| Seattle; the home of Boeing, software giants, | | | | return to a farmers, the better the coffee will be. |
| grunge music and...specialty coffee. Well, not quite. | | | | Higher returns means more time can be spent in |
| Contrary to popular belief, while Pearl Jam, Nirvana | | | | the origin country looking after the crop, pruning, |
| and Boeing and Oracle do indeed hail from the | | | | selective harvesting, proper intensive drying and |
| Pacific Northwest, modern specialty coffee has its | | | | packing/storing the coffee once it is dried. |
| roots much further south. | | | | The role the specialty coffee industry plays in all |
| When Alfred Peet died in his sleep a few weeks | | | | this is very important. Retail shops that source |
| ago he was a sprightly 87. He passed away | | | | and supply only the best coffee help to sustain |
| peacefully hopefully dreaming of coffee trees | | | | the industry both upstream and downstream. This |
| laden with ripened cherries. While most people | | | | means the farmers and workers will be rewarded |
| have never heard of him, Peet is widely | | | | and the consumers will have access to quality |
| recognised as being the father of modern | | | | coffee, hopefully growing the business further. |
| "specialty coffee" in the industry. He was a | | | | Unfortunately the reverse is gradually becoming |
| Dutchman who became an American. He had | | | | more often the norm. Cafes, coffee shops and |
| traded tea for Lipton's in Java, lived in Sumatra, | | | | roasters entering the market all over the world |
| worked in the business in New Zealand before, | | | | tend to look for short-term cost advantages to |
| finally, settling down (somewhat) in the University | | | | try and fuel their business models. To achieve this |
| suburb of Berkeley, California. It was at Berkeley | | | | they either buy poor quality coffee, as cheap as |
| where he founded his roastery in 1966 and Peet's | | | | possible or average quality coffee...likewise as |
| Coffee was born. Alfred Peet was passionate | | | | cheaply as possible. Cheap coffee equates to, at |
| about coffee. His roasting exploits legendary and | | | | the best, very average finished product. This in |
| his ability to commentate, roast and put out fires | | | | turn means generally a poor perception of the |
| simultaneously are famous. His experiences while | | | | place selling the coffee. This would perhaps be OK |
| living in Indonesia had given him an affinity with | | | | if there were not so many cafes now selling poor |
| farmers who grew coffee, as well as a thorough | | | | quality coffee. As it is it means that poor quality |
| understanding of the origin, the place where | | | | coffee is often accepted a being the norm- hence |
| coffee was grown. This background, combined | | | | having the result of putting people off drinking |
| with his love of roasting, resulted in a place where | | | | coffee. |
| coffee was not just a cup of Java, but something | | | | In many ways the industry can be seen as having |
| exotic, living and with a story. | | | | come almost full circle back to where it was in |
| From Alfred Peet's inspirational example came | | | | the early 1970's when instant coffee and coffee |
| many of the coffee cultures that now are | | | | sitting on hotplates for 10 hours were seen and |
| household names today in America and around | | | | accepted as being normal coffee. This is what |
| the world- Starbucks being the most famous of | | | | pioneers like Peet worked so hard to change. It is |
| these of course. The original founders of | | | | also why the crossroads the industry now stands |
| Starbucks- Baldwin, Bowker and Ziv Seigel | | | | at are so important. |
| originally leant their roasting trade from Peet, in | | | | The choices are really quite simple. For coffee to |
| fact Peet roasted for them in their early years. | | | | evolve and grow further there needs to be |
| Many others in the industry in America today also | | | | education of the retailer and the customer. The |
| passed through the Peet's Coffee experience. In | | | | global industry is built around national organisations |
| fact when Howard Schulz purchased Starbucks, | | | | that play a varying role in providing advice and |
| Bowker and Baldwin moved across and purchased | | | | education to those in retail or wholesale. The |
| Peets Coffee- Alfred Peet retiring to a role of | | | | Specialty Coffee Association of America (SCAA) |
| Coffee Mentor for the Industry as a whole. | | | | and the SCAE (Specialty Coffee Association of |
| Today most coffee drinkers, from Surabaya to | | | | Europe) are two such organisations. However to |
| San Francisco, recognise Starbucks and its logo, | | | | become members of these organisations is as |
| but the name "Alfred Peet" often draws draws | | | | simple as filling out a form and paying a fee. Often |
| blank looks. | | | | the motivation of the people joining is just to get |
| Specialty Coffee today is at a crossroad- an | | | | a sticker to put on their shop door, knowledge is |
| important junction in deciding which direction | | | | a secondary motivator. There is talk that |
| coffee will be heading over the next decade. In | | | | membership should involve some form of basic |
| the last 10 years many new comers have | | | | enter test and then continuing education via the |
| entered the business. It is estimated that the | | | | internet- which would at least help to provide tools |
| global coffee sector today is valued at over | | | | to pass information on to those drinking the |
| US$80 billion. It is no wonder that with these | | | | coffee. |
