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Features

Contents( April 2011 Vol.183/No.4 )

ISSN 0040-0343

14 Editors Page

16 World News

20 Calendar

62 Product Showcase

64 Trade News

66 People News

68 Equipment & Packaging News

70 Marketplace, Advertiser Index

Departments32

34

22 22 To Rent or Own: The Challenges &Advantages of Private Label CustomFormulationBy Aisha Kabani

28 Espresso from A Roasters PerspectiveBy Paul Haworth

32 Defining Sustainability in the Coffee-Growing ContextBy Kristina Morris Heredia, Photos byMark Shimahara

34 The Six Tea Categories & TheirDifferences: A General Guide for TeaTraders & Tea Drinkers AlikeBy Lily Chang

40 Ancap: The Italian TraditionStaff Report

44 Software Solutions for CommodityExporters & Origin OperatorsBy Andy Dimitri

50 Empowering Producers ThroughInitiativesBy Professor Borem, Juan Gimenes &Daniel Friedlander

58 Fresh Edge The Brand is in theDetails: Checklist for SuccessBy Joshua Boyt

28

12 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net

58

Tea & Coffee Trade Journal has teamed up with delfortgroup to deliver to you the finestin thinprint paper. Our 2010/2011 editions will be printed exclusively on delfortgroupsthinstar plus high bulk 60 gsm. Not only does this paper deliver an exclusive look, itsalso completely sustainable. We have dropped our basis weight, reducingour footprint considerably. Paper is compressed carbon, after all.Delfortgroup thinprint paper offers several ultra-light-weight papersolutions, both in coated and uncoated paper. Imagine youron-pack or off-pack promotion printed on this paper!

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Fres-cos Pod systems can help you get a big serving of the single serve market.

Fres-co will demonstratethe 60PD Pod machine along with new brewingtechnologies at the SCAA Expo.

Editor-in-Chief Alexis RubinsteinSpecialties Editor Donald N. Schoenholt

Art Director Lily LeeAssistant Art Director YiLing Yen

Production Coordinator Grace GuiaPrepress Coordinator Christopher Alston

Correspondents Suzanne Brown -Marketing Correspondent;Timothy J. Castle -West Coast Correspondent;David DeCandia, Georgina Gordon-Ham, Harry Jones, Wendy Komancheck, Manfred Krner, Lon LaFlamme,Larry Luxner, Terry Mabbett, David Morris

Editorial Advisory Board Lon LaFlamme & Phil Beattie, Dillanos Coffee Roasters; Michael Cramer, Adagio Teas; Daniel Ephraim, Modern Process Equipment; Stephen Hurst, Mercanta; Stephen Schulman, S&D Coffee; Neal Robinson,BUNN; Melissa J. Pugash & Associates; Joseph Simrany, U.S. Tea Council/Specialty Tea Institute; Christian Wolthers, Wolthers America

Founding Editor William H. Ukers (1873 1954)

Editor-at-Large Jane Phillips McCabe

Accountant Anthony DiDomenico

Subscription Information Regular Subscription Rates:U.S.: $49 (1 year), $83 (2 years), $117 (3 years).Canada, and Mexico: $49 (1 year), $92 (2 years), $130 (3 years).Other Areas - Surface: $68 (1 year), $116 (2 years),$163 (3 years).Other Areas - Airmail: $152 (1 year), $258 (2 years), $365 (3 years). Single copies of back issues: $15. Inquiries: [email protected]

TEA & COFFEE TRADE JOURNAL26 Broadway, Floor 9M, New York, New York 10004 U.S.A. Tel: (1)(212) 391-2060, Fax: (1)(212) 827-0945Web Site: http://www.teaandcoffee.net, Inquiries: [email protected]

ANNUAL DIRECTORY & BUYERS GUIDEEach year, Tea & Coffee Trade Journal publishes the Ukers Tea & CoffeeGlobal Directory & Buyers Guide, a comprehensive reference guide to theindustry and its allied industries. Qualified companies are entitled to afree listing. Contact editorial offices for a listing form.

TEA & COFFEE TRADE JOURNAL (ISSN 0040-0343) is publishedmonthly by Lockwood Trade Journal Co., Inc., 26 Broadway, Floor 9M,New York, NY 10004 U.S.A. Tel: (1)(212) 391-2060, Fax: (1)(212) 827-0945, E-mail: [email protected]. Postage paid at New York, NYand additional mailing offices. Printed in the U.S.A. Copyright 2009 byLockwood Trade Journal Co., Inc.

POSTMASTER: Send address changes to Tea & Coffee Trade Journal,

Member: National Coffee Association, Green Coffee Association, Pacific Coast Coffee Association, Coffee Association of Canada, Specialty Coffee Association of America,Specialty Coffee Association of Europe, Specialty Tea Institute, Tea Association of USA,Tea Council of Canada.

Alexis RubinsteinEditor-in-Chief


( from the )

EditorsDeskBack to Our RootsAs many of our readers may know, Tea & Coffee Trade Journal has been the

source for industry information since 1901. We have esteemed ourselves with

being the only vertically integrated publication in both the tea and coffee

fields; reporting on everything from crop reports and transportation and stor-

age issues, to roasting profiles and retail branding. It is this variety that has

kept us in the offices, factories and shops of some of the most well-known

companies throughout the world.

Many years ago, Tea & Coffee Trade Journal covered the globe, both edito-

rially and through its circulation. The business model was reworked when we

established an Asian sister publication to cover the growing Asian tea and

coffee markets. But now, Tea & Coffee Trade Journal is returning to its roots.

Once again, it will be the only magazine distributed throughout the

world, to all the coffee and tea producing and consuming regions. Starting

with our May issue, the magazine will integrate Asian-focused editorial, cov-

ering the developing trends, producer reports and noteworthy news occuring

on the other side of the world. We will highlight Asian-based companies deliv-

ering exceptional products, service and standards.

This added circulation and editorial content will not only re-establish the

publication as the worldwide leader in the tea and coffee industries, but it will

bridge the gap between the continents, making the world a smaller, more

familiar place to conduct business and understand the global markets.

We will continue to conduct our Tea & Coffee World Cup exhibitions in

Asia, to reinforce our presence, and help our readers and clients from around

the world come together. Whether it be through our trade shows, our maga-

zine or our website, our international presence will help your business grow

and your knowledge of the industries expand.

We have had a meaningful 100+ years in business, keeping with the evo-

lution of the tea and coffee fields, and we look forward to another successful

100+ years doing the same.

WWW.TEAANDCOFFEE.NET/SUBSCRIBE/, CALL:(USA) 1-800-766-2633, (INTL) +1-845-267-3489

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along with FREE access to the online Digital Edition!

Hawaii Ag Dept. Proposes Rule Change For Coffee Berry Borer FungusHAWAII The Hawaii Department of Agriculture (HDOA) wants to hurrythrough approval to import a fungus to help fight the coffee berry borer thathas affected coffee production on the Big Island particularly in the famedKona Coffee farming areas.

The fungus, Beauveria bassiana GHA, would be moved from a list ofrestricted microorganisms (Part A) to the list of nonrestricted microorganisms.The approval would come under Hawaiis administrative rules.

State agriculture officials now say that based on scientific research,they are certain that the fungus B. bassiana GHA probably presents aminimal risk to the environment. Under the Department of Agriculturerules, the fungus, which is contained in pesticides, Mycotrol O andBotanigard ES, registered by the U.S. Environmental Protection Agency,could be imported to Hawaii without permit. The product is alsoapproved for organic farms.

Agriculture officials say the two commercial products, Mycotrol O andBotanigard ES are the only apparent chemical control options for coffeefarms in the Kona district of Hawaii island that are infested with Coffee BerryBorer, a serious pest of coffee. This expedited process provides for adoptionof amendments through Board order and approval by the Governor.

Farmers In Spain Look To Expand European CoffeeVALLE DE AGAETE In a tropical valley in Spains Canary Islands the monthof April is the time to harvest coffee, which is marketed as gourmet productand one which farmers hope to expand rapidly.

Since the late 19th century, the residents of the Valley of Agaete on thenortheast coast of Gran Canaria island in the Atlantic have cultivated this cof-fee, which they consider the only one in Europe, said Victor Lugo, head ofthe Agroagaete cooperative.

