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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 world's seventh largest legal agricultural
export by value. Some controversy is associated with coffee cultivation and its impact on the
I. 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 western
Ethiopia, 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" in
Tigrinya) is used. The Amharic and Afan Oromo name for coffee is bunna. Coffee use
can be traced at least to as early as the 9th century, when it appeared in the highlands
of Ethiopia. According to legend, Ethiopian shepherds were the first to observe the
influence of the caffeine in coffee beans when the goats appeared to "dance" and to
have an increased level of energy after consuming wild coffee berries. The legend
names the shepherd "Kaldi." From Ethiopia, coffee spread to Egypt and Yemen. It was
in Arabia that coffee beans were first roasted and brewed similarly as they are today. By
the 15th century, it had reached the rest of the Middle East, Persia, Turkey, and northern
Africa.
In 1583, Leonhard Rauwolf, a German physician, gave this description of coffee after
returning from a ten year trip to the Near East: “A beverage as black as ink, useful
against numerous illnesses, particularly those of the stomach. Its consumers take it in
the morning, quite frankly, in a porcelain cup that is passed around and from which each
one drinks a cupful. It is composed of water and the fruit from a bush called bunnu.”
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From the Muslim world, coffee spread to Italy. The thriving
trade between Venice and North Africa, Egypt, and the Middle
East brought many goods, including coffee, to the Venetian
port. From Venice, it was introduced to the rest of Europe.
Coffee became more widely accepted after it was deemed a
Christian beverage by Pope Clement VIII in 1600, despite
appeals to ban the "Muslim drink". The first European coffee
house opened in Italy in 1645. The Dutch were the first to
import coffee on a large scale, and they were among the first
to defy the Arab prohibition on the exportation of plants or un-
roasted seeds when Pieter van den Broeck smuggled
seedlings from Aden into Europe in 1616. The Dutch later grew the crop in Java and
Ceylon. The first exports of Indonesian coffee from Java to the Netherlands occurred in
1711. Through the efforts of the British East India Company, coffee became popular in
England as well. It was introduced in France in 1657, and in Austria and Poland after the
1683 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 as
successful as it had been in Europe. During the Revolutionary War, however, the
demand for coffee increased so much that dealers had to hoard their scarce supplies
and raise prices dramatically; this was partly due to the reduced availability of tea from
British merchants. After the War of 1812, during which Britain temporarily cut off access
to tea imports, the Americans' taste for coffee grew, and high demand during the
American Civil War together with advances in brewing technology secured the position
of coffee as an everyday commodity in the United States.
II. Biology and Cultivation
The 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 are
called pea berries. Berries ripen in seven to nine months.
Coffee is usually propagated by seeds. The traditional method of planting coffee is to put
20 seeds in each hole at the beginning of the rainy season;
half are eliminated naturally. Coffee is often intercropped with
food crops, such as corn, beans, or rice, during the first few
years of cultivation. The two main cultivated species of the
coffee plant are Coffea canephora and Coffea arabica.
Arabica coffee (from C. Arabica) is considered more suitable
for drinking than Robusta coffee (from C. canephora); Robusta
tends to be bitter and have less flavor than Arabica. For this
reason, 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 in
environments where C. arabica will not thrive. Robusta coffee also contains about 40–50
percent more caffeine than Arabica. For this reason, it is used as an inexpensive
substitute for Arabica in many commercial coffee blends. Good quality Robusta are used
in some espresso blends to provide a better foam head and to lower the ingredient cost.
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Other cultivated species include Coffea liberica and Coffea esliaca, believed to be
indigenous 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 coffee's growing region, but also on genetic
subspecies (varietals) and processing. Varietals are generally known by the region in
which they are grown, such as Colombian, Java, or Kona.
There are two main species of bean that thrive in equatorial regions: Arabica and
Robusta.
A. Robusta is grown at lower altitudes, 0 to 700 meters, and has a high yield per plant
and 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 which
is useful in creating blends and especially useful in instant coffee which is mainly grown
in the following regions:
• Western and Central Africa (Ivory Coast, Cameroon, Uganda, Angola, etc.)
• Malaysia (Vietnam, Sri Lanka, Sumatra, Java, etc.)
• Brazil
• India
B. Arabica grows at higher altitudes, 1000 to 2000 meters, and while it has a lower yield
and 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 this
yields "grand cru" beans. Arabica has a delicate acidic flavor, a refined aroma and a
caramel 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 Guinea
Many 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 give
body and character to the blends, particularly in espresso blends.
III. Processing
Processing of coffee is the method converting the raw fruit of the into the coffee. The
cherry has the fruit or pulp removed leaving the seed or bean which is then dried. While
all green coffee is processed, the method that is used varies and can have a significant
effect on the flavor of roasted and brewed coffee.
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A. 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 difficult
process, though in places like Brazil, where the landscape is relatively flat and the coffee
fields immense, the process has been mechanized. Whether picked by hand or by
machine, 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 the
laborers receiving payment at the lower end. An experienced coffee picker can collect up
to 6-7 baskets a day. Depending on the grower, coffee pickers are sometimes
specifically instructed to not pick green coffee berries since the seeds in the berries are
not fully formed or mature. This discernment typically only occurs with growers who
harvest 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 mass
consumer coffee beans, which are characterized by a displeasingly bitter/astringent
flavor and a sharp odor. Red berries, with their higher aromatic oil and lower organic
acid content, are more fragrant, smooth, and mellow. As such coffee picking is one of
the most important stages in coffee production.
