1 Exploring the World of Coffee By: David Cyr S. Verano Abstract: Coffee is a stimulant beverage prepared from roasted seeds, commonly called coffee beans from the coffee plant is one of the most popular beverages worldwide being the second-most-traded physical commodity in the world, ranking second only to petroleum. This beverage was first consumed in the 9th century, when it was discovered in the highlands of Ethiopia and from there it spread to Egypt and Yemen, and by the 15th century had reached Azerbaijan, Persia, Turkey, and northern Africa. From the Muslim world, coffee spread to Italy, then to the rest of Europe, Indonesia and the Americas. Coffee berries, which contain the coffee bean, are produced by several species of small evergreen bush of the genus Coffea. The two most commonly grown species are Coffea canephora also known as Coffea robusta and Coffea arabica. These are cultivated in Latin America, Southeast Asia, and Africa. Once ripe, coffee berries are picked, processed, and dried. The seeds are then roasted, undergoing several physical and chemical changes. After which, they are roasted to varying degrees, depending on the desired flavor; Cooled then ground and brewed to create coffee. Today, coffee is no longer a typical hot served beverage but rather imaginatively concocted and presented in a variety of ways. Coffee has played an important role in many societies throughout modern history. In Africa and Yemen, it was used in religious ceremonies. As a result, the Ethiopian Church banned its consumption until the reign of Emperor Menelik II of Ethiopia. It was banned in Ottoman Turkey in the 17th century for political reasons, and was associated with rebellious political activities in Europe. In modern day business, it is not just a beverage for entertainment but also an important export commodity. In 2004, coffee was the top agricultural export for 12 countries, and in 2005, it was the worlds seventh largest legal agricultural export by value. Some controversy is associated with coffee cultivation and its impact on theI. Etymology and History The English word coffee first came to be used in the early- to mid- 1600s, but early forms of the word date to the last decade of the 1500s. It comes from the Italian caffè. The term was introduced to Europe via the Ottoman Turkish kahve which is in turn derived from the Arabic: ,قهوةqahweh. The origin of the Arabic term is uncertain; it is either derived from the name of the Kaffa region in westernEthiopia, where coffee was cultivated, or by a truncation of qahwat al-būnn, meaning"wine of the bean" in Arabic. In Eritrea, "būnn" (also meaning "wine of the bean" inTigrinya) is used. The Amharic and Afan Oromo name for coffee is bunna. Coffee usecan be traced at least to as early as the 9th century, when it appeared in the highlandsof Ethiopia. According to legend, Ethiopian shepherds were the first to observe theinfluence of the caffeine in coffee beans when the goats appeared to "dance" and tohave an increased level of energy after consuming wild coffee berries. The legendnames the shepherd "Kaldi." From Ethiopia, coffee spread to Egypt and Yemen. It wasin Arabia that coffee beans were first roasted and brewed similarly as they are today. Bythe 15th century, it had reached the rest of the Middle East, Persia, Turkey, and northernAfrica.In 1583, Leonhard Rauwolf, a German physician, gave this description of coffee afterreturning from a ten year trip to the Near East: “A beverage as black as ink, usefulagainst numerous illnesses, particularly those of the stomach. Its consumers take it inthe morning, quite frankly, in a porcelain cup that is passed around and from which eachone drinks a cupful. It is composed of water and the fruit from a bush called bunnu.”
2 From the Muslim world, coffee spread to Italy. The thrivingtrade between Venice and North Africa, Egypt, and the MiddleEast brought many goods, including coffee, to the Venetianport. From Venice, it was introduced to the rest of Europe.Coffee became more widely accepted after it was deemed aChristian beverage by Pope Clement VIII in 1600, despiteappeals to ban the "Muslim drink". The first European coffeehouse opened in Italy in 1645. The Dutch were the first toimport coffee on a large scale, and they were among the firstto defy the Arab prohibition on the exportation of plants or un-roasted seeds when Pieter van den Broeck smuggledseedlings from Aden into Europe in 1616. The Dutch later grew the crop in Java andCeylon. The first exports of Indonesian coffee from Java to the Netherlands occurred in1711. Through the efforts of the British East India Company, coffee became popular inEngland as well. It was introduced in France in 1657, and in Austria and Poland after the1683 Battle of Vienna, when coffee was captured from supplies of the defeated Turks.When coffee reached North America during the colonial period, it was initially not assuccessful as it had been in Europe. During the Revolutionary War, however, thedemand for coffee increased so much that dealers had to hoard their scarce suppliesand raise prices dramatically; this was partly due to the reduced availability of tea fromBritish merchants. After the War of 1812, during which Britain temporarily cut off accessto tea imports, the Americans taste for coffee grew, and high demand during theAmerican Civil War together with advances in brewing technology secured the positionof coffee as an everyday commodity in the United States.II. Biology and CultivationThe Coffea plant is native to subtropical Africa and southern Asia. It belongs to a genus of 10 species of flowering plants of the family Rubiaceae. It is an evergreen shrub or small tree that may grow 5 meters (16 ft) tall when un-pruned. The leaves are dark green and glossy, usually 10– 15 centimeters (3.9–5.9 in) long and 6.0 centimeters (2.4 in) wide. It produces clusters of fragrant, white flowers that bloom simultaneously. The fruit berry is oval, about 1.5 centimeters (0.6 in) long, and green when immature, but ripens to yellow, then crimson, becoming black on drying. Each berry usually contains two seeds, but from 5 to 10 percent of the berries has only one; these arecalled pea berries. Berries ripen in seven to nine months.Coffee is usually propagated by seeds. The traditional method of planting coffee is to put20 seeds in each hole at the beginning of the rainy season;half are eliminated naturally. Coffee is often intercropped withfood crops, such as corn, beans, or rice, during the first fewyears of cultivation. The two main cultivated species of thecoffee plant are Coffea canephora and Coffea arabica.Arabica coffee (from C. Arabica) is considered more suitablefor drinking than Robusta coffee (from C. canephora); Robustatends to be bitter and have less flavor than Arabica. For thisreason, about three-quarters of coffee cultivated worldwide are C. arabica however, C.canephora is less susceptible to disease than C. arabica and can be cultivated inenvironments where C. arabica will not thrive. Robusta coffee also contains about 40–50percent more caffeine than Arabica. For this reason, it is used as an inexpensivesubstitute for Arabica in many commercial coffee blends. Good quality Robusta are usedin some espresso blends to provide a better foam head and to lower the ingredient cost.
3Other cultivated species include Coffea liberica and Coffea esliaca, believed to beindigenous to Liberia and southern Sudan, respectively. Most Arabica coffee beans originate from either Latin America, eastern Africa, Arabia, or Asia. Robusta coffee beans are grown in western and central Africa, throughout Southeast Asia, and to some extent in Brazil. Beans from different countries or regions usually have distinctive characteristics such as flavor, aroma, body, and acidity. These taste characteristics are dependent not only on the coffees growing region, but also on geneticsubspecies (varietals) and processing. Varietals are generally known by the region inwhich they are grown, such as Colombian, Java, or Kona.There are two main species of bean that thrive in equatorial regions: Arabica andRobusta.A. Robusta is grown at lower altitudes, 0 to 700 meters, and has a high yield per plantand high caffeine content (1.7 to 4.0%). It accounts for about 30% of world production.Robusta has a stronger flavor than Arabica with a full body and a woody aftertaste whichis useful in creating blends and especially useful in instant coffee which is mainly grownin the following regions: • Western and Central Africa (Ivory Coast, Cameroon, Uganda, Angola, etc.) • Malaysia (Vietnam, Sri Lanka, Sumatra, Java, etc.) • Brazil • IndiaB. Arabica grows at higher altitudes, 1000 to 2000 meters, and while it has a lower yieldand less caffeine content (0.8 to 1.4%) it is widely recognized to be superior to Robusta.Arabica accounts for about 70% of world production, although only about 10% of thisyields "grand cru" beans. Arabica has a delicate acidic flavor, a refined aroma and acaramel aftertaste which is grown in the following regions: • Central America (Mexico, Guatemala, El Salvador, Nicaragua, Costa Rica, Panama) • South America (Venezuela, Colombia, Ecuador, Peru, Bolivia, Paraguay, Argentina) • India • Eastern Africa (Ethiopia, Kenya, Tanzania, Zambia, Mozambique) • Papua New GuineaMany of the cheaper blends have a higher proportion of Robusta compared to Arabica.Some high quality blends use a small quantity of the very best Robusta beans to givebody and character to the blends, particularly in espresso blends.III. ProcessingProcessing of coffee is the method converting the raw fruit of the into the coffee. Thecherry has the fruit or pulp removed leaving the seed or bean which is then dried. Whileall green coffee is processed, the method that is used varies and can have a significanteffect on the flavor of roasted and brewed coffee.