| revenue numbers, the industry attracts a mix of | | | | Looking at those in the industry who do things |
| business people with mixed agendas- who often | | | | well, is also a great way of building and planning |
| see the potential bottom line rather than | | | | the future for specialty coffee. In the USA quality |
| education and passion as being the driving force in | | | | roasters and café operators such as |
| what they do. Traditionally the specialty coffee | | | | Allegro, Blackstump Coffee and Intelligensia have |
| industry has been built on the strong foundation | | | | taken industry standards to a new level. Buying |
| of sharing knowledge and experience- with the | | | | quality coffee, hiring quality staff and imparting |
| supposition that by helping each other the industry | | | | quality knowledge to customers buying their |
| will be strongly quality focused. However a | | | | morning coffee has proven very successful for |
| number of the more recent arrivals in the market | | | | these companies. So much so that it is an |
| are perhaps choosing coffee for the perceived | | | | unquestionable part of their corporate culture. All |
| easy profits, rather than for a real passion for | | | | of these companies also practice something |
| coffee or its heritage. As a result many of the | | | | unique- they regularly visit their growers in |
| traditional methods of exchange are not as | | | | countries such as Indonesia, Guatemala, Kenya, |
| effective, or used as frequently as they have | | | | Brazil and Colombia. To take this one step further, |
| been in the past. | | | | they do not just visit and spend a few nights- |
| Globally Coffee is in a position where consumption | | | | taking photos of a grower's coffee trees, they |
| is beginning to slow down and opportunities to | | | | maintain regular contact with those growing the |
| grow coffee are becoming more difficult to find in | | | | coffee. This approach must be seen as the future |
| the traditional coffee consuming markets- Europe, | | | | for coffee in competitive, quality driven markets. |
| USA, South America and Oceania. The easy | | | | It is true relationship coffee where the roaster |
| answer if to look at new emerging markets- | | | | becomes by default part of the farmers |
| China, India, Pakistan and Indonesia are prime | | | | extended family. |
| targets. These countries either have low coffee | | | | Passing knowledge on to those who buy a coffee |
| consumption (Indonesian's, for instance, consume | | | | everyday, and arming them with information on |
| 500gm per person per year vs. Norway's 12kg | | | | what type of coffee they drink, how it is grown, |
| per person per year), or have reasonable | | | | who grows it, when it is picked, how it gets to |
| consumption, but historically are tea consumers | | | | them gives all power to the customer. It is a |
| (India). The new markets are also very | | | | very important, yet lagging piece of the future of |
| suggestible to western branding- in many cases | | | | coffee globally. Being able to learn the differences |
| the strength of branding has been shown to be | | | | in tastes/cupping qualities has some snob quality, |
| more important than the product itself. This | | | | but more importantly it helps the buyer to |
| presents a number of opportunities to strong | | | | differentiate between good, average and poor |
| western brands and of course new local brands | | | | coffee. Here lies the problem. A successful |
| to emerge. However it does not necessarily | | | | café founded on the principles of |
| equate to long-term longevity of specialty coffee | | | | sustainability and true coffee culture has nothing |
| in these new frontiers. | | | | to fear from education. A café selling poor |
| In the more mature markets, the patterns of | | | | quality coffee is unlikely, or perhaps unable, to |
| consumption have changed markedly over the | | | | want to educate clients about quality. |
| last 15-20 years. The traditional, lower quality | | | | A failure to address quality, education and |
| coffee products such as instants, are being | | | | sustainability in the business sector (from the |
| replaced by roast and ground coffee (drips, | | | | farmer to the retail customer) will ultimately result |
| plungers etc) and of course Espresso Based | | | | in consumption patterns falling further. Quality |
| Drinks (cappuccino, latte, espresso etc). Fresh | | | | issues- especially over the counter and in the cup, |
| roasted coffee has many advantages over the | | | | need to be addressed. If not unfortunately those |
| instant coffee. It is more flavoursome and more | | | | to suffer will be the grower or origin country, |
| importantly has a greater link back to where it | | | | rather than the retailer. With current economics a |
| originally came from. This means that customer | | | | grower in Indonesia receives only around 2-5% of |
| awareness is also on the increase- bringing into | | | | the cost of the average cup sold in America or |
| the spotlight the actual paper trail of where the | | | | Europe. If demand drops off, the Arabica business |
| coffee comes from, who picked it, what price the | | | | ultimately will fall back into a cycle of commodity |
| grower get from it etc. To consumers in | | | | pricing rather than specialty pricing that many |
| countries such as New Zealand this is very | | | | quality origins now enjoy. Competition from other |
| important- as generally there is a linkage between | | | | beverages, and lifestyle choices, compete with |
| quality of coffee and the return the farmer or | | | | the disposable income that coffee comes from. |
| grower gets. The correlation is the better the | | | | |