It is not quite the only one, as coffee plantations exist in the Caribbeancountries that belong to European nations. Production of coffee in theCanaries is just 3.0 to 4.0 tons per year, organically grown in an area of about20 hectares (50 acres).

The aim is to bring production to 7,000 kilos (15,000 pounds) from around2,000 to 3,000 plants while maintaining quality as the priority, said Lugo.

The coffee, first brought from the neighboring island of Tenerife in the19th century, is grown in this rugged and green valley along with tropicalfruits such as mangoes, papayas and avocados.

In the town of Orotava on Gran Canaria there is also a botanical gardenswhere plants brought from the Americas and Asia are grown that are beingacclimatized before being introduced into Europe.

For the past eight years Agroagaete, which groups 30 farms that grow thecoffee and around 1,000 employees, has led a project to raise awareness of itas gourmet product, which sells for 60 euros ($87) per kilo or 15 euros fora packet of 250 grams.

Lugo said it is a high-quality Arabica coffee which has the aroma ofchocolate and fruit.

( Coffee and Tea Reports from the Front Line )

Publisher/Vice President Frederick A. Lockwood

Executive Director Rob Lockwood

Chief Financial Officer Sam Kowalski/Chief Operating Officer

Circulation Manager Mayuri Khemlani

President Robert M. Lockwood

World Cup Show Manager Mayuri Khemlani (U.S.)

World Cup Show Assistant Nancy Fang (U.S.)

Director of Exhibitions Frank B. Schuetze (Germany)Tel: +49 30 645 7212Fax: +49 30 6409 1350E-mail: [email protected]

ADVERTISING REPRESENTATIVES

Austria, Switzerland, Robert M. Lockwood Southern Germany, 26 Broadway, Floor 9M

United Kingdom New York, New York 10004France Tel: +1 212 391-2060

Fax: +1 212 827-0945E-mail: [email protected]

South America, Frederick A. LockwoodItaly, Portugal, Spain 26 Broadway, Floor 9M

New York, New York 10004 Tel: +1 212 391-2060Fax: +1 212 827-0945E-mail: [email protected]

Alaska, California, Rob Lockwood Jr. Oregon, Washington, 26 Broadway, Floor 9M

Western Canada New York, New York 10004Tel: +1 212 391-2060Fax: +1 212 827-0945Email: [email protected]

South Eastern Europe, New York Sales OfficeAfrica, 26 Broadway, Floor 9M

Northern Germany, New York, New York 10004Scandinavia, Benelux Tel: +1 212 391-2060

Fax: +1 212 827-0945E-mail:[email protected]

Asia, Eastern Europe Joe MirandaRussia, Middle East 26 Broadway, Floor 9M

New York, New York 10004Tel: +1 212 391-2060Fax: +1 212 827-0945Email: [email protected]

North America, Scott RogersCentral America, 26 Broadway, Floor 9M

Caribbean New York, New York 10004Tel: +1 212 391-2060Fax: +1 212 827-0945Email: [email protected]

26 Broadway, Floor 9M, New York, New York 10004 Tel: +1 212 391-2060, Fax: +1 212 827-0945

Lockwood Publications produces the magazines: SMOKE, Smokeshop, Tobacco International, as well as the Ukers Global Directory & Buyers Guide

http://www.teaandcoffee.net


WorldNews

TSUBACO-TWINKLE

But distribution is restricted since it issold only in the town of Agaete, in Spainstop department store chain Corte Inglesor on the Internet.

Shifting Weather Patterns Have LedTo Lower Bean Yields And HigherPrices At Coffee ShopsSAN JOSE A mile above a Costa Ricanrural mountain town, coffee trees have pro-duced some of the worlds best Arabicabeans for more than a century. Now, farmersare planting even higher at nearly 7,000feet thanks to warmer temperatures.

We noticed about six years ago, theweather changed, said RicardoCalderon Madrigal, whose family har-vests ripe, red coffee cherries at the high-er elevation. He sells beans to some ofthe most notable coffeehouses in theU.S., including Stumptown CoffeeRoasters of Portland, Ore., and RitualCoffee Roasters in San Francisco.

Standing among healthy coffee treesnear the upper reaches of his farm,Calderon said he knows he is lucky.Calderon is one of the few Costa Ricancoffee farmers benefiting from the shiftingweather pattern, while most of his fellowgrowers have found themselves on the los-ing end.

Yields in Costa Rica have droppeddramatically in the last decade, with farm-ers and scientists blaming climate changefor a significant portion of the troubles.

Many long-established plantationowners have seen trees wither or flowertoo early. Some have given up. Others aretrying to outwit changes in temperature,wind and rain with new farming tech-niques and hardier tree varieties. Likemany tropical crops, coffee cannot toler-ate extreme high and low temperatures,and it needs dry and wet seasons. CostaRica and other countries, such asColombia, with sophisticated coffee farmsand mills, appear to be noticing the effectof climate change first.

These problems are helping to pushup the price of a latte or espresso at coffeeshops everywhere. Most important, thefate of coffee in Costa Rica could be abellwether for food production andprices globally, as farmers around the

world cope with mudslides, droughts andcreeping changes in temperature.

Almost all coffee grows in the tropics,and in general, tropical species are moresensitive to climate change, said JoshuaTewksbury, the Walker professor of natu-ral history at the University ofWashington. There are more species there,they can withstand only a narrow band oftemperatures and they are not likely toadapt well to change.

Heavy rains in Colombia recentlyhelped drive coffee beans to prices notseen in more than a decade, and coffeecompanies are watching closely. Last fall,Starbucks raised prices on some drinks tooffset rising costs on commodities,notably coffee.

Sasini of Kenya Snaps Three-DayDrop on Tea Price Gain BetsNAIROBI Sasini Ltd. (STCL), a Kenyantea and coffee grower, snapped three dayson gains on speculation both productionand prices of tea leaves will climb.

The climbed 5 cents, or 0.5%, to10.10 shillings. Farmers are expectinghigher prices because production in Indiahas fallen, Wycliffe Masinde, a researchanalyst at Nairobi-based Kestrel CapitalEast Africa Ltd., said in a phone inter-view. The meteorological departmenthas announced we might be seeing theend of the dry season. The impact onproduction will be seen from the nextthree months.

Tea exports from India, the worldsbiggest grower after China, fell 11% inFebruary to 11.93 million kilograms froma year earlier, Press Trust of India said yes-terday, citing data from the Tea Board.Kenya is the worlds biggest exporter ofthe black-tea variety.

HUL & Tata Tea Roped In To MakeIndia A Global Tea HubNEW DELHI To increase the competi-tiveness of domestic tea exporters, thecommerce ministry has started work onevolving a triple-five strategy which seeksto identify five target countries forexports, in a clearly defined steps of fiveand in a period of five years. For this pur-pose the government has roped in major

private sector players including Tata Teaand Hindustan Unilever.

Explaining the rationale behind themove minister of state for commerceJyotiraditya Scindia told FE in an inter-view that since a chunk of the tea current-ly produced in India get consumeddomestically, the government is weighingseveral options to reverse the trendincluding the introduction of a newscheme. We have started work on devel-oping a triple-five strategy paper forincreasing our tea exports. The papershould be completed by the end of Maythis year, Scindia said.

The governments concerns are war-ranted since Indias tea exports have grad-ually declined despite being the secondlargest producer after China. While mer-chandise overseas shipments grew in dou-ble digits in 2010, tea exports declined2.5% in the same year to 193.3 millionkilograms as compared to 198 millionkilograms exported in 2009. In fact, thiswas even below the modest 200 millionexport target set by the Tea Board in theprevious year. The declining tea exports isalso a sign of the growing threat posed byother economies such as Sri Lanka,Indonesia, Vietnam and Kenya.

The potential is huge and it needs acollaborative approach. We dont wantthis to be merely a government exercisethat is why we are involving various pri-vate sector companies as well as the big teaexporters to be a part of the discussions,Scindia said. He said that the steps wouldfocus on improving the quality of tea pro-duced and increase the total volumes.India currently exports only 18-19% of itsoverall tea production.

