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Features
Contents
( April 2012 Vol.184/No.4 )
ISSN 0040-0343
14 Editors Page
16 World News
20 Calendar
74 Product Showcase
76 Trade News
78 People News
80 Equipment & Packaging News
82 Advertisers Index & Marketplace
52
66
46
56
22
22 Central Americas Coffee Harvest Ends
Down on Rains
By Maja Wallengren
34 Private Brands: Understand the Field,
Capture the Opportunity
By Aisha Kabani
46 The Long Pour
By Donald Schoenholt
53 Plato Blends, Aristotle Likes Single
Origins
By Paul Haworth
56 Doi Chang
A Small Village with a Big Future
By Alexis Rubinstein
66 Modern Process: Getting the Grind
Right for Millions
By Kevin Sinnott & Lois Nelson
34
12 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
A whiter and brighter future. Tea & Coffee Trade Journal has teamed up with
delfortgroup to deliver to you the finest in thin print paper. The Tea & Coffee Trade
Journal editions are printed exclusively on delfortgroups Thinstar Plus HB 60 g/m
2
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delfortgroup thin print papers are created to promote sustainability by
continuous reduction of the environmental footprint. delfortgroups
thin print paper offers a range of ultra-lightweight paper solutions,
both in coated and uncoated paper. Imagine your
on-pack or off-pack promotion printed on this paper!
Departments
Roast Assured.
Maintain quality and control in your coffee processing plant with Probat Burns.
Our roasters and other equipment ensure consistency while streamlining your
process for maximum efciency. Select from a broad range of products designed
to help you meet your business requirements, no matter what kind of coffee you
produce or where in the world you produce it.
To learn how you can roast assured, visit www.probatburns.com
Outside North America, visit www.probat.com
Weve moved!
601 Corporate Woods Parkway
Vernon Hills, IL 60061
Editor-in-Chief Alexis Rubinstein
Specialties Editor Donald N. Schoenholt
Art Director Lily Lee
Assistant Art Director YiLing Yen
Production Coordinator Grace Guia
Correspondents Suzanne Brown -
Marketing Correspondent;
Timothy J. Castle -
West Coast Correspondent;
David DeCandia,
Georgina Gordon-Ham,
Harry Jones,
Wendy Komancheck,
Manfred Krner, Lon LaFlamme,
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 Cof
fee; Neal Robinson,
BUNN; Melissa J. Pugash
& Associates; Joseph
Simrany, U.S. Tea Council/Spe
cialty Tea Institute; Christian
Wolthers, Wolthers America
Founding Editor William H. Ukers (1873 1954)
Bookkeeper Grace Guia
Roxanne Cordova-Melendez
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Web Site: http://www.teaandcoffee.net, Inquiries: editor@teaandcoffee.net
ANNUAL DIRECTORY & BUYERS GUIDE
Each year, Tea & Coffee Trade Journal publishes the Ukers Tea & Coffee
Global Directory & Buyers Guide, a comprehensive reference guide to the
industry and its allied industries. Qualified companies are entitled to a
free listing. Contact editorial offices for a listing form.
TEA & COFFEE TRADE JOURNAL (ISSN 0040-0343) is published
monthly 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-
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POSTMASTER: Send address changes to Tea & Coffee Trade Journal,
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CPC agreement number 1477749
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.
14 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
( from the )
EditorsDesk
Alexis Rubinstein
Editor-in-Chief
Drinking in the History
It is something special to be part of such mature industries. Tea and coffee
have been around for centuries, consumed by people across the world and
incorporated into almost every culture on the planet.
For fields with so much history, it is beneficial to research the progres-
sion, in order to better understand the future. Similar to other industries
with such a hefty past, like fashion, it is interesting to watch trends peak,
pass and peak again. My mom always tells me to hold on to my bell-bot-
tom pants, cause you never know when theyll be back in style. Much
like tea and coffee, we are seeing older techniques reclaim their spotlight
in the 21st century.
The issue contains a lot of history for the tea and coffee trade. Our spe-
cialties editor, Donald Schoenholt, examines the complex world of filter or
drip coffee, in The Long Pour (page 46). What was once the preferred
method of coffee brewing was eventually replaced by trendier, more person-
alized extractions, such as the French press. However, it seems as though fil-
ter coffee is making a comeback. Will the coffee folks welcome back their
old friend with open arms? Or have we veered so far in the specialty com-
munity, that it no longer has a place?
With an industry as old as coffee, comes coffee companies that celebrat-
ing quite impressive anniversaries. In this issue, we pay tribute to Modern
Process Equipment, that has been providing its customers with industrial
grinders for 30 years. With todays economical state, this is quite an
achievement.
What will the next 30 years of tea and coffee bring? Some people believe
single-serve will continue to grow and expand, some believe new methods of
processing and brewing will still be invented and some believe the old tried
and true methods will resurface. Well all just have to wait and see.
What Has the Green Coffee Association Been Up To?
NEW YORK Incorporated in 1923, the Green Coffee Association was
founded by a group of coffee professionals with an early membership of
some 100 members, among who were elected three officers and a 12 man
board of directors. These wise and prescient gentlemen laid out the prin-
ciples of the association established in the associations by-laws, which
despite a number of updates over the years, remains remarkably and fun-
damentally intact. They also drew up standard contract wording for the
main types of contracts traded at the time. Once these contracts were for-
mulated and established, there was an obvious need to set up a system to
arbitrate disputes among its members and other contracting parties on
issues relating to quality deficiencies and disagreements over technical con-
tractual performance.
It was clear from the very beginning that the arbitration panels would
administer these hearings in a fair and unbiased manner regardless of the
parties involved, their geographic location, or whether they were members
of the association or not. All arbitrators have historically been selected on
their personal and professional integrity, their knowledge of the coffee
contracts and familiarity with general trade practices. This holds true
today as the Green Coffee Association maintains a solid roster of seasoned
professionals to participate in the standard three member panels to consid-
er quality and technical arbitrations. Decisions of the arbitrators are sub-
ject to appeal by a separate panel of five GCA arbitrators.
While the GCA contracts are subject to the laws of New York State and
thus can be pursued through the court system, it is worthy to note that
courts in New York and elsewhere generally do give substantial deference
to the GCA arbitration process and the wisdom and integrity of its arbi-
trators in deciding issues where these professionals are acknowledged to be
the experts in the coffee trade.
Over the past two decades, the coffee market appeared to be fairly free
of such trade disputes requiring arbitration. But over the last two years in
which we have seen a run up in the coffee prices, the industry has encoun-
tered a rash of contractual defaults by suppliers who found themselves
either unable or unwilling to deliver coffee at the previously agreed upon
prices. This led many traders to the decisions to protect their interests and
pursue relief through the GCA arbitration process as it was designed to
do. There have been more technical arbitrations filed with the GCA dur-
ing the last two years than there had been in the last two decades com-
bined. So it is that the GCA, at the tender age of 89 and the contracts
that it administers are just as relevant and important now as they have
been at any time in their history.
Besides the administration of contracts, the GCA is first and fore-
most in its leadership on transportation and logistical matters. In the
post 9/11 era, there has been no shortage of security related issues that
has been confronting importers of all products into the U.S. The GCA
Traffic & Warehouse Committee has been vigilant over the years in
dealing with the many regulatory developments proffered by the U.S.
( 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 7212
Fax: +49 30 6409 1350
E-mail: fbsch@t-online.de
ADVERTISING REPRESENTATIVES
Austria, Switzerland, Robert M. Lockwood
Southern Germany, 26 Broadway, Floor 9M
United Kingdom New York, New York 10004
France Tel: +1 212 391-2060
Fax: +1 212 827-0945
E-mail: robert@lockwoodpublications.com
South America, Frederick A. Lockwood
Italy, Portugal, Spain 26 Broadway, Floor 9M
New York, New York 10004
Tel: +1 212 391-2060
Fax: +1 212 827-0945
E-mail: f.lockwood@teaandcoffee.net
Alaska, California, Rob Lockwood Jr.
Oregon, Washington, 26 Broadway, Floor 9M
Western Canada New York, New York 10004
Tel: +1 212 391-2060
Fax: +1 212 827-0945
Email: Rob@lockwoodpublications.com
South Eastern Europe, Donalyn Ammons
Africa, 26 Broadway, Floor 9M
Northern Germany, New York, New York 10004
Scandinavia, Benelux Tel: +1 212 391-2060
Fax: +1 212 827-0945
E-mail:
d.ammons@lockwoodpublications.com
Asia, Eastern Europe Oliver Metcalf
Russia, Middle East 26 Broadway, Floor 9M
New York, New York 10004
Tel: +1 212 391-2060
Fax: +1 212 827-0945
Email: o.metcalf@teaandcoffee.net
North America, Scott Rogers
Central America, 26 Broadway, Floor 9M
Caribbean New York, New York 10004
Tel: +1 212 391-2060
Fax: +1 212 827-0945
Email: s.rogers@teaandcoffee.net
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
16 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
WorldNews
Department of Homeland Security,
Customs & Border Protection, and the
U.S. Food and Drug Administration.
The committee has developed proce-
dures for reporting foreign food facili-
ties under the FDAs Prior Notice sys-
tem and designed a standardized for-
mat for foreign suppliers to submit
shipment data to importers for timely
compliance with Customs Import
Security Filings. The committee mem-
bership has provided numerous com-
ments to government regulatory agen-
cies during their respective rule making
processes and provided GCA members
with recommendations on how to
address these new developments as the
rules came into final form and became
effective.
Over the years, the GCA Traffic &
Warehouse Committee has developed
guidelines for coffee warehouse storage
practices, best practices for weighing of
green coffee, best practices for domestic
transportation and a standard GCA
Charter Party form for shipments under
chartered vessels (back when they were
more common). Each of these docu-
ments is available to the public on the
GCA website and serves as a valuable
resource to its membership and the cof-
fee industry in general.
