffe Nerohave recently increased theirselections of specialty teas in anattempt to diversifyHealth fears are also boosting teasales with green and white teasfavored for their antioxidantsRichard Vines who chairs theWorldrsquos 50 Best Restaurantsawards says ldquoPeople are drink-ing tea instead of alcohol at theend of a meal so they aredemanding a choice from restau-rateursrdquo He predicts that tea-pairing ndash matching different teas to certain foods ndash ldquowill become a bit of a fashionrdquoadding ldquoAnd why not Tea has such distinctive flavorsrdquoLalaniamp Co a British boutique tea importer recently launched a course to train tea sommeliers ldquoThe tea renais-sance looks at seasonality and provenance You can focus on particular gardens producers the day tea is picked andhow the soil makes a difference to flavor structure and qualityrdquo owner NadeemLalani says ldquoYou enjoy tea just likea fine wine or a whiskeyrdquoOddly given its history the US is helping to drive the tea revival Wholesale tea sales in the US have grown from$184 bln in 1990 to $82 bln in 2011 and the retail industry is worth $27 bln according to the Tea Association ofthe USA That accounts for more than half of tearsquos global $50 bln market

Diners shun wine for a nice cup of teaindependentie

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 40: Coffee tea international 2 2013 en free

43

Kazuki Yamamoto is a Japense artist currentlyliving and working in Osaka Using a simple

toothpick Kazuki creates wonderful latte art por-traits for customers of Cafe10g Yamamoto alsoposts his latte art on Twitter (george_10g) wherehe has amassed over 85000 followers all fascinatedby his latest creationsWhile growing in popularity in the Western worldlatte art seems to be more commonplace in Japanwhere many coffee shops add an artistic flair totheir fresh brews To see more be sure to followKazuki on Twitter

The amazing Latte Arttwistedsiftercom

With its precious and unmis-takable flavour espresso

and cappuccino are between themost popular symbols of Italianstyle in the worldA symbol that Ancap primarycompany in Italy for the produc-tion of high-quality porcelain iscommitted to support every dayalongside passionate profession-als And it does so by proposingfor coffee roasters the widestrange of coffee and cappuccinocups for professional with highquality and attention to detail ina variety of shapes sizes anddecors The proposals are theresult of an extreme flexibilitycombined with production effi-ciency for high quality andsophisticated customizationsFunctional products of Ancap donot renounce to a captivating anddistinctive aesthetic always bring-ing a unique signature tasterefinement and Italian styleRecently ANCAP introduced intothe assortment a multi-cromaticproposal This has been studied tovalorize even aestheticaly a prod-uct that for its personality wantsto have a strong identityThe originality of the proposal isto allow an infinite range of com-binations playing on the valorisa-tion of the cup rather than thesaucer or only the handle com-bining contrasting or complemen-tary colorsMILLECOLORI is the name ofthis new collection It offers thepossibility to choose and play withvarious colors finding in the com-bined beverage-cup the best inter-pretation to offer a perfect senso-ry perceptionldquoMILLECOLORIrdquo is available intwo lines vibrant shades BRIL-LANTI and soft shades PAS-TELLOPlayful triumph of bright colorson porcelain cups extremely shinyand brightBRILLANTIrdquo is available ineight vivid colours Orange yel-low blue green caramel Brownblue blackldquoPASTELLOrdquo is available in sixcolours Powder Pink cream yel-low coral Sage Green pistachiogreen white butter Six shadessoft and delicate colour butalways with personalityWith its perfect professionaltools Ancap joins professionalspromoting and exporting aroundthe world the culture of coffee andquality Made in Italyldquo

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

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 41: Coffee tea international 2 2013 en free

Denis Shumakov

44

HoR

eCa

In one of my previous articles Imentioned that all efforts aimedat setting up the tea service (forexample in a restaurant) willprove futile if they are frustratedby the establishmentrsquos person-nel This frustration can take theform of a deliberate sabotage(caused by a lack of incentives)orit can be unintentional (due toa lack of training) There is littlethat can be done to fix a problemof the first kind so letrsquos focus onthe content and methodology oftea personnel training Butfirstthreeremarks

What should betaught

Ho

ReC

a

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 42: Coffee tea international 2 2013 en free

First of all given the current highturnover of restaurant personnel itmakes no economic sense for an estab-lishment to invest in a long and com-prehensive (and thus expensive)training program for its tea staff Itwould do better by offering short andintensive training sessions supple-mented by high-quality referencematerials Today there are no gener-al-purpose publications of this kindalthough materials that have a morelocal focus (and are tied to particularproduct offerings) can be put togetherin-house by the establishment itself(not so likely) or by the tea vendor(more likely)