4A. Picking A coffee plant usually starts to produce flowers 3–4 years after it is planted and it is from these flowers that the fruits of the plant (commonly known as coffee cherries) appear, with the first useful harvest possible around 5 years after planting. The cherries ripen around eight months after the emergence of the flower, by changing color from green to red, and it is at this time that they should be harvested. In most coffee-growing countries, there is one major harvest a year; though in countries like Colombia, where there are two flowerings a year, there is a main and secondary crop.In most countries, the coffee crop is picked by hand, a labor-intensive and difficultprocess, though in places like Brazil, where the landscape is relatively flat and the coffeefields immense, the process has been mechanized. Whether picked by hand or bymachine, all coffee is harvested in one of two ways: • Strip Picked: The entire crop is harvested at one time. This can either be done by machine or by hand. In either case, all of the cherries are stripped off of the branch at one time. • Selectively Picked: Only the ripe cherries are harvested and they are picked individually by hand. Pickers rotate among the trees every 8 – 10 days, choosing only the cherries which are at the peak of ripeness. Because this kind of harvest is labor intensive, and thus more costly, it is used primarily to harvest the finer Arabica beans.The laborers who pick coffee by hand receive payment by the basketful. As of 2003,payment per basket is between US$2.00 to $10 with the overwhelming majority of thelaborers receiving payment at the lower end. An experienced coffee picker can collect upto 6-7 baskets a day. Depending on the grower, coffee pickers are sometimesspecifically instructed to not pick green coffee berries since the seeds in the berries arenot fully formed or mature. This discernment typically only occurs with growers whoharvest for higher end/specialty coffee where the pickers are paid better for their labor.Mixes of green and red berries, or just green berries, are used to produce cheaper massconsumer coffee beans, which are characterized by a displeasingly bitter/astringentflavor and a sharp odor. Red berries, with their higher aromatic oil and lower organicacid content, are more fragrant, smooth, and mellow. As such coffee picking is one ofthe most important stages in coffee production.B. Processing(1) Wet processIn the Wet Process, the fruit covering the seeds/beans is removed before they are dried.Coffee processed by the wet method is called wet processed or washed coffee. The wetmethod requires the use of specific equipment and substantial quantities of water. Thecoffee cherries are sorted by immersion in water. Bad or unripe fruit will float and thegood ripe fruit will sink. The skin of the cherry and some of the pulp is removed bypressing the fruit by machine in water through a screen. The bean will still have asignificant amount of the pulp clinging to it that needs to be removed. This is done eitherby the classic ferment-and-wash method or a newer procedure variously called machine-assisted wet processing, aquapulping or mechanical demucilaging.
5(a) Sorting coffee in waterFerment-and-Wash Method: In the ferment and wash method of wet processing theremainder of the pulp is removed by breaking down the cellulose by fermenting thebeans with microbes and then washing them with large amounts of water. Fermentationcan be done with extra water or, in "Dry Fermentation", in the fruits own juices only.The fermentation process has to be carefully monitored to ensure that the coffee doesntacquire undesirable, sour flavors. For most coffees, mucilage removal throughfermentation takes between 24 and 36 hours, depending on the temperature, thicknessof the mucilage layer and concentration of the enzymes. The end of the fermentation isassessed by feel, as the parchment surrounding the beans loses its slimy texture andacquires a rougher "pebbly" feel. When the fermentation is complete, the coffee isthoroughly washed with clean water in tanks or in special washing machines.Machine-assisted wet processing: In machine-assisted wet processing, fermentationis not used to separate the bean from the remainder of the pulp; rather, this is donethrough mechanical scrubbing. This process can cut down on water use and pollutionsince ferment and wash water stinks. In addition, removing mucilage by machine iseasier and more predictable than removing it by fermenting and washing. However, byeliminating the fermentation step and prematurely separating fruit and bean, mechanicaldemucilaging can remove an important tool that mill operators have of influencing coffeeflavor. Furthermore, the ecological criticism of the ferment-and-wash methodincreasingly has become moot, since a combination of low-water equipment plus settlingtanks allows conscientious mill operators to carry out fermentation with limited pollution.Any wet processing of coffee produces coffee wastewater which and still unjustifiablecan be a pollutant. Around 130 liters of fresh water is required to process one kilogramof quality coffee. After the pulp has been removed what is left is the bean surrounded bytwo additional layers, the silver skin and the parchment. The beans must be dried to awater content of about 10% before they are stable. Coffee beans can be dried inthe sun or by machine but in most cases it is dried in the sun to 12-13% moisture andbrought down to 10% by machine. Drying entirely by machine is normally only donewhere space is at a premium or the humidity is too high for the beans to dry beforemildewing.(2) Dry processDry process, also known as unwashed or natural coffee, is the oldest method ofprocessing coffee. The entire cherry after harvest is first cleaned and then placed in thesun to dry on tables or in thin layers on patios:Cleaning: The harvested cherries are usually sorted and cleaned, to separate theunripe, overripe and damaged cherries and to remove dirt, soil, twigs and leaves. Thiscan be done by winnowing, which is commonly done by hand, using a large sieve. Anyunwanted cherries or other material not winnowed away can be picked out from the topof the sieve. The ripe cherries can also be separated by flotation in washing channelsclose to the drying areas.Drying: The coffee cherries are spread out in the sun, either on large concrete or brickpatios or on matting raised to waist height on trestles. As the cherries dry, they are rakedor turned by hand to ensure even drying and prevent mildew. It may take up to 4 weeksbefore the cherries are dried to the optimum moisture content, depending on the weatherconditions. On larger plantations, machine-drying is sometimes used to speed up theprocess after the coffee has been pre-dried in the sun for a few days.