B. Processing
(1) Wet process
In 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 wet
method requires the use of specific equipment and substantial quantities of water. The
coffee cherries are sorted by immersion in water. Bad or unripe fruit will float and the
good ripe fruit will sink. The skin of the cherry and some of the pulp is removed by
pressing the fruit by machine in water through a screen. The bean will still have a
significant amount of the pulp clinging to it that needs to be removed. This is done either
by the classic ferment-and-wash method or a newer procedure variously called machine-
assisted wet processing, aquapulping or mechanical demucilaging.
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(a) Sorting coffee in water
Ferment-and-Wash Method: In the ferment and wash method of wet processing the
remainder of the pulp is removed by breaking down the cellulose by fermenting the
beans with microbes and then washing them with large amounts of water. Fermentation
can be done with extra water or, in "Dry Fermentation", in the fruit's own juices only.
The fermentation process has to be carefully monitored to ensure that the coffee doesn't
acquire undesirable, sour flavors. For most coffees, mucilage removal through
fermentation takes between 24 and 36 hours, depending on the temperature, thickness
of the mucilage layer and concentration of the enzymes. The end of the fermentation is
assessed by feel, as the parchment surrounding the beans loses its slimy texture and
acquires a rougher "pebbly" feel. When the fermentation is complete, the coffee is
thoroughly washed with clean water in tanks or in special washing machines.
Machine-assisted wet processing: In machine-assisted wet processing, fermentation
is not used to separate the bean from the remainder of the pulp; rather, this is done
through mechanical scrubbing. This process can cut down on water use and pollution
since ferment and wash water stinks. In addition, removing mucilage by machine is
easier and more predictable than removing it by fermenting and washing. However, by
eliminating the fermentation step and prematurely separating fruit and bean, mechanical
demucilaging can remove an important tool that mill operators have of influencing coffee
flavor. Furthermore, the ecological criticism of the ferment-and-wash method
increasingly has become moot, since a combination of low-water equipment plus settling
tanks allows conscientious mill operators to carry out fermentation with limited pollution.
Any wet processing of coffee produces coffee wastewater which and still unjustifiable
can be a pollutant. Around 130 liters of fresh water is required to process one kilogram
of quality coffee. After the pulp has been removed what is left is the bean surrounded by
two additional layers, the silver skin and the parchment. The beans must be dried to a
water content of about 10% before they are stable. Coffee beans can be dried in
the sun or by machine but in most cases it is dried in the sun to 12-13% moisture and
brought down to 10% by machine. Drying entirely by machine is normally only done
where space is at a premium or the humidity is too high for the beans to dry before
mildewing.
(2) Dry process
Dry process, also known as unwashed or natural coffee, is the oldest method of
processing coffee. The entire cherry after harvest is first cleaned and then placed in the
sun to dry on tables or in thin layers on patios:
Cleaning: The harvested cherries are usually sorted and cleaned, to separate the
unripe, overripe and damaged cherries and to remove dirt, soil, twigs and leaves. This
can be done by winnowing, which is commonly done by hand, using a large sieve. Any
unwanted cherries or other material not winnowed away can be picked out from the top
of the sieve. The ripe cherries can also be separated by flotation in washing channels
close to the drying areas.
Drying: The coffee cherries are spread out in the sun, either on large concrete or brick
patios or on matting raised to waist height on trestles. As the cherries dry, they are raked
or turned by hand to ensure even drying and prevent mildew. It may take up to 4 weeks
before the cherries are dried to the optimum moisture content, depending on the weather
conditions. On larger plantations, machine-drying is sometimes used to speed up the
process after the coffee has been pre-dried in the sun for a few days.
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The drying operation is the most important stage of the process, since it affects the final
quality of the green coffee. A coffee that has been over dried will become brittle and
produce too many broken beans during hulling (broken beans are considered defective
beans). Coffee that has not been dried sufficiently will be too moist and prone to rapid
deterioration 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 where
hulling, sorting, grading and bagging take place. All the outer layers of the dried cherry
are removed in one step by the hulling machine.
The dry method is used for about 95% of the Arabica coffee produced in Brazil, most of
the coffees produced in Ethiopia, Haiti and Paraguay, as well as for some Arabicas
produced in India and Ecuador. Almost all Robustas are processed by this method. It is
not practical in very rainy regions, where the humidity of the atmosphere is too high or
where it rains frequently during harvesting.
Sun Drying: When dried in the sun coffee is most often spread out in rows on large
patios where it needs to be raked every six hours to promote even drying and prevent
the growth of mildew. Some coffee is dried on large raised tables where the coffee is
turned by hand. Drying coffee this way has the advantage of allowing air to circulate
better around the beans promoting more even drying but increases cost and labor
significantly.After the drying process (in the sun and/or through machines), the
parchment skin or pergamino is thoroughly dry and crumbly, and easily removed in the
Hulling 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 before
the beans are shipped.
(3) Semi dry process
Semi dry is a hybrid process used in Indonesia and Brazil. In Indonesia, the process is
also called "wet hulled", "semi-washed" or "Giling Basah". Literally translated
from Indonesian, Giling Basah means "wet grinding". Most small-scale farmers
in 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 pulping
machines. 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 is
partially dried in the sun before sale at 30% to 35% moisture content.
