Coffee News Recap, 31 Jan: Arabica futures reach over US $3.7/lb, first speakers announced for PRF’s biggest-ever edition in Honduras & other stories

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

Editor’s note

After reaching an all-time high in mid-December 2024, arabica futures have since been on a steady upward trajectory, compounded by ongoing supply shortages in Brazil and Vietnam.

But this week, in a shocking turn of events that caused futures to hit another historic record high (this time US $3.73/lb), US President Donald Trump threatened Colombia with a staggering 25% tariff on all exported goods. Naturally, given the country’s position as the world’s third-biggest producer, this would have included coffee.

Although Trump quickly rescinded the punitive tariffs, which were in response to Colombian President Petro barring two military planes carrying deported migrants from landing, the threat alone was enough to drive arabica futures to new heights. To avoid a US-Colombia trade war, Petro agreed to accept the deported migrants “without limitation or delay”.

If imposed, the tariffs would have had devastating consequences for both the US and Colombia, which the FNC and NCA reiterated in a joint statement published on Tuesday. Colombia is the second-biggest supplier of coffee to the US market, making it essential to meet the demand for America’s favourite beverage, according to the NCA’s data. Considering that the US only grows negligible amounts of coffee in Hawaii (and even less in California), the country is far from meeting its own demand.

A key part of Trump’s immigration policy is the mass deportation of allegedly undocumented migrants, which, given its proximity to the US, is primarily related to Latin American countries, including those that grow coffee. If other leaders hesitate or refuse to comply, it could spell more threats to increase tariffs – raising coffee futures even higher.

With or without tariffs, however, coffee prices will continue rising. It’s becoming increasingly apparent that the year ahead will be characterised by persistent market volatility that keeps traders, roasters, and producers hedging their bets.

Top stories of the week

• Wed, 29 Jan – PRF announces first speakers for its biggest-ever edition in Honduras on 27 & 28 March 2025. In addition to the PRF Voices programme, workshops, and cuppings, PRF Honduras will include the fourth Global Roasting Contest, the sixth Cold Brew Coffee Championship, the second Cacao Masters Cup, the third Global Coffee Awards, the second PRF Seed scholarship initiative, and an all-new Producer-Roaster Matchmaking programme. (San Pedro Sula, Honduras)

• Wed, 29 Jan – Starbucks to cut 30% of its menu in the US. Niccol outlined a plan to reduce the chain’s food and drink menu options but didn’t name specific items. This move follows previous menu reductions, such as the Oleato olive oil drinks, in a bid to simplify offerings, reduce wait times, and improve the customer experience. Starbucks reported a lower-than-expected 6% decline in US sales, signalling a recovery. (Seattle, Washington, US)

Industry news

• Mon, 27 Jan – Hannelore Beerlandt appointed ICO Head of Operations. Beerlandt will work closely with outgoing HOO Gerardo Patacconi until March 2025 for a smooth transition. With a background in agricultural economics, Beerlandt has extensive experience in sustainable coffee policies and international cooperation. (London, UK)

• Tue, 28 Jan – Starbucks announces further executive changes ahead of earnings call. CEO Brian Niccol announced leadership changes, with Sara Trilling and Arthur Valdez departing. Trilling’s role is now split into two: Mike Grams, ex-Taco Bell executive, becomes North America chief stores officer, while Meredith Sandland, SaaS founder, is chief store development officer. A new supply chain head is still pending. (Seattle, Washington, US)

• Wed, 29 Jan – Starbucks’ Middle East franchise puts stake sale talks on hold. Alshaya Group paused talks to sell a stake in its Starbucks franchise across the Middle East, North Africa, and Central Asia, according to CEO John Hadden. The company is focusing on daily consumer service after a challenging 2024. Alshaya operates around 2,000 Starbucks locations across 13 countries. (Kuwait City, Kuwait)

• Wed, 29 Jan – Nestlé US opens new factory to produce Starbucks branded coffee and more. The company opened the US $675 million facility to increase production of creamers for brands like Coffee Mate, Starbucks, and Natural Blis. The 630,000 sq ft factory, part of Nestlé’s US $3 billion investment, will create 300 jobs and focus on sustainability, recycling up to 75% of processed water and using renewable electricity. (Glendale, Arizona, US)

• Wed, 29 Jan – “Beanless” coffee brand Atomo makes UK debut. Atomo Coffee, known for its “beanless” coffee made from superfoods and upcycled ingredients, launched in the UK at Hagen’s concept bar in Mayfair, London. Atomo is expanding globally, with plans for further growth in cafés worldwide. (Seattle, Washington, US)

• Thu, 30 Jan – Starbucks and worker’s union agree to mediator for contract talks. Talks between the coffee chain and the Starbucks Workers United union, which started in April 2024, were paused in December after the union said Starbucks failed to present a comprehensive offer. Despite this, both parties remain committed to reaching a fair agreement with the help of a mediator. (Seattle, Washington, US)

• Fri, 31 Jan – Carlo Di Ruocco, founder of Mr. Espresso, passes away aged 90. Born in Salerno, Carlo helped introduce espresso machines to California in 1978, later pioneering wood-fired coffee roasting. His company, now run by his children, influenced US espresso culture. He received Italy’s honorary knighthood and the SCA’s Alfred Peet Award. (Oakland, California, US)

New launch

• Mon, 27 Jan – Luckin Coffee opened five Malaysian outlets in January 2025. The Chinese chain launched locations at Sunway Pyramid and Menara EcoWorld, Bukit Bintang City Centre, with three more stores set to open by end of month. Its partnership with Global Aroma will expand the brand across Malaysia. (Shanghai, China)