6The drying operation is the most important stage of the process, since it affects the finalquality of the green coffee. A coffee that has been over dried will become brittle andproduce too many broken beans during hulling (broken beans are considered defectivebeans). Coffee that has not been dried sufficiently will be too moist and prone to rapiddeterioration caused by the attack of fungi and bacteria.The dried cherries are stored in bulk in special silos until they are sent to the mill wherehulling, sorting, grading and bagging take place. All the outer layers of the dried cherryare removed in one step by the hulling machine.The dry method is used for about 95% of the Arabica coffee produced in Brazil, most ofthe coffees produced in Ethiopia, Haiti and Paraguay, as well as for some Arabicasproduced in India and Ecuador. Almost all Robustas are processed by this method. It isnot practical in very rainy regions, where the humidity of the atmosphere is too high orwhere it rains frequently during harvesting.Sun Drying: When dried in the sun coffee is most often spread out in rows on largepatios where it needs to be raked every six hours to promote even drying and preventthe growth of mildew. Some coffee is dried on large raised tables where the coffee isturned by hand. Drying coffee this way has the advantage of allowing air to circulatebetter around the beans promoting more even drying but increases cost and laborsignificantly.After the drying process (in the sun and/or through machines), theparchment skin or pergamino is thoroughly dry and crumbly, and easily removed in theHulling process. Coffee occasionally is sold and shipped in parchment or en pergamino,but most often a machine called a huller is used to crunch off the parchment skin beforethe beans are shipped.(3) Semi dry processSemi dry is a hybrid process used in Indonesia and Brazil. In Indonesia, the process isalso called "wet hulled", "semi-washed" or "Giling Basah". Literally translatedfrom Indonesian, Giling Basah means "wet grinding". Most small-scale farmersin Sumatra, Sulawesi, Flores and Papua use the giling basah process. In this process,farmers remove the outer skin from the cherries mechanically, using locally built pulpingmachines. The coffee beans, still coated with mucilage, are then stored for up to a day.Following this waiting period, the mucilage is washed off and the parchment coffee ispartially dried in the sun before sale at 30% to 35% moisture content.(C) MillingThe final steps in coffee processing involve removing the last layers of dry skin andremaining fruit residue from the now dry coffee, and cleaning and sorting it. These stepsare often called dry milling to distinguish them from the steps that take place beforedrying, which collectively are called wet milling.(D) HullingThe first step in dry milling is the removal of what is left of the fruit from the bean,whether it is the crumbly parchment skin of wet-processed coffee, the parchment skinand dried mucilage of semi-dry-processed coffee, or the entire dry, leathery fruitcovering of the dry-processed coffee. Semi-dry hulling at 30% to 35% moisture (GilingBasah), as occurs in Indonesia, is thought to reduce acidity and increase body.Hulling isdone with the help of machines, which can range from simple millstones to sophisticatedmachines that gently whack at the coffee.
7(E) PolishingThis is an optional process in which any silver skin that remains on the beans afterhulling is removed in a polishing machine. This is done to improve the appearance ofgreen coffee beans and eliminate a byproduct of roasting called chaff. It is described bysome to be detrimental to the taste by raising the temperature of the bean throughfriction which changes the chemical makeup of the bean.(D) Cleaning and sortingSorting by Size and Density: Most fine coffee goes through a battery of machines thatsort the coffee by density of bean and by bean size, all the while removing sticks, rocks,nails, and miscellaneous debris that may have become mixed with the coffee duringdrying. First machines blow the beans into the air; those that fall into bins closest to theair source are heaviest and biggest; the lightest (and likely defective) beans plus chaffare blown in the farthest bin. Other machines shake the beans through a series ofsieves, sorting them by size. Finally, a machine called a gravity separator shakes thesized beans on a tilted table, so that the heaviest, densest and best vibrate to one sideof the pulsating table, and the lightest to the other.Sorting by Color: The final step in the cleaning and sorting procedure is called colorsorting, or separating defective beans from sound beans on the basis of color ratherthan density or size. Color sorting is the trickiest and perhaps most important of all thesteps in sorting and cleaning. With most high-quality coffees color sorting is done in thesimplest possible way: by hand. Teams of workers pick discolored and other defectivebeans from the sounds beans. The very best coffees may be hand-cleaned twice(double picked) or even three times (triple picked). Coffee that has been cleaned byhand is usually called European preparation; most specialty coffees have been cleanedand sorted in this way.Color sorting can also be done by machines. Streams of beans fall rapidly, one at a time,past sensors that are set according to parameters that identify defective beans by value(dark to light) or by color. A tiny, decisive puff of compressed air pops each defectivebean out of the stream of sound beans the instant the machine detects an anomaly.However, these machines are currently not used widely in the coffee industry for tworeasons: • First, the capital investment to install these delicate machines and the technical support to maintain them is daunting. • Second, sorting coffee by hand supplies much-needed work for the small rural communities that often cluster around coffee mills.Nevertheless, computerized color sorters are essential to coffee industries in regionswith relatively high standards of living and high wage demands.(E) GradingGrading is the process of categorizing coffee beans on the basis of various criteria suchas size of the bean, where and at what altitude it was grown, how it was prepared andpicked, and how good it tastes, or its cup quality. Coffees also may be graded by thenumber of imperfections (defective and broken beans, pebbles, sticks, etc.) per sample.For the finest coffees, origin of the beans (farm or estate, region, cooperative) isespecially important. Growers of premium estate or cooperative coffees may impose alevel of quality control that goes well beyond conventionally defined grading criteria,
8because they want their coffee to command the higher price that goes with recognitionand consistent quality.(F) Aging All coffee, when it was introduced in Europe, came from the port of Mocha in what is now modern day Yemen. To import the beans to Europe the coffee was on boats for a long sea voyage around the Horn of Africa. This long journey and the exposure to the sea air changed the coffees flavor. Later, coffee spread to India and Indonesia but still required a long sea voyage. Once the Suez Canal was opened the travel time to Europe was greatly reduced and coffee whose flavor had not changed due to a long sea voyage began arriving. To some degree, this fresher coffee was rejected becauseEuropeans had developed a taste for the changes that were brought on by the long seavoyage. To meet this desire, some coffee was aged in large open-sided warehouses atport for six or more months in an attempt to simulate the effects of a long sea voyagebefore it was shipped to Europe.Although it is still widely debated, certain types of green coffee are believed to improvewith age; especially those that are valued for their low acidity, such as coffees fromIndonesia or India. Several of these coffee producers sell coffee beans that have beenaged for as long as 3 years, with some as long as 8 years. However, most coffeeexperts agree that a green coffee peaks in flavor and freshness within one year ofharvest, because over-aged coffee beans will lose much of their essential oil content.(G) DecaffeinationDecaffeination is the process of extracting caffeine from green coffee beans prior toroasting. The most common decaffeination process used in the UnitedStates is supercritical carbon dioxide (CO2) extraction. In this process, moistened greencoffee beans are contacted with large quantities of supercritical CO2 (CO2 maintained ata pressure of about 4,000 pounds force per square inch (28 MPa) and temperaturesbetween 90 and 100 °C (194 and 212 °F)), which removes about 97% of the caffeinefrom the beans. The caffeine is then recovered from the CO2, typically using anactivated carbon adsorption system.Another commonly used method is solvent extraction, typically using oil (extracted fromroasted coffee) or ethyl acetate as a solvent. In this process, solvent is added tomoistened green coffee beans to extract most of the caffeine from the beans. After thebeans are removed from the solvent, they are steam-stripped to remove any residualsolvent. The caffeine is then recovered from the solvent, and the solvent is re-used. Water extraction is also used for decaffeination. Decaffeinated coffee beans havea residual caffeine content of about 0.1% on a dry basis. Not all facilities havedecaffeination operations, and decaffeinated green coffee beans are purchased by manyfacilities that produce decaffeinated coffee.(H) StorageGreen coffee is fairly stable (approx. up to 1 year) if stored correctly. Most often it is in aJute sack kept in a cool, clean, and dry place.(I) RoastingAlthough not considered part of the processing pipeline proper, nearly all coffee sold toconsumers throughout the world is sold as roasted coffee. Consumers can also elect to