In recent years the GCA Traffic &
Warehouse Committee has grown in
size and scope. The Traffic & Warehouse
Committee has been open to receiving
new members at the beginning of each
new term, as there appears to be signifi-
cant interest in membership participa-
tion in the discussions on matters that
affect the day to day operations of all
coffee related companies. The commit-
tee is currently made up of 25 logistics
professionals from importing and roast-
er members along with associate mem-
ber representation from warehouses,
truckers, intermodal brokers, customs
brokers, insurance brokers, samplers
and carriers alike. On occasions, it has
opened its committee meetings up to
registered attendees at other GCA
events. The December 2011 Traffic &
Warehouse Committee meeting was
held at the historic Fraunces Tavern in
downtown New York City on the day
before the GCA Annual Holiday Party
attracting over 40 meeting participants
including representatives from four sep-
arate port authorities as well as the
Federal Maritime Commission.
Afterwards the allied members hosted a
dinner which attracted a similar atten-
dance. For anyone involved in green
coffee logistics, this has truly become
the event to attend before the holiday
party event.
The GCA social functions have
been greatly successful over the years
providing members and non-members
alike the opportunities to meet and
greet their colleagues and trading part-
ners in friendly, convenient and com-
fortable settings. This past years Fall
Golf Outing and Holiday Dinner Party
attracted more attendance than at any
time in recent memory. There are cur-
rent plans underway for the GCA 2012
convention to be held this May in
Atlantic City, New Jersey, and which
will include educational sessions and an
open Traffic & Warehouse Committee
meeting.
So if you have to ask What has the
Green Coffee Association been up to? the
answer is Quite a lot actually! and you
should find out more by visiting its web-
site at www.greencoffeeassociaton.org.
Don Pisano is Vice President of
American Coffee Corp. and is a member of
the Green Coffee Association Board of
Directors.
New Tea Season
Opens With High Prices
KOLKATA Dry weather and high
cumulative inventory deficit have
ensured better opening prices at tea auc-
tions this year. Good quality tea was
quoted higher by Rs 60-80 a kg this
year. Last year, good quality Assam tea
was quoted at Rs 150-180 a kg and went
up to Rs 200 a kg. This year, prices are
at Rs 220-280 a kg and may even go up
to Rs 300 a kg.
The new season tea has just come
in. We have sold it privately at prices
higher by Rs 50-60 a kg, said Aditya
Khaitan, managing director of McLeod
Russel India, the worlds largest bulk
producer.
Dry weather in the northeast, no
carryover stock and a high cumulative
deficit aided in getting high opening
prices, said Azam Monem, former
chairman, Calcutta Tea Traders
Association.
While there was shortage in the sys-
tem, the dry weather resulted in less
output at the beginning of the season.
According to the Indian Tea
Association, member-companies out-
put in January was lower by almost 30%
and in February, too, the crop scenario
was not good.
The cumulative deficit for the year
was 50 million kg. The pipeline stock,
which wasnt much in the first place, was
exhausted by the end of February. Though
production was a robust 988 million kg,
higher by 2.3%, consumption increased
3-3.5%.
More, global tea production till
December last year was also lower than
the previous year. Excluding China, a
green tea producer, output was 26 mil-
lion kg less. Till December, Kenya,
worlds leading exporter, had lost five per
cent of output.
Tea prices in Kenya are also holding
out, with the sector hit by harsh weather
conditions early in the year. Indian tea
companies are expecting good exports
compared to last year, when these dipped
about 3%. A strong export market, a huge
deficit and increasing consumption in the
domestic market is expected to keep tea
prices high.
Normally, the crop picks up in the
later half of the year. Hoping that we get
better rain in the coming months, prices
will stabilise at a level higher by Rs 25-30
a kg over the corresponding period,
Khaitan said.
Packeteers are not particularly wor-
ried. For packet tea companies to
review rates, high prices will have to be
sustained. Normally, packet tea compa-
nies dont buy first flush tea and we can-
not revise prices every now and then, an
official from a packet tea company said.
All packet tea companies had revised
prices a year ago.
(
WorldNews
)
18 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
20 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Calendar
)
April 9 12
Expo Coffee & Tea 2012
Shangai, China
Tel: +86 21 64371178
Fax: +86 21 61154988
Email: Helen.Fan@ubmsinoexpo.com
Web: www.expocoffeetea.com
April 17 20
Food & Hotel Asia
Singapore, Singapore
Email: jt@sesallworld.com
Web: www.foodnhotelasia.com
April 19 22
24th Annual SCAA Exposition
Portland, Oregon
Tel: +1 562 624 4100
Fax: +1 562 624 4101
Email: exhibit@scaa.org
Web: www.scaaevent.org
April 25 27
NAMA ONEShow
Venetian/Sands Resort
Las Vegas, Nevada
Web: www.namaoneshow.org
April 27 29
The London Coffee Festival
London, England
Tel: +44 0 20 7691 8836
Email: lrossignol@allegra.co.uk
Web: www.londoncoffeefestival.com
May 4 6
Melbourne International Coffee Expo
Melbourne, Australia
Tel: +614 2569 9891 / +613 9690 7022
Email: clint.hendry@internationalcoffee-
expo.com
Web: www.internationalcoffeeexpo.com
May 16 17
Caffe Culture
London, England
Tel: +44 0 207 288 6191
Fax: +44 0 207 288 6446
Web: www.caffecultureshow.com
June 1 3
World Tea Expo
Las Vegas, Nevada
Tel: +1 702 253 1893
Email: info@worldteaexpo.com
Web: www.worldteaexpo.com
June 8 10
Coffee Fest Chicago
Chicago, Illinois
Tel: +1 425 295 3300
Fax: +1 425 295 3295
Email: davidh@coffeefest.com
Web: www.coffeefest.com
September 9 10
Canadian Tea & Coffee Show
Toronto, Canada
Tel: +1 416 504 0504
Email: info@coffeeteashow.ca
Web: www.coffeeteashow.ca
September 17
3rd Annual International Coffee Forum
Moscow, Russia
Tel: +7 495 935 87 07
Email: a.antonova@coffeetea.ru
Web: www.coffeetea.ru
September 20 22
Pacific Coast Coffee Association 81st
Annual Convention
South Newport Coast, California
Tel: +1 925 858 2257
Email: pcca@paccoffee.com
Web: www.paccoffee.com
September 21 23
Coffee Fest Seattle
Seattle, Washington
Tel: +1 425 295 3300
Fax: +1 425 295 3295
Email: davidh@coffeefest.com
Web: www.coffeefest.com
October 25 27
TriestEspresso Expo
Trieste, Italy
Tel: +39 040 6701240
Fax: +39 040 365001
Email: info@triestespresso.it
Web: www.triestespresso.it
November 21 22
European Coffee Symposium
Amsterdam, Netherlands
Tel: +44 0 20 7691 8800
Fax: +44 0 20 7691 8810 |
Email: lrossignol@allegra.co.uk
Web: www.europeancoffeesymposium.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: info@teausa.org, Web: www.teausa.org
Visit us online regularly for upcoming
TEA ASSOCIATION OF THE USA
EVENTS & CLASSES
Check the website regularly for class schedule
updates and registration info.
WWW.TEAUSA.ORG
Central Americas Coffee
Harvest Ends Down On
RAINS
(
Spotlight: Central America
)
22 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Harvesting of the 2011-12 crop in Central America is coming to an end and once again
the region has suffered more than its full share of bad weather. At the beginning of
the crop cycle last year hopes were high that this year the harvest would finally mark
a new trend of real recovery for the first time after 10 years of crisis and continuous
weather problem. But after torrential rains in October caused havoc and death across
the region, the forecasts for Costa Rica, El Salvador, Guatemala, Honduras and
Nicaragua have one by one all come down, and the harvest now seems set to end
below output in the last crop cycle. ( By Maja Wallengren )
APRIL 2012 23
24 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
I
t all started so well. After years of crisis
the Central American coffee regions
looked poised to produce a bigger crop
in the current 2011-12 harvest cycle for
the second year in a row. Then came the
rains in October. For a full two weeks tor-
rential rains from no less than five tropical
storms, including two hurricanes, pon-
dered the region non-stop, dumping dou-
ble the amount of rainfall than during
Hurricane Mitch and leaving a trail of
death and disaster.
When the rains finally stopped, at
least 140 people were dead, hundreds of
thousands were left homeless and the
United Nations had declared an emer-
gency for over 2 million people affected in
regions primarily known as coffee areas.
And just like seen during Hurricane
Mitch in 1998 and Hurricane Stan in
2005, the brunt of the damage took place
in the coffee belt stretching from southern
Mexicos Chiapas state all the way through
Central America to Costa Rica in the
south, with El Salvador and Guatemala
the worst hit.
The harvest in Central America is
overall ending mostly below last year, with
the real big problems in El Salvador and
Guatemala which were hammered by the
rains, said Jack Scoville, vice president of
The Price Group in Chicago.
In El Salvador a lot of cherries
dropped to the ground and we are seeing
production there at a little over 1 million
bags, maybe 1.1 million in the best case
scenario. Guatemala has also had real big
(
Spotlight: Central America
)
PRE-CLEANER
Varios Cleaners for
preconditioning before
drying or grading
SIZE GRADER
for high quality cleaning
(air and thickness) of
green coffee
from 2.5 to 11 t/h
DE-STONER-TS
for separation of heavy
materials such as stones,
metalic particles
from 3.8 to 15 t/h
GRAVITY
SEPARATOR-GA
for separation acording to
specific weight
from 0.2 to 12 t/h
HULLER
POLISHER
for Parchment and Green
Coffee
SKP Huller:
from 4.5 to 5 t/h
Hansa 10 and 14:
from 1 to 2.5 t /h
Cross beat Huller SSM
from 1.8 to 2.7 t/h
COMPACT
HULLER - KSE
with cross beat Huller, Pre-
Cleaner, De-Stoner, husk
Separator, dust extraction
device and Catador, 0.8 to
1.2 t/h
CONVEYING
EQUIPMENT
- Elevators / Z-Elevators
- Screw/Belt Conveyors
- Drag Conveyors
DUST SYSTEMS
dust control system with
bag filters, cyclofans, fan
and clyclofan system
DRYERS
Dryers for all kind of free
flowing grains as well as
fluid bed dryers for non
flowing material
UNIVERSAL BSL
green Coffee washing and
refining machine to clean,
recondition and polishing -
1.8 t/h
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26 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
problems with fungus diseases causes by
the excess humidity that really has affect-
ed the crop a lot, Scoville told the Tea &
Coffee Trade Journal.
