National Coffee Day

To start a day with a hot cup of coffee. Isn't it perfect? Not only is it the best way to welcome morning, it is also a friend in distress, medicine of tiredness and a excuse for conversation with the potential partner. To this multi-tasking beverage, United States dedicate a Day, National Coffee Day.

The National Coffee Day was celebrated across US on the 29th of September and the people who are in love with coffee were treated at Dunkin Donuts. Dukin donuts is the one of the prominent company which took part in the promotion of the National Coffee Day. Dunkin Donut's offered free coffee to all the coffee fans all through out the day. People with special passes were also treated with donuts.

Facebook also contributed to the National Coffee Day. They stared a campaign called, "Ultimate Dunkin Donut Coffee fan Contest. According to a social media blog, people who enter this contest, might get eligible for a trip to Costa Rica and 60 months free coffee. So, for people who are both coffee and Facebook addicts, it's time to make best use of it.

According to legends, coffee was first discovered by Arabian Shepherd, who saw a goat high in spirit after eating some red beans, which was later discovered a coffee. Going through all the refining process since the 800 AD, coffee has now come to the form which we drink today.

Coffee benefits

1.Decreases depression
2.Antioxidant Rich
3.Anti-Bacterial qualities
4.Energy provider
5.Promotes Digestion
6.Prevent Parkinson Disease
7.Prevents Diabetes
8.Prevents damaging effects of smoking
9.Treats Asthma and headache
10.Possibly prevents Cancer

With these list of coffee benefits, you know what you are sipping in, is not only a 'wake up' beverage but also a complete package of health benefits. On the occasion of National Coffee Day, the tip would be to drink two cups of coffee everyday but not more than that.

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Green Mountain Coffee makes investors jittery

Green Mountain Coffee Roasters is a vertically integrated company with two business lines. Vertical integration means that the company controls all stages of processing, except for growing the crop. GMCR buys the coffee and then processes, roasts, warehouses and sells it. The first business line sells the Keurig single-serve coffee maker along with its individual coffee, tea and hot chocolate pods called K-Cups. Keurig coffee-makers are sold to individual consumers through mass-market and department stores. GMCR also sell Keurigs directly to offices and hotels. The second part of the business is the Specialty Coffee Business Unit, which sells coffee beans, ground coffee and Keurigs to grocery and retail stores. Overall, the Keurigs and K-Cups account for 52 percent of net sales, while the SCBU accounts for 47.6 percent.

GMCR copies and benefits from the razor-and-blade business model created by Gillette, whose strategy was to sell its safety razors so cheaply that customers wouldn’t hesitate to buy them. The plan, however, was that only Gillette blades worked with the razors. When the customers had to replace their razor blades, they could buy only significantly marked-up blades from Gillette. Similarly, although the Keurigs are not cheap, GMCR sells them at a very low margin. Then, because customers can only use K-Cups, GMCR marks them up, thus providing a large part of its revenue.

So if GMCR has such an innovative coffee machine, large market share in the coffee world and a monopoly on the profitable K-Cups, why sell short? There are a variety of reasons. First, when you buy something, you have to consider the price. For example, let’s say that somebody offers you a new 5 Series BMW at $250,000 instead of the usual $50,000 price. Is it still a great car? Of course. But though it may be a wonderful car, you wouldn’t pay the $250,000 because the asking price is much higher than the known market value.

This same concept applies to stocks. One measure of a stock’s value is the ratio called P/E, which stands for price/earnings and is most simply derived by dividing the current price of one share of common stock by the company’s earnings for that year. An ‘average’ valuation, if there can be one despite the diversity of industries, would be somewhere between 15 and 20. In the case of GMCR, its P/E is a staggering 68. To give some context to this number, it is important to compare it with other, similar companies. Peet’s Coffee and Tea Company trades at a P/E of 30, Coffee Holding at 11.11, Nestle’s P/E is 19.38 and J.M. Smucker — which makes Folger’s coffee — is at a modest 14. This comparable analysis leads one to believe that GMCR is overvalued.

The bull — one who believes a stock’s price will go up — would acknowledge these facts but disagree with the conclusion. That analyst would say GMCR has a very high stock price compared to its earning because it sells a solid product and has remarkable growth potential for both the Keurigs and K-Cups. Factoring in this high growth — net income has risen from 8.4 million in 2006 to 55.88 million in 2009 — a P/E of 68 would not mean the company is overvalued but that earnings will increase to justify the high price.

Regrettably, the bull analyst is just looking at the numbers and buying into the hype without looking more critically into the fundamental issues. First, GMCR’s machines, even if marked down, are still expensive. The cheapest unit costs $100 and can go up to $250. With the continued high unemployment and shaky economy, many consumers will be hesitant to drop $100 or more on a coffee machine. Competitors are catching on to the trend — Black and Decker and Hamilton Beach are making cheaper single-serve coffee machines.