(C) Milling
The final steps in coffee processing involve removing the last layers of dry skin and
remaining fruit residue from the now dry coffee, and cleaning and sorting it. These steps
are often called dry milling to distinguish them from the steps that take place before
drying, which collectively are called wet milling.
(D) Hulling
The 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 skin
and dried mucilage of semi-dry-processed coffee, or the entire dry, leathery fruit
covering of the dry-processed coffee. Semi-dry hulling at 30% to 35% moisture (Giling
Basah), as occurs in Indonesia, is thought to reduce acidity and increase body.Hulling is
done with the help of machines, which can range from simple millstones to sophisticated
machines that gently whack at the coffee.
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(E) Polishing
This is an optional process in which any silver skin that remains on the beans after
hulling is removed in a polishing machine. This is done to improve the appearance of
green coffee beans and eliminate a byproduct of roasting called chaff. It is described by
some to be detrimental to the taste by raising the temperature of the bean through
friction which changes the chemical makeup of the bean.
(D) Cleaning and sorting
Sorting by Size and Density: Most fine coffee goes through a battery of machines that
sort 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 during
drying. First machines blow the beans into the air; those that fall into bins closest to the
air source are heaviest and biggest; the lightest (and likely defective) beans plus chaff
are blown in the farthest bin. Other machines shake the beans through a series of
sieves, sorting them by size. Finally, a machine called a gravity separator shakes the
sized beans on a tilted table, so that the heaviest, densest and best vibrate to one side
of the pulsating table, and the lightest to the other.
Sorting by Color: The final step in the cleaning and sorting procedure is called color
sorting, or separating defective beans from sound beans on the basis of color rather
than density or size. Color sorting is the trickiest and perhaps most important of all the
steps in sorting and cleaning. With most high-quality coffees color sorting is done in the
simplest possible way: by hand. Teams of workers pick discolored and other defective
beans 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 by
hand is usually called European preparation; most specialty coffees have been cleaned
and 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 defective
bean 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 two
reasons:
• 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 regions
with relatively high standards of living and high wage demands.
(E) Grading
Grading is the process of categorizing coffee beans on the basis of various criteria such
as size of the bean, where and at what altitude it was grown, how it was prepared and
picked, and how good it tastes, or its cup quality. Coffees also may be graded by the
number of imperfections (defective and broken beans, pebbles, sticks, etc.) per sample.
For the finest coffees, origin of the beans (farm or estate, region, cooperative) is
especially important. Growers of premium estate or cooperative coffees may impose a
level of quality control that goes well beyond conventionally defined grading criteria,
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because they want their coffee to command the higher price that goes with recognition
and 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 coffee's 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 because
Europeans had developed a taste for the changes that were brought on by the long sea
voyage. To meet this desire, some coffee was aged in large open-sided warehouses at
port for six or more months in an attempt to simulate the effects of a long sea voyage
before it was shipped to Europe.
Although it is still widely debated, certain types of green coffee are believed to improve
with age; especially those that are valued for their low acidity, such as coffees from
Indonesia or India. Several of these coffee producers sell coffee beans that have been
aged for as long as 3 years, with some as long as 8 years. However, most coffee
experts agree that a green coffee peaks in flavor and freshness within one year of
harvest, because over-aged coffee beans will lose much of their essential oil content.
(G) Decaffeination
Decaffeination is the process of extracting caffeine from green coffee beans prior to
roasting. The most common decaffeination process used in the United
States is supercritical carbon dioxide (CO2) extraction. In this process, moistened green
coffee beans are contacted with large quantities of supercritical CO2 (CO2 maintained at
a pressure of about 4,000 pounds force per square inch (28 MPa) and temperatures
between 90 and 100 °C (194 and 212 °F)), which removes about 97% of the caffeine
from the beans. The caffeine is then recovered from the CO2, typically using an
activated carbon adsorption system.
Another commonly used method is solvent extraction, typically using oil (extracted from
roasted coffee) or ethyl acetate as a solvent. In this process, solvent is added to
moistened green coffee beans to extract most of the caffeine from the beans. After the
beans are removed from the solvent, they are steam-stripped to remove any residual
solvent. The caffeine is then recovered from the solvent, and the solvent is re-
used. Water extraction is also used for decaffeination. Decaffeinated coffee beans have
a residual caffeine content of about 0.1% on a dry basis. Not all facilities have
decaffeination operations, and decaffeinated green coffee beans are purchased by many
facilities that produce decaffeinated coffee.
(H) Storage
Green coffee is fairly stable (approx. up to 1 year) if stored correctly. Most often it is in a
Jute sack kept in a cool, clean, and dry place.
(I) Roasting
Although not considered part of the processing pipeline proper, nearly all coffee sold to
consumers throughout the world is sold as roasted coffee. Consumers can also elect to
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buy non-roasted coffee to be roasted at home. Roasting coffee transforms the chemical
and physical properties of green coffee beans into roasted coffee products. The roasting
process is what produces the characteristic flavor of coffee by causing the green coffee
beans to expand and to change in color, taste, smell, and density. Non-roasted beans
contain similar acids, protein, and caffeine as those that have been roasted, but lack the
taste. It takes heat to speed up the Maillard and other chemical reactions that develop
and enhance the flavor.
As green coffee is more stable than roasted, the roasting process tends to take place
close to where it will be consumed. This reduces the time that roasted coffee spends in
distribution, helping to maximize its shelf life. The vast majority of coffee is roasted
commercially on a large scale, but some coffee drinkers roast coffee themselves in order
to have more control over the freshness and flavor profile of the beans.