9buy non-roasted coffee to be roasted at home. Roasting coffee transforms the chemicaland physical properties of green coffee beans into roasted coffee products. The roastingprocess is what produces the characteristic flavor of coffee by causing the green coffeebeans to expand and to change in color, taste, smell, and density. Non-roasted beanscontain similar acids, protein, and caffeine as those that have been roasted, but lack thetaste. It takes heat to speed up the Maillard and other chemical reactions that developand enhance the flavor.As green coffee is more stable than roasted, the roasting process tends to take placeclose to where it will be consumed. This reduces the time that roasted coffee spends indistribution, helping to maximize its shelf life. The vast majority of coffee is roastedcommercially on a large scale, but some coffee drinkers roast coffee themselves in orderto have more control over the freshness and flavor profile of the beans.(a) ProcessThe coffee roasting process consists essentially of sorting, roasting, cooling, andpackaging operations but can also include grinding in larger scale roasting houses. Inlarger operations, bags of green coffee beans are hand or machine-opened, dumpedinto a hopper, and screened to remove debris. The green beans are then weighed andtransferred by belt or pneumatic conveyor to storage hoppers. From the storagehoppers, the green beans are conveyed to the roaster. Roasters typically operate attemperatures between 370 and 540 °F (188 and 282 °C), and the beans are roasted fora period of time ranging from 3 to 30 minutes. Roasters are typically horizontal rotatingdrums that are heated from below and tumble the green coffee beans in a current of hotgases. The heat source can be supplied by natural gas, liquefied petroleum gas (LPG),electricity or even wood. These roasters can operate in either batch or continuousmodes and can be indirect or direct-fired. Those who roast coffee often prefer to follow a "recipe" or "roast profile" to highlightcertain flavor characteristics. Any number of factors may help a person determine thebest profile to use, such as the coffees origin, varietals, processing method or desiredflavor characteristics. A roast profile can be presented as a graph showing time on oneaxis and temperature on the other, which can be recorded manually or using computersoftware and data loggers linked to temperature probes inside various parts of theroaster.Indirect-fired roasters are roasters in which the burner flame does not contact the coffeebeans, although the combustion gases from the burner do contact the beans. Direct-firedroasters contact the beans with the burner flame and the combustion gases. At the endof the roasting cycle, the roasted beans are cooled using a vacuum system. Roastedcoffee beans are also cooled using fine water mist, which is known as "quenching" andis considered inferior to air cooling as the water soaks the fresh beans with moisture andoxygen particles making it stale almost instantly. Following roasting, the beans arecooled and stabilized. This stabilization process is called degassing. Followingdegassing, the roasted beans are packaged, usually in light-resistant foil bags fitted withsmall one-way aroma-lock valves to allow gasses to escape while protecting the beansfrom moisture and oxygen. Roasted whole beans can be considered fresh for up to onemonth. Once coffee is ground it is best used immediately.(b) DarknessAs the bean absorbs heat, the color shifts to yellow and then to varying shades of brown.During the later stages of roasting, oils appear on the surface of the bean, making itshiny. The roast will continue to darken until it is removed from the heat source. At
10lighter roasts, the bean will exhibit more of its "origin flavor" - the flavors created in thebean by the soil and weather conditions in the location where it was grown.Coffee beans from famous regions like Java, Kenya, Hawaiian Kona, and JamaicanBlue Mountain are usually roasted lightly so their signature characteristics dominate theflavor. As the beans darken to a deep brown, the origin flavors of the bean are eclipsedby the flavors created by the roasting process itself. At darker roasts, the "roast flavor" isso dominant that it can be difficult to distinguish the origin of the beans used in the roast.Below, roast levels and their respective flavors are described. These are qualitativedescriptions, and thus subjective. As a rule of thumb, the "shinier" the bean is, themore dominant the roasting flavors are. Roast level Notes Surface Flavor After several minutes the beans “pop” or Lighter-bodied, "crack" and higher acidity, Cinnamon visibly expand Dry no obvious Light roast, half city, in size. This roast flavor New England stage is called first crack. American mass-market roasters typically stop here. After a few Sweeter than Full city, short minutes light roast; American, the beans more body Medium regular, reach this Dry exhibiting more breakfast, roast, which balance in acid, brown U.S. specialty aroma, and sellers tend to complexity prefer. After a few Somewhat more minutes spicy; High, Viennese, the beans complexity is Full Roast Italian begin popping Slightly shiny traded for Espresso, again, and oils heavier Continental rise to the body/mouth- surface. This is feel. Aromas called second and flavors of crack. roast become clearly evident. After a few Smokey-sweet; more minutes light bodied, but or so the beans quite intense.Double Roast French begin to smoke. Very oily None of the The bean inherent flavors sugars begin to of the bean are carbonize. recognizable.(C) PackagingExtending the useful life of roasted coffee relies on maintaining an optimum environmentfor the beans. The first large scale preservation technique was vacuum packing.
11However, because coffee emits CO2 after roasting, coffee to be vacuum packed mustbe allowed to degas for several days before it is sealed. To allow more immediatepackaging, pressurized canisters or foil-lined bags with pressure-relief valves can beused.(D) Home RoastingHome roasting is the process of roasting small batches of green coffee beans forpersonal consumption. Roasting coffee in the home is something that has beenpracticed for centuries, and has included methods such as heating over fire coals,roasting in cast iron pans, and rotating iron drums over a fire or coal bed. Computerizeddrum roasters are available which simplify home roasting and some home roasterssimply roast in an oven or in air popcorn poppers.Up until the 20th century, it was more common for at-home coffee drinkers to roast theircoffee in their residence than it was to buy roasted coffee. During the 20th century,home roasting faded in popularity with the rise of the commercial coffee roastingcompanies. In recent years home roasting of coffee has seen a revival. In some casesthere is an economic advantage, but primarily it is a means to achieve finer control overthe quality and characteristics of the finished product.(E) Emissions and ControlParticulate matter (PM), volatile organic compounds (VOC), organic acids, andcombustion products are the principal emissions from coffee processing. Severaloperations are sources of PM emissions, including the cleaning and de-stoningequipment, roaster, cooler, and instant coffee drying equipment. The roaster is the mainsource of gaseous pollutants, including alcohols, aldehydes, organic acids,and nitrogen and sulfur compounds. Because roasters are typically natural gas-fired,carbon monoxide (CO) and carbon dioxide (CO2) emissions result from fuel combustion.Decaffeination and instant coffee extraction and drying operations may also be sourcesof small amounts of VOC. Emissions from the grinding and packaging operationstypically are not vented to the atmosphere.Particulate matter emissions from the roasting and cooling operations are typicallyducted to cyclones before being emitted to the atmosphere. Gaseous emissions fromroasting operations are typically ducted to a thermal oxidizer or thermal catalytic oxidizerfollowing PM removal by a cyclone. Some facilities use the burners that heat the roasteras thermal oxidizers. However, separate thermal oxidizers are more efficient becausethe desired operating temperature is typically between 650°C and 816°C (1200°F and1500°F), which is 93°C to 260°C (200°F to 500°F) more than the maximum temperatureof most roasters. Some facilities use thermal catalytic oxidizers, which require loweroperating temperatures to achieve control efficiencies that are equivalent to standardthermal oxidizers. Catalysts are also used to improve the control efficiency of systems inwhich the roaster exhaust is ducted to the burners that heat the roaster. Emissionsfrom spray dryers are typically controlled by a cyclone followed by a wet scrubber.IV. EconomicsNoted as one of the world’s largest, most valuable, legally traded commodities after oil,coffee has become a vital cash crop for many Third World countries. Over one hundredmillion people in developing countries have become dependent on coffee as the primarysource of income. Coffee has become the primary export and backbone for Africancountries like Uganda, Burundi, Rwanda, and Ethiopia as well as many Central Americancountries. Brazil remains the largest coffee exporting nation, but in recent years Vietnamhas become a major producer of Robusta beans. Indonesia is the third exporter and the