The second issue is the K-Cups upon which GMCR depends for its profit. Currently, GMCR holds a patent on the K-Cups. But that patent will expire in 2012, which means other coffee-makers (Starbucks, Nestle) will be able to manufacture them. A bear analyst pointed out that GMCR actually makes a reusable K-Cup that allows the customer to use his own coffee. This product totally undermines the razor-and-blade business strategy of forcing consumers to buy only new K-Cups. Most consumers are offended by the waste — just read the reviews on amazon.com — of throwing K-Cups away after each use and prefer the more sustainable option. The combination of the patent expiration and the reusable K-Cups will reduce the fat of GMCR’s cash cow.

Finally, GMCR’s titanic growth is bound to slow. It already have contracts that allow the company to sell products to all the major department stores in the United States. Now, GMCR has to depend on ever-increasing SSS (same store sales) to justify the high price of the stock. Unfortunately for the company, this extraordinary growth is just not sustainable for the long term. Most concerning is the fact that the number of K-Cups sold per Keurig (the attachment rates) has been steadily decreasing, indicating customers buy the Keurig as a novelty but buy fewer high-margin K-Cups.

And as if that weren’t enough, the Securities and Exchange Commission just started an investigation yesterday into GMCR’s possible revenue issues and its relationship with a fulfillment distributor.

Nevertheless, GMCR is, on the whole, a unique company with a good product. But its shares are too expensive and, with many headwinds on the horizon, it is unlikely the current trend will continue.

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Brisbane takeaway expensive coffee

Brisbanites pay more for a cup of coffee than fellow caffeine lovers in Melbourne and Sydney. Sydneysiders enjoy the cheapest coffee prices of the three capital cities, according to an annual survey by Brisbane-based coffee supply company Gilkatho.

More than 600 cafes across Melbourne, Brisbane and Sydney were surveyed. Gilkatho managing director Wayne Fowler said they found coffee prices had gone up by an average of three per cent across all three cities.

He said this was less of a jump compared to 5.4 per cent in 2009. But compared to the 1.4 per cent increase in other foods and beverages, Mr Fowler says it appears people are willing to pay more for a cup of coffee. A regular takeaway cappuccino is $3.06 cents in Sydney - 25 cents cheaper than in Brisbane ($3.31) and 9 cents less than in Melbourne ($3.22). Mr Fowler said the rising cost of green coffee beans and other cost pressures on cafe owners, including higher rents and rising staff wages all pushed up takeaway coffee prices.

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Packers: Daily Coffee Mix

Packers vs Bears Previews–5 Things to Watch: BASICS–teams: The Green Bay Packers (2-0) vs. the Chicago Bears (2-0). Time: Monday, 7:30 p.m. Wisconsin time. Place: Soldier Field, Chicago. TV coverage: ESPN. The ESPN broadcast will also be simulcast on WISN (Ch. 12) in Milwaukee. BREAKDOWN: FIVE THINGS TO WATCH. Laying it on the line--Game could very well be decided by which team’s offensive line handles its opponent’s best pass-rusher most effectively. Shielded so far.

In Packers’ first two games, neither the Philadelphia Eagles nor the Buffalo Bills found a way to exploit No. 3 cornerback Sam Shields, an undrafted rookie free agent who won the spot in the nickel defense in training camp. One would think the Bears’ Jay Cutler will be looking for that matchup. Looking good: Bears quarterback Jay Cutler looks like a changed man now. Gaining yards his Forte: Although his productivity in the run game hasn’t been much (27 carries, 79 yards), RB Forte has been terrific catching passes out of the backfield with his 188 receiving yards and three TD catches lead the Bears. Many happy returns.

The coverage units have been solid, new punter Masthay has been an upgrade and kicker Crosby is back on track. The biggest improvement has come on returns where kick returner Nelson has emerged as a significant weapon in the battle for field position.

PREDICTION: Packers’ 2-0 record is significantly less surprising than the Bears’ 2-0 start. After sweeping Chicago last year, this is one of those games where a Packers team with Super Bowl aspirations needs to play like a contender in a marquee prime-time game against a motivated division rival. The guess here is that, after some up-and-down performances in the passing game, Rodgers & Co. exploit the Bears’ secondary and claim sole possession of first place in the NFC North. Packers 31, Bears 21.

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White coffee, the new trend in beverages

Coffee drinkers from across the world are now flocking to Malaysia's Ipoh city to taste a beverage created there for the first time - white coffee. Ipoh, the capital city of Perak state, has been one of the pioneers of white coffee in the world. It is more than just coffee to the locals; it is a part of Ipoh's history. In the 19th and early 20th century during the British colonial era, Perak was a booming tin-mining state. Many British tin-mining companies set up bases in Ipoh, making it a prominent city in the country.