Comprehensive tea training shouldbe a part of the curriculum at hospi-tality industry schools Tea establish-ments occasionally express interest insuch training and matters frequentlygo as far as developing a training pro-gram ndash but I have never seen such aproject advance beyond the planningstage As far as I know no one in theworld today offers serious and sys-tematic training for tea service per-sonnel

Second tea training must be a partof a comprehensive study of beveragesand beverage service in the restaurantindustry Specialists who focus exclu-sively on tea without at minimumhaving knowledge of alcohol and cof-fee will end up being a liability for theestablishment

Third the job of a tea specialist in arestaurant differs little from the jobof a waiter a bartender or a sommeli-er For the most part this work isinvisible to the patrons who interactwith the specialist only for very short(but very information-intensive)intervals ndash and their judgments of thequality of the specialistrsquos work areformed as a result of such ldquobriefencountersrdquo Thus specialized teatraining requires basic hospitalitytraining as its foundation

In light of the above the goal ofspecialized tea personnel training(regardless of where it is offered)must be to prepare specialists capableof effectively working with tea in thehospitality industry ndash and this meansplanning and performing tea servicein a hotel a cafJ or a restaurant tak-

ing into account the goals the ldquoideol-ogyrdquo and the concept of the establish-ment

The theoretical portion of such atraining program may include the fol-lowing topics

General facts about tea Thisknowledge has little practical usegenerally for superficial interactionwith patrons But it is the foundationof all other training just as MaterialsScience is for engineers

Tea in contemporary gastronomicculture In order to provide an ade-quate tea service one needs to under-stand the place of tea in the gastro-nomic culture reproduced within theestablishment It is just as importantto match the characteristics of tea tothe mood and condition of the guestsspeaking crudely tea service at arural hotel on the banks of the Volgariver must be different from the teaservice at an Alpine ski resort

Tea in the HoReCa industry A teaspecialist must have at least a basicknowledge of the history of tea in thefood service industry be an expert onthe latest and the most successful(fashionable) tea products as well asunderstand the historical roots of hisparticular form of tea service and theways in which this tea service relatesto general tea service trends at otherestablishments

Planning tea service at food ser-vice establishments The planningprocess must includethe discovery of(or a plan for shaping) the preferencesof the customers the selection of a teastrategy the development of themethods of serving tea and theachievement of a good fit between teaand the rest of the establishmentrsquosmenu Of course the planning musttake into consideration the specificformat of the establishment ndash theprocess should produce differentresults for a cafJ a bar or a restau-rant The best training methodologyhere is the study of specific real-worldexamples

The visual appeal of the tea ser-vice The best way to learn methods ofmaking the tea service more attrac-tive and visually appealing is to studya wide selection of photographs Adetailed examination of 30-50 images

from various cafJs and restaurantsshould be sufficient for a good cover-age of the topic

The profitability of the tea serviceThis is pure accounting A tea special-ist must have a good knowledge of alldirect and indirect expenses thatmake up the total cost of the tea ser-vice in a restaurant

The criteria for tea and teawareselection This is essentially a set offormal characteristics supplementedwith examples and opportunities topersonally try out different tea andteaware varieties

Technological aspects of the teaservice This includes the study of thetechnical aspects of tea handling atrestaurants from purchasing andstoring dry tea to disposing of usedtea leaves and washing the teawarewith a special focus on brewing ofcourse This topic can also includevarious criteria and methods for opti-mizing the tea service

Teaching (prospective) customersabout tea After studying this topicthe future tea specialist must be ableto do three things First to composean informative tea carte second todevelop promotional materials andthird to knowledgeably interact withcustomers

Of course the training of a restau-

rant tea specialist requires extensivehands-on practice (ideally verging ondrilling) The practice must focus ondeveloping the following skills

Determining the variety and thequality of tea by its appearance andaroma No big secrets here ndash essential-ly one needs to develop the ability togauge the quality of the tea suppliedto the restaurant At a minimum thisincludes the ability to determine thetype of a tea by its appearance (ideal-ly one must also know all specificvarieties used by the establishment)and to identify spoiled tea

The content and design of the teacarte The first part is the composi-tion of a tea carte for a particularestablishment (including prices andother establishment-specific informa-tion) the assortment may be tied to aparticular supplier or ideally be sup-plier-independent The second part is