(a) Process
The coffee roasting process consists essentially of sorting, roasting, cooling, and
packaging operations but can also include grinding in larger scale roasting houses. In
larger operations, bags of green coffee beans are hand or machine-opened, dumped
into a hopper, and screened to remove debris. The green beans are then weighed and
transferred by belt or pneumatic conveyor to storage hoppers. From the storage
hoppers, the green beans are conveyed to the roaster. Roasters typically operate at
temperatures between 370 and 540 °F (188 and 282 °C), and the beans are roasted for
a period of time ranging from 3 to 30 minutes. Roasters are typically horizontal rotating
drums that are heated from below and tumble the green coffee beans in a current of hot
gases. 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 continuous
modes and can be indirect or direct-fired.
Those who roast coffee often prefer to follow a "recipe" or "roast profile" to highlight
certain flavor characteristics. Any number of factors may help a person determine the
best profile to use, such as the coffee's origin, varietals, processing method or desired
flavor characteristics. A roast profile can be presented as a graph showing time on one
axis and temperature on the other, which can be recorded manually or using computer
software and data loggers linked to temperature probes inside various parts of the
roaster.
Indirect-fired roasters are roasters in which the burner flame does not contact the coffee
beans, although the combustion gases from the burner do contact the beans. Direct-fired
roasters contact the beans with the burner flame and the combustion gases. At the end
of the roasting cycle, the roasted beans are cooled using a vacuum system. Roasted
coffee beans are also cooled using fine water mist, which is known as "quenching" and
is considered inferior to air cooling as the water soaks the fresh beans with moisture and
oxygen particles making it stale almost instantly. Following roasting, the beans are
cooled and stabilized. This stabilization process is called degassing. Following
degassing, the roasted beans are packaged, usually in light-resistant foil bags fitted with
small one-way aroma-lock valves to allow gasses to escape while protecting the beans
from moisture and oxygen. Roasted whole beans can be considered fresh for up to one
month. Once coffee is ground it is best used immediately.
(b) Darkness
As 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 it
shiny. The roast will continue to darken until it is removed from the heat source. At
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lighter roasts, the bean will exhibit more of its "origin flavor" - the flavors created in the
bean by the soil and weather conditions in the location where it was grown.
Coffee beans from famous regions like Java, Kenya, Hawaiian Kona, and Jamaican
Blue Mountain are usually roasted lightly so their signature characteristics dominate the
flavor. As the beans darken to a deep brown, the origin flavors of the bean are eclipsed
by the flavors created by the roasting process itself. At darker roasts, the "roast flavor" is
so 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 qualitative
descriptions, and thus subjective. As a rule of thumb, the "shinier" the bean is, the
more 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) Packaging
Extending the useful life of roasted coffee relies on maintaining an optimum environment
for the beans. The first large scale preservation technique was vacuum packing.
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However, because coffee emits CO2 after roasting, coffee to be vacuum packed must
be allowed to degas for several days before it is sealed. To allow more immediate
packaging, pressurized canisters or foil-lined bags with pressure-relief valves can be
used.
(D) Home Roasting
Home roasting is the process of roasting small batches of green coffee beans for
personal consumption. Roasting coffee in the home is something that has been
practiced 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. Computerized
drum roasters are available which simplify home roasting and some home roasters
simply 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 their
coffee 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 roasting
companies. In recent years home roasting of coffee has seen a revival. In some cases
there is an economic advantage, but primarily it is a means to achieve finer control over
the quality and characteristics of the finished product.
(E) Emissions and Control
Particulate matter (PM), volatile organic compounds (VOC), organic acids, and
combustion products are the principal emissions from coffee processing. Several
operations are sources of PM emissions, including the cleaning and de-stoning
equipment, roaster, cooler, and instant coffee drying equipment. The roaster is the main
source 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 sources
of small amounts of VOC. Emissions from the grinding and packaging operations
typically are not vented to the atmosphere.
Particulate matter emissions from the roasting and cooling operations are typically
ducted to cyclones before being emitted to the atmosphere. Gaseous emissions from
roasting operations are typically ducted to a thermal oxidizer or thermal catalytic oxidizer
following PM removal by a cyclone. Some facilities use the burners that heat the roaster
as thermal oxidizers. However, separate thermal oxidizers are more efficient because
the desired operating temperature is typically between 650°C and 816°C (1200°F and
1500°F), which is 93°C to 260°C (200°F to 500°F) more than the maximum temperature
of most roasters. Some facilities use thermal catalytic oxidizers, which require lower
operating temperatures to achieve control efficiencies that are equivalent to standard
thermal oxidizers. Catalysts are also used to improve the control efficiency of systems in
which the roaster exhaust is ducted to the burners that heat the roaster. Emissions
from spray dryers are typically controlled by a cyclone followed by a wet scrubber.
IV. Economics
Noted 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 hundred
million people in developing countries have become dependent on coffee as the primary
source of income. Coffee has become the primary export and backbone for African
countries like Uganda, Burundi, Rwanda, and Ethiopia as well as many Central American
countries. Brazil remains the largest coffee exporting nation, but in recent years Vietnam
has become a major producer of Robusta beans. Indonesia is the third exporter and the
12. 12
largest producer of washed Arabica coffee. Robusta coffees, traded in London at much
lower prices than New York's Arabica, are preferred by large industrial clients, such as
multinational roasters and instant coffee producers, because of the lower cost. Four
single 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" coffee
companies for cheap Robusta is believed by many to have been a major contributing
factor to the crash in coffee prices, and the demand for high-quality Arabica beans is
only slowly recovering.