The Ipoh Old Town area is where white coffee originated. The town used to be a meeting hub for Chinese migrants, whose special preference inspired the making of white coffee. CoffeeThe name white coffee has nothing to do with the colour of the coffee. The word actually means "without" and "nothing added" in the roasting process.

Regular coffee is normally made by roasting the beans with sugar, margarine and wheat, but white coffee is produced with only margarine - without sugar, giving it a lighter shade.

"You will taste the different layers of flavour in the (white) coffee. It is thick and aromatic," Ho Seong Hoey, a producer of white coffee, told Xinhua news agency. Ho is managing director of Home's Cafe, one of the oldest white coffee makers in Ipoh.

Ho said what made Ipoh's white coffee stand out among the rest are the low temperature, slow-roasting formulas that were created and perfected in the city.

According to him, the coffee makers in Ipoh do not use the high-heat, quick-roast methods that most roasters adopt, which usually give coffee the burnt and bitter taste.

As the coffee drinking trend changes across the world, with more fashionable flavours being introduced in cafes, Ipoh's coffee producers are still maintaining the old tradition, serving their signature white coffee like the old times.

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World’s biggest coffee morning underway in Wells

If you’re planning on a shopping trip to Wells today, why not treat yourself to a great cup of coffee and contribute to a great cause? The World's Biggest Coffee Morning is Macmillan Cancer Support's biggest fundraising event. People all across the UK - and sometimes further afield - hold a coffee morning, where donations on the day are made to Macmillan.

Last year 43,000 people registered to hold a coffee morning, raising a staggering £7.9 million! This year Macmillan are asking for your help to raise over £8 million to help change the lives of people affected by cancer.

The event started in 1990, when a local fundraising committee decided to hold a coffee morning where people came along to meet and mingle - as they might ordinarily do - but donate the cost of their coffee to Macmillan in the process.

The idea seemed such a simple, yet effective, one that they suggested the model be taken up nationally. The first National World’s Biggest Coffee Morning was in 1991, when 2,600 people registered to hold coffee mornings across the country. Since then it has raised over £60 million in total for Macmillan Cancer Support.

If you want to get involved in Wells, grab your bags, hats and head for the White Hart Hotel right now!! Mayor Tony Robbins will be attending and although the event is due to end at 12 noon, there’s plenty of time to enjoy an excellent pot of coffee, some wonderful company and help Macmillan in their great work.

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Starbucks to raise prices on some drinks

Starbucks Corp said it plans to charge more for large-sized and labor-intensive drinks because of surging prices for coffee and other commodities.

The world's biggest coffee chain, which expects to maintain or lower the price of certain espresso drinks and its "tall" 12-ounce brewed coffee, said it might raise the price of packaged coffee sold through grocery stores and other channels. Starbucks declined to disclose the magnitude of price adjustments. Shares inched up 0.5 percent in extended trade. Wall Street had expected such a move from the company.

Coffee prices are flirting with a 13-year high and Starbucks' move comes more than a month after mass-market coffee sellers raised prices on their well-known grocery brands.

J.M. Smucker Co on August 3 boosted prices for most of its Folgers, Dunkin' Donuts, Millstone and Folgers Gourmet Selections coffees in the United States by an average of 9 percent. Kraft Foods quickly followed with U.S. price hikes on select Maxwell House and Yuban ground and instant coffees.

Starbucks had been holding the line and absorbing the higher costs.

"The extreme nature of the cost increases has made it untenable for us to continue to do so and we have been forced to take the steps we announced today," Chief Executive Howard Schultz said in a statement.

Starbucks also stood by its forecast for earnings of $1.36 to $1.41 per share for fiscal 2011. Analysts, on average, are expecting earnings of $1.43 per share for next year, according to Thomson Reuters I/B/E/S. Its current fiscal year ends on October 4.

Rival McDonald's Corp said it is "business as usual" when it comes to the prices for its specialty coffee drinks, which sell for less than competing Starbucks beverages.

Shares in Starbucks, which on August 17 said it did not plan to raise prices despite the surging popularity of green coffee, rose to $26.06 in extended trading from their close of $25.93.

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How do you brew a perfect coffee? Very slowly

* Machines imported from Japan
* Requires 88 drips per minute
* Twelve hours to make three litres

AT a small cafe hidden away off San Francisco's busy Market St, James Freeman is proving that there's no such thing as too technical when it comes to making coffee. In his Blue Bottle Cafe on Mint St, the counter is dominated by a couple of contraptions that would look more at home in a mad scientists' laboratory, but which actually represent a San Franciscan pursuit for perfect coffee that combines technology and tradition with an astonishing attention to detail. The New York Times has put the price of Mr Freeman’s dedication to perfect coffee at $20,000 - and that's just for one of the machines.