Among the steps that the governmentis likely to draw up include expanding thetea production by giving special incentivesunder various schemes and encourageoragnized production of tea.

The government hopes that bringingthe private sector players would helpaddress some of the broad issues plaguingthe industry. Tata Tea, which is a part ofTata Global Beverages, is among thecountrys largest tea producers. HULowns brands such as Brook Bond and TajMahal Tea.

( WorldNews )


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( Calendar )April 28 May 1Hotelex ShanghaiShanghai, ChinaTel: +86 21 6437 1178Fax: +86 21 6437 0982Email: [email protected]: www.hotelex.cn

April 28 May 1:23rd Annual SCAA ExhibitionHouston, TexasTel: +1 562 624 4100Email: [email protected]: www.scaa.org

May 12 18:InterpackDusseldorf, GermanyTel: +49 0 211 4560 900Fax: +49 0 211 4560 668Email: [email protected]: www.interpack.com

May 18 19:

Caffe Culture

London, England

Tel: +44 207 288 6191

Web: www.caffeculture.com

May 21 24:

National Restaurant Association Show

McCormick Place, Chicago, Illinois

Tel: +1 312 853 2525

Fax: +1 312 853 2548

Web: http://show.restaurant.org

June 3 5:

Coffee Fest San Diego

San Diego Convention Center

San Diego, California

Tel: +1 425 295 3300

Email: [email protected]

Web: www.coffeefest.com

June 24 26:

World Tea Expo

Las Vegas Convention Center

Las Vegas, Nevada

Tel: +1 702 253 1893

Fax: +1 702 253 9985


Web: www.worldteaexpo.com

July 8 10:

Coffee Fest Hawaii

Kona, Hawaii

Tel: +1 425 295 3300



July 10 12:Fancy Food Show

The Walter E. Washington Convention

Center, Washington D.C

Tel: +1 212 482 6440

Web: www.specialtyfood.com

August 18 21:11th Annual Roasters Guild Retreat

Stonewall Resort, Roanoke, West

Virginia

Tel: +1 562 624 4100


Web: www.roastersguild.org

September 23 25:

Coffee Fest Seattle

Washington State Convention Center

Seattle, Washington

Tel: +1 425 295 3300



October 8 12:

Anuga Exhibition

Cologne, Germany

Tel: +49 0 221 821 2240


Web: www.anuga.com

October 21 25:

Host Milan Fair

Milan, Italy

Tel: +39 02 4997 1

Fax: +39 02 4997 6586


Web: www.host.fieramilanoexpocts.it

2012March 25 - 27:Tea & Coffee World Cup EuropeReed Messe Wien, Vienna, AustriaTel: +1 212 391-2060Fax: +1 212 827-0945Email: [email protected]: www.tcworldcup.com

Contact: Tea Association USA (STI), 362 Fifth Avenue, Suite 801, New York, NY 10001. Tel: +1 212-986-0250, Fax: 212-697-8658, E-mail: [email protected], Web: www.teausa.org

Visit us online regularly for upcoming

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Consumers comparing private brandsto corporate name brands typicallyevaluate food products by ingredi-

ents, nutrition, price and the intangible

warm and fuzzy feeling of the packaging,label and the pull of the product itself (notnecessarily in that order). In this third arti-cle exploring private label, the topic is cus-

tom formulation. As consumers, we prob-ably dont consider the behind the sceneseffort to bring a private label product tomarket. Each market segment approachesprivate label in a similar manner. Big boxretailers typically use sales data as the driv-er. If brand X offers 17 flavors of tea buttheir top 5 flavors do 80% of the business,the retailer is only going to consider those5 flavors for their own private label. Retailoutlets and restaurants with multiple unitstypically use private label as brand exten-sions and will introduce concept themesseasonally, with basic, high volume prod-ucts private labeled and slower itemsbranded. These two market segments typ-ically have a savvy marketing and R&Dteam to work out the issues of formulation,ingredients, packaging and suppliers. Theyalso have a budget. Smaller enterprises, orthose new to private label, may not have

When I asked individuals to contribute to this article, themajority of them reacted nervously, with a short laugh.Others offered a pregnant pause, as if to say, dont touchthat topic. The subject of private label formulation issacred. It is each companys intellectual property and itdifferentiates manufacturers, copackers, marketers, dis-tributors and retailers from each other. ( By Aisha Kabani )

( Private Label )

To Rent or Own The Challenges And Advantages Of Private Label Custom Formulation

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those resource advantages. This article will hopefully shed some

light on how to create a private label pro-gram in the most cost effective and mean-ingful way to your company.

There are two main paths to create acustom product. Which path you choosedepends on how much money you want tospend, how much time you can invest inthe development phase and how muchinterest you have in the R&D process. Forthe purpose of this article, I conferred witha variety of individuals including food sci-entists, flavor suppliers, retailers and manu-facturers to gain different points of view inhow different market segments create a pri-vate label program. What emerged, washow each market segment viewed the main

components of private label, specifically,research and development, ingredients,costs, time, marketing and the choice of theco-packer/manufacturer. Their insight sig-nificantly shaped this article and the advan-tages and challenges below should give youa sense of whats ahead in private labeldevelopment. As this topic is sensitive (andsacred) some of the contributors asked toremain nameless due to their position attheir company, while others were willing tohelp by offering advise and professionalexpertise. The team of contributors include: Carol Vandell, owner, SupertechFood/Beverage Solutions Mark Tuerffs, president, S&S Flavors Seth Wilen, president, AmericanTrading International

Gifford Brown, director of sales,Continuum Packing Solutions

There are three common approaches tocreating a private label program. The first isto give your formula that you own to a man-ufacturer or co-packer; second, to match anexisting product line utilizing the skills of acustom formulation specialist or consultant;and third, to rent a formula, or use a manu-facturers standard/stocked/off the shelfproduct. All three methods are used rou-tinely within the industry, although youmay opt to create a hybrid. For example,most manufacturers offer R&D services andtherefore will match a product. This articlewill focus on two ends, owning your formu-la and using a manufacturers off the shelfformula, otherwise known as renting.

( Private Label )

Option 1 Renting a Formula (or using an off the shelf recipe)This option gives the brand owner a speedy entry into the market place with a tried and tested product, while allowing the brand owner to share the buying

power of the co-packer or manufacturer. This is ideal when volume is unknown, the brand owner is not able to invest too much time or money into the processand the brand owner wants to rely on the manufacturer for technical and packaging expertise. It is also ideal for retailers that want a flavor profile, not a uniqueor custom formula. The challenge is that the formula and recipe is controlled by the manufacturer and therefore costs and production can be out of your hands.

Challenges

The off the shelf product may be different from the idealproduct you need and therefore custom R&D is required. While most manufacturers will offer thisservice at no charge, changing the off the shelf productdoes not mean the formula belongs to you.

The challenge in this arena is that you will never knowwho supplies the ingredients.

One of the biggest challenges is lack of control overpricing. Your selling price is now dependent uponanother companys costing model. This can cause fric-tion, especially now, as ingredient and food prices arerising and most brand owners cannot control the pricingmodel. The burden is on the co-packer/manufacturer tosecure the sharpest pricing.

In order for products to be seasonally relevant, you will have to work with the co-packer/manufacturer earlier in order to ensure a seasonal product gets tomarket in time.

When embarking on a private label program, rarely areall branded products being eliminated and therefore a delicate balance has to be struck between promotingyour private label brand and loosing the rights of distribution or marketing of national brands.

Smaller companies embarking on a private label willhave to buy minimums that may be more than they need, as manufacturers have to maintain their efficiency and production levels.

Advantages

When renting a formula, the R&D is done. You can be confident that you are receiving a product that istried in the marketplace, has verified nutrition andingredient statements and takes advantage of themanufacturers in-house R&D team.

With a rented formula, you are able to take advantageof the manufacturers efficiency in sourcing ingredients and other raw materials.

Upfront costs are minimal and in fact pricing is usual-ly set. Retailers like this because they are heavilyprice driven and need a private brand that makesthem competitive with national brands. By having aprice fixed for a standard product, retailers are thenable to develop more complex private label programsoffering multiple private brands within each category.