Many experts believe the giant influx of cheap green coffee after the collapse of the
International Coffee Agreement of 1975–1989 led to the prolonged price crisis from 1989
to 2004. In 1997 the price of coffee in New York broke US$3.00/lb, but by late 2001 it
had fallen to US$0.43/lb. In 2007, wholesale coffee was about US$1/lb (e.g. 69 cents in
London 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 in
the US to $17 in the UK.
The concept of fair trade labeling, which guarantees coffee growers
a negotiated pre-harvest price, began with the Max Havelaar
Foundation's labeling program in the Netherlands. In 2004, 24,222
metric tons out of 7,050,000 produced worldwide were fair trade; in
2005, 33,991 metric tons out of 6,685,000 were fair trade, an
increase from 0.34 percent to 0.51 percent. A number of studies
have shown that fair trade coffee has a positive impact on the
communities that grow it. A study in 2002 found that fair trade
strengthened producer organizations, improved returns to small
producers, 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 external
development funding and greater access to training, giving them the ability to improve
the quality of their coffee. The families of fair trade producers were also more stable than
those who were not involved in fair trade, and their children had better access to
education. A 2005 study of Bolivian coffee producers concluded that Fair-trade
13. 13
certification has had a positive impact on local coffee prices, economically benefiting all
coffee producers, Fair-trade certified or not.
The production and consumption of "Fair Trade Coffee" has grown in recent years as
some local and national coffee chains have started to offer fair trade alternatives. Coffee
is 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 wine
was forbidden. Coffee drinking was briefly prohibited to Muslims as haraam in the early
years of the 16th century, but this was quickly overturned. Use in religious rites among
the Sufi branch of Islam led to coffee's being put on trial in Mecca: it was accused of
being a heretic substance, and its production and consumption were briefly repressed. It
was 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 late
as 1889; it is now considered a national drink of Ethiopia for people of all faiths. Its early
association 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 Jesus
Christ of Latter-day Saints. The organization claims that it is both physically and
spiritually 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 of
Wisdom. It does not identify coffee by name, but includes the statement that "hot drinks
are 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 caffeinated
drinks. In its teachings the church requires members to avoid tea and coffee and other
stimulants. Studies conducted on Adventists have shown a small but statistically
significant association between coffee consumption and mortality from ischemic heart
disease, other cardiovascular disease, all cardiovascular diseases combined, and all
causes 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.
14. 14
Coffee consumption has been linked to breast size reduction and taking regular hits of
caffeine reduces the risk of breast cancer. Coffee appears to reduce the risk of
Alzheimer's disease, Parkinson's disease, heart disease, diabetes mellitus type 2,
cirrhosis of the liver, and gout. It increases the risk of acid reflux and associated
diseases. Some health effects of coffee are due to its caffeine content, as the benefits
are only observed in those who drink caffeinated coffee, while others appear to be due
to other components. For example, the antioxidants in coffee prevent free radicals from
causing cell damage.
Over 1,000 chemicals have been reported in roasted coffee: more than half of those
tested (19/28) are rodent carcinogens. Coffee's negative health effects are often blamed
on its caffeine content. Research suggests that drinking caffeinated coffee can cause a
temporary increase in the stiffening of arterial walls. Coffee is no longer thought to be a
risk factor for coronary heart disease. Some studies suggest that it may have a mixed
effect on short-term memory, by improving it when the information to be recalled is
related to the current train of thought, but making it more difficult to recall unrelated
information. About 10% of people with a moderate daily intake (235 mg per day)
reported increased depression and anxiety when caffeine was withdrawn, and about
15% of the general population report having stopped caffeine use completely, citing
concern 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 increased
use of fertilizer and pesticides. Traditional coffee production, on the other hand, caused
berries to ripen more slowly and it produced lower yields compared to the modernized
method but the quality of the coffee is allegedly superior. In addition, the traditional
shaded 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 side
effects 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 than
full-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 takes
about 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 world's 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.
15. 15
The Philippines is one of the few countries that produces the four varieties of
commercially-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 was
introduced in Lipa, Batangas in 1740 by a Spanish Franciscan monk. From there, coffee
growing spread to other parts of Batangas like Ibaan, Lemery, San Jose, Taal, and
Tanauan. Batangas owed much of its wealth to the coffee plantations in these areas and
Lipa eventually became the coffee capital of the Philippines.
By the 1860s, Batangas was exporting coffee to America through San Francisco. When
the Suez Canal was opened, a new market started in Europe as well. Seeing the
success of the Batangeños, Cavite followed suit by growing the first coffee seedlings in
1876 in Amadeo. In spite of this, Lipa still reigned as the center for coffee production in
the Philippines and Batangas barako was commanding five times the price of other
Asian coffee beans. In 1880, the Philippines was the fourth largest exporter of coffee
beans, and when the coffee rust hit Brazil, Africa, and Java, it became the only source of
coffee beans worldwide.
The glory days of the Philippine coffee industry lasted until 1889 when coffee rust hit the
Philippine shores. That, coupled with an insect infestation, destroyed virtually all the
coffee trees in Batangas. Since Batangas was a major producer of coffee, this greatly
affected national coffee production. In two years, coffee production was reduced to 1/6th
its original amount. By then, Brazil had regained its position as the world’s leading
producer of coffee. A few of the surviving coffee seedlings were transferred from
Batangas 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 farmers
had shifted to other crops.