At the official start of the 2011-12
crop year on Oct. 1st, 2011, the five
Central American countries were fore-
cast to see production rise 1.9% to
12.613 million bags, after producing
12.378 million bags in the 2010-11 har-
vest. And however small a boost in the
overall figures, this modest jump was
still seen by the market as a welcome
recovery after the complete failure of the
2009-10 harvest which ended at 10.524
million bags.
By the end of March the forecasts
had been lowered by 8% to 11.6 million
bags, and the Central American harvest
is now seen closing 6.3% down on the
2010-11 harvest. In comparison, 10
years ago the five countries were produc-
ing between 14 million and 15 million
bags in an average cycle.
After producing the best crop in a
decade last year, Central Americas tiniest
producer, El Salvador, suffered the worst
impact of the rains in October. As trees
are still in recovery from the production
stress caused by the 2010-11 bumper crop
of 1.814 million bags, the Salvadoran
Coffee Council had forecast the new har-
vest to produce 1.41 million bags.
But that was well before the onslaught
of rains, which affected all the key pro-
(
Spotlight: Central America
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ducing regions of El Salvador, including
Santa Ana, Sonsonate, Ahuachapan, La
Libertad, San Salvador, La Paz, Usulutan
and San Vicente; coffee regions that com-
bined accounted for 83% of the
Salvadoran crop in the 2010-11 harvest,
according to official figures.
According to El Salvadors National
Service for Territorial Studies, SNET,
over 1,500 millimeters of rain fell alone
in the nine days from Oct. 10-18, a vol-
ume that compares to a historic average
for the whole month of October of 207
millimeters.
By February 15th the total volume
of registered new harvest was at just over
1 million bags and according to the latest
forecast the harvest is projected to reach
1.15 million bags, said an official at the
Council. This is in line with the forecasts
released in the first weeks after the rains
hit El Salvador last October, when agri-
culture officials said initial field visits
indicated losses of up to 20% of the
entire crop, or equivalent to about
300,000 bags.
During a trip to El Salvador in the last
week of October, the massive damage of
the rains could be seen everywhere. Rural
roads were partially cut off or blocked by
landslides, massive craters had opened up
in the middle of what used to be coffee
farms, and on a stretch of just 9 kilome-
ters at least 52 mudslides could be count-
ed cutting right through coffee farms in
APRIL 2012 27
28 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
the central coffee region of Comasaguas.
The images were a mirror of the worst of
the coffee damage seen in Nicaragua and
Honduras during Hurricane Mitch when
these countries lost between 20 and 30%
of their entire coffee crops.
The material damage is worse than
what we experienced during Mitch, said
El Salvadors President Mauricio Funes in
a live television broadcast at the height of
the emergency.
In neighboring Guatemala, which tra-
ditionally has been Central Americas
largest grower, crop losses were from the
beginning seen reaching between 5 and
7% of the total crop as the excess humid-
ity led to a massive outbreak of rust fun-
gus disease across most of the countrys
coffee regions.
The Guatemalan National Coffee
Association (Anacafe) initially pegged the
crop to reach 3.68 million bags of
exportable coffee in addition to between
200,000 and 300,000 bags of lower grade
beans used for local consumption, a tad
up on output in the 2010-11 harvest of
3.53 million bags of exportable coffee.
It is realistic to believe that total loss-
es will reach between 5 and 7%, said
Anacafe President Ricardo Villanueva in
an interview in late October, when
according to initial estimates losses were
already calculated at between 100,000
and 115,000 bags alone from cherries
falling to the ground.
By March this year Anacafe had
already lowered the official forecast two
times and Villanueva said that all indica-
tions now point to the harvest ending
down some 5% on the original forecast at
about 3.45 million bags, with total losses
caused by the rain reaching between
180,000 and 250,000 bags.
But private exporters say the losses are
on the higher end of the scale and that
total production may end as low as 3.2
million bags, as leaf rust is taking a much
higher toll on the overall harvest, espe-
cially in the northern Huehuetenango
province.
Villanueva also warns that if New
York Arabica futures prices, which last
month were trading at 17-month lows at
just over $1.80 per pound, dont start cor-
recting upward soon the damage caused
by the rains may continue to affect
Guatemalan production well into the next
2012-12 crop cycle as producers wont be
able to pay for pest management.
We have seen an increase in the
cost of production of 25% this year
(
Spotlight: Central America
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because of the need for much higher
pest control, he said, adding that if
producers are not treating the farms
accordingly the impact could rise by
50% in the next harvest.
While Central Americas smaller
growers Costa Rica and Nicaragua were
less affected, the rains have also been
reported to cut into the harvest there.
The Costa Rican Coffee Institute,
Icafe, is now expecting total production
from the 2011-12 harvest to reach
between 1.5 million and 1.55 million
bags, below last year where Costa Rica
produced 1.589 million bags, and down
from the preliminary forecast for a har-
vest of 1.617 million bags.
While coffee regions last year suffered
from an excess of El Nino-provoked
rains, this year La Nina has provoked
drought conditions, said Icafes executive
director Ronald Peters. September rain-
fall in Costa Rica was 40% below the
average for the month, which according
to the countrys National Meteorological
Institute, making it one of the driest
September months on record.
Particularly hard hit by dryness has been
the Central Valley region surrounding the
capital of San Jose and home to an impor-
tant part of Costa Rican coffee farms, where
in most parts not a single drop of rain was
registered in the last half of the month.
In Nicaraguas coffee regions, mean-
while, farmers had initially expected to
harvest of as much as 1.7 million bags, up
a healthy 30% from the 2010-11 crop of
1.3 million bags, but after the October
rains the forecast is now down to between
(
Spotlight: Central America
)
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32 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
1.5 million and 1.6 million bags.
There have been some damage by the
rains, but at the same time we have also
had new coffee from areas renovated in
the last few years that is now starting to
come into production so that has com-
pensated for some of the losses, said a
Nicaraguan grower.
With the weather increasingly play-
ing the wild card in coffee cultivation in
Central America the rising production
from Honduras has been increasingly
eyed by roasters across the world in
recent years.
And while the harvest here is not
turning out to be as high as the initial
forecast for a crop of 4.6 million bags, the
new harvest is coming out as a bumper
crop with the Honduran Coffee Institute,
or Ihcafe, today projecting production
from the 2011-12 cycle to end at 4.14
million bags, up 5.9%t on output in the
2010-11 harvest.
This is a good harvest and we are
very happy with the result, even though
its not as high as many people thought it
was going to be, Mario Ordonez, techni-
cal manager for Ihacfe, told Tea & Coffee.
Honduran growers have benefitted
from the combination of relatively good
yields, moderate debt and the boom in
prices from 2010-11 which encouraged
farmers who already had started renova-
tion efforts to start planting new areas
with coffee.
And with the coffee boom in
Honduras industry officials both locally
and abroad now believe that Honduras is
on the verge of becoming Central
Americas biggest producer.
The one crop that does look good is
Honduras. Honduras is definitively
increasing production, said Scoville.
But despite the efforts of Honduran
producers, the overall recovery in produc-
tion figures from Central America has
once again been set back a few years.
Maja Wallengren started writing about
coffee 18 years ago and has continued to spe-
cialize in coffee during her travels as a
reporter to over 40 coffee producing coun-
tries in South-East Asia, East and West
Africa and across Latin America. She is
based in Mexico City and can be reached at
mwallengren@hotmail.com
(
Spotlight: Central America
)
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34 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Private Brands
Understand the Field,
Capture the Opportunity
(
Private Label
)
APRIL 2012 35
The global recession of 2008 still has a grip on many countries around the world.
However, regionally, there are hot spots of economic growth fuelled by a stronger
than expected economy, a rising middle class and general fiscal responsibility at the
consumer level. ( By Aisha Kabani )
G
rowth signs in the U.S. are prom-
ising. In the retail segment, private
brands weathered the 2008, 2009
and 2010 depressing recession. Retailers
backed their brands and manufacturers
pushed innovation into private brands as
traditional brands staggered under their
marketing and distribution costs. As the
economy in the U.S. starts to recover, tra-
ditional brands are showing stronger signs
of recovery and are bringing life back into
their brands and flexing their marketing
muscle to gain consumer mindshare
again. But, has the damage already been
done to traditional brands. Are private
brands going to outstrip traditional
brands across the globe?
This article cannot answer that today.
Readers of Tea & Coffee herald from
around the world and in this 3-part series
the goal is to explore common influencers
and trends in 5 key areas of private label.
This first part deals with already collected
data and research reports. Part 2, later this
year, will launch a short survey to get
answers to the 5 key areas. Part 3, at the
end of this year, will bring a summary of
answers and help glean trends from
responders. Ultimately, the goal is to help
those in the tea and coffee industry mar-
ket to consumers and gain their dollars
and loyalty.
In this article, we define 5 key areas of
private brands, influencers and trends.
They are:
1. Consumer Perception & Trends
2. Quality & Value Perception
3. Market Segmentation by Consumers
4. Hurdles, Constraints & Barriers in
Tea and Coffee
5. Industry Sustainability & Future
Growth of Private Brands
Consumer Perception & Trends
Defining consumer perception trends
varies between products and between cul-
tures. Primary influencers include prod-
uct profiles, packaging, marketing and
branding.