• Tue, 28 Jan – Portrait Coffee launches Black is Beautiful box. The curated collection showcases Black-owned roasters with five unique coffees celebrating heritage and innovation. Featuring blends from Three Keys, Boon Boona, Eight50, Cxffeeblack, and Portrait, it highlights Black business owners’ contributions to specialty coffee. (Atlanta, Georgia, US)

• Thu, 30 Jan – Greece’s Coffee Island debuts in India. In partnership with Vita Nova, the Greek specialty coffee chain opened its first store in Gurugram in partnership and will expand its presence with a total of 20 outlets across the country by March 2026. (Patras, Greece)

• Fri, 31 Jan – Coffee app Roastguide to launch Open Bag feature. The new integrated feature enhances the in-app brewing experience and enables users to track their open bags and log brews. Roastguide also automatically updates new roasts within an hour of partner roasters adding them to their websites. (Sweden)

Milestone

• Mon, 27 Jan – Kyan Café expands in Middle East with first Iraq outlet. Kyan Café, the Middle East’s sixth-largest coffee chain with over 350 stores, has entered the Iraqi market, opening in Basra and planning expansion to Bagdad, Karbala and Erbil. Iraq, identified as a growing premium coffee market, is projected to see 10% growth in branded coffee outlets, reaching 130 locations by 2029. (Basra, Iraq)

• Tue, 28 Jan – Mikel Coffee will enter India under the Greko India partnership. The first store will open in Delhi-NCR, with plans for expansion into cities like Mumbai, Hyderabad, and Bengaluru. Mikel Coffee aims to bring Greek coffee culture to the growing Indian market, which is expected to reach US $1.2 billion by 2026. (Athens, Greece)

• Mon, 27 Jan – Reborn Coffee approved as US franchisor, plans expansive nationwide growth. The specialty coffee chain aims to open over 100 US franchise locations in the next three years. With approval in California and non-franchise states, the company plans global growth, offering premium coffee, teas, and bakery items through scalable store concepts. (Brea, California, US)

• Tue, 28 Jan – Fellow’s new Aiden Precision brewer receives SCA certification. The coffee machine meets the SCA’s standards for brewing specialty coffee at home. The Aiden features guided coffee-to-water ratios, a heat retentive thermal carafe, and customisable temperature and bloom settings. (San Francisco, California, US)

• Wed, 29 Jan – EDGE Tea & Coffee announces leadership transition. Alice Edgcumbe-Rendle, after serving as managing director for 35 years, transitions to chairperson. Stewart Cumming becomes managing director, and Stevie McCusker joins as head of coffee, enhancing quality delivery in a challenging market. (Ford, UK)

• Wed, 29 Jan – De’Longhi Group reports €3.5 billion in revenues, up 13.7%. De’Longhi S.p.A. reported a 13.7% revenue increase for 2024, driven by the coffee and nutrition sectors and the acquisition of La Marzocco. The company expects 5% to 7% growth in 2025, alongside margin improvements and strong regional performance. (Treviso, Italy)

• Thu, 30 Jan – Pret A Manger will debut in Africa. The bakery and coffee chain will open its first store in South Africa at Johannesburg’s Melrose Arch on 14 February 2025, marking its entry into the African market and its 20th international location. The menu will feature Pret classics alongside South African-inspired items like the Soutvleis Sandwich and Braaibroodjie Toastie. (Johannesburg, South Africa)

Trade & production

• Thu, 30 Jan – Hanns R. Neumann Stiftung supports scalable solutions for smallholder coffee farming. The private non-profit has implemented projects in 18 countries that supports over 300,000 smallholder coffee farmers through continuous support, training programmes and networks, and advocating for institutional changes. Partners like Lavazza and Starbucks help amplify these efforts for sustainable impact. (Amsterdam, the Netherlands)

Research

• Wed, 29 Jan – Löfbergs finds eight in ten Swedes drink coffee. The roaster’s new report reveals filter coffee as the most popular brewing method, with 73% of consumers opting for it, far ahead of instant coffee at 7%. The study also found that 69% consider their morning coffee the most important of the day, and 57% say quitting coffee would be more challenging than giving up beer or soda. (Karlstad, Sweden)

• Thu, 30 Jan – Research finds coffee rust fungicides toxic to farm workers. A study in Science of the Total Environment found health risks for coffee farmworkers in Minas Gerais due to triazole fungicide exposure, with hormonal imbalances linked to metabolic issues. Researchers also validated a toxicology tool that accurately compares human and lab test data, aiding future risk assessments. (London, UK)

• Fri, 31 Jan – German researchers find that genetic predisposition affects flavour perception of coffee. Scientists at the Leibniz Institute for Food Systems Biology at the Technical University of Munich found that mozambioside in roasted arabica tastes about ten times more bitter than caffeine and activates two of the approximately 25 bitter taste receptor types in the human body, namely the TAS2R43 and TAS2R46 receptors. A genetic test showed that taste sensitivity is dependent on the genetic predisposition of whether people had both copies of the TAS2R43 gene variant defective. (Munich, Germany)

Events

• Fri, 31 Jan – The Glasgow Coffee Festival to return on 26 & 27 April. The event, which focuses on sustainability, will be held at The Briggait. Organised by Dear Green Coffee Roasters, this year’s festival will feature tastings, workshops, competitions, and discussions on ethical sourcing and environmental responsibility in the coffee supply chain. (Glasgow, UK)

Photo credits: Producer & Roaster Forum

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