He says that’s a little overblown, but not by much. “The $20,000 was basically the machine, the sourcing the beans, the labour – they got it up to that figure,” he said. “But they’re all pretty expensive, I can say that much.”His favourite is the copper-clad lever espresso machine, a vintage Italian job from the 1970s. But for perfect coffee, he says no one does it like the Japanese.

To prove it, two years ago, Mr Freeman sourced a pair of Oji drip-fed machines from Japan, a place where he’s been “pretty much dazzled by everything” since his first visit 26 years ago.

The Oji machines fuse tradition and tech in a way that might seem ridiculous to non-coffee drinkers, but those queued around the block outside his Blue Bottle Café in Mint St give thanks for it twice a day.

Twice a day because, if it’s Blue Bottle’s famous iced coffee from the taller of the two Ojis you’re after, it takes 12 hours to make a pot.

They make two pots overnight ready for the morning crowd and try to turn it around in time for the evening.

Each pot starts with 3.2 litres of water in the top globe, which releases exactly 88 drips per minute through a glass cylinder holding 160g of coffee.

The coffee is “single source” – all the beans are from the same crop, not blended – and coupled with the fact there’s only six litres of it available every 12 hours, chances are that might all add up for the world’s most expensive hangover cure.

“It’s $4 for a 12-ounce glass of ice coffee,” Mr Freeman says.

“It’s a wonderful iced coffee, kind of a bourbon-like iced coffee. It’s got a heat to it that’s like having a shot of bourbon.

“It’s hard to give it away at that price – some of the stuff we do, like the siphon coffee, are a premium service – it’s a pretty good deal.

“We run out a lot.”

In fact, Mr Freeman’s running out more and more.

In March this year, five Oji machines in Blue Bottle Cafes made their debut in Brooklyn.

Then there’s the other Oji - the "$20,000" one that makes hot coffee.

This one is a five-globe affair, arranged horizontally.

While not as slow as its taller counterpart, the brewing process is more spectacular.

Water is heated in each globe by halogen lights, which forces it up into a module holding the coffee grounds.

The mixture is stirred with a bamboo paddle in a manner which has to be perfected by baristas before they get to lay a hand on Mr Freeman's machine.

The "art" is creating a whirlpool within four turns, something which Mr Freeman says he spent months practising.

Stir it too much (more than 90 seconds) and the coffee over-extracts. Too little (less than 45 seconds) and your coffee is underdone.

The mix is then filtered back down into another globe and kept at that temperature by a barista cradling it with a moist cloth.

Although he calls his vintage lever machine his “rosebud”, Mr Freeman said he prefers the routine of making siphon coffee in the morning. “It’s a very nuanced technique,” he said.

And the chances of Australians ever experiencing an iced coffee that takes 12 hours to brew aren't out of the question. Mr Freeman said it's just a matter of convincing the Japanese suppliers that their machines will be given the dedication they deserve.

“The reason others don’t do it is because it’s expensive and difficult to get right," he said. “Anyone can buy them if they want.”

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Coffee Bean & Tea Leaf Rings in Fall, New Items

The Coffee Bean & Tea Leaf is enhancing its handcrafted fall bakery menu with the addition of new seasonal treats and a line of calorie- and price-point-friendly "mini" pastries, available starting September 13. In addition, the fall specialty beverage menu will feature a variety of bakery-inspired flavor profiles. By spotlighting the bakery creations of Anne Weisler, director of bakery operations, The Coffee Bean & Tea Leaf encourages customers to enjoy a variety of freshly handcrafted baked goods. "Our baked goods are made from the finest ingredients, by hand, by real people," says Weisler, who has been creating the Kosher and trans fat–free line of baked goods for The Coffee Bean & Tea Leaf for almost 20 years out of a company-owned bakery in Santa Monica, California. This season, working closely alongside Michelle Stene, senior research and development manager of beverage and food, inspired Weisler to use flavors such as pumpkin, pear, and cinnamon.

The Coffee Bean & Tea Leaf is poised to introduce customers to baked goods that reflect the seasonal flavors of fall and pair deliciously with both classic and specialty fall beverages. The new seasonal bakery items include Pumpkin Spice Cupcakes, Almond Loaves, and Orange Chocolate Scones. A similar bakery influence is also found in the new seasonal beverages. Customers can enjoy Cinnamon French Toast in an Iced Blended drink and Pumpkin Pie in a Latte. The Caramelized Pear Latte is a fