All articles tagged with #coffee industry
The coffee industry faces significant challenges due to climate change, pests, and labor shortages, which threaten future coffee production and could lead to higher prices and taste changes. Researchers are exploring resilient coffee species like stenophylla and varieties like robusta to adapt to rising temperatures, while farmers and consumers may need to adjust to new flavors and sourcing practices.
Rising coffee prices in the US, driven by tariffs on imports from Brazil and Vietnam, have prompted bipartisan efforts in Congress to repeal these tariffs, which are increasing costs for consumers. The tariffs, part of broader trade disputes and challenged in court, highlight the US's inability to produce enough coffee domestically, making the issue a significant economic and political concern.
Black Rock Coffee Bar went public, raising $294 million, with its stock soaring 38% on the first day, giving it a market value of about $1.3 billion. The company has expanded to 158 locations across seven states and moved its headquarters to Phoenix, Arizona, reflecting its growth and focus on the fast-growing energy drink coffee market among young consumers.
Keurig Dr. Pepper plans to acquire JDE Peet’s for $18 billion, creating a new global coffee giant called Global Coffee Co., which will be split from Beverage Co., marking a significant shake-up in the beverage industry and expanding their coffee portfolio with brands like Peet’s, Jacobs, and Keurig.
Keurig Dr Pepper is nearing an $18 billion deal to acquire European coffee company JDE Peet’s, aiming to strengthen its coffee segment amid flat US coffee sales and strategic overhaul by JDE Peet’s to boost profits. The deal, potentially announced soon, would later see the separation of beverage and coffee operations, reversing a 2018 merger, with both companies focusing on growth and profit targets.
Keurig Dr Pepper is nearing an $18 billion deal to acquire Dutch coffee company JDE Peet's, with plans to separate their beverage and coffee units post-merger, in a move that could reshape the coffee and beverage market.
Luckin Coffee, a major Chinese coffee chain, has opened its first US locations in New York City, intensifying competition with Starbucks amid Starbucks' declining US sales and its own rapid growth in China. The new stores feature promotional deals and digital ordering, marking Luckin's strategic push into the US market after its success in China.
Starbucks CEO Brian Niccol is implementing changes to enhance customer experience, focusing on a '30-second rule' for serving brewed coffee quickly. This strategy aims to improve the ordering process and reinforce Starbucks as a 'third place' for customers, emphasizing the experience over the coffee itself. Niccol's approach includes eliminating non-dairy milk upcharges, simplifying the menu, and improving mobile orders, with the goal of revitalizing Starbucks' performance by reducing wait times and uncertainty for customers.
Aerosmith drummer Joey Kramer announced the closure of his organic coffee line, Rockin’ & Roastin’, citing the impact of COVID-19, rising business costs, and personal loss as reasons. Despite his passion for coffee, Kramer decided to shut down the business, which he started in 2012, after struggling to recover from these challenges. He expressed gratitude to his customers and will fulfill all orders received by November 30.
Sightglass Coffee founders Justin and Jerad Morrison have stepped down, with former Starbucks executive Sharon Healy taking over as CEO. This leadership change follows the company's significant venture capital funding, similar to other local coffee businesses like Blue Bottle and Philz. Healy's corporate background may raise concerns among artisanal coffee enthusiasts.
Starbucks shares have experienced a record 11-day decline, erasing 9.4% of the company's market value, as concerns grow over a slowdown in sales. Third-party sales data suggests a "material slowing" at Starbucks in November, prompting analysts to lower their growth estimates for the first quarter of 2024. Investors are nervous that US comparable sales may fall short of expectations, as credit-card data indicates a slowdown. Sales trends in the snack and coffee industry have also decelerated, with softer trends at Starbucks being a contributing factor.