Private label brands used to be consid-
ered the poor mans brand but in the last
several years they have come into their own
and now rival established consumer brands
for space and price. Private brands are no
longer less expensive than traditional
brands. Creators and manufacturers have
begun to capitalize on the ability to bring
to market a better product in a private
label. And consumers are embracing it.
The 2011 Neilson Report states that
consumers have embraced store brands
with open arms, and in turn, many retail-
ers products delivered on their quality
and value promises. In the Nielsen study,
about three quarters of shoppers viewed
store brands as a good alternative to
name brands, and even more encourag-
ing for retailers, almost four in ten buyers
36 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
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(
Private Label
)
felt that some are higher quality than
name brands.
Chart 1 shows the percent of individ-
uals surveyed who said they agreed or
strongly agreed with the statement about
private brands. Most noticeably, there is
an increase in the percent agreeing or
strongly agreeing with the statement that
some private brands are of higher quality
than name brands. In the space of 3 years,
there has been a 5% increase in quality of
private brands.
Quality & Value Perception
The geographical distribution of private
brands as a percent of all total sales across
the globe is as follows:
Europe 23%
North America 15%
Asia Pacific 4%
Latin America 2%
*Source: Data & Trends of the European
Food and Drink Industry, 2010.
With Europe being the undisputed
leader in private brands, it is no wonder
that they have learned to understand their
consumers and target private brands to
that consumer. Tesco was one the earliest
companies to launch private brands with-
in their stores and today, they have over
12,000 SKUs of private brands compris-
ing of over 50% of the companys rev-
enue. They offer a variety of private
brands to target each market segment that
shops their stores:
Premium Brands - the highest level
of quality;
Sub Premium Brands - special
products;
Commodity Brands - standard
products; and
Generic Brands - value or cost
driven products.
Understanding how the market leader
has defined the tiers of private brands is
key to understanding which product to
offer retailers when presenting a private
label program.
Market Segmentation
by Consumers
Offering different tiers of private brands
helps retailers connect with consumers. To
understand the consumer, it is important
to understand how consumers are seg-
mented, as this affects their buying habits
or likelihood to consider purchasing pri-
vate brands.
Damon Worldwide identified several
key factors that influence market segmen-
tation in private label and its effect on
consumers. Briefly, the seven key con-
(
Private Label
)
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38 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Chart 1: % Responders saying they
agree/strongly agree with the following
statements
*Source: The Neilson Company, 2011
sumer factors are:
1. Consumers are postponing marriage
and there are now more single people
living independently than ever before
and there are more single-parent
households than in years past.
2. Consumers are increasingly demand-
ing organic or all natural products
3. Consumers are increasingly engaged
in diverse or bi-racial relationships.
4. Consumers are traveling more than
ever before. Coincidentally, 40% of
destinations selected are in Europe,
where private brands are king.
5. Consumers are better educated and
have increased access to information
than even 10 years ago.
6. Consumers are inundated with televi-
sion food shows and the related mar-
keting endorsements.
7. Consumers have increased their din-
ing out experiences and are eating cul-
turally more diverse meals and flavors
than before.
Each one of these factors have a huge
impact on decision making when pur-
chasing private brands.
Hurdles, Constraints & Barriers in
Tea and Coffee
One of the biggest hurdles in private label
specific to the tea and coffee industry is a
paucity of data. Sifting through data to
find information relative to tea and coffee
can be time consuming and expensive.
There is a real need to understand the
trends in tea and coffee.
In the U.S., large retailers are embrac-
ing retail brands of coffee, such as Peets
Tea and Coffee, Dunkin Donuts, Green
Mountain Coffee and Starbucks. Private
retail brands are emerging alongside fight-
ing for the same shelf space. Long stand-
ing traditional brands, such as Nestle,
Folgers and Maxwell are all looking rather
forlorn on the shelf as branded retailers
are heavily pushing gourmet, single ori-
gin, dark roast, light roast, medium roast,
APRIL 2012 39
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Table 1: Private Label Penetration Among Category Buyers
Private Label Penetration
Among Category Buyers
2008 2011
RTD Coffee/Tea 4.8% 7.9%
Pet Supplies 2.9% 5.4%
Baby Formula/Electrolytes 6.0% 5.3%
Salty Snacks -2.3% 3.8%
Frozen Pizza -0.6% 2.8%
Mexican Foods -2.2% 2.7%
Cookies 0.2% 2.7%
Salad Dressing 0.4% 2.7%
Dish Detergent 0.4% 2.6%
Breakfast Meals -0.9% 2.5%
Source: SymphonyIRI Consumer Network
40 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Private Label
)
Chart 2: Private Label CPG Regional Share of Sales (per cent)
*Source: Private Label (Lincoln & Thomassen)
Chart 3: % Shoppers who agree/slightly agree that in the future a store could be Private Label ONLY
flavored roasts, only offered at this time of
year roast and so forth. And the tea cate-
gory is even more convoluted with flavors
running the gamut. It is appearing to
become less about the brand or origin of
the tea and more about flavor combina-
tions. And a category driven by a high
number of SKUs with flavors have a hard
time in the private brand category. High
quality, everyday tea is much more appeal-
ing for private label.
Tea and coffee historically has been a
category where the private label share of
dollars has been lower compared to the
national average. Table 1 shows that in
2008, only 4.8% of category buyers
looked at private label for RTD coffee
and tea. In 2011, that number jumped
3.1%. But it is still below the national
average and there is work to be done in
this category.
Industry Sustainability & Future
Growth of Private Brands
There is no question among anyone in the
private label category that private brands are
here to stay. 30% of all sales, worldwide, are
to private brands, as shown in the Chart 2.
Opportunity can be found around the world
and in established markets.
In Europe, the growth from 2001 to
2011 has been quite remarkable. The total
value of sales of private label in Spain dou-
bled from 2001 to 2011, from $13 billion
to $31 billion. As a whole, Europes
growth grew by 74%.
There is no doubt that private brands
threaten national brands and perception
around the globe is changing regarding pri-
APRIL 2012 41
The Project People
Table 2: Private Label CPG European Country Data (per cent)
Penetration Sales Value $bn
2001 % 2006 % 2011 % 2001 2006 2011
France 18 21 22 30 38 45
Germany 17 26 31 38 62 79
Italy 14 14 14 16 17 19
Holland 18 21 22 6 8 9
Spain 15 22 25 13 23 31
Sweden 12 14 15 4 5 6
UK 30 37 40 54 77 95
Europe 19 24 18 186 263 324
Source: CPG PL adapted from Datamonito
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vate label opportunities and limits. In
Table 3, s75% of brand owners in the UK
believe there is no limitation to what prod-
ucts can be private labeled. In the U.S.,
that number is 29%, but the flipside is that
there is 70% growth opportunity. In
China, 67% of brand owners believe that
private label is as innovative as national
brands. There is tremendous opportunity
to capitalize on innovative products relative
to national brands.
And finally, Chart 3 illustrates in
China, Sweden and the U.S., over 42% of
shoppers agree or slightly agree that in the
future a store could include private brands
only. That shows tremendous optimism
from the consumer, but also tremendous
acceptance that private brands are relevant.
This article hopefully illuminated
some key areas in private label and the
relationship between private brands and
consumers. There is tremendous data of
retail private label, but one should always
be on the lookout for growth in variety of
market segments, including the food serv-
ice industry and the convenience store
industry, both of which are growing at
rapid rates. These two categories are sleep-
ing powerhouses that have the potential to
transform consumer expectations to a
whole new level. Understanding con-
sumers, developing a private brand with
them in mind and identifying market
opportunities around the globe can bridge
the gap between national brands and your
private brand.
44 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Private Label
)
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Table 3: % brand owners who agree/slightly agree
China Sweden UK US
PL is growing 100 100 100 81
In the future there will be more PL 67 88 100 85
PL is damaging our profitability 67 78 50 52
There are no limits to what PL can become 33 55 75 29
In the future, PL could become more expensive than a brand 66 75 48
There are no limitations as to what products can be PL 33 55 75 29
PL is as innovative as a brand 67 33 25 29
(
Proper Preparation
)
46 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Much time is spent picking and choosing the perfect
bean to roast, or the perfect roast to sell, or even the
perfect roaster to perfect your craft. But how much
consideration is put into the preparation? Drip, or
filter coffee, has somewhat of a bad reputation in
the specialty coffee world. But when the prime
product is chosen and the proper practices are
carried through, this technique can deliver equally
stunning results. ( By Donald Schoenholt )
The Long Pour
I
n southern India, filter coffee means a
foamy beverage made from a
coffee/chicory blend of Arabica and
Robusta beans often from local in-country
coffee districts. In western coffee culture, fil-
ter coffee is a beverage produced when water
is introduced to a bed of coffee, passes
through a filter and is collected in a vessel
below. It sounds simple easy and cheap. After
all, the U.S. Navy has been serving up rivers
of the stuff for years, but filter brewing has
been reborn in Japanese coffeehouses and
now is catching on in U.S. coffee bars where
taking the time to please by making a dis-
tinctly personal beverage is moving beyond
the espresso machine toward a brewing
method that can weigh in at an equipment
cost under $20, and produces a beverage that
is sold at between $4 an $7 a serving. It is
time we all took new notice of filter coffee.
Filter coffee (until recently referred to in
the U.S. as drip coffee) goes back a long
way. The Neapolitan drip pot (with a coffee
chamber containing a perforated metal
floor) and the French drip pot (made of
metal or vitreous china; whose upper cham-
ber contains a perforated floor) may pre-date
later filtering devices, but hand poured filter
coffee is most probably one of the oldest
brewing methods. In 1922, page 632 in
Ukers All About Coffee carried a photo fea-
turing more than 30 dip coffeemakers
offered by American manufacturers. The
method has been the primary brewing
device for commercial coffee in the U.S. for
more than a century, and the primary home
brewing device in the U.S. for over 40 years.