45

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АД

ел

овы

ен

ово

сти

НО

ВО

СТИ

РЫ

НК

АП

ро

изв

од

ство

и т

ехн

ол

оги

и

Ho

ReC

a

HoR

eCa

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 43: Coffee tea international 2 2013 en free

the design of the carte withthe given parameters thenumber of pages the lay-out the number of lan-guages (one or two) theformat of tea descriptionsThe third part is the designof promotional materialsfor the tea service at theestablishment

The design of the teaservice brewing and serv-ing of tea This is the cen-tral component of thetraining program but it isrelatively simple to con-duct given a set ofteaware an assortment ofteas and supplementalproducts the trainee needsto fully arrange several teaservices

The care of teawareEven though the vastmajority of restaurantshave dedicated dishwash-ing staff the tea specialistmust know the proper wayto care for the teawareldquoentrustedrdquo to him and beable to perform all the nec-essary operations himselfIt should be emphasizedthat proper care is morethan just washing the teaspecialist is fully responsi-ble for the cleanlinesssafety and appearance ofteaware

Hospitality trainingThis can be the final part ofthe program and can takethe form of a conversationover tea (prepared andserved by the trainee)

The tea specialist train-

ing program describedabove may seem too inten-sive but in reality (andgiven good-quality supple-mental materials) the fulltraining will take no morethan 10-20 class hours(even allowing for addi-tional breadth and depth ofcoverage)

Enjoy your tea

46

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СТИ

РЫ

НК

АД

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ово

сти

НО

ВО

СТИ

РЫ

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од

ство

и т

ехн

ол

оги

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ReC

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47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 44: Coffee tea international 2 2013 en free

47

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 45: Coffee tea international 2 2013 en free

COFFEEampTEA INTERNATIONAL 22013

ADVERTISER INDEX

48

AHMAD TEA LTDPhone +44(0)23 8027 8900Fax +44(0)23 8025 5867wwwahmadteacomOfficial distributor in RussialaquoSDC-FOODSraquo LtdwwwahmadtearureportahmadtearuMoscow Phone +7(495) 234 69 91Fax +7 (495) 234 69 95

AHMAD TEA LTD

DRAHTWERK ELISENTALW Erdmann GmbH amp CoWerdohler Str 4058809 NeuenradePO Box 1260 58804Neuenrade Germany Phone +49 2392 697-35Fax +49 2392 697-39teabagelisentalde www elisentalde

ELISENTAL

TEAMAC SrL

TEAMAC SrLViaMenghini140054 Budrio(BO) ItalyPhone +390516926276 Fax +390516926277infoteamacmarchesiniit Agent in Russia OOO KayanStreet 26 Bakinskikh Komissarov mdash 9Office 21 Moscow 119571Phone +7 495 434 515771643384infokayanteacom

ANCAP SpA

Ancap SpA mdash via Libia 137066 Sommacampagna (VR)Phone 0458293088exportancapitwwwancapit

ZWIRNEREI AD WUTACH GmbH

Zwirnerei a d Wutach GmbH

PO Box 1163 79780 Stuhlingen GermanyPhone +49 7744 9396-0 Fax +49 7744 9396-20infozwirnerei-wutachcomwwwzwirnerei-wutachcom

ORIMI TRADE Llc

ORIMI TRADE Llc3 Tobolskaya str St Petersburg 194044 Russia Phone (812) 346 82 40 Fax (812) 542 15 01 marketorimitraderuwwworimitraderu

KLD COFFEE IMPORTERS

KLD COFFEE IMPORTERS9 Pushkarev PereulokMoscow 107045 RussiaPhone +7 (495) 223 0348Fax +7 (495) 223 0349officekld-coffeeruwwwkld-coffeerufacebookcomKLDCoffeeImporters

GLATFELTER COMPOSITE FIBERS BUSINESS UNIT

International contactGLATFELTER Gernsbach GmbH amp Co KGPhone +49 7224 66 0compositefibersglatfeltercomRussian contactGLATFELTER RussiaPhone +7 495 984 97 94servicerussiaglatfeltercomwwwglatfeltercom

OPTIMA CONSUMER GmbHGeschwister Scholl Strasse 8974523 Schwbisch HallGermanyPhone +49 791 94606-0Fax +49 791 94606-3019wwwoptima-consumercominfooptima-consumercom

OPTIMA CONSUMER GmbH

CAMA GROUP

Cama Group23846 Garbagnate MonasteroVia Como 9 ndash ItalyTel +39 031 879811Fax +39 031 856373salesRussiacamagroupcomwwwcamagroupcom

Page 46: Coffee tea international 2 2013 en free