The time barrier to entry is very low with a rented formula as most everything is already ready to go.Typically all that is left is the discussion of labels andpackaging.

Without the headache of custom formulation, mostcompanies can spend the effort on developing a mar-keting program to launch the brand. This is very typi-cal among retailers that offer multiple private brands.

If you have selected a manufacturer who specializes inthe product you are private labeling, you can share intheir manufacturing expertise and take advantage ofall packaging options.

Research & Development

Ingredients

Costs

Time

Marketing

Manufacturing


Overall, the path you choose will bedetermined by your company and yourbrands mission. This article should giveyou some avenues to consider as you movetowards creating your own private labelprogram. The process can be fun, energiz-ing and engaging for all parties involved,

provided you understand the risks andrewards associated with both options. Themost critical aspect is transparency. As onecontributor said Up front clarity buildstrust, trust fosters relationships and rela-tionships bring repeat business. A specialthank you to all the contributors who

helped shape this article. 7

Aisha Kabani is vice president of privatelyheld Eagle Beverage & Accessory Products,based in Kent, WA. The company manufac-tures and co-packs private label specialty bev-erage products for the food service industry.

Option 2 - Owning your own formula (and developing it)This option offers complete flexibility to the brand owner. You can control the ingredients, the costs, the timeline and the manufacturer. The major challenges focus on

technical expertise and the potential lack of focus from your companys core business. It is also extremely expensive and time consuming.

Challenges

You will need a qualified in-house Food Scientist, orpartner, to help you through the process. Anything lessthan that can result in unsatisfactory results, both froma cost and formulation perspective.

The biggest challenge is identifying the best suppliersand spending the time to negotiate with each of them.As the formula owner you will need to set up accountswith each of the suppliers and therefore, perhaps willnot enjoy preferred terms that a larger manufacturerwould with those same suppliers. Large manufacturerstypically have contract pricing for commodity or highvolume raw materials.

There are R&D costs for custom formula developmentranging from a few thousand dollars to hundreds ofthousands of dollars, depending upon the product.

Recovering the costs of R&D takes several years, typically 3-5 years for each product developed. In somecases, the recovery time may exceed the lifespan ofthe product.

As the ingredients and costs are not in their hands,manufacturers can ask for strict supply agreements,which will be based on volume projections and timelines. If the product is new to the market, thesecosts may be higher.

Most private brands are copy-cat or improvementbrands and therefore not a priority. Unfortunately, thiswill increase the R&D costs over time and take up valuable human resource time, which could be spentelsewhere. Creating a private brand for a non-essentialbrand extension can be time and cost traps.

Smaller companies developing marketing strategiesand their own formulations can become tunnel visionedand not see the larger goal selling the product.

When you own the formula and give it to the manufacturer, you are entrusting that the manufacturer will honor any confidentiality agreements and othercontracts in place. This requires a significant leap of faith.

Advantages

You control the entire phase of R&D, from imaginationto finished product.

As the developer, you will have complete flexibility tochoose ingredients and ingredient suppliers. Thisopens up the door to the best suppliers for specificingredients. With this option you are able to dictateorganic, all natural, preservative free or any other typeof designation.

You can design a product that fits your budget. Forexample, you can specify to the flavor supplier thatyou want to pay $$ per pound for a specific ingredient.

The process of creating one custom formula can takeanywhere from 2-4 weeks with an in-house food technologist or 3-6 months using outside consultants.Some products can take up to 2 years or more,depending upon the availability of raw materials. This is most critical if fresh, seasonal ingredients are required and can only be procured during a certaintime frame.

With a custom formula, management typically has avested interest in the product and marketing effortscan be dynamic.

When you own the entire formula, you are at liberty tochange suppliers or co-packing facilities. You can alsoregionalize production and therefore experience better freight efficiency.

Ingredient suppliers know that no matter where theproduct moves, they still retain the business since flavors are so specialized.

Research & Development

Ingredients

Costs

Time

Marketing

Manufacturing

( Private Label )

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Everyone seems to have a strictdogma of what constitutes theimmutable. We love to give our-

selves these ranges of time, temperature,pressure and volume to let us know that

we have done everything we can. Whendetermining a beans espresso worthi-ness, we taste the finished product andjudge for ourselves if the bean is toobright or not balanced enough to be

used in the Divinely inspired rule ofespresso extraction.

Now, lets talk about coffee roasting.Coffee drinkers everywhere are learningabout subtlety of origin based on culti-var, altitude and quality processing andsorting. There is now a tendency to roastas transparently as possible. This comesfrom the influence of the professionalcoffee taster (cupper), who knows thatthere is a certain way to roast green sam-ples in order to avoid tasting what areknown as roast defects that mask theuniqueness of a coffee. The inherent del-icacies of quality are simply coerced intoa palatable suspension through the roast-ing process. The idea of coffee roastingbeing some sort of mystical way ofadding anything not already present isnow seen as all but ridiculous.

So, back to espresso, why do we still

Espresso from a Roasters Perspective


( Espresso Evaluation )

Espresso has so much potential. We are seeing manydevelopments in the tradition and it is always veryexciting when people are willing to think outside of the(knock) box. Right now, I would like to challenge all ofus to consider for a few minutes how arbitrary theespresso standards we have inherited may be.( By Paul Haworth )

change the way we profile the roast of abean based on how we intend to extract?Why do we still call a particular (darkerand often less airflow) roast profile ourespresso roast? Or, why do we say, aftertasting a coffee bean as an espresso, Thiswould be great as an espresso if only wecould tone down the brightness (or addbody, or add crema) by how it is roasted?I am not trying to argue that espressoshould be overly bright or unbalanced, Iam just saying that changing the way cof-fee is roasted is barking up the wrong (cof-fee) tree. Instead of saying, Hey, this cof-fee would be better if we roasted all of theoffensive stuff out of it, why not justadmit that any brew method that turnsproperly roasted coffee into somethingoffensive needs to be tweaked. If youknow you roasted the coffee perfectly (by,among other things, cupping for roastdefects) dont fault your roasting, fault thebrew method!

I know many people reading this willsimply say that some coffees are suited forespresso and some are not. I disagreewhole-heartedly. The only coffees that arenot suited for espresso are the same coffeesthat are not suited for any extraction

method. I want to see us get to a pointwhere we are finding amazing coffees, weare roasting them transparently and we arebrewing them in all the ways we know tobe pleasant, traditional or otherwise.

So, I say that espresso has great poten-tial. It could become another amazingway of showcasing different coffees and alltheir myriad subtleties. It has proven byits longevity and now its global presenceto be a promising method that tends tocapture the imagination. Now it is just amatter of willingness to trade arbitraryalbeit traditional parameters in for hon-esty and experimentation. We need to besure to not sacrifice the bean for themethod. We need to discontinue the ten-dency of putting the (espresso) cart beforethe horse.

Now, what does this look like? Dowe need to jump on the bandwagon ofpressure profiling? Do we create moreand more accuracy within machinesthrough variables that can be tweakedto even more decimal places? Perhapsthat is true for some who have thewherewithal to do so. For most of us,this is not practical. What we can do isbegin to leave the idea of roasting for

espresso behind us and begin to closethe gap between the types of coffeeswe are using for espresso and what weare using for other brew methods. Iwould like to see a day when the wordespresso is never mentioned on wholebean packaging. Espresso will be animplied option for any great coffee, nota way of marketing a particular bean orblend of beans.

So, I plead with my fellow roastersto buy the best coffees you can afford,roast them properly and let them speakfor themselves. Quality is always mar-ketable and trends or traditions thatencourage any kind of marginalizationof quality will not last. I hope espressocan be fixed. I know you are out thereand that you are tired of making up foran under-developed brew method byimproper roasting. 7

Paul Haworth is the coffee roastmaster andhead of wholesale at the Cartel Coffee LabRoastery in Tempe, Arizona. Paul began hiscareer in coffee as a barista in 1996 andstarted roasting in 1997. Jason Silberschlag,Cartel founder, has been one of Pauls closestfriends since high school.