The filter itself is key to the success of the
device. The first filters appeared in Europe in
the late 1600s when boiled coffee infusion
was strained prior to being brought to table.
Around 1710 according to Edward and Joan
Brahama in Coffeemakers, 300 years of art &
Design, 1989, fine ground coffee was tied
into a cloth bag and suspended by a string in
a large coffeemaker, and boiling water was
poured over it. According to Bramah, Jean
Baptiste de Belloy, Archbishop of Paris and a
renowned epicure, is usually given credit for
first popularizing filter coffee and even for
designing the filter brewer. The internets
insistence not withstanding, Dresden house-
wife Melitta Benz, who started making paper
filters for coffee in 1908, did not invent the
paper coffee filter, for Frederick Cauchois
introduced the Private Estate coffeemaker in
New York in 1905 featuring Japanese rice-
paper filter disks. It is uncertain if Couchois
was the first. It is fair to say in Melittas
defense that the firm was among the first to
successfully promote disposable paper filter
brewers for coffee for U.S. home brewing,
and that along with the U.S. Chemex cof-
feemaker invented by Peter Schlumbohm,
patented in 1941, they helped to improve the
quality of coffee Americans were able to brew
at home in their old stove-top percolators.
Flat filters, as Cauchois used, are often
cut from smooth filter paper and usually
seen held in place by a frame at the bottom
of a brewers cylindrical reservoir top. Cup-
cake-paper shaped filters of fluted smooth
paper are found in brands of American man-
ufactured automatic drip brewers for both
commercial and home use. Filter tops may
be cylindrical or conical in shape, and are fit-
ted with filters made specifically for that
shape. Conical shaped brew chambers are fit-
ted with creped paper filters while cylindrical
filtering chambers accept cup-cake shaped
fluted filters made from smoother surface fil-
ter paper. The wrinkles of the creped paper,
and the fluting of the smooth cup-cake filter
paper hold the filter away from the filter
chamber walls (ridges on the interior of the
filter chamber or metal cages within the
chamber prevent the filter from clinging to
the interior walls of the filter chamber, mak-
ing for an easier flow of liquid through the
filter cone and into the vessel below). The
older tradition of cloth filters is still used by
some; particularly those who are attempting
to be more environmentally sensitive in their
equipment choices. Filters are produced to
fit the various standard size brew baskets of
brewer manufacturers.
APRIL 2012 47
Most foodservice operators do not give
filters a thought. Their coffee supplier pro-
vides them with paper filters and they use
them. Where the operator takes the time to
analyze and agonize over his choice of filter
thought is given to beverage quality, cost
and environmental sensitivity in addition to
compatibility with the brewing system and
ease of use.
Hand-pouring an individual pot or
serving of coffee is of ancient heritage.
Choosing a kettle with a narrow spout pro-
duces a thin precise steam of hot water to be
directed over the grounds at the cost of lost
degrees of temperature. Choosing a wider
mouth kettle increases water flow, cutting
time and conserving temperature, but at the
expense of being able to micro-manage the
water stream. Individually controlling the
rate of flow, and the wetting of the grounds
produces a hand crafted individual cup of
coffee. It takes several minutes to produce a
serving. The results are often very delicious,
but replicable cup after cup only within
wide parameters.
Paper filters are widely used in the culi-
nary industry including in most coffee bars
where filter coffee is made on brewers made
by Bunn, Fetco, Grindmaster-Cecilware
and Curtis. Some coffee bars hand-pouring
individual cups of filter coffee are using
paper filters while others use strainers of
man-made fibers (usually stainless steel or
nylon) or cloth.
There are advantages and disadvantages
to each type of filter available, and different
filtering materials produce a different taste
in the cup. Paper filters and cloth filters
retain some natural oils of the coffee, while
man-made fibers let everything pass through
their mesh into the cup making a murkier
brew with a heavier body. Paper filters come
white (often labeled oxygen whitened)
and in natural kraft color. Some cuppers
believe they can taste a paper filter in the
cup, while others perceive a metallic taste
from steel filters.
What is gained and lost in taste qualities
when brewing with cloth filters to some
degree depends on the choice of cloth used.
Brushed cotton, often called flannel filters
hold back more than muslin or hemp cloth
filters, and there are issues of rancid tastes
that can develop in cloth filter bags if not
handled and stored properly between uses.
Under controlled conditions cloth does not
impart an off-taste to the beverage.
In my youth, when cloth was still the fil-
ter of choice for commercial brewers be they
Silex vacuum style, T. J. Topper urn type
brewers or Cory automatic drip coffeemak-
ers, proper care of the filters bags could mean
the difference between a satisfied chef and a
lost customer. I remember that my Dads
supplier and friend Mr. Dick, of Royal Urn
Bag Co., now Urnex brands, counseled that
cloth filters stain with their first use, but will
last weeks, smelling fresh, if they are rinsed
after each use in fresh water, and stored in
fresh water when not in use, and overnight.
He recommended letting his filter bags soak
in a shallow pan of water, today a zip-lock
bag will do just as well, for keeping the filter
wetted, and preventing the oxidation of oils
48 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Proper Preparation
)
FILTERS
Melitta unbleached white, and
natural tan paper filters, Eco-
Filter cotton filters.
Rockline / Brew Rite / Mr Coffee
brand paper filters and gold
mesh filters.
Riensch & Held stainless steel
and nylon coffee filters
SwissGold Gold Foil
Goldtone Filter Cone
Beyond Gourmet
Chemex
Hario Cloth Filters
Bradshaw International
(nylon/plastic) reusable filter
baskets
Mr. Natural reusable hemp filters
FILTER CONES
Coava Kone Metal Chemex Filter
Hario Ceramic Coffee Dripper
V60-02
Chemex
Bee House Ceramic Coffee
Dripper
Melitta Plastic or Porcelain
Freling USA Cilio Porcelain
HIC Porcelain
ELECTRIC KETTLES
Brevelle Variable Temperature
Kettle
Braun Electric Kettle
Sunbeam Eletric Ketle
Cloer Electric Kettle
Dualit cordless electric Kettle
Cheffs Choice Cordless Electric
Glass kettle
Kalorik Electric Jug Kettle
Toastess Eletric Jug kettle
Westbend Cordless Electric
Kettle 53783
Presto
Hamilton Beach
Black & Decker
Aroma Electric Water Kettle
Proctor Silex Electric Kettle
Presto heat & Steep Electric
Kettle
Sanyo Electric kettle U-K170S
Saeco Electric water kettle
POUR KETTLES
Tiamo (various sizes)
Hario V60 Buono
Copco Cambridge Stainless-steel
Teakettle
Paico Coffee Tea Pot kettle
Caferry Industrial Ltd
SELECTED COFFEE BARS FEATURING
HAND-POURED COFFEE
Barefoot Coffee, Santa Clara CA
Blue Bottle Coffee, San
Francisco CA
Chinatown Coffee Co.,
Washington DC
CoffeeBar, Los Angeles CA
Coffee Commissary,
Los Angeles CA
Eternity Coffee Roasters,
Miami FL
Intelligentsia Coffee, Chicago IL
Ritual Coffee Roasters, San
Francisco CA
Steady Hand Pour House,
Atlanta GA
Jacks Stir Brew, New York NY
SELECTIONS
that have collected in the fibers of the cloth.
Refrigerating the soaking filter will also help
extend its fresh-life. Some wags recommend
boiling the filter to help retain freshness for a
longer period.
Cloth filters are believed by some to
produce a beverage that is less astringent
than paper or man-made filters, with little
if any sediment passing through the filter
into the beverage. Hemp is todays fash-
ionably green cloth filter choice as cotton
is often grown using environmentally
questionable chemicals. Cotton can be
grown under organic farming conditions.
In 1945, The U.S. Navy, prodigious con-
sumers of filter coffee, published their recipe
in Cook Book of the United States Navy.
Basically, the Navy poured 2 gallons per
pound, and then re-poured 4 gallons of the
brewed coffee again through the spent
grounds. I remember the clear very dark ruby
red/brown color heavy body of brews of that
family, as better tablecloth restaurants and
hotel kitchens in New York were still brewing
with recipes similar to this in the early 1960s.
Restaurants and hotels served their coffee
from heavy hotel plate silver servers, with
heavy cream (36% butterfat) and light cream
(18-36% butterfat) as whitening choices.
The advent of automatic urns and paper fil-
ters introduced by Cecilware, Topper,
Continental and others in the early 1960s
out-of-home beverage service in the U.S.
changed dramatically. By 1970 the old bat-
tery style and combination pour over urns
were a thing of the past. A lighter beverage
emerged as the national standard, and this
trend continued until the influence of the
specialty coffee revolution, and the move
back to richer coffee to water ratios. You can
find the Navys filter brewing instructions
along with those for other brew methods and
the care and feeding of coffee equipment at
http://www.seabeecook.com/cookery/recipes
/navy_coffee.htm.
Around 50 years ago all industry efforts
were on producing a consistent cup. Effort
was expended to eliminate the human fac-
tor in coffee brewing for restaurant/institu-
tional use as these were the largest purchasers
of coffee. Then as now coffee preparation
was often left to less skilled kitchen workers.
It was believed that anything that minimized
the effect of potential human inconsistency
APRIL 2012 49
on the resulting beverage was a plus for the
beverage. Today many coffee bars are reintro-
ducing an individual craft brewed beverage
to their menu. In some cases the hand-
brewed beverage is the only beverage offered.
The commercial automatic brewer
manufacturers are adapting hand-brew
techniques to their equipment. Bunn calls
their system Pulse Brew, while FEDCO
calls their system Extractor.