During the 1950s, the Philippine government, with the help of the Americans, brought in
a more resistant variety of coffee. It was also then that instant coffee was being
produced commercially, thus increasing the demand for beans. Because of favorable
market conditions, many farmers went back to growing coffee in the 1960s. But the
sudden proliferation of coffee farms resulted in a surplus of beans around the world, and
for 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. The
Philippines 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 23,000
metric tons just three years ago.
IX. Philippine Coffee Board
The Philippine Coffee Board is a private sector-led group established in May 2002 as the
National Coffee Development Board. The goal of the Coffee Board is to develop and
promote the Philippine coffee industry through technical assistance and credit programs
for coffee farms; and through marketing and promotions of coffee for domestic and
export markets.
Research / training, certification and credit programs are carried out in partnership with
Cavite State University (CavSU), Department of Trade and Industry – International
Coffee Organization Certifying Agency (DTI-ICOCA) and Quedan & Rural Credit
Guarantee Corporation (Quedancor).
16. 16
Aside from rehabilitation, certification, and credit programs, the Coffee Board also
conducts 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 Coffee
By Sarah Toms
BBC News, Manila
11 April 2006
The Philippines has recently discovered it produces one of the world's most expensive
and coveted kinds of coffee but it comes from an unusual source - the droppings of a
nocturnal, cat-like animal called the Palm Civet.
Civets, related to the mongoose, are usually seen as pests in the Philippines and hunted
for their meat. But their droppings are worth their weight in gold. Known locally as
alamid, civets are carnivorous but they also have a taste for the sweet, red coffee
cherries that contain the beans. The beans pass through the civet whole after fermenting
in the stomach and that's what gives the coffee its unique taste and aroma.
'Best-kept secret'
A group of professional coffee lovers followed the trail of the civet droppings high into the
Malarayat 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 the
Philippines' best-kept secrets. "I heard the old folks in the coffee farming areas have
been gathering this coffee for their own consumption. They never told people they had
this kind of coffee," he said. "It goes through some kind of natural processing which you
can see from the roasted beans. It's oilier, there's more aroma and it's such a good taste
that you can get value for money even if the cost is so high." Civet coffee is one of the
worlds most expensive. In the Philippines, only 500 kg are produced a year and the
roasted beans sell for more than $115 a kilogram.
Bean hunt
Lusina Montenegro, who collects the beans for a living, led the coffee experts to the
civet droppings. She climbs the mountain in her flip-flops, hunting for the beans in the
thick undergrowth. "Sometimes it's a big civet and then the droppings are also big, but
sometimes it's a small one and then the droppings are small," she said. Ms Montenegro
puts 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 in
forest streams and dries them on her patio before they are sold on to Bote Central, a
company that exports the beans to Japan.
Niche market
The developers of the brand are a husband and wife team, Vie and Basil Reyes. The
couple was involved in conservation work for the sugar palm and the civets that live
among the trees. They made organic vinegar from the palms and started selling the civet
17. 17
coffee alongside it in small bazaars. Now the coffee has become so successful they are
hoping to start brewing up profits in Taiwan and North America.
Mr. Reyes of the coffee certifying agency also hopes the struggling local coffee industry
can mirror the success Indonesia and Vietnam have enjoyed with their brands of civet
coffee. "I never thought it was also available in the Philippines, so when I first heard of it
I thought this is one kind of coffee that we can look at and develop," he said. "If we have
the volume then it's good for the niche market."
'Dark chocolate'
Andrew Gross, an Australian roast master, climbed the mountain to find out for himself
what the attraction is of coffee that passes through the backside of a furry mammal. Just
like a wine connoisseur, he slowly slurped the brewed coffee, letting it travel across his
tongue 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. "There's
obviously some substance to this in terms of what waves I am getting, but beyond the
difference in flavors a lot of it has to do with hype and a lot of it has to do with the fact
that it's fairly rare," he said. It may not be everyone's cup of tea. But experts here hope
coffee lovers will want to treat themselves to something special that might just help perk
up the Philippine coffee industry.
(2) Agri-Food Trade Service
The Brewing Business of the Philippine Specialty Coffee Shop Industry
By Ronald Mark G. Omaña - Center for Food and Agri Business
University of Asia and the Pacific 2006
In the past, people were used to drinking instant coffee. This was before the advent of
specialty coffee shops in the country. Today, coffee shops are a common sight
especially in the Manila metropolis. Specialty coffee refers to the highest-quality green
coffee beans roasted to their greatest flavor potential by true craftspeople and then
properly brewed to well-established standards (Specialty Coffee Association of America
(SCAA). The SCAA further explained that specialty coffee tastes better than instant or
mass-produced coffee because it is made from coffee beans grown only in ideal
climates and prepared according to exacting standards. Also, specialty coffee possesses
a richer and more balanced flavor.
HISTORY
Specialty coffee shops trace their roots from the coffee shops of Europe in the 16th and
17th century upon the introduction of coffee which became a popular drink. In the United
States, specialty coffee shops are said to have been popularized by Starbucks Coffee.
