Coffee News Recap, 16 Jan: Coca-Cola reportedly pulls Costa sale, ICO says easing supply fears drove coffee prices down in Dec & other stories

Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the week. 

Editor’s note

After months of talks with potential bidders, including frontrunner TDR Capital, Coca-Cola is reportedly abandoning its sale of Costa Coffee.

The beverage giant purchased the UK’s largest coffee chain for £3.9bn in 2018, but in recent years, the investment has “not quite delivered”, according to Coca-Cola’s outgoing CEO James Quincey. As per its recent accounts filed with Companies House, Costa generated revenue of £1.2bn in 2024, only 1% higher than in 2023. In the same period, its operating losses increased to £13.5m.

Coca-Cola had hoped to sell Costa for £2bn, but bids have allegedly fallen short of sale expectations. What happens next for the coffee chain remains to be seen.

Meanwhile, the International Coffee Organisation’s latest report found that the ICO Composite Indicator Price (I-CIP) averaged 304.68 US cents/lb in December, down 7.8% from November. ICO’s data indicate the steep decline was driven by a more favourable global supply outlook, depreciation of the Brazilian Real, an additional year-long EUDR delay, and tariff exemptions.

The December report also highlighted that the upward revision to Brazil’s 2025/26 harvest estimate, combined with a slight upward correction to the USDA’s global production outlook, led to more market stability. As global supply fears ease and exports rise, we could see arabica prices fall further.

Top stories of the week

• Mon, 12 Jan – Lease dispute poses uncertain future for Kauaʻi Coffee Co. The company’s operations span about 3,000 acres and 14 million coffee plants, making it the US’ largest coffee producer, according to its website. Kauaʻi Coffee Co. says its lease expires at the end of March 2026, and the landowner has suggested it will not renew under the current terms. This would put over 140 jobs at risk. (Kalaheo, Hawaii, US)

• Mon, 12 Jan – Study finds coffee compounds outperformed diabetes drug in tests. Researchers isolated several diterpene esters from roasted arabica beans that inhibited α-glucosidase, an enzyme involved in carbohydrate breakdown and blood sugar control, more effectively than the standard drug acarbose in vitro, suggesting potential for functional food or nutraceutical development. (Kunming, China)

Industry news

• Mon, 12 Jan – illycaffè names Johannes Nuding as chef ambassador. The Italian heritage brand appointed Nuding, a two-Michelin-star chef, to advise on coffee and food pairings, culinary collaborations, and menu development, aiming to strengthen the brand’s gastronomic credentials. (Trieste, Italy)

• Tue, 13 Jan – Dunkin’ appoints RH Amar to launch UK retail coffee range. The distributor will manage sales, marketing, and distribution for seven Nespresso-compatible capsules and three Dolce Gusto formats from January 2026, with the aim of establishing Dunkin’ products on UK supermarket shelves. (London, UK)

• Wed, 14 Jan – Farmmi subsidiary secures FDA registration for Chino warehouse. FDA registration enables Suppchains Group to operate a compliant US food facility, supporting Farmmi’s North American logistics expansion and potentially facilitating storage and distribution of coffee products and RTD beverage components. (Chino, California, US)

• Thu, 15 Jan – 7 Brew, Scooter’s, and Dutch Bros reshape North America’s chain rankings. Technomic’s latest ranking lists 7 Brew, Scooter’s, and Dutch Bros in the top 10, signalling that consumers favour quick vists and affordable options. 7 Brew led value and fastest growth, while Scooter’s reached nearly 900 locations and US$723m in 2024 sales. (Chicago, Illinois, US)

• Fri, 16 Jan – Caffè Nero names Lysa Hardy as UK CEO. Hardy has over two decades of executive experience at UK retail brands, including Hotel Chocolat. The appointment is intended to accelerate growth, enhance store experience, and strengthen operational resilience across the UK estate. (London, UK)

• Fri, 16 Jan – Hagens Berman files lawsuit against Starbucks alleging it misled consumers with sustainability claims and chemical content in decaf coffee. The lawsuit claims the chain’s “Committed to 100% Ethical Coffee Sourcing” messaging is misleading, highlighting examples of labour and human rights abuses at some farms or cooperatives certified under Starbucks’ C.A.F.E. Practices programme. The lawsuit also claims that Starbucks misled consumers about the ingredients in its decaf house medium roast blend, after testing arranged on behalf of the plaintiffs detected benzene, toluene, and methylene chloride. The latter is commonly used in decaf processing. Starbucks says it takes the lawsuit seriously, but believes its claims are inaccurate. (Seattle, Washington, US)

Businesses for sale

• Fri, 16 Jan – Keurig Dr Pepper launches all-cash US$18bn offer for JDE Peet’s. KDP says the €31.85-per-share offer has the unanimous support of the board and backing from major shareholders. The deal is set to close in Q2 2026, creating separate coffee and beverage companies, enabling the coffee division to compete with Nestlé, and is funded by prior private equity. (Burlington, Massachusetts, US)

New launch

• Tue, 13 Jan – Pop & Bottle releases limited-edition coffee and matcha line. The brand introduced a small range of coffee and matcha beverages tied to the streaming release of Wicked: For Good, with themed packaging and flavours targeted at fans. Distribution includes select retail and direct-to-consumer channels. (Los Angeles, California, US)

• Thu, 15 Jan – Franke launches New A Line in Southeast Asia. Franke Coffee Systems introduced its fully automatic machines for Southeast Asia, opening a flagship showroom in Singapore. Models A600 and A800 include FoamMaster, IndividualClean, and HeatGuard, cutting energy loss by up to 44%, according to Franek, and offering FrankeOS for operators. (Singapore)

• Thu, 15 Jan – Anno Robot unveils next-generation AI coffee robot. The company aims to reduce labour costs and increase sales through autonomous brewing and smart retail features, thereby strengthening its leadership in automated retail solutions. (Shenzhen, China)

• Fri, 16 Jan – Royal Cup Coffee and Tea expands RTD brew range. The company added new cold brew flavours, including vanilla oat and mocha, using specialty coffee and recyclable packs to expand its RTD portfolio into grocery and on-the-go channels. (Birmingham, Alabama, US)

• Fri, 16 Jan – Minor Figures launches new multi-serve oat lattes. The brand expanded its RTD portfolio with Classic, Vanilla, Cinnamon, and Mocha multi-serve oat lattes, made with single origin coffee and its signature Barista Oat milk, meeting rising demand for plant-based RTD coffee. (Los Angeles, California, US)

Milestone

• Thu, 15 Jan – Paulig marks its 150th anniversary. The Finnish brand highlighted its sustainable sourcing, Nordic-style roast expertise, and expansion into new markets. The company also reinforced commitments to climate action, farmer partnerships, and innovation in coffee and food solutions. (Helsinki, Finland)

Trade & production

• Wed, 14 Jan – Jamaican coffee sector launches recovery replanting after hurricane damage. Jamaica Blue Mountain Coffee Day on 9 January included a major replanting initiative to help farms hit by Hurricane Melissa, with officials and growers planting seedlings to restore production after an estimated 100,000 bags were lost in the 2025/26 harvest period. (Kingston, Jamaica)

• Thu, 15 Jan – US tariff threat against countries trading with Iran risks Brazilian coffee exports, Reuters reports. Mass anti-government protests in Iran have resulted in at least 2,500 reported deaths and thousands of arrests. Trump posted that a 25% tariff is “effective immediately”, and the order is “final and conclusive”, but the White House has yet to make an official announcement. Brazil ran a US$2.9bn surplus with Iran in 2024, making it a potential target for tariffs. (Washington DC, US)

• Fri, 16 Jan – Kenya’s Laikipia County plans to expand coffee plantations. The region plans to expand coffee production by allocating land, providing seedling support, and training to boost production and incomes, thereby strengthening value chains and attracting private investment amid rising global demand. (Nanyuki, Kenya)

Research

• Thu, 15 Jan – Coffee-related markers have an influence on diabetes 2 risk prediction. Researchers analysed 469 metabolites in 23,634 participants across 10 cohorts and derived a 44-metabolite score that improves long-term diabetes prediction. Dietary links include markers associated with coffee and tea, red meat, vegetables, and sugary drinks. (Boston, Massachusetts, US)

• Thu, 15 Jan – Kerry’s 2026 Taste Charts highlight upcoming coffee trends. The report highlights seven key trends, including “swicy” (sweet and spicy), fruit-forward refreshment, traditional flavours reworked, healing and functional flavours, and maximalist and botanical profiles. (Dublin, Ireland)

Events & competitions

• Mon, 12 Jan – Roast Summit heading to Melbourne in March. The two-day event for coffee roasters, which will run on 24 & 25 March 2026 at Aunty Pegs in Collingwood, offers technical sessions, hands-on workshops, and networking. (Melbourne, Australia)

• Fri, 16 Jan – SIGEP World begins in Rimini. This year’s event will feature the Innovation Bar, a new dedicated area exploring how espresso machine technology is evolving, the Micro Roaster Village, and the Coffee Arena, which will host the 2026 Italian Barista, Brewers Cup, Latte Art, Cup Tasters, Coffee Roasting, and Coffee in Good Spirits Championships. (Rimini, Italy)

• Fri, 16 Jan – Fifth WoC Dubai to begin on 18 Jan. The event will include the 2026 UAE Barista, Latte Art, Cezve/Ibrik, and Coffee Roasting Championships; the second Dubai Coffee Auction; the Coffee Design Awards; the Best New Product competition; and cuppings. (Dubai, UAE)

• Fri, 16 Jan – Grounds for Health Week 2026 to launch 8 March. The launch of the third annual fundraiser will coincide with International Women’s Day. Roasters, coffee retailers, cafés, and industry partners are invited to raise funds and generate awareness among customers about the importance of healthcare for women farmers around the world. (Ashfield, Massachusetts, US)

Here are a few coffee news stories from previous weeks that you might find interesting. Take a look:

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