12largest producer of washed Arabica coffee. Robusta coffees, traded in London at muchlower prices than New Yorks Arabica, are preferred by large industrial clients, such asmultinational roasters and instant coffee producers, because of the lower cost. Foursingle roaster companies buy more than 50 percent of all of the annual production: Kraft,Nestlé, Procter & Gamble, and Sara Lee. The preference of the "Big Four" coffeecompanies for cheap Robusta is believed by many to have been a major contributingfactor to the crash in coffee prices, and the demand for high-quality Arabica beans isonly slowly recovering.Many experts believe the giant influx of cheap green coffee after the collapse of theInternational Coffee Agreement of 1975–1989 led to the prolonged price crisis from 1989to 2004. In 1997 the price of coffee in New York broke US$3.00/lb, but by late 2001 ithad fallen to US$0.43/lb. In 2007, wholesale coffee was about US$1/lb (e.g. 69 cents inLondon in March to 134 cents in New York in October), with Robusta being about 70%of the price of Arabica. Retail prices varied from an average of $3 in Poland to $3.50 inthe US to $17 in the UK.The concept of fair trade labeling, which guarantees coffee growersa negotiated pre-harvest price, began with the Max HavelaarFoundations labeling program in the Netherlands. In 2004, 24,222metric tons out of 7,050,000 produced worldwide were fair trade; in2005, 33,991 metric tons out of 6,685,000 were fair trade, anincrease from 0.34 percent to 0.51 percent. A number of studieshave shown that fair trade coffee has a positive impact on thecommunities that grow it. A study in 2002 found that fair tradestrengthened producer organizations, improved returns to smallproducers, and positively affected their quality of life. TABLE 1 Top ten green coffee producers — 11 June 2008 Country Production (Tons) Brazil 17,000,000 Vietnam 15,580,000 * Colombia 9,400,000 F Indonesia 2,770,554 * Ethiopia 1,705,446 * Mexico 962,000 F India 954,000 F Peru 677,000 Guatemala 568,000 F Honduras 370,000 F World 7,742,675 A Legend: No symbol = official figure, P = official figure, F = FAO estimate, * = Unofficial/Semi- official/mirror data, C = Calculated figure, A = Aggregate (may include official, semi-official or estimates) Source: Food And Agricultural Organization of United Nations: Economic And Social Department:A 2003 study concluded that fair trade has "greatly improved the well-being of small-scale coffee farmers and their families" by providing access to credit and externaldevelopment funding and greater access to training, giving them the ability to improvethe quality of their coffee. The families of fair trade producers were also more stable thanthose who were not involved in fair trade, and their children had better access toeducation. A 2005 study of Bolivian coffee producers concluded that Fair-trade
13certification has had a positive impact on local coffee prices, economically benefiting allcoffee producers, Fair-trade certified or not.The production and consumption of "Fair Trade Coffee" has grown in recent years assome local and national coffee chains have started to offer fair trade alternatives. Coffeeis also bought and sold by investors and price speculators as a tradable commodity.Coffee futures contracts are traded on the New York Mercantile Exchange (NYMEX)under ticker symbol KT with contract deliveries occurring every year in March, May, July,September, and December.V. Social Aspects Coffee was initially used for spiritual reasons. At least 1,000 years ago, traders brought coffee across the Red Sea into Arabia (modern day Yemen), where Muslim monks began cultivating the shrub in their gardens. At first, the Arabians made wine from the pulp of the fermented coffee berries. This beverage was known as qishr (kisher in modern usage) and was used during religious ceremonies.Coffee became the substitute beverage in place of wine in spiritual practices where winewas forbidden. Coffee drinking was briefly prohibited to Muslims as haraam in the earlyyears of the 16th century, but this was quickly overturned. Use in religious rites amongthe Sufi branch of Islam led to coffees being put on trial in Mecca: it was accused ofbeing a heretic substance, and its production and consumption were briefly repressed. Itwas later prohibited in Ottoman Turkey under an edict by the Sultan Murad IV. Coffee,regarded as a Muslim drink, was prohibited to Ethiopian Orthodox Christians until as lateas 1889; it is now considered a national drink of Ethiopia for people of all faiths. Its earlyassociation in Europe with rebellious political activities led to its banning in England,among other places.A contemporary example of coffee prohibition can be found in The Church of JesusChrist of Latter-day Saints. The organization claims that it is both physically andspiritually unhealthy to consume coffee. This comes from the Mormon doctrine of health,given in 1833 by Mormon founder Joseph Smith, in a revelation called the Word ofWisdom. It does not identify coffee by name, but includes the statement that "hot drinksare not for the belly", which has been interpreted to forbid both coffee and tea.Quite a number of members of the Seventh-day Adventist Church also avoid caffeinateddrinks. In its teachings the church requires members to avoid tea and coffee and otherstimulants. Studies conducted on Adventists have shown a small but statisticallysignificant association between coffee consumption and mortality from ischemic heartdisease, other cardiovascular disease, all cardiovascular diseases combined, and allcauses of death.VI. Pharmacology Coffee ingestion on average is about a third of that of tap water in North America and Europe. Worldwide, 6.7 million metric tons of coffee were produced annually in 1998–2000, and the forecast is a rise to 7 million metric tons annually by 2010. Scientific studies have examined the relationship between coffee consumption and an array of medical conditions. Findings are contradictory as to whether coffee has any specific health benefits, and results are similarly conflicting regarding negative effects of coffee consumption.
14Coffee consumption has been linked to breast size reduction and taking regular hits ofcaffeine reduces the risk of breast cancer. Coffee appears to reduce the risk ofAlzheimers disease, Parkinsons disease, heart disease, diabetes mellitus type 2,cirrhosis of the liver, and gout. It increases the risk of acid reflux and associateddiseases. Some health effects of coffee are due to its caffeine content, as the benefitsare only observed in those who drink caffeinated coffee, while others appear to be dueto other components. For example, the antioxidants in coffee prevent free radicals fromcausing cell damage.Over 1,000 chemicals have been reported in roasted coffee: more than half of thosetested (19/28) are rodent carcinogens. Coffees negative health effects are often blamedon its caffeine content. Research suggests that drinking caffeinated coffee can cause atemporary increase in the stiffening of arterial walls. Coffee is no longer thought to be arisk factor for coronary heart disease. Some studies suggest that it may have a mixedeffect on short-term memory, by improving it when the information to be recalled isrelated to the current train of thought, but making it more difficult to recall unrelatedinformation. About 10% of people with a moderate daily intake (235 mg per day)reported increased depression and anxiety when caffeine was withdrawn, and about15% of the general population report having stopped caffeine use completely, citingconcern about health and unpleasant side effects.VII. Ecological Originally, coffee farming was done in the shade of trees, which provided habitat for many animals and insects. This method is commonly referred to as the traditional shaded method. Many farmers (but not all) have decided to modernize their production methods and switch to a method where farmers would now use sun cultivation, in which coffee is grown in rows under full sun with little or no forest canopy. This causes berries to ripen more rapidly and bushes to produce higher yields but requires the clearing of trees and increaseduse of fertilizer and pesticides. Traditional coffee production, on the other hand, causedberries to ripen more slowly and it produced lower yields compared to the modernizedmethod but the quality of the coffee is allegedly superior. In addition, the traditionalshaded method is environmentally friendly and serves as a habitat for many species.Opponents of sun cultivation say environmental problems such as deforestation;pesticide pollution, habitat destruction, and soil and water degradation are the sideeffects of these practices. The American Birding Association has led a campaign for"shade-grown" and organic coffees, which it says are sustainable harvested. However,while certain types of shaded coffee cultivation systems show greater biodiversity thanfull-sun systems, they still compare poorly to native forest in terms of habitat value.Another issue concerning coffee is its use of water. According to New Scientist, it takesabout 140 liters of water to grow the coffee beans needed to produce one cup of coffee,and the coffee is often grown in countries where there is a water shortage, like Ethiopia.VIII. Coffee in the Philippines The production and export of coffee was once a major industry in the Philippines, which 200 years ago was the fourth largest coffee producing nation. Today, however, the Philippines produces only .012% of the worlds coffee supply. Efforts are being undertaken to revive the industry however, with the majority of coffee produced in the mountain areas of Batangas, Bukidnon, Benguet, Cavite, Kalinga Apayao, Davao, and Claveria.