Filter brewers for the home were over-
shadowed by other brewing methods until
the introduction of the automatic drip brew-
er just before specialty coffee began to appear
in bean shops and specialty food stores. The
automatic drip brewer helped spur the dis-
covery and acceptance of specialty coffee,
and It continues to be an important brewing
device in the home, along with its late 20th
Century cousin the Keurig coffeemaker, a fil-
ter brewing device with added convenience,
and additional controls to eliminate the
potential effects of human cup-to-cup incon-
sistency in single cup brewed coffee.
The filter method today, as in the pour-
over days, is to wet the grounds evenly, pause
to let the water percolate through the
grounds, and then continue to pour, in a cir-
cular motion, wetting all the ground evenly
and filling the brew basket with freshly
drawn hot water. Stirring the slurry gentle
with a wood spoon or other implement not
likely to damage the filter facilitates a more
even extraction of the grounds. Continuing
this process at intervals as the water passes
through the grounds until all the measured
water has passed through the brew basket.
Remove the basket/cone and spent grounds,
and stir the finished brew. Stirring the fin-
ished beverage encourages consistency with-
in the brew; a filter coffee collects in layers in
the receiving vessel, with the first brewing
heaviest coffee at the bottom and the lightest
beverage at the top. There is one element of
the hand-pour that does not appear to be
carried into the present tradition, and that is
covering the filter cone between pourings to
prevent the loss of aroma from the brew.
In todays application, drama is often
added with the use of a long neck water pour-
er held high above the waiting filter cone, and
used to control a thin stream of hot water
into the grounds below. Today the pourer of
choice is made by Hario with others offered
by Tiamo, Copco and others. The medias
pick of coffeehouses to spotlight are those
that choose the hand-pour trend as Steady
Hand Pour House, Atlanta GA, Barefoot cof-
fee, Santa Clara, CA, and Jacks Stir Brew,
New York, NY and where the media shine
their spotlight, attention is paid. We can
expect to see more coffee venues adopt hand-
brewed filter coffee to their cuisine.
It is de rigueur to say filter coffee, and
not drip coffee now, and hand-poured fil-
ter coffee has come into its own as a special-
ty brew in the last two years. It joins espres-
so, and French press as the preferred delivery
systems for the cup with cache both in the
home, and at the coffee bar.
T&CTJ Contributing Gourmet/Specialties
Editor Donald Schoenholt, still recalls the
gleaming battery of hand-pour urns in the great
underground tiled kitchens of the Astor Hotel in
New York, where his fathers coffee was brewed.
Mr. Schoenholt can be reached at
coffeeman@gilliescoffee.com
50 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Proper Preparation
)
www.agtron.net
(
Coffee Blending
)
52 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Plato Blends,
Aristotle Likes
Single Origins
I
remember when I got my first roasting job
at a small batch roastery in Tucson. I was
a teenager and there were no Seattle based
coffee chains in our town yet. Our calling
card was a proprietary espresso recipe that
was taught to my boss by a roaster in Milan.
It was a super secret blend of 4 different cof-
fees, including a pinch of a slightly expensive
Robusta from India. We also roasted a bit
lighter than most at that time which inspired
my boss to often share his favorite metaphor
describing roast philosophy with burnt toast.
For anyone who hasnt heard it: burnt toast
tastes like burnt toast, no matter what kind of
bread it was to begin with. Granted, we still
offered a French Roast option due to
demand, but we really prided ourselves in
what we called the Milano Blend and peo-
ple were excited to realize that lighter roasted
coffee could actually make a balanced espres-
so if it was made up of the perfect combina-
tion of different coffees. But, green mermaids
moved into town and my employer made
some unsustainable life decisions and that
roastery is a thing of the past.
That was the late 1990s. Since then, the
industry has made tremendous develop-
ments in origin production, roasting and all
forms of extraction. But what I really want to
talk about is blending, which is the reason
for my opening anecdote. What I find espe-
Some people are purists,
believing that a coffee is
best when unadulterated
and kept in its original
form. Others feel that com-
bining multiple coffees can
create a cup far superior to
a single origin. While there
is no right answer, there is
an art involved in the per-
fect blending of multiple
beans into one unified
taste. ( By Paul Haworth )
APRIL 2012 53
cially fascinating is the current resurgence of
the art form. Some aspects of blending will
probably never return and for good reason.
For instance, I think transparency is here to
stay. Customers dont want something that
came from a black box. They want to engage
with every aspect of what they are consum-
ing, which includes knowing all of the gos-
sip about where something came from and
what color the farmers eyes are, and so on.
But roasteries everywhere are now abandon-
ing the stubborn stance on exclusively single
origin offerings and once again embracing
the craft of combining different coffees.
This has inspired some interesting fric-
tion. The single origin folks scoff at blenders
as they see this as a bastardization of quality
and the abandonment of the awareness they
helped create; while the blenders think the
single origin people are behind the times
and missing out on some great coffee expe-
riences. I really see the debate as one
between two needlessly opposed viewpoints.
It really goes back to Plato and Aristotle and
the dialogue between forms and particulars.
Are we to mold our craft into an idea we
have? Do we say, Coffee should taste like
chocolate (for example) and then do every-
thing we can to make it taste more like
chocolate? Are we supposed to imagine the
perfect cup or the most balanced espresso
and then do whatever we can to realize our
imagination? Or are we better off taking all
possible pains from seed to cup to isolate
variables and maintain peculiarity? Should
we watch the journey our coffee goes on
from the soil into the hand of the harvester,
to the mills, to the roaster, to the purveyor,
to the mouth and say, every possible aspect
of quality has been established and main-
tained and so whatever this tastes like is
qualityeven if it isnt what I imagined
and it is an ultimate expression of coffee?
Do we allow our confidence in quality (par-
ticulars) to define our idea of coffee or do we
let our idea of coffee (form) dictate what we
defend as quality?
To be honest, I see both inextricably
interwoven into the fabric of the specialty
coffee experience. We have to have an idea of
what quality tastes like and we have to have
an idea of what coffee tastes like. The roaster
will be focused on isolating variables; the
blender will be focused on combining and
therefore rearranging what has been isolated.
These two crafts must be separated and one
should never dictate the other. The fact that
this debate is alive shows that we are at a crit-
ical point in our industry. We are finally
learning what quality is and in some ways we
always will be. Every roaster will agree that
the more variables we can isolate, the more
control we can have over our product. In
many ways, the third wave has been an
expression of this desire for control as well as
the discovery of variables which had not
been considered before. But I believe there
will come a time when the majority of vari-
ables will have been isolated and the founda-
tion for a deeper coffee rhythm will be laid.
It is really fun to think about what will
come next. As roasting theory becomes
roasting science, purveyors will gain free-
dom to be less involved with roasting and
more focused on palate development. I know
there are a lot of concept shops that dont
even roastthey just buy and resell different
coffees from all of the most popular roaster-
ies, trusting those roasteries have perfected
their art. As far as I know, though, not one of
these shops has tried blending these different
roasters together to create something totally
unique. Another possibility is in the relation-
ships with farmers and roasters becoming
more exclusive. If you only roasted coffee
from one farm, you could become an expert
on that particular farm alongside the farmer.
In fact, a farmer and a roaster working as co-
owners of an operation would be a really great
thing to witness.
As someone who has seen both sides of
this debate, I simply want to appeal to all
involved to recognize that single origin coffee
experiences and blended coffee experiences
are both valid and should always be a part of
our imagination and our craft. As long as we
take what we have learned from the trend of
transparency and apply it to what we are
doing, it is never a bad thing to experiment.
In fact, I would even argue that it is our only
hope, if we want to see the specialty coffee
industry reach maturity.
54 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Coffee Blending
)
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56 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Doi Chaang:
A Small Village
with a Big Future
The products vary from coffee, tea, honey, macadamia nuts
and soaps all of the finest quality. But it is not just the high-
ly regarded flavors, nor the diversification of offerings that sets
Doi Chang apart from other producers around the globe. It is
the business model, a story and set-up like no other, that is
breaking grounds and paving paths. ( Staff Report )
(
Philanthropic Practices
)
APRIL 2012 57
I
n order to understand Doi Chang in the
present, it is important to grow familiar
with its past. A small village set in the
mountainous region of the Chang Rai
province of Northern Thailand, Doi Chang
(translation: Elephant Mountain) is home
to a hill tribe born of Akha heritage. Like so
many indigenous cultures, poverty threat-
ened to devastate the traditional way of life
of the Akha people. Surviving a tumultuous
history of isolation and a dependency on
opium crop farming, their lives were forev-
er changed in 1983 by their king, His
Majesty Bhumibol. In an effort to end his
peoples suffering, he mandated the eradica- The beautiful coffee of Doi Chang Village being picked by a local woman
tion of opium crops in favor of viable alternative agricultural prac-
tices. The Doi Chang farmers were provided with the highest qual-
ity Arabica coffee plants, and guidance, as they fostered an expert-
ise with the new produce.
The climate, soil composition and geographical position lent the
area to producing world-class coffee. Cultivating coffee under a
canopy of various shade trees enhances the micro-climate of the area,
creating a balanced ecosystem that mirrors that of a natural forest set-
ting. This cultivation method maintains soil quality, as the canopy
protects against the sun and rain. The base and roots of the trees pre-
vent the soil from eroding which aids in moisture retention, while the
fallen leaves provide nutrients to replenish the soil. A natural habitat
is created for numerous plants and animals. Through hard work,
sheer determination and dedication, the Akha people have cultivated
an outstanding quality of coffee that is already well established in
Thailand. The growers have achieved this success with no govern-
ment assistance or donations. In fact due to the prolific nature of
their plantation, production surpassed demand. However, limited
knowledge and resources would prevent the coffee from being mar-
keted and sold to its fullest potential, to an international market. If
the new practice of growing coffee was going to be sustainable, the
villagers were going to need outside assistance. Securing global expor-
tation for their coffee beans, at fair prices, was vital to obtaining nec-
essary revenues to diversify their agriculture, afford greater support
for their families, and improve their infrastructure. Selecting the right
alliance was crucial, as it would have to be one that valued their
lifestyle, protected their culture and allowed the Doi Chang farmers
complete independence in managing their land and future. Under
the watchful eye of tribal leader Piko Saedoo, and village mentor
Wicha Promyong, a Canadian businessman, John Darch, was cho-
sen and the Doi Chaang Coffee Company was created.