PRE-CLEANERVarios Cleaners forpreconditioning beforedrying or grading

SIZE GRADERfor high quality cleaning(air and thickness) ofgreen coffeefrom 2.5 to 11 t/h

DE-STONER-TSfor separation of heavymaterials such as stones,metalic particlesfrom 3.8 to 15 t/h

GRAVITYSEPARATOR-GAfor separation acording tospecific weightfrom 0.2 to 12 t/h

HULLERPOLISHERfor Parchment and GreenCoffeeSKP Huller:from 4.5 to 5 t/hHansa 10 and 14:from 1 to 2.5 t /hCross beat Huller SSMfrom 1.8 to 2.7 t/h

COMPACTHULLER - KSEwith cross beat Huller, Pre-Cleaner, De-Stoner, huskSeparator, dust extractiondevice and Catador, 0.8 to1.2 t/h

CONVEYINGEQUIPMENT- Elevators / Z-Elevators- Screw/Belt Conveyors- Drag Conveyors

DUST SYSTEMSdust control system withbag filters, cyclofans, fanand clyclofan system

DRYERSDryers for all kind of freeflowing grains as well asfluid bed dryers for nonflowing material

UNIVERSAL BSLgreen Coffee washing andrefining machine to clean,recondition and polishing -1.8 t/h

( Espresso Evaluation )

Buhler and Petroncini test facilities optimize product quality and plant efciency.

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The modern pilot plants in Italy and Switzerland offer tailor-made services for

the coffee processing industry. Experienced research teams test and develop

customers processes and products on small-scale industrial machines under real

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throughput as well as energy consumption and emission output. Process analyses

including reliable data for the future production help to select the most appropriate

manufacturing equipment. www.buhlergroup.com, www.petroncini.com

That being said, there are a few fun-damental elements that must be inplace if a coffee is to be considered

sustainable. Coffee Kids, whose missionis to help improve the lives and liveli-hoods of coffee farmers and their fami-lies, works closely with coffee-growingcommunities to better achieve sustain-able farming practices. We take the fol-lowing elements into account whendetermining a projects sustainability:

The economy A project must beable not only to sustain itself, but also togrow as the number of participants does.

The people A project must supportand encourage a more just environment forall community members, which includesproviding access to health care, education,nutritious food and a future in sustainablecoffee production. Sustainable coffee proj-ects provide workers with fair wages and

positive working conditions. These condi-tions are what create a life of dignity.

The environment - Production meth-ods must not compromise the quantity ofand access to natural resources. A sustain-able project must preserve and protectthem. It neither strips the soil of nutri-ents, nor does it contaminate it with fer-tilizers and pesticides. A sustainable proj-ect searches out renewable energy sourcesand ways to become self-sufficient.

In 2004, a group of six local volun-teers created The Association forSustainable Development of Paraxaj(ADESPA) to address a lack of health careand educational services in and aroundParaxaj, Guatemala. Since then, ADESPAhas grown into a valued support systemfor impoverished coffee farmers and theirfamilies. Two of ADESPAs projectstheshoemakers workshop and the textileprojecthave reached sustainable status.

Both projects were created in 2008 andbecame sustainable this year due to the fol-lowing: continuous training; participantstaking gradual control and responsibility ofthe project; participants learning from mis-takes and continuing to move forward;accurate cost-benefit analysis; close com-munication and observation in every stageof the project; and leadership to resolveconflict. In the case of the shoemakersworkshop, they also responded to a com-munity needlowering the price of shoes.

Coffee Kids is especially proud of TheRural Childrens Education Foundation(FHC) out of Costa Rica. Their educationproject reached sustainable status after 13years of outside support. Coffee farmersin 40 communities belonging to theCosta Rican cooperative COOCAFEestablished FHC in 1996. Given the lackof educational opportunities in the com-munity, these families organized andpooled their resources to improve educa-tional options for their children. FHCoffers scholarships to high school and uni-versity students and also makes grants toelementary schools for supplies and infra-structure. Thanks to FHCs efforts, schoolchildren now have access to computersand will for many years to come.

Sustainability has become somewhat of abuzzword as people the world over begin torealize the importance of living within ourmeans, in relation to our surroundings ratherthan in opposition to them, and workingtoward common long-term goals as a com-munity. Sometimes community means thecoffee-growing cooperative, sometimes itsthe coffee-growing community, and some-times, such as now, it means the entire coffeeindustry, which includes you, wherever yourlink in the chain may be. 7

( Coffee Kids )

Defining sustainability is not an easy task. There are, afterall, many interests at stake. A variety of factors go intodetermining a projects sustainability, and no on organiza-tion has dared to come out with a definitive meaning. ( By Kristina Morris Heredia, Photos by Mark Shimahara)


Defining Sustainability InThe Coffee-Growing Context

Get a grip to ecient production.

With up to 600 enveloped bags/minute, the new C2002 is the fastest, most exibletea bag machine with the highest eciency rating available today. Capable ofprocessing heat-sealed as well as crimped outer envelopes and naked bags, theC2002 is another important step in evolution by IMA Tea & Coee Division.

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Tea is the worlds drink of choice, sec-ond only to water. All tea comesfrom the subtropical plant Camellia

Sinensis, native to China. While there arethousands of types of teas produced world-wide, all tea can be classified into six differ-ent categories based on their degree of oxi-dation and the methods by which they areprocessed. The six categories of tea are:green tea; yellow tea; white tea; oolong tea;black tea; and dark tea. Chamomile,Rooibos, mint and other healthy flowerand herbal tisanes are often called tea but

are not tea in the strictest sense. Virtually all specialty tea is produced

using the orthodox method of produc-tion. To produce green tea, tea leaves arepicked and then undergo slight witheringto reduce moisture, making the leaves pli-able. The leaves are then fired or steamedat temperatures above 185F to neutralizethe natural enzymes and prevent oxidiza-tion from occurring. Next, the leavesundergo rolling, shaping, drying and sort-ing. Some green teas are scented withnight blooming jasmine. The process of

scenting is often repeated several timesbefore the tea is finally re-dried.

Yellow tea is a slightly oxidized tea.After the leaves are picked and witheredthey undergo an initial firing. The leavesare rolled or shaped like green tea and thenpiled, covered or wrapped and kept dampat temperatures between 77 F and 95 Funtil they turn yellow. During this stepslight oxidation occurs. This process pro-

The Six Tea Categories & Their Differences:

A General Guide for Tea Tradersand Tea Drinkers AlikeEvery day I am asked questions about tea. What is tea?Where do the best teas come from? What are the bene-fits of drinking tea? Which tea is better? ( By Lily Chang )


( Tea Types )

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Best choice for you and Planet EarthAt GLATFELTER we are committed to providing you with superior products that meet the highest

standards of environmental sustainability. Using abaca we can achieve both goals. Our high quality

tea filter papers offer unrivaled product performance on most machines, excellent wet strength and

infusion properties. But did you know that abaca is a very important part of sustainability? Abaca is a

natural fiber that grows on marginal lands and does not compete with food crops. During the process

of growing and harvesting the crop, organic fertilization of the soil takes place. The abaca is naturally

dried in the sun and wind.

duces the distinctive Huang Cha tea liquor.Finally, the leaves are dried and sorted.

Unlike green tea, white tea is not firedor steamed and as a result is a slightly oxi-dized tea. To produce white tea, tea leavesare picked and naturally withered. Neverrolled or shaped, white tea leaves are eithersun or machine dried and then sorted. Inrecent years, this fresh, sweet chestnut fla-vored tea has gained great popularity inthe U.S. for its health benefits.

Oolong tea is a partially oxidized tea.The tea leaves are picked and withered.To kick off oxidation, the tea leaves arebruised by skillfully shaking, rolling ortumbling them and this process is repeat-ed until the proper level of oxidation isachieved. Oxidation is arrested by firingthe leaves. The leaves are rolled andshaped as required for the type of oolongbeing produced. The tea is then dried,baked and sorted. Leaf oxidation can be aslow as 10% to as high as 80% in oolongtea and depending on the level of oxida-tion an oolong teas liquor can be as lightas green tea or as dark as black tea.

Long preferred in the west, black tea isa fully oxidized tea. After the tea leaves arepicked and withered they are rolled, cut orcrushed until complete oxidation occurs.The tea is then shaped as desired anddried and sorted. This hearty tea is afavorite in breakfast blends and oftenenjoyed with milk and sugar.