Starbucks Coffee was established in 1971 by Gordon Bowker, Jerry Baldwin, and Zev
Siegl originally to sell coffee beans only. The company's current business of retailing
coffee beverages came about when then marketing person Howard Schultz (currently
Chairman) got interested in selling espresso by the cup after visiting Italy. Initially, the
company 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 Schultz's idea of
expanding the concept to all of its stores.
In 1985, Schultz left Starbucks and opened his own specialty coffee shop called Il
Giornale. By 1987, the owners of Starbucks decided to sell the company to focus on a
1983 acquisition Peet's Coffee and & Tea, which was Starbuck's coffee bean supplier.
Schultz, together with other investors, purchased Starbucks for US$3.7 million. Schultz
eventually changed II Giornale's name to Starbucks Coffee Company.
18. 18
Starbucks currently has more than 10,000 outlets worldwide, with 93 located in the
Philippines operated by its franchisee Rustan Coffee Corporation. In the Philippines,
even before Starbucks came in 1997, there were enterprising Filipinos who had the
foresight to put-up specialty coffee shops. The pioneers in the local industry are Figaro
Coffee Company and The Coffee Experience, both established in early 1993.
Figaro Coffee Company was set up by a group headed by Pacita Juan, the company's
president and chief executive officer. Its first outlet was a small kiosk located at the
Glorietta mall in Makati. The outlet was initially called the F store.
The Coffee Experience, meanwhile, started in the same mall in Makati, also under a
different name - Coffee X. It now has 24 outlets located mainly in Metro Manila.
PRODUCTS
The main product is specialty coffee. Differentiation is made through the various coffee
concoctions and variants. Companies also offer other beverages such as tea and juices,
complementing products such as breads, cakes, and pastries which are produced in the
operators' own commissary plant, supplied by an affiliate or purchased from third party
suppliers. Some even serve breakfast, lunch, and dinner.
MARKET AND PLAYERS
The 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 local
brands.
Figure1. Estimated Market Shares by Brand Type,
2004
Source: SEC, Interviews with Key Players, February-
March 2006
As of February 2006, the Philippine specialty coffee shop industry consisted of at least
15 major players - 10 are foreign and five are local brands.
The foreign brands include Café Nescafe, The Coffee Bean & Tea Leaf, Dome Café,
Gloria Jean's Coffees, McCafe, San Francisco Coffee Co., Seattle's Best Coffee,
Segafredo Zanetti Espresso, Starbuck's Coffee and UCC Coffee (Table 1). Local
companies have managed to get the master franchise for the operation of these foreign
specialty coffee shops in the country. Some of the outlets are owned and operated by
other companies through sub-franchising offered by the master franchise holders.
The local brands, meanwhile, are Bo's Coffee Club, Figaro Coffee Company, Mocha
Blends, and The Coffee Beanery. Other local specialty coffee shops that have recently
sprouted in Metro Manila include Baang Coffee, Libreria, and Coffee Republic, with less
than five outlets each. Meanwhile, the total number of specialty coffee shop outlets or
branches has reached more than 300 as of February 2006. The outlets are located
mainly in Metro Manila and in key cities such as Baguio, Cebu, and Davao. The large
number of outlets is attributed mainly to the growing specialty coffee shop chains.
19. 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 & Tea
Bean & Tea 2003 10 -
Leaf Philippines Inc.
Leaf
Specialty Beans
Gloria Jean's 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 Rogers
Seattle's Best
Coffee Masters Inc. 2000 20 Roasters / Popeye's
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 McDonald's
Corporation
LOCAL
Mocha Blends
Mocha Blends Corporation and various 2002 39 -
companies
Coffee Centrale The
Bo's Coffee Bean Co. Inc. / Bo's
1996 23 -
Club Coffee Franchise
Corporation
Figaro Coffee
Company Figaro Coffee Co. Inc.
1993 49* -
and various companies
The Coffee
Cravings Food Svcs Inc. 1993 7 Cravings Restaurants
Beanery
20. 20
CX Food Enterprises
The Coffee
Inc. and various 1993 24 Potato Corner Kiosks
Experience
companies
Source: Securities and Exchange Commission (SEC) / Interviews with Key Players, February 2006
As of February 2006
NA = not available
* = excluding three outlets overseas
Gloria Jean's Coffees International explained that the specialty coffee shop industry is
moving 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 (Figure
2). Local brand Figaro Coffee Company followed with 15 percent, then Mocha Blends
(9%), Gloria Jean's Coffees (7%), and UCC Coffee (4%). The others cornered the
remaining 16 percent of the market .Local and foreign key players estimated growth at
an average of 10 percent to 20 percent per year since 2002. The financial statements of
industry leader Starbucks Coffee even showed a higher growth of nearly 23 percent per
year over the same period.