15The Philippines is one of the few countries that produces the four varieties ofcommercially-viable coffee: Arabica, Liberica (Barako), Excelsa and Robusta.Climatic and soil conditions in the Philippines – from the lowland to mountain regions –make the country suitable for all four varieties.In the Philippines, coffee has a history as rich as its flavor. The first coffee tree wasintroduced in Lipa, Batangas in 1740 by a Spanish Franciscan monk. From there, coffeegrowing spread to other parts of Batangas like Ibaan, Lemery, San Jose, Taal, andTanauan. Batangas owed much of its wealth to the coffee plantations in these areas andLipa eventually became the coffee capital of the Philippines.By the 1860s, Batangas was exporting coffee to America through San Francisco. Whenthe Suez Canal was opened, a new market started in Europe as well. Seeing thesuccess of the Batangeños, Cavite followed suit by growing the first coffee seedlings in1876 in Amadeo. In spite of this, Lipa still reigned as the center for coffee production inthe Philippines and Batangas barako was commanding five times the price of otherAsian coffee beans. In 1880, the Philippines was the fourth largest exporter of coffeebeans, and when the coffee rust hit Brazil, Africa, and Java, it became the only source ofcoffee beans worldwide.The glory days of the Philippine coffee industry lasted until 1889 when coffee rust hit thePhilippine shores. That, coupled with an insect infestation, destroyed virtually all thecoffee trees in Batangas. Since Batangas was a major producer of coffee, this greatlyaffected national coffee production. In two years, coffee production was reduced to 1/6thits original amount. By then, Brazil had regained its position as the world’s leadingproducer of coffee. A few of the surviving coffee seedlings were transferred fromBatangas to Cavite, where they flourished. This was not the end of the Philippines’coffee growing days, but there was less area allotted to coffee because many farmershad shifted to other crops.During the 1950s, the Philippine government, with the help of the Americans, brought ina more resistant variety of coffee. It was also then that instant coffee was beingproduced commercially, thus increasing the demand for beans. Because of favorablemarket conditions, many farmers went back to growing coffee in the 1960s. But thesudden proliferation of coffee farms resulted in a surplus of beans around the world, andfor a while importation of coffee was banned in order to protect local coffee producers.When Brazil was hit by a frost in the 1970’s, world market coffee prices soared. ThePhilippines became a member of the International Coffee Organization (ICO) in 1980.Today, the Philippines produces 30,000 metric tons of coffee a year, up from 23,000metric tons just three years ago.IX. Philippine Coffee BoardThe Philippine Coffee Board is a private sector-led group established in May 2002 as theNational Coffee Development Board. The goal of the Coffee Board is to develop andpromote the Philippine coffee industry through technical assistance and credit programsfor coffee farms; and through marketing and promotions of coffee for domestic andexport markets.Research / training, certification and credit programs are carried out in partnership withCavite State University (CavSU), Department of Trade and Industry – InternationalCoffee Organization Certifying Agency (DTI-ICOCA) and Quedan & Rural CreditGuarantee Corporation (Quedancor).
16Aside from rehabilitation, certification, and credit programs, the Coffee Board alsoconducts a marketing and promotional program for Philippine coffee called Kape Isla.Kape Isla is intended for the use of the industry as a Philippine coffee quality seal.The Coffee Board conducts several events a year, including coffee farming courses,coffee shop seminars, trade shows, farm tours, and its annual Coffee Break festival.The Coffee Board is composed of members from the growers, millers, roasters, retailers,local governments, and agriculture credit sectors.X. CURRENT TRENDS IN THE NEWS(1) The Philippines taste for Civet CoffeeBy Sarah TomsBBC News, Manila11 April 2006The Philippines has recently discovered it produces one of the worlds most expensiveand coveted kinds of coffee but it comes from an unusual source - the droppings of anocturnal, cat-like animal called the Palm Civet.Civets, related to the mongoose, are usually seen as pests in the Philippines and huntedfor their meat. But their droppings are worth their weight in gold. Known locally asalamid, civets are carnivorous but they also have a taste for the sweet, red coffeecherries that contain the beans. The beans pass through the civet whole after fermentingin the stomach and thats what gives the coffee its unique taste and aroma.Best-kept secretA group of professional coffee lovers followed the trail of the civet droppings high into theMalarayat mountain range, south of Manila, in search of the exotic beans. One of them,Antonio Reyes of the Philippine coffee certifying board, said civet coffee was one of thePhilippines best-kept secrets. "I heard the old folks in the coffee farming areas havebeen gathering this coffee for their own consumption. They never told people they hadthis kind of coffee," he said. "It goes through some kind of natural processing which youcan see from the roasted beans. Its oilier, theres more aroma and its such a good tastethat you can get value for money even if the cost is so high." Civet coffee is one of theworlds most expensive. In the Philippines, only 500 kg are produced a year and theroasted beans sell for more than $115 a kilogram.Bean huntLusina Montenegro, who collects the beans for a living, led the coffee experts to thecivet droppings. She climbs the mountain in her flip-flops, hunting for the beans in thethick undergrowth. "Sometimes its a big civet and then the droppings are also big, butsometimes its a small one and then the droppings are small," she said. Ms Montenegroputs the droppings in two containers - for the old ones, which resemble chalky beans,and for the fresh ones, which look like yellow beans in gravy. She rinses the beans inforest streams and dries them on her patio before they are sold on to Bote Central, acompany that exports the beans to Japan.Niche marketThe developers of the brand are a husband and wife team, Vie and Basil Reyes. Thecouple was involved in conservation work for the sugar palm and the civets that liveamong the trees. They made organic vinegar from the palms and started selling the civet
17coffee alongside it in small bazaars. Now the coffee has become so successful they arehoping to start brewing up profits in Taiwan and North America.Mr. Reyes of the coffee certifying agency also hopes the struggling local coffee industrycan mirror the success Indonesia and Vietnam have enjoyed with their brands of civetcoffee. "I never thought it was also available in the Philippines, so when I first heard of itI thought this is one kind of coffee that we can look at and develop," he said. "If we havethe volume then its good for the niche market."Dark chocolateAndrew Gross, an Australian roast master, climbed the mountain to find out for himselfwhat the attraction is of coffee that passes through the backside of a furry mammal. Justlike a wine connoisseur, he slowly slurped the brewed coffee, letting it travel across histongue for the first time. Mr. Gross said he was surprised at how much he liked it,comparing the taste to fermented plum and dark chocolate with hazelnuts. "Theresobviously some substance to this in terms of what waves I am getting, but beyond thedifference in flavors a lot of it has to do with hype and a lot of it has to do with the factthat its fairly rare," he said. It may not be everyones cup of tea. But experts here hopecoffee lovers will want to treat themselves to something special that might just help perkup the Philippine coffee industry.(2) Agri-Food Trade ServiceThe Brewing Business of the Philippine Specialty Coffee Shop IndustryBy Ronald Mark G. Omaña - Center for Food and Agri BusinessUniversity of Asia and the Pacific 2006In the past, people were used to drinking instant coffee. This was before the advent ofspecialty coffee shops in the country. Today, coffee shops are a common sightespecially in the Manila metropolis. Specialty coffee refers to the highest-quality greencoffee beans roasted to their greatest flavor potential by true craftspeople and thenproperly brewed to well-established standards (Specialty Coffee Association of America(SCAA). The SCAA further explained that specialty coffee tastes better than instant ormass-produced coffee because it is made from coffee beans grown only in idealclimates and prepared according to exacting standards. Also, specialty coffee possessesa richer and more balanced flavor.HISTORYSpecialty coffee shops trace their roots from the coffee shops of Europe in the 16th and17th century upon the introduction of coffee which became a popular drink. In the UnitedStates, specialty coffee shops are said to have been popularized by Starbucks Coffee.Starbucks Coffee was established in 1971 by Gordon Bowker, Jerry Baldwin, and ZevSiegl originally to sell coffee beans only. The companys current business of retailingcoffee beverages came about when then marketing person Howard Schultz (currentlyChairman) got interested in selling espresso by the cup after visiting Italy. Initially, thecompany tested the new business model in one of its outlets and became an instant hit.Despite of this success, however, one of the owners opposed Schultzs idea ofexpanding the concept to all of its stores.In 1985, Schultz left Starbucks and opened his own specialty coffee shop called IlGiornale. By 1987, the owners of Starbucks decided to sell the company to focus on a1983 acquisition Peets Coffee and & Tea, which was Starbucks coffee bean supplier.Schultz, together with other investors, purchased Starbucks for US$3.7 million. Schultzeventually changed II Giornales name to Starbucks Coffee Company.