The most famous of the Dark teas isPu-Er. Produced in the Yunnan sinceancient times, it is named after the tea trad-ing town of Pu-Er. There are two types ofPu-Er: Sheng or Green Pu-Er; and Shu orBlack Pu-Er. For both types of Pu-Er, theleaves are picked, withered and fired. Theyare rolled and sun dried until leaf moistureis reduced to approximately 10%. ShengPu-Er then undergoes a slow, natural agingprocess and it often takes many years forthe tea to achieve its optimum flavor.Unlike Sheng Pu-Er, Shu Pu-Er undergoesthe Wo Dui process, first used in 1973.The Wo Dui process imitates and acceler-ates the natural aging process and makesShu Pu-Er immediately drinkable. Whileboth teas can be compressed into bricks,

cakes, bird nests and other forms, ShengPu-Er is generally always sold as com-pressed tea for storing and collection.

Most teas of world renown are grown inChina, Taiwan, Japan, India and Sri Lanka.Like fine wines, these teas are often namedafter their areas of origin. These famous teasare virtually always best when grown in thearea where they originated. This is becausesoil conditions and weather conditions suchas rainfall, sunlight, temperature and humid-ity are ideal for the varietals or cultivars usedto produce these famous teas. Culture, localknowledge and skill also play a big part.These celebrated teas are known for theirspecial fragrance, shape, color and taste char-acteristics and they never quite taste the samewhen grown and produced in a differentregion. The following chart will be helpfulin locating your favorite teas growing area.

Based on scientific research, tea con-tains tea polyphenols, tea polysaccharide,gamma aminobutyric acid (GABA), vita-mins, minerals, fluorine, selenium, alka-loid, tea saponin, theanines and caffeine.Tea is a healthy beverage known for its


( Tea Types )

HPTHENRY P. THOMSON, INC.

Tea Importers EST. 1912

MEMBER OF: CTPAT CERTIFIED

OUR MISSIONIS TO PROVIDE:

Always there with the Right Tea at the Right Time

Prompt Shipments From Vast Range of Origins

Extensive Availability of US Inventory

Custom Blending and Flavoring

P.O. Box 147 | 29 E. Main Street | Mendham, NJ 07945P. 973-543-5800 | F. 973-543-6233 | [email protected]

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anti-aging and anti-bacterial qualities.Research indicates that tea improves theimmune system, aids in cancer prevention,improves the functioning of blood vessels,promotes healthy teeth, protects humancells from radiation, lowers cholesterol,improves digestion and aids in weight loss.The combination of caffeine and othertheanines in tea improves concentrationand relaxation producing what is known inthe tea trade as a calming focus.

All tea is good. Drink the teas youenjoy and form a healthy habit of drinking tea every day. 7

Originally from Beijing, Lily Chang is aresident of Los Angeles, California.Considered a U.S. expert on China teas, hertravels have taken her throughout Chinasmain tea producing regions where she hashad the privilege of working with leadingauthorities and prominent producers of spe-cialty teas. In 2010, Lily collaborated withChen Zhongmao, Honorary Chairman ofthe Tea Research Institute and Chinas mostrevered tea authority on the China entries inJames Norwood Pratts Tea Dictionary. Lilyis the co-founder of PeLi Teas.


VWUDWHJLFDOO\SODFHGZDUHKRXVHVDURXQGWKHZRUOG

( Tea Types )

FIRED OR BAKED GREEN TEA(China Style)

West Lake Dragon WellWest Lake, Hangzhou, Zhejiang, China

Anji Bai ChaAnji, Zhejiang, China

Zhejiang green teasZhejiang, China

Dongting Bi Luo ChunDongting Mt., Jiangsu, China

Liu An Gua PianLiuan, Anhui, China

Huang Shan Mao FengHuangshan, Anhui, China

Tai Ping Hou QuiTaiping county, Anhui, China

Chunmee or Tunxi Green TeasTunxi, Anhui, China

Lu Shan Yun Wu Lushan, Jiangxi, China

Jasmine Green TeasFujian, Zhejiang and Guangxi, China

TSTEAMED GREEN TEA(Japanese Style)

MatchaNishio, Yam and Uji regions, Japan

GyokuroNishio, Yam and Uji regions, Japan

SenchaNishio, Yam and Uji regions, Japan

WHITE TEA

Silver Needle White TeaFuding and Zhenghe, Fujian, China

White PeonyFuding and Zhenghe, Fujian, China

YELLOW TEA

Junshan YinzhenJunshan, Hunan, China

Huoshan Huang YaHuoshan, Anhui, China

GREEN OOLONG (less Oxidation)

Anxi Ti Quan YinAnxi, Fujian, China

Dong Ding OolongDongdingshan, Taiwan

Alishan OolongAlishan, Taiwan

Wenshan Bao ZhongWenshan, Taiwan

DARK OOLONG (more Oxidation)

Da Hong PaoWuyishan, Fujian, China

Wuyi Rock TeasWuyishan, Fujian, China

Feng Huang Dan CongFenghuang, Guangdong, China

Bai Hao Oolong or Oriental BeautyXinzhu or Hsinchu County, Taiwan

BLACK TEA

KeemunQimen, Anhui, China

Dian Hong or YunnanYunnan, China

Lapsang SouchongWuyishan, China

Golden MonkeyFujian, China

DarjeelingDarjeeling, India

AssamAssam, India

NilgiriNilgiri, India

UvaUva, Sri Lanka

DARK TEA

Pu-ErYunnan, China

Conjuring fire and earth into porcelainis an art that dates back more thantwo millennia. Some 1,500 years

before people had even heard of coffee, theywere using porcelain. First produced inChina, over the centuries porcelain hasgained admirers for its strength, utility andbeauty, for its pure white color, for its hard-ness and for its resistance to chemicals andthermal shock. It has been adopted and

prized by civilizations across the globe. Italy has a grand tradition in this, and

the old Italian name for a cowrie shell por-cellana whose lustrous surface it resembledbecame the modern name for porcelain.

Ancap is proud of their heritage.Founded in 1964 by Giuseppe Boschini,an expert in quality porcelain and decora-tion, the company has devoted itself sinceits inception to 100% Made in Italy qual-

ity and creativity. In just a few years,Ancap rapidly became a force in the indus-try, with a winning combination of art,technology, quality and product range thatonly a company embracing every aspect ofits production in-house can guarantee.

Today, after more than 45 years, this in-house approach remains Ancaps definingdifference, a continued confirmation of itsproduct excellence. The name Ancap is yourguarantee of 100% Made in Italy quality.Everything sold is handmade in the 17,000square meter factory. Nothing is outsourced.The expertise, creativity and the quality con-trol are all in the hands of the140 employeesmen and women dedicated to the craft.

Manufacturing only the finest qualityhard feldspar porcelain, using kaolin,feldspar and quartz. This gives a translucentwhite porcelain of exceptional resistanceand quality. Experts in producing the rightshapes and strong body needed to retainheat and stand up to the rigors of sustaineduse in a busy Horeca environment.

Amid all of the Porcelain-ware lines, art

AncapThe Italian TraditionWe evaluate the quality of coffee quite often in Tea &Coffee Trade Journal. From conditions at origin, storageand transport issues, roasting and blending and retailservice. With all this attention given to whats in the cup,we choose to change our focus a little, and report on thecup itself. ( Staff Report )


( Company Profile )

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objects and vases that it produces, many acclaimed assome of the finest of their kind, the humble espressocup company has also become an Ancap star.

From small beginnings, the company has risento stand among the leaders of fine, Italianporcelain manufacturers. Attaining theposition as one of the best-known names inluxury porcelain in Italy, Ancap has in theprocess developed strong international salesand exports more than 35% of its production,which their porcelain being distributed in 50nations.

The espresso sector became a specialized field for Ancap someyears ago. This first resulted in the initiation of a series of design-er, premium-class collections. From the outstanding success ofthese espresso cup collections, the company saw further opportuni-ty in bringing the same quality and design standard to the privatelabel espresso cup market. Currently, Ancap is sourcing more than300 roasters in Italy, with cups for their bar/cafe clients.Additionally, the firm is making espresso cups for 200 roasters out-side of Italy.

These cups are personalized as to shape, design, and brandlogo. Although the range is for regular espresso coffee, it can alsobe customized for cappuccino and latte drinks. In all, Ancapoffers a collection of 16 distinctive espresso cup shapes, to itsroaster clientele, among who market some of the better-known

espresso coffee trademarks in the world.The company produces its coffee cups to the

same standard as its other porcelain ware. Thecups are fired at 1400C in reducing atmosphere

(meaning a total absence of oxygen). Theresult is a feldspatic-hard porcelain, whichtranslates to a compact bodied, non-porousporcelain of a star-bright white appearance

after the firing. Such a product is noteworthyfor a deceiving thinness and lightness

deceiving because porcelain so made, is indeedhard, yet proffers a remarkably robust daintiness.For espresso, shape is all. The Ancap cup interior,

no matter what exterior shape it might bear, has been designedspecifically for meeting the elitist of tasting standards in the hightradition of classical Italian espresso coffee.

A truly, well-made Italian espresso cup can be known by itsspecies-specific interior bottom. The most exacting attributes ofthis shaping include guaranteeing a correct degree of porcelainthickness not too little, not too much for the aficionadosstandard. The interior design must also conform to a specificespresso curve, time honored as enhancing the servings crema.Above all, Ancap carefully crafted the all-important, somewhategg-shaped bottom for its cups, that is at the heart of a true Italianespresso coffee cup.

Moving from inside to outside both in exterior shaping and


( Company Profile )

www.eximware.commailto:[email protected]

graphics having raised some of Ancap Porcelain manufacturesto the status of art objects even in the most snobbish of luxurymarkets have impacted too on its espresso line.

Certainly a key to the striking looks of Ancap cups, and totheir success, has been the necessity the firm faces of always look-ing fashionable. Its products, the espresso cups as well, sit in glam-our store windows on the most expensive streets in the world. Tomaintain this position, the products must always be in vogue.

And the look factor plus the quality retail store angle,rebound too in favor of the roaster. Such cups can become bodyarmor in a roasting companys market imaging and branding.Ancap has something more than collection and promotional cupsto offer espresso. It has its patented, exclusive, Espressine stove-top espresso brewer.

The company developed the Espressine upwards as a whol-ly new Porcelain moka maker. It marks a total, highly imagina-tive overhaul of the traditional metal Italian moka coffee makersystem. The new concept debuted in the late 1990s. But every-thing about Espressine was and remains revolutionary, from thestyling of the small water-heating chamber at bottom to theinfusion chamber at top.

Espressine, to be brief, brought elegance and fine Porcelain tothe moka brewer concept. The first Espressine was dubbedCherie. It appeared as a more traditional looking, smallPorcelain coffee or teapot, cloaking the moka infusion system. Aset of matching espresso cups was naturally added.

In all, Ancap now has at least 100 different Espressine mod-els to choose from in the range. A strong compliment to its evergrowing, and so far ever-imaginative, espresso cup business.

Whether youre looking to equip a caf, restaurant, hotelor residence, they can furnish what you require. Ancap caneasily personalize your selections with your brand name, logo,special colors, designs, etc. This can help market your compa-ny, add a special touch to your business and give you an edgeover your competitiors. 7

APRIL 2011 43

More than ever, managers need tohave reliable and real-time sys-tems to manage: position man-

agement, risk exposure, operational effi-

ciency, and supply chain visibility.Weekly or even daily reporting is nolonger sufficient without real time data,Commodity exporters and processors lack

the necessary information to react rapidlyto changing market conditions or ade-quately address counterparty needs andrequirements.

As organizations adapt to thisincreasingly challenging environment, amajority will find the need to migratefrom their mix of spreadsheets and worddocuments to a centralized, industry spe-cific software solution that can helpthem achieve greater transparency,improved control and better risk man-agement on real time basis.

The Business Case for a Software SystemThere are many economic and businessbenefits from investing in a SoftwareSystem. The benefits of introducing ITinto any enterprise are well documentedand widely accepted. It is undeniable

Software Solutions forCommodity Exporters andOrigin OperatorsWith the proliferation of technology and advances ininternet speeds and affordability, more and moreCommodity Origin Operators can now obtain sophisticat-ed, commercial grade software systems that can providea robust level of operating and financial control and trans-parency to their business operations. ( By Andy Dimitri)

( Software Solutions )


Coffee processing plants27050 Codevilla (Pavia) Italy - Via Strada Nuova 37Tel.+39.0383.373100 (8 linee r.a.) Fax +39.0383.373078 Fax Tecnico +39.0383.373114Agencies: USA - CANADA - CENTRAL AMERICA - SOUTH AMERICAAUSTRALIA - OCEANIA - JAPAN - ASIA - NORTH AFRICA - EUROPEwww.brambati.it [email protected]

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World tastes,Italian technology.

that Information Technology has had atransformative impact on many indus-tries in both the service and manufactur-ing sectors. The time has come forOrigin Operators to realize these samebenefits. The business case or economicjustification for a Software Systemincludes: Real Time Risk and Position

Management: one error can havesevere financial consequences. Properrisk management is imperative tobusiness profitability and growth andrequires continuous updates of keytransactional data.

Improved Financial and OperatingControl: understanding and manag-ing the flow of inventory throughtransformation process is vital toprofitability and the ability to meetsales orders on time.

Increased OrganizationalProductivity: a proper system cansupplant manual (and error prone)data entry and increase the produc-tivity of the organization by contain-

ing headcount during growth. Inaddition industry specific solutionshave domain workflow and knowl-edge built in so company personnelcan easily learn and be trained on.Management can focus on excep-tions only.

Product and Lot Traceability:Purchase to Processing to Sales: aproper system can provide reversetraceability from finished goods backto raw materials, an increasinglyimportant requirement for manyexporters.

An IT system is an important invest-ment in any business large and small and pays dividends on many levels. Ageneral manager can now gather andaccess information critical to financial andoperational decision making. With aproper software system, the general man-ager can gain instant access to: Real-Time Position & Risk

Management Visibility Inventory Management and Control

Forward Purchase Default Risk Consolidated Supply & Demand Future Hedge Coverage

Functional Areas that Can Gainfrom Software Solutions PurchasingMost exporters face a myriad of dailychallenges in purchasing and sourcingproduct - from keeping track of all theirpurchase commitments to ensuring thatthe price paid to producers reflects thefinal delivered quality and expected quan-tity post-processing. A Software Solutioncan manage standard yields by productstate against which to compare actualyields. Whats more many exporters pro-vide loans and other types of advancefinancing to producers that needs to betracked and settled at product delivery.Having the ability to manage these trans-actions along with many others elec-tronically, in real time and centrally canincrease productivity and assure the bestpurchase price. The following Purchasingfunctions, when integrated and delivered


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electronically, can provide great value tothe exporter: Production Loan & Collateral

Management Forward Purchase Contract & Price

Fixing Standard & Purchase Yields Pricing Formulas Spot Deliveries & Liquidations Integration with Loans & Payback Integration with Forward Contracts

Fulfillment

Processing and MillingTracking inputs/outputs through the vari-ous processing phases is critical to assur-ing that orders are executed and fulfilledon time and to the right specifications.Managing product yields can be time con-suming if not impossible without propersystems. A highly efficient Milling opera-tion requires entering, validating, andtracking a multitude of transactional dataas the product is transformed from rawmaterials, to work in process, to finishedexportable product. Software solutionscan make the difference in managing: Transportation Product Reclassification Transportation Rate Table &

Payments Product Weight Variance Tracking Yield Sample Test Tracking Production Orders: Drying, Milling,

Blending Inputs & Outputs Product Conversions Actual Yield vs. Purchase Yield Physical Inventory & Availability

Reporting

The Importance of ExecutiveSponsorship & Strong ProgramGovernanceIntroducing Information Technology andSoftware systems into a business is a majorchange program that requires organiza-tional time, commitment and resource.Many companies create difficulties whenthey neglect to establish strong executivesponsorship and governance from theoutset. A successful implementation willinvolve the most knowledgeable (andhence most senior) operating managers in

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the design, development and delivery of asolution that will meet the needs of allstakeholders in the organization.

