The end of “café”

Smoking cup of coffee with coffee seeds

The new coffee market

Cold weather warning on the “little black”! The planet coffee lives in the Ice Age. From the cold infusion of brown powder, acclaimed across the Atlantic as “cold brew”, to the pressurization of nitrogen to reduce mercury and add a touch of foam, to the version drowned with ice cubes… His obsession: seduce the millennials, these young people from 25 to 34 years old, moving target of the giants of the food industry.


For example, the Italian Lavazza has just drawn a Nitro Cold Brew machine for establishments wishing to offer strong cocktails or iced coffees to their customers. “Coffee, some people like it cold,” concedes the Turin family home. A response from the coffee maker to the coffee maker, against his great rival Starbucks. The American and Italian are competing for third place in the world for the little black kid. However, Starbucks has popularized the Nitro Cold Brew under its brand name.


This will put pressure on the competitors. The industry leader, the Swiss Nestlé, responded by buying the American Chameleon Cold Brew. Who has been making a hit in Greek bars for more than half a century with his smoothies. As for the Trieste-based company, Illy Caffè, it markets a professional Cold Brew machine in the United States.


Will all this boiling encourage young people to drink more coffee? This is the industry’s bet. For the time being, the bags of grain are not flowing smoothly. They tend to pile up in stocks. The abundance of harvests has pushed up the price of coffee fruits. The International Coffee Organization estimates world production in 2018-2019 at 167 million 60-kg bags, which is higher than the estimated 165 million bags consumed.


An impact on coffee industry

A cold snap has hit the markets; Arabica and Robusta are drinking the cup. The most popular variety, Arabica, is trading at less than 100 cents per pound in New York, the first since 2005. For the planters, the potion is bitter. Deprived of the fruits of their labour, some may be tempted to opt for more lucrative crops.


Colombia, known for the quality of its Arabica, the world’s third largest producer after Brazil and Vietnam, is particularly affected. Roasters are concerned about supply attrition. Brazil, with its industrial agriculture, is crushing competition under its volumes. In this ocean of banalized coffee, the great vintages, which are becoming more and more popular, would float away. For the consumer, the price is hardly on a downward trend. And those who love rarity are ready to buy an Arabica wine from Panama in California for $75 a cup! Black gold…

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