18Starbucks currently has more than 10,000 outlets worldwide, with 93 located in thePhilippines operated by its franchisee Rustan Coffee Corporation. In the Philippines,even before Starbucks came in 1997, there were enterprising Filipinos who had theforesight to put-up specialty coffee shops. The pioneers in the local industry are FigaroCoffee Company and The Coffee Experience, both established in early 1993.Figaro Coffee Company was set up by a group headed by Pacita Juan, the companyspresident and chief executive officer. Its first outlet was a small kiosk located at theGlorietta mall in Makati. The outlet was initially called the F store.The Coffee Experience, meanwhile, started in the same mall in Makati, also under adifferent name - Coffee X. It now has 24 outlets located mainly in Metro Manila.PRODUCTSThe main product is specialty coffee. Differentiation is made through the various coffeeconcoctions and variants. Companies also offer other beverages such as tea and juices,complementing products such as breads, cakes, and pastries which are produced in theoperators own commissary plant, supplied by an affiliate or purchased from third partysuppliers. Some even serve breakfast, lunch, and dinner.MARKET AND PLAYERSThe market for specialty coffee shops was estimated to be at least P2.6 billion in 2004(Figure 1). Foreign brands accounted for 69 percent of the market; the rest are localbrands. Figure1. Estimated Market Shares by Brand Type, 2004 Source: SEC, Interviews with Key Players, February- March 2006As of February 2006, the Philippine specialty coffee shop industry consisted of at least15 major players - 10 are foreign and five are local brands.The foreign brands include Café Nescafe, The Coffee Bean & Tea Leaf, Dome Café,Gloria Jeans Coffees, McCafe, San Francisco Coffee Co., Seattles Best Coffee,Segafredo Zanetti Espresso, Starbucks Coffee and UCC Coffee (Table 1). Localcompanies have managed to get the master franchise for the operation of these foreignspecialty coffee shops in the country. Some of the outlets are owned and operated byother companies through sub-franchising offered by the master franchise holders.The local brands, meanwhile, are Bos Coffee Club, Figaro Coffee Company, MochaBlends, and The Coffee Beanery. Other local specialty coffee shops that have recentlysprouted in Metro Manila include Baang Coffee, Libreria, and Coffee Republic, with lessthan five outlets each. Meanwhile, the total number of specialty coffee shop outlets orbranches has reached more than 300 as of February 2006. The outlets are locatedmainly in Metro Manila and in key cities such as Baguio, Cebu, and Davao. The largenumber of outlets is attributed mainly to the growing specialty coffee shop chains.
19 Table 1. List of Key Players in the Philippine Specialty Coffee Shop Industry, 2006 Year Number Affiliates Brand Company Established of Outlets (Food Businesses) FOREIGN The Coffee The Coffee Bean & TeaBean & Tea 2003 10 - Leaf Philippines Inc. Leaf Specialty BeansGloria Jeans Chef Donatello / Philippines Inc. and 2003 19 Coffees Wetzel Pretzels various companies Segafredo Zanetti Liberty Ventures Inc. 2002 3 - Espresso Café Nescafe La Barista Inc. 2001 5 Le Coure de France Coffee Partners Inc. /San Francisco Hot Business Ventures 2001 6 - Coffee Co. Inc. Kenny RogersSeattles Best Coffee Masters Inc. 2000 20 Roasters / Popeyes Coffee Chicken and Biscuits Blue Mountain Coffee Sakae Sushi / Crepes UCC Coffee Ventures 2000 7 and Cream Coffee Brewmasters Inc. Dome Café Franchise Dome Cafe 1997 4 - Corporation Hi-Lo Café / Bon Starbucks Rustan Coffee 1997 93 Appetit / Yum-Yum Coffee Corporation Tree / Char-Q Golden Arches McCafe Development NA 4 McDonalds Corporation LOCAL Mocha BlendsMocha Blends Corporation and various 2002 39 - companies Coffee Centrale The Bos Coffee Bean Co. Inc. / Bos 1996 23 - Club Coffee Franchise CorporationFigaro Coffee Company Figaro Coffee Co. Inc. 1993 49* - and various companies The Coffee Cravings Food Svcs Inc. 1993 7 Cravings Restaurants Beanery
20 CX Food Enterprises The Coffee Inc. and various 1993 24 Potato Corner Kiosks Experience companiesSource: Securities and Exchange Commission (SEC) / Interviews with Key Players, February 2006As of February 2006NA = not available* = excluding three outlets overseasGloria Jeans Coffees International explained that the specialty coffee shop industry ismoving to chains because of their advantages in purchasing power, focused advertising,product innovations, management control systems, and specialized training.Across brands, Starbucks Coffee accounted for nearly half of the market in 2004 (Figure2). Local brand Figaro Coffee Company followed with 15 percent, then Mocha Blends(9%), Gloria Jeans Coffees (7%), and UCC Coffee (4%). The others cornered theremaining 16 percent of the market .Local and foreign key players estimated growth atan average of 10 percent to 20 percent per year since 2002. The financial statements ofindustry leader Starbucks Coffee even showed a higher growth of nearly 23 percent peryear over the same period.Figure 2. Estimated Market Shares by Brand, 2004Source: SEC; Interviews with Key Players, February-March 2006PRICINGA comparison of retail prices of selected foreign and local brands for Café Latte revealedthat foreign brands generally charge higher prices compared to local brands (Table 2).The cheapest Café Latte in small cup from foreign brands costs P7.00 higher than themost expensive among local brands. The same price difference is observed in themedium cup but increases to P11.00 on the large cup.Table 2. Comparative Retail Prices of Café Latte from Selected Brands Price (In Php) / Size Product/Brand SMALL MEDIUM LARGEForeignThe Coffee Bean & Tea Leaf 85 100 115Gloria Jeans Coffees 85 95 110Starbucks Coffee 85 95 110Seattles Best Coffee 82 92 107
21LocalBos Coffee Club 75 85 naMocha Blends* 70 85 naFigaro Coffee 69 na 89The Coffee Beanery 60 78 naThe Coffee Experience 60 na 70Source: Specialty Coffee Shop survey (April 2006)Small = 8oz / medium = 12oz / large = 16oz* medium size is 14ozna = not applicablePRICE SUBJECT TO CHANGE WITHOUT PRIOR NOTICESOURCES OF SUPPLYThe main raw materials used are coffee beans; espresso machines; fresh milk; whippedcream; and packaging materials (Table 3). Table 3. Sources of Main Inputs Brand Beans (mainly Arabica type) Espresso Machines Brand FOREIGN BRANDS 100% from Nestle (from foreign 100% from Nestle (from foreign Café Nescafe affiliates) affiliates) Gloria Jeans 100% from Gloria Jeans Coffees - Astoria (Italy) from local distributor Coffees International (Australia) Seattles Best Rafaello / Michaelangelo (Italy) 100% from Seattles Best (Japan) Coffee from local distributor Granarcoso (Italy) from localStarbucks Coffee 100% from Starbucks Coffee (USA) distributor Not Applicable (Uses siphon UCC Coffee 100% from UCC Coffee (Japan) machine) LOCAL BRANDS Figaro Coffee 100% local / own farm Astoria (Italy) from local distributor 90% Imported from Australia Mocha Blends Elektra (Italy) from Australia (Mocha Coffee); 10% local The Coffee San Marino Expresso (Italy) from 100% local (1 supplier only) Beanery local distributor The Coffee Unic (France) from local 100% local (1 supplier only) Experience distributor Table 3. Sources of Main Inputs Brand Fresh Milk Whipped Cream Packaging Materials FOREIGN BRANDSCafé Nescafe 100% from Nestle 100% from Nestle Local suppliers Imported brand Local suppliers / Gloria Gloria Jeans Two farms in Laguna from local Jeans International Coffees province distributors (Australia) Imported brandSeattles Best Local supplier from local Seattles Best (USA) Coffee distributors Imported brand Starbucks One farm in Batangas from local Local suppliers Coffee province distributors