Better Business Model
The spirit of the village was unique, the coffee they were producing
was unique, so it was no question that the business model needed to
be special and original. So much so, that they created the term
Beyond Fair Trade to describe their practices. The farmers retain
total ownership of the growing and processing operations in
Thailand, and the Vancouver affiliate company pays beyond fair
trade prices for their beans. In addition to exceptional pricing for
their beans, the village receives a 50% share on profits from the sales
and distribution made by the Canadian company. The Vancouver
based Doi Chaang Coffee Company assumes all expenses in gener-
ating sales by providing 100% of the funding for market develop-
ment; at no risk to the farmers. More revenues flow back to the
farmers, which substantially improves their lives. Doi Chaang
Coffee is entitled to purchase up to 75% of the annual production
of the Thai Co-operatives coffee, which can be sold as roasted or
green coffee primarily in North America and Europe. The company
has demonstrated that it is not a charity but viable alternative capi-
talism. The farmers are guaranteed independence in managing their
future. According to the Doi Chaang Coffee Company,
We believe that the intent of the Fair Trade Organization is hon-
orable, but the minimum prices specified to be paid for the coffee
beans is essentially specifying minimum wages. Therefore it does lit-
tle to break the cycle of poverty for the coffee farmers. By our going
beyond fair trade, we are endeavoring to demonstrate that it is pos-
58 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Philanthropic Practices
)
HPT
HENRY P. THOMSON, INC.
Tea Importers EST. 1912
MEMBER OF:
CTPAT CERTIFIED
OUR MISSION
IS 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 07945
P. 973-543-5800 | F. 973-543-6233 | eamici@hpthomson.com
Picking the ripe coffee cherries
sible to be profitable in the coffee industry without exploiting the
farmers or environment. Instead, by investing in the farmers and
environment, we believe we have created a balance, with growth and
sustainability for both sides.
In essence, the Thai farming family cooperative cultivates and
processes the beans, while the Canadian team finances, roasts, mar-
kets and distributes the coffee. Under the structure of the Doi
Chaang Coffee Company, the growers enjoy a carried position in
what is essentially an equal partnership.
Beyond Business
While the business model has proven beneficial for both parties
involved, there is a more expansive angle, outside of financial gain.
The partnership has helped the village develop and prosper.
Subsequent crop diversification has provided food and additional
products, which will help stabilize the communitys economy.
To date, Doi Chang and the surrounding area is home to 8,000
people; all living and primarily working together to cultivate and
produce premium organic, single-origin Arabica coffee beans. The
village now has running water, electricity, a basic sewage system, a
medical clinic, small school and improved road conditions for easi-
er access to the city. The Doi Chang farmers have demonstrated a
commitment to their community with the construction of a coffee
academy. The academy has been built solely from profits of their
coffee sales. Teachings here emphasize methods of cultivation and
processing, along with education on personal health and finance for
themselves and their families. Special attention is given to matters of
cooperative business practices, diverse crop production, quality con-
APRIL 2012 59
The rolling coffee hills of Doi Chang village in Thailand
trol and sustainable agriculture. Farmers are invited to attend, free of
charge, to learn about various coffee related business practices. In
addition, they are taught the value of education, health, hygiene and
personal finances. So far, over 1,000 farmers have been educated at
the academy and the benefit is already reflected in improved produc-
tivity and personal well-being of other farmers in the region. As self-
sufficient and self-directed coffee producers, the Akha people of Doi
Chang are able to maintain their heritage and cultural values while
growing towards economic stability and for their community. As
with all the other facilities, the academy has been built solely from
the profits made from their coffee company. The Akha hill tribe of
Doi Chang Village do not accept grants or donation. Additionally,
many of the youth are now receiving higher levels of education and
returning to their Akha roots in Doi Chang Village to share in the
prosperity of the coffee company.
In response to those who ask why, the answer is relatively simple.
By giving more back to those who do the hardest physical work in
undeveloped areas with few amenities we are not draining the well
but constantly replenishing and improving the quality. By more
income the lives and living conditions are dramatically improved. By
better water, electricity, roads, schools, educations and clinics the peo-
ples health and ability to take care of themselves, plus grow better
coffee, improves. Last but not least, it improves the bond between the
grower and the entrepreneur because the farmers interest (and finan-
cial benefit) does not end with selling the green beans.
Each year the tribe plants over 100,000 trees to reforest the
region to provide shade for new coffee plants, which prevents soil
erosion and encourages diversification. The farmers are now pro-
ducing tea, coffee blossom honey, coffee soap and macadamia
nuts. Now that clear-cut sections from past crop productions are
being filled with a variety of fruit and nut trees, bushes and plants,
coffee cultivation will expand within a natural setting, and contin-
ue to receive the benefits of growing under the protection of a for-
est canopy. Fertilization for the crops is provided by the forest
foliage, plus the skin, mucilage and parchment of the coffee cher-
ries; therefore, there is no chemical pollution of the ground,
ground water or streams.
60 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Philanthropic Practices
)
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Left: The breathtaking vistas of Doi Chang Village; Right: Hand sorting the beans
In 4 years, from beginning with a small
washing facility and just 200 acres of coffee
plants, there are now 12 washing stations
with coffee planted in 8,000 acres, 3,000
acres of which currently produce coffee. The
plants take 5 years to mature so production
increases annually. The current production of
1,000 tons per acre is anticipated to increase
to 4,000 tons per acre over the next 3 years.
Thai Government has identified the
success of Doi Chang as a role model to
other Akha Hill tribe farmers. Many people
from other Akha villages are brought by
government officials to view and learn from
the Doi Chang farmers.
Beyond the Bean: Markting & Media
Seeing as Doi Chaang is the only single-ori-
gin, 100% Arabica, USDA Certified
Organic, Fair Trade Certified, shade grown,
Thai coffee produced for the North
American and European markets, it is no
wonder it is turning out to be such a huge
success. In Canada, they are now listed in
over 400 grocery stores and in over 200 cof-
fee shops, restaurants and hotels primarily in
the West. Sales for the past 4 years in North
America have increased from $72,896 in the
first year to over $1,300,000 in the past year.
Sales are projected to increase to around
$2,000,000 in the current year.
62 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Philanthropic Practices
)
Doi Chaang Coffee Company redefines the world specialty with
the caliber of products it products.
Civet Coffee
Doi Chaang Wild Thai Civet (also known as
Kopi Luwak) coffee beans have been passed
through the digestive track of a wild civet, a
small nocturnal animal that searches the
Doi Chang Village for the sweetest and
ripest coffee cherries. There are three types
of civents that inhabit Doi Chaang Village;
the Asian Palm Civet, the Masked Palm
Civet and the Binturong, also known as the
Asian Bearcat. The beans pass through the
civet whole after fermenting in the stomach giving the coffee its exceptional taste
and aroma, creating an exotic cup with a distinguished flavor. Doi Chaang Wild
Civet coffee contains only 100% organic, single?origin, premium Arabica beans
Peaberry Coffee
A coffee cherry typically produces two flat?sided beans, yet when the cherry pro-
duces only one oval shaped bean, it is called a Peaberry. The Peaberry bean is
much smaller, with a higher concentrated flavor and represents only 5% of Doi
Chaangs annual crop. Rare and highly sought after, Pikos Peaberry is slowly and
carefully roasted for a vibrant and distinctive taste. Pikos Peaberry roast has an
intense fruity floral aroma and a heavy full?bodied profile. The organic and Fair
Trade coffee is deep?toned with a hint of earthiness, contains 100% Arabic Beans
and was awarded 93 points in the coffee review 2008.
Blue Tea (Wu Long Soft Branch)
This tea is the only certified Organic tea in Thailand, USDA and Organic Farming
EU, and is in the beginning process of the Fair Trade application. The tea is known
being grown on approximately 25 acres, producing 4-5 tons per year, with an
expected growth of 8-10 tons in the future. As of now, the company havs 400 Kgs
from last season and 500 Kgs of a new crop, with 80% of tea production can be
sent to Canada. The tea is half fermented for 36 hours and then machine rolled
and packed in a location near Doi Chang call Wawi Village.
The tribal people of Doi Chang
U.S. distribution partners are to be
identified and marketing efforts are being
designed to affect the U.S. market and drive
additional sales. The Doi Chaang Coffee
Company plans to mirror successful public
relations and marketing campaigns being
featured in Canada. A comprehensive pro-
gram was created to build brand awareness
by profiling the Akha people of Doi Chang
and their incredible story. In Canada, the
result was an award winning long format
feature on Global TV entitled Beyond Fair
Trade. This 4-part series exposed the story,
philanthropy and business model of the
company. Doi Chaang has more Media
(TV, newspapers, magazines and social
media) coverage than any other Canadian
coffee company, with new articles at least
weekly. The stories focus on the outstand-
ing quality of the coffee and the unique
relationship between Canada and the farm-
ers, a clear and welcome indication of a shift
in consumer attitudes.
In August 2010, Doi Chaang formed a
strategic alliance with Canterbury Coffee,
the largest private coffee company in
Western Canada, and entered into an out-
sourcing arrangement with Canterbury to
roast, package, distribute, invoice and collect
payment for Doi Chaang Products.
The Doi Chaang Coffee Company re-
defines a win-win situation. All parties
involved prosper from the hard work and
dedication. The environment benefits from
the careful and cautious sustainable prac-
tices. The village of Doi Chang can look
forward to a bright future with a secure
livelihood. And John Darch and
Canterbury Coffee can pride themselves on
exposing the world to a special cup.
64 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Philanthropic Practices
)
FUSO international
The smiling face of a village that has come so far
66 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
Modern Process
Getting The Grind
Right For Millions
Its been 30 years since Dan and Phil
Ephraim launched MPE, the global leader in
the industrial coffee grinding industry. But
as the brothers stride through their state-
of-the-art headquarters, they are quick to
recall the rich heritage of their family-
owned operation.
( By Kevin Sinnott and Lois Nelson )
(
Company History
)
APRIL 2012 67
W
ith customers in over 50 coun-
tries, MPE is the worlds stan-
dard in industrial coffee grind-
ing systems. But their international base
of operation is firmly rooted in the soil of
Chicagos South Side not far from
where the brothers grew up in a family of
nine children.
Dan was an executive in a coffee com-
pany, and his brother, Phil, a mechanical
engineer for another manufacturing cor-
poration, when they decided it would be
smart to buy a company where they could
combine their entrepreneurial and engi-
neering expertise. When Dan first spotted
a small company named Modern Process
for sale in 1981, he quickly recognized it
could be a big thing. He had no idea just
how big.
Modern Process was founded in 1957
by Don Stage and Roger Fardig who reman-
ufactured Gump Grinders, perhaps the best
grinders of the day. Business was good but
they never wanted to get too big, fearing
that large competitors would rise up and
swallow them. Silently, they grew and cap-
tured most of the grinder remanufacturing
business in North America. Just as quietly,
they put the company up for sale.
We always talked about going into
business together, Phil says, and Dan
knew the coffee business. I came down
with our father to look at the company.
Dad turned to us said, Boys, this looks
like a great business, buy it.
So I said, lets jump.
With their fathers blessing and sup-
port, Phil and Dan made the bold move to
buy in a depressed economic climate; inter-
est rates were 21%, unemployment was
10.5% and inflation had soared to over
13%. The brothers received an industrial
revenue bond from the City of Chicago
and begged and borrowed the rest.
Within months, they moved into the
small shop and started designing and
building equipment that would revolu-
tionize the world of coffee grinding.
Constantly Changing Their Grinds
As the technology of grinding has changed
dramatically during the past three decades,
so has the companys leadership.
As Dan begins, When the company
first began, most of grinding was percola-
tor, some was instant or soluble and the
remainder vacuum, popularly called Silex.
During the 1990s, Espresso grew from 2-
3% to 5-10%, depending on how you
measure it. Today, drip holds steady at 70-
80% and other grinds at 20%.
Lizzie Ephraim was only a year old
when her dad, Dan, launched MPE. Today,
shes the director of marketing and the com-
panys spokesperson who can expound on
the evolution of the grinding business.
With changing technology, demands
continue to increase. Making a coarse
grind is relatively easy, says Lizzie, whose
technical knowledge clearly demonstrates
her Ephraim DNA. However, as you
achieve a finer and finer grind, the
demand on a grinder is greater, and the
sophistication of the grinder becomes
higher. So a grinder that is produced for
coarse grinds will last three or four times
as long between services and recondition-
ing as one thats grinding a fine grind.
Dan continues, Todays brewing
methods can be more efficient. The brew-
ers are better and the controls are better
so that you can make your coffee some-
what finer, getting extra extraction for the
same amount of ground coffee, even
urns. Yesterdays urns used a coarser
grind, more towards a French Press grind.
Today, when you see an urn in a facility
like McDonalds, it typically takes a finer,
drip grind.
Staying Ahead Of The Grind
There are other brewing methods that
challenge grinding technologies such as
the new pod brewing business, which has
enormous consumer appeal.
To us, the pod business has become
very significant, Dan continues. Youre
now taking the brew method that typical-
ly takes four minutes and saying, Okay,
Im going to have a pod coffee in 20 sec-
onds. Its incredible how much more
sophisticated the grind has to be.
Phil adds, With pods, the size gets
smaller, but so do tolerances. We have to be
careful because the brew time and portion
size gets very specific. It is truly a science.
Phil points to an ancient method as
taxing as any domestic grind, in fact more
so. The finest grinds we do are neither
pods nor espresso. Turkish grinding is a
specialty for us too.
MPE sells to industrial users who eval-
uate product efficiences with very tight
tolerances. Dan is quick to point out that
68 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Company History
)
An early photo of Phil and Dan with one of the original Gump-Style units
industrial evolution, not a specific brew-
ing method, is responsible. Grinds in
general keep getting finer, and people
want zero waste. People wont deal with
something thats 60% efficient anymore.
They want 95 100%.
The Clear Frontrunner
With the fact that every cup of coffee
requires grinding coffee, when it comes to
industrial grinding, Modern Process is
clearly out front.
In the United States, we are the sole
manufacturer of industrial coffee
grinders, states Lizzie. How much of
our business a number of years ago was
overseas? Minimal. Now, its a very signif-
icant portion.
Dan cites an early startup customer:
When the leading coffee shop brand was
just a three-shop operation, we were their
supplier. We sold them their first grinder.
Phil fires the punch line, And theyre still
our customer.
Internationally, grinding for instant
coffee continues to be a big business and
we continue to make the special grinders
for this market. In fact, last week we
shipped an entire system for a company in
Vietnam thats building an instant coffee
production plant.
More Than A Cup Of Coffee
MPE builds and develops a myriad of sys-
tems supporting coffee grinders, includ-
ing conveying systems.
Now, our customers want us to
design, incorporate and integrate all the
moving parts. So, we integrate the silos,
weighing systems, blending systems as
well as the other parts of a factory. Weve
built the process systems for some of the
biggest factories in the country.
But the business extends beyond the
grinding of coffee beans. In fact, anything
thats ground or granulized is a potential
Modern Process customer. This includes
salt and spices and extends to other food
and chemical products.
Service Makes The Difference
Paramount to being the technology leader
is catering to a global network of customers
with ever-demanding needs for service.
We dont have a service department that
just kicks it down the road, says Phil. We
take it very personally when somebody calls
us up to report an issue. We know them and
we want to to fix it. Whether thats a
$10,000 grinder or $300,000 grinder, we
want that problem to be solved.
Phil motions to a suitcase partially
70 TEA & COFFEE TRADE JOURNAL | www.teaandcoffee.net
(
Company History
)
An early photo of Phil and Dan with one of the original Gump-Style units
An early photo of Phil and Dan with one of the original Gump-Style units
obscured by a cubicle wall. Today Im
headed to Israel, with 2,000 pounds of
parts to help a customer. We paid for
those to be flown over.
Dan adds, Theyre our customer and
we want to take care of them.
Lizzie sums it up: In business, people
like dealing with us and have a high level
of confidence in us.
Considered by many to be the U.S.
Boeing equivalent in the coffee industry,
Dan says, We never forget the impor-
tance of our customer relations.
A Gentler Way To Move A Bean
So how does an industrial coffee grinding
company expand its market reach? By cre-
ating a new market opportunity, of course.
MPE makes no secret that their love
of new products and ratchet tweaking has
led to their newest breakthrough technol-
ogy one suited to coffee, as well as
other products. Its called Chain-Vey, and
Dan describes the potential for this prod-
uct line in one word. Tremendous.
Its significant, Dan adds, because
its an enclosed tube and a really gentle
way to move products around. Its great
for whole bean, green and roasted, as well
as ground coffee. The idea of a sealed, air-
less container traveling around a plant is
very attractive for a lot of products.
Lizzie snaps a coffee bean between her
fingers showing how easy it is for effect,
It doesnt break up the whole bean
Its Their Kind Of Town
The one thing that isnt changing anytime
in the foreseeable future at Modern
Process is the companys loyalty to its
hometown manufacturing base.
Dan doesnt hedge, All our manufac-
turing is done right here in the U.S., and
we want to keep everything here.
Right here in Chicago, adds Lizzie,
again without hesitation.
For two decades, her grandfather, Max
Ephraim, served as chairman of the board
and provided wise counsel. After he retired
as chief engineer for a General Motors
Division, he spent every Thursday at the
factory. He knew more about our workers
and their families than we did, says Phil.
Max passed away 10 years ago, but
the values he instilled in his sons and
granddaughter continue to produce
amazing results.
Lizzie continues, Dan and Phil come
from a family of nine. But when it comes
to large families, theres no contest here.
We have guys in the plant who come from
families even larger. We didnt plan it that
way, but we love big families and we think
that our focus on family fosters growth
within our organization.
To encourage their employees health
and wellness, MPE recently installed a
state-of-the art workout and fitness area.
And holidays celebrations complete
with grab gifts, turkeys and hams are a
highlight for the entire company.
Dan smiles broadly, Every year, we
throw a Christmas party and honor our
employees with a great dinner, bonuses
based on performance and gifts. This past
Christmas, I think we were all looking in
amazement as we saw how many people
have been here for a long tine. They are a
part of all this success and our vision for
the future.
The same place for 30 some years,
Phil reflects. I remember when the first
employee hit 15 or 20 years. Now
theres a number of them with 25 years
right here in our building. Theyre part
of our family.
This has always been a family-orient-
ed business, Dan responds. Its such a
part of who we are and its key to our
success.
It always has been, and always will
be, says Lizzie with a smile.
(
Company History
)
Max, Dan and Phil Ephraim
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1365 Mi d-Way Bl vd. Uni t #11
Mi ssi ssauga, Ontari o, Canada, L5T 2J5
s howmey our beans @gmai l . c om
Toll Free: 1-888-717-BEAN
Tel : ( 905) 564- 1184
Fax: ( 905) 564- 1187
Display Caf Ltd. / Innovated Products Mfg. Inc.
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For samples, please contact us at 225-752-1160
or at sales@podpack.com.
11800 Industriplex Boulevard, Ste. 9
Baton Rouge, Louisiana 70809
225-752-1160 fax: 225-752-1163
sales@podpack.com Specialists in Private Label and National Branding www.podpack.com
26 Tower Hill Lane
Kinnelon, New Jersey 07405
973-492-3244 fax: 973-283-1316
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