Define and Document Your Business RequirementsTo find the right solution, companies arebest served by proceeding in a methodi-cal and phased manner thereby preserv-ing options while gathering knowledge.Every exporters requirements will varybased on factors such as their country ofoperation, size, business model and posi-tion in the supply chain. Managers arewell served by taking the time to docu-ment their current business processesand workflows to identify and addressfunctional needs. The BusinessRequirement Document is a necessarypre-requisite. Next is the FunctionalSpecification that will determine thedetailed system performance require-ments. Many service providers will pro-vide this as part of the engagement.

Customization: How Much isEnough?Every entity will want a system to reflecthow they do business and not the otherway around. Managers must guardagainst over-customization. This canbe costly and time consuming andreduce the advantages of buying a newtechnology. Instead of trying to stream-line the business processes with a newsolution they try to recreate the existing,

at times inefficient, processes in a newsolution. This can also lead to long andexpensive implementation cycles,increased maintenance overhead andlimit future upgrade options. In othercases, they will forgo customization andmaintain off-line spreadsheets, therebycreating duplicate work, less visibility,and the possibility of inconsistent data.A good service provider, withCommodity domain expertise, can beinvaluable in helping operators sortthrough the options.

What Do Systems Cost?Software solutions can be a significantinvestment of time and money and gen-erally are not cheap. In assessing the costof these systems executives should look atthe significant value that can be derivedby gaining better control of their busi-ness. Avoiding a large mistake in posi-tion alone can pay for the annual cost ofsome systems. In general the annual run-ning costs of these systems are roughlyequivalent to the annual compensationof hiring a competent manager. A systemcan provide tremendous operating lever-age to scale and grow a business whilemaintaining coordination and control.Web-hosted (Software as a Service) solu-tions are often the best choice for compa-nies that dont have permanent IT staff /department and would rather spend timemanaging the business instead of manag-ing IT. On the other hand, companies

that have significant internal ITresources may want to consider theinstalled option. Both options are viableand are dependent on the preference ofmanagement.

In summary, the time has come forCommodity exporters and processors toembrace new technology solutions tohelp them manage and navigate dynamicand challenging business conditions.Companies are wise to invest time andeffort the business requirements toensure the expectations and goals areclear and aligned. Lastly, they have to bemindful about the impact of adopting anew solution with its unfamiliarreports and screens on their staff andshould carefully manage this change toincrease the organizations enthusiasmand support for a new system. An invest-ment in a proper system can pay imme-diate and long term benefits in anincreasingly competitive and global mar-ketplace. In an increasingly competitiveglobal landscape, a proper software sys-tem is an economic imperative for for-ward thinking organizations. 7

Andy Dimitri is the CEO of ExImWare,Inc., headquartered in New York, USA.ExImWare (eximware.com) is a leadingprovider of internet-based commodity trade,risk management, certification and trace-ability software serving global commodityimporters, exporters, processors, traders andsustainability agencies.


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Mainstream coffee roasters and tea packers will visit Tea & Coffee World Cup

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will experience working machines and equipment on the show floor.

Tea & Coffee World Cup is proud to welcome you back to Vienna for another

successful industry event!

And this is why, by evaluating thecoffee culture through a wider per-spective, the mere savoring of a

cup of coffee has an even more importantmeaning, considering the complex pro-duction and logistic process involvingthousands of laboring hands. We willfocus here especially on technology as ameans to empower producers.

First, we must understand that deci-sion making, whether related to selectingvarietals, fertilizers, pest and disease con-trols, harvesting, or even how the coffeewill be processed, is the determining fac-tor in how profitable the coffee activitywill be. The decision includes three keyaspects: the cost/benefit ratio of the tech-nology to be used, the need to complywith environmental laws and the finalquality standard that will meet the con-sumer market demand.

The producer often questions howone processing method is more feasiblethan the other. Natural? Wet processing?The answer is not by any means simpleand the lack of a tool to assist with thedecision may lead to avoidable errors,which can financially impact the produc-er and the quality of the beverage.

With this in mind, Brazil provided agreat example of responsible innovation

Empowering ProducersThrough New InitiativesWhen raising a cup of coffee to the lips, while feeling its taste and aroma, close your eyes and plunge intopleasant past experiences, people being connected anddifferent worlds becoming one. Symbolically, a cup of coffee combines two worlds the origin and the demand establishing relationships and buildingbridges. Yes, its all in the cup. ( By Professor Borem,Juan Gimenes and Daniel Friedlander )

( At Origin )


and technology through a partnership ofthe public and private sectors. With thepurpose of supporting coffee growers tomarket their products, the UniversidadeFederal de Lavras and Nucoffee aSyngenta initiative recently launched ajoint effort to provide more informationand technological know-how to the farm.

The University developed an applicationcalled Ps-Caf, used in the post coffeeharvest phase covering the depulping,demucilaging and drying stages. This appli-cation was sponsored and implemented byNucoffee in its Quality Diagnosis program,in conjunction with over 60 farms.

The system consists of a data entering

module, a cost calculation module and areporting module, providing a robustplatform to give the producer the infor-mation needed to decide the best way toprocess their coffee, according to the pres-ent resources available at the farm.

Coffee prices can be updated in thedatabase, as well as farming equipment,


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technical indexes, terrace types and manyother functionalities. Once productionvariables and specific features are entered,the producer can select two processingtypes for comparison, which will help himmake decisions going forward. All calcula-tions and reports are automatically gener-

ated by the Ps-Caf application, whichprovides revenue and cost analysis foreach processing type as well as their com-parative net margin.

The system is flexible and can be usedby producers of all sizes, as well as cooper-atives and associations that can deliver it

as a service to their associates. By sodoing, the local structure is strengthenedwith knowledge and added value, benefit-ing all involved in the production chain.

Practical examples of the changes driv-en by the use of Ps-Caf are the resultsobtained when it was used in the QualityDiagnosis program, developed byNucoffee. This program can be describedas a technical service offered free of chargeto specialty coffee producers who are partof the initiative. It reviews the technicallevel of farms and identifies the key criti-


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( At Origin )

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cal points and bottlenecks of the qualitycoffee processing and production struc-ture. Data from this diagnosis is enteredin Ps-Caf, analyzed by Nucoffees qual-ity team and shared with producers to

support them in implementing improve-ments. The reader will find below a list ofsignificant results obtained. Lot building: A highly important con-ceptual change that considers the effects in

quality potential of the interaction betweenthe micro region and the cultivar. Coffeegrowers started to better plan their harvest,keeping separate lots and tracking themfrom start to end of the process. Processing area cleanliness: We rein-force the idea that a processing unit is anagribusiness and therefore needs to followbasic hygiene and cleaning rules. Technical improvements related to ter-race drying and dryers: The correct dryingmethod used on terraces, the implementa-tion of standard procedures and the atten-tion to hot air drying temperatures is cru-cial in preserving the quality of the coffee. Resizing of coffee processing facilities:Changes to the terrace area, dirt terracessurfaces, separation capacity, cleaning anddrying conditions were suggested in orderto adjust the processing unit to the needsof each property, considering harvest tim-ing, harvested volume and percentage ofripe, green and overripe beans.

The Diagnosis program was very impor-tant as it made producers aware of concep-tual and structural changes, trained workersin the use of processes, and identified thekey points that impacted the quality. TheQuality Diagnosis program is still runningin 2011, with new training and capacitybuilding courses to help a larger number ofproducers. The strength of the public andprivate partnership is renewed as technolog-ical innovations created by the Universityare passed on directly to producers.

The Universidade Federal de Lavrasand Nucoffee have a differentiated view ofquality in the coffee chain, embracing itnot as the end but as the means to secure asustained connection between those whoproduce and those who consume. Thequest for quality will bring about solu-tions that provide effective support to theproducer, better resource management,and profit optimization, while it makessure the consumer will have an ethical andtasty product, represented by an iconicsteaming cup that brings people togetherin all continents. 7


( At Origin )

L.J.COOPER COMPANY

545 SAW MILL RIVER ROAD, ARDSLEY, NY 10502

TELEPHONE: (9

Coffee &Tea April 11

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