22 Imported brand Uses cream - 100% from UCC Coffee from local Local suppliers UCC Coffee (Japan) distributors LOCAL BRANDS Imported brand from Imported brandFigaro Coffee local distributors / local from local Local suppliers suppliers distributors Imported brandMocha Blends Local supplier from local Local suppliers distributors Imported brand The Coffee Imported brand from from local Local suppliers Beanery local distributors distributors Imported brand The Coffee Local supplier from local Local suppliers Experience distributorsSource: Interviews with Key Players, February-March 2006According to players foreign and local alike, it is easy to get suppliers for their majorinputs. The prevalence of suppliers - which normally cater to restaurants, hotels andother institutional clients - has led to a situation wherein the suppliers themselvesapproach the companies to offer their products. The critical factor among players is thecoffee bean roasting "formula" because it is at this stage where the coffee bean releasesits fullest flavor potential. Poorly roasted beans would yield poor-tasting coffee drink. Assuch, every player treats his proprietary roasting techniques and recipe as highlyconfidential.Nearly all of the foreign brands interviewed say their coffee beans - prepared andpacked - are supplied by their parent company overseas, which does the purchasing androasting of beans bought from many popular coffee-growing areas like Indonesia, EastAfrica, and Latin America. In terms of variety, the foreign brands mainly use the Arabicacoffee bean types. The local brands, meanwhile, are known to use mostly local coffeebeans including the famous Kapeng Barako (Liberica beans).Because of this practice, the local players are seen as major supporters of the localcoffee industry. Further, their use of Kapeng Barako sets them apart from their foreigncounterparts because the beans are said to have the following characteristics: (a)particularly strong taste, (b) powerful body, and (c) a distinctly pungent odor which thepopular Arabica beans do not have.For espresso machines, majority of the foreign and local players use Italian brandswhich they acquire through local distributors.For fresh milk, the players buy from various sources. Many purchase from well-knownmilk suppliers such as Alaska Milk Corporation, Consolidated Dairy and Frozen FoodCorporation, Nestle Philippines, New Zealand Milk (Philippines) Inc., and San MiguelCorporation. However, players like Starbucks Coffee and Gloria Jeans Coffees haveopted to source from dairy farms in Batangas and Laguna. Both players providetechnical assistance to the farm-suppliers so that they could meet the quality standardsset by their parent companies.For whipped cream, nearly all players use imported brands distributed by localcompanies in the country.Lastly, packaging materials are either sourced from affiliates overseas or from localpackaging companies. Interestingly, Starbucks Coffee being the industry leader requires
23exclusivity from its suppliers. In other words, their suppliers are not allowed to cater toother specialty coffee shops. They can, however, still service hotels, restaurants andother foodservice outlets.While the other players do not require their suppliers to be exclusive, they do not allowthem to sell to other specialty coffee shops exactly the same products (e.g. breads,cakes, and pastries) as some of the recipes are proprietary.INDUSTRY ASSOCIATIONSSome of the major players meet and discuss as members of the private sector-ledNational Coffee Development Board (NCDB), which aims to promote and save the localcoffee industry from declining production and area planted. The group incidentallystarted as the governments National Task Force on Coffee Rehabilitation which wassworn into office by President Gloria Macapagal-Arroyo in May 2002. One of NCDBsprograms is the Kape Isla Cooperative Marketing whose objective is to develop loyalty toPhilippine coffee, reduce imports, increase domestic production, and create new jobs.The Programs Kape Isla seal is intended for the use of the different players in theindustry as a Philippine coffee quality seal.The Programs members are specialty coffee retail shops such as Bos Coffee Club,Coffee Experience, The Coffee Beanery, Figaro Coffee Company, Mocha Blends,Starbucks, and Seattles Best Coffee, as well as coffee bean growers, millers, roasters,local governments, and agriculture credit sectors.Another organization is the Specialty Coffee Association of the Philippines (SCAP),which was established in 1998 to promote and support the specialty coffee trade in thecountry. SCAPs objectives are: (1) to advocate Philippine specialty coffee as worldclass; encourage members to use Philippine specialty coffee in their coffee outlets; (2)sponsor events and forums that showcase Philippine specialty coffee; provide programs(3) to assist local coffee farmers; upgrade the quality of coffee; and (4) to promotegeneral awareness and appreciation of Philippine specialty coffee (F&B World,November/December 2003).PROSPECTSThe specialty coffee shop industry is seen to sustain its growth of 10 percent to 20percent yearly for the next three to five years.Players attribute this to the growing awareness of specialty coffee among consumers,the improving image of coffee in general as something that is good for the health, andthe expanding family spending on eating-out.On the growing adoption of coffee by other restaurants, players say their wide list ofcoffee concoctions make them stand-out among other foodservice outlets. Their uniqueambiance is also a big come-on. Players also capitalize on what is popular such as theavailability of wireless internet or WIFI and the offering of potential product substitutessuch as tea, juices, shakes, chocolate drinks, and healthy products such as salads, low-calorie versions of their best-selling drinks, pastries and the like. The offering ofcustomer loyalty programs also helps them push their sales targets.Overall, the continuing focus on addressing key success factors such as productdevelopment and innovation, brand and product promotion, and outlet expansion wouldallow the industry to continue to enjoy a brewing business and at the same time, help thedevelopment of the domestic coffee growing industry.
24References: • BusinessWorld, November 2000 • F&B World, November/December 2003. • Interviews with Key Players, February-March 2006 • Securities and Exchange Commission • Specialty Coffee Association of America • www.starbucks.comResources: • FAO Statistical Yearbook 2004 Vol. 1/1 Table C.10: Most important imports and exports of agricultural products (in value terms)(2004)" (PDF). FAO Statistics Division (2006). • Pendergrast, Mark (1999). Uncommon Grounds: The History of Coffee and How It Transformed Our World. Basic Books. ISBN 0-465-05467-6. • John K. Francis. "Coffea arabica L. RUBIACEAE". Factsheet of U.S. Department of Agriculture, Forest Service. • Rickert, Eve (2005-12-15). "Environmental effects of the coffee crisis: a case study of land use and avian communities in Agua Buena, Costa Rica". M.Sc. Thesis, The Evergreen State College. • Alex Scofield. "Vietnam: Silent Global Coffee Power". • Coffee@ nationalgeographic.com. www.nationalgeographic.com/coffee • Botanical Aspects". International Coffee Organization. • James A. Duke. "Coffea arabica L.". Purdue University. • Bakalar, Nicholas (2006-08-15). "Coffee as a Health Drink? Studies Find Some Benefits". New York Times. Retrieved on 2007-07-28. • Johns Hopkins University School of Medicine (2003). "Use and Common Sources of Caffeine". Information about Caffeine Dependence. Retrieved on 2008-02-23. • Wu JN, Ho SC, Zhou C, et al (August 2008). "Coffee consumption and risk of coronary heart diseases: A meta-analysis of 21 prospective cohort studies". Int. J. Cardiol.. doi:10.1016/j.ijcard.2008.06.051. PMID 18707777. • Murray D., Raynolds L. & Taylor P. (2003). One Cup at a time: Poverty Alleviation and Fair Trade coffee in Latin America. Colorado State University, p28 • Toms, Sarah. (2006). The Philippines taste for civet coffee. news.bbc.co.uk/2/hi/asia- pacific/4896230.stm • Omaña, Ronald Mark G. (2006). The Brewing Business of the Philippine Specialty Coffee Shop Industry.www.ats.agr.gc.ca/asean/4335_e.htm • The Philippine Coffee Board Website. www.coffeeboard.com.ph • Types Of Coffee. www.anothercoffee.co.uk/coffeeinfo/coffeetypes