Coffee News Recap, 28 Feb: Arabica futures drop below US $4/lb but remain high, Starbucks to cut over 1,100 corporate jobs

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

Table of Contents

Editor’s note

Two weeks after hitting US $4.41/lb, the highest number in the history of the C market, arabica futures dipped below $3.80. Precipitated by record exports from Brazil and a rebound in global arabica inventories, the downward trajectory isn’t expected to last long.

There are reports of some producers holding out for prices to rise again, forcing traders to acquire more credit and further straining already-slim margins. The increasing risk is likely to drive prices higher, with many in the industry questioning whether we could see another record high in late March or early April.

To survive what is predicted to be a high and volatile market for the next few months, coffee businesses will need to reshuffle their budgeting and financial planning. Much like during the pandemic, footfall in cafés is expected to decline while at-home consumption increases, pushing roasters to offer a more diverse range of affordable blends and premium single origins, invest in equipment distribution, and refocus on subscription services.

In other news, Starbucks announced it will axe over 1,100 global corporate jobs as part of its turnaround strategy. The chain, which employs more than 360,000 people in over 80 countries, is seeking to streamline operations to combat falling sales in key markets like the US and China.

Chinese coffee giant Luckin is still poised to open locations in the US this year, strategically targeting cities with higher concentrations of expats and tourists. This adds more pressure on Starbucks to keep finding new ways to improve efficiency – or risk losing its market share to a fierce competitor.

Industry news

Mon, 24 Feb – ROR Coffee Solutions expands to Saudi Arabia. In collaboration with Qadr Financial, the UAE brand will launch turnkey coffee solutions, expert coffee bars, and advanced brewing tech that focus on sustainability, quality, and barista training. An exclusive partnership with Dalla Espresso will further boost expansion in the GCC. (Dubai, UAE)

Tue, 25 Feb – Olam Group confirms sale of agribusiness stake to Saudi fund. Following confirmation, Olam Group will sell its 44.6% agribusiness stake for US $1.78 billion to Saudi Agricultural & Livestock Investment Co. The deal gives the Saudi fund an 80.01% stake, with a three-year call option on the remaining 19.99%. (Singapore)

Thu, 27 Feb – Joe & The Juice names new US Managing Director. Former Pret A Manger and Panera exec Jorrie Bruffett is appointed to lead Joe & The Juice’s US business. She will expand the 66-store network and drive efficiency, innovation and digital sales across the US market. (Copenhagen, Denmark)

Fri, 28 Feb – Volcafe and Cotierra generate biochar carbon credits in Colombia. Colombia’s first biochar-based carbon credits were issued by Volcafe and Cotierra, led by Carcafe. Farm biomass was used to create biochar that enhances soil health and crop yields, marking a milestone in coffee decarbonisation efforts. (Winterthur, Switzerland)

Fri, 28 Feb – Commonplace coffee appoints first CEO in 22 years. The Pittsburg roastery and café chain has named Alisa Paul as its first CEO. Formerly Senior Director at Year Up United, she will focus on leadership development, career pathways for staff, and expanding the company’s wholesale business while enhancing customer experience. (Pittsburg, Pennsylvania, US)

New launch

Tue, 25 Feb – Excelsa Café to open in San Diego in March 2025. The world’s first café exclusively serving Excelsa coffee will open in California. The venture builds on thriving Excelsa farms in Nicaragua and sustainable cultivation. (San Diego, California, US)

Wed, 26 Feb – TrueStart Coffee expands UK distribution with Morrisons launch. TrueStart Coffee will launch its caffeine-controlled instant range in Morrisons supermarkets from 3rd March, boosting its distribution points by 26% to 5,025 locations across the UK. The move meets demand from 39% of coffee drinkers seeking lower caffeine options. (Bristol, UK)

Fri, 28 Feb – Evoca Group announces new Netherlands branch. Evoca Group expands with Evoca Nederland B.V. in Gorinchem, South Holland, reinforcing local service. A 70 sqm showroom will open in July 2025, featuring an in-cup coffee experience and showcasing Gaggia, Necta, and Saeco machines. Operations continue as usual during the transition. (Valbrembo, Italy)

A barista prewets a filter paper in a V60.

Milestone

Tue, 25 Feb – Keurig Dr Pepper exceeds profit expectations on strong demand. The company forecasts high-single-digit profit growth after surpassing Q4 estimates. Robust demand for sodas, sports drinks and new flavours lifted Q4 net sales to US $4.07 billion, despite a 2.4% decline in its US coffee unit. (Frisco, Texas)

Wed, 26 Feb – JDE Peet’s beats estimates amid rising coffee costs. The company posted a 13.2% EBIT rise to €1.28 billion in 2024, beating estimates despite coffee prices doubling. A slight EBIT dip is expected in 2025 as new CFO Yang Xu leads a €1 billion share buyback plan. (Amsterdam, the Netherlands)

Thu, 27 Feb – Cornish Bakery posts record second-half-year results. The UK independent coffee and bakery chain saw 9.7% like-for-like growth and a 26% year-on-year sales rise in H2 2024. It added six outlets, including a strong launch in Milton Keynes, and now operates 66 stores. Plans include six new sites and five refurbishments for Easter 2025. (Falmouth, UK)

Thu, 27 Feb – Post Coffee scales global subscription with new investment. The Japanese online specialty coffee marketplace has secured undisclosed funding from Joyance Asia to expand its DTC subscription service. Now serving 90,000 subscribers with beans from 200+ roasters, it plans global growth. (Tokyo, Japan)

Trade & production

Thu, 27 Feb – Expocacer opens London logistics hub, eying 15% sales growth. Expocacer, the Cerrado Coffee Growers Cooperative, opened a logistics hub in London. The new international base, its second after the US, is expected to boost UK sales by up to 15% in the first year and support its direct-from-farm distribution model. (Patrocínio, Brazil)

Research

Events & competitions

Wed, 26 Feb – National Coffee Association announces 2025 NCA Convention award honorees. Allan B. Colley will receive the Distinguished Leadership Award for his 50-year career, and Kyle Bawot will receive Volunteer of the Year for his role in NCA Next Gen. Root Capital has been named Origin Charity of the Year. All winners will be recognised at the NCA Convention from 6 to 8 March. (Houston, Texas, US)

Want to keep up with current affairs in the coffee industry? Check out last week’s coffee news stories and make sure to read the latest Coffee Intelligence News & Opinion piece about why big coffee brands are investing in Gen Z and Alpha marketing strategies.

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