Figure 2. Estimated Market Shares by Brand, 2004
Source: SEC; Interviews with Key Players, February-March 2006
PRICING
A comparison of retail prices of selected foreign and local brands for Café Latte revealed
that 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 the
most expensive among local brands. The same price difference is observed in the
medium 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 LARGE
Foreign
The Coffee Bean & Tea Leaf 85 100 115
Gloria Jean's Coffees 85 95 110
Starbuck's Coffee 85 95 110
Seattle's Best Coffee 82 92 107
21. 21
Local
Bo's Coffee Club 75 85 na
Mocha Blends* 70 85 na
Figaro Coffee 69 na 89
The Coffee Beanery 60 78 na
The Coffee Experience 60 na 70
Source: Specialty Coffee Shop survey (April 2006)
Small = 8oz / medium = 12oz / large = 16oz
* medium size is 14oz
na = not applicable
PRICE SUBJECT TO CHANGE WITHOUT PRIOR NOTICE
SOURCES OF SUPPLY
The main raw materials used are coffee beans; espresso machines; fresh milk; whipped
cream; 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 Jean's 100% from Gloria Jean's Coffees -
Astoria (Italy) from local distributor
Coffees International (Australia)
Seattle's Best Rafaello / Michaelangelo (Italy)
100% from Seattle's Best (Japan)
Coffee from local distributor
Granarcoso (Italy) from local
Starbucks 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 BRANDS
Café Nescafe 100% from Nestle 100% from Nestle Local suppliers
Imported brand Local suppliers / Gloria
Gloria Jean's Two farms in Laguna
from local Jean's International
Coffees province
distributors (Australia)
Imported brand
Seattle's Best
Local supplier from local Seattle's Best (USA)
Coffee
distributors
Imported brand
Starbucks One farm in Batangas
from local Local suppliers
Coffee province
distributors
22. 22
Imported brand
Uses cream - 100% from
UCC Coffee from local Local suppliers
UCC Coffee (Japan)
distributors
LOCAL BRANDS
Imported brand from Imported brand
Figaro Coffee local distributors / local from local Local suppliers
suppliers distributors
Imported brand
Mocha 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
distributors
Source: Interviews with Key Players, February-March 2006
According to players foreign and local alike, it is easy to get suppliers for their major
inputs. The prevalence of suppliers - which normally cater to restaurants, hotels and
other institutional clients - has led to a situation wherein the suppliers themselves
approach the companies to offer their products. The critical factor among players is the
coffee bean roasting "formula" because it is at this stage where the coffee bean releases
its fullest flavor potential. Poorly roasted beans would yield poor-tasting coffee drink. As
such, every player treats his proprietary roasting techniques and recipe as highly
confidential.
Nearly all of the foreign brands interviewed say their coffee beans - prepared and
packed - are supplied by their parent company overseas, which does the purchasing and
roasting of beans bought from many popular coffee-growing areas like Indonesia, East
Africa, and Latin America. In terms of variety, the foreign brands mainly use the Arabica
coffee bean types. The local brands, meanwhile, are known to use mostly local coffee
beans including the famous Kapeng Barako (Liberica beans).
Because of this practice, the local players are seen as major supporters of the local
coffee industry. Further, their use of Kapeng Barako sets them apart from their foreign
counterparts because the beans are said to have the following characteristics: (a)
particularly strong taste, (b) powerful body, and (c) a distinctly pungent odor which the
popular Arabica beans do not have.
For espresso machines, majority of the foreign and local players use Italian brands
which they acquire through local distributors.
For fresh milk, the players buy from various sources. Many purchase from well-known
milk suppliers such as Alaska Milk Corporation, Consolidated Dairy and Frozen Food
Corporation, Nestle Philippines, New Zealand Milk (Philippines) Inc., and San Miguel
Corporation. However, players like Starbucks Coffee and Gloria Jean's Coffees have
opted to source from dairy farms in Batangas and Laguna. Both players provide
technical assistance to the farm-suppliers so that they could meet the quality standards
set by their parent companies.
For whipped cream, nearly all players use imported brands distributed by local
companies in the country.
Lastly, packaging materials are either sourced from affiliates overseas or from local
packaging companies. Interestingly, Starbucks Coffee being the industry leader requires
23. 23
exclusivity from its suppliers. In other words, their suppliers are not allowed to cater to
other specialty coffee shops. They can, however, still service hotels, restaurants and
other foodservice outlets.
While the other players do not require their suppliers to be exclusive, they do not allow
them 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 ASSOCIATIONS
Some of the major players meet and discuss as members of the private sector-led
National Coffee Development Board (NCDB), which aims to promote and save the local
coffee industry from declining production and area planted. The group incidentally
started as the government's National Task Force on Coffee Rehabilitation which was
sworn into office by President Gloria Macapagal-Arroyo in May 2002. One of NCDB's
programs is the Kape Isla Cooperative Marketing whose objective is to develop loyalty to
Philippine coffee, reduce imports, increase domestic production, and create new jobs.
The Program's Kape Isla seal is intended for the use of the different players in the
industry as a Philippine coffee quality seal.
The Program's members are specialty coffee retail shops such as Bo's Coffee Club,
Coffee Experience, The Coffee Beanery, Figaro Coffee Company, Mocha Blends,
Starbucks, and Seattle's 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 the
country. SCAP's objectives are: (1) to advocate Philippine specialty coffee as world
class; 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 promote
general awareness and appreciation of Philippine specialty coffee (F&B World,
November/December 2003).
PROSPECTS
The specialty coffee shop industry is seen to sustain its growth of 10 percent to 20
percent 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, and
the expanding family spending on eating-out.
On the growing adoption of coffee by other restaurants, players say their wide list of
coffee concoctions make them stand-out among other foodservice outlets. Their unique
ambiance is also a big come-on. Players also capitalize on what is popular such as the
availability of wireless internet or WIFI and the offering of potential product substitutes
such 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 of
customer loyalty programs also helps them push their sales targets.
Overall, the continuing focus on addressing key success factors such as product
development and innovation, brand and product promotion, and outlet expansion would
allow the industry to continue to enjoy a brewing business and at the same time, help the
development of the domestic coffee growing industry.
24. 24
References:
• 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.com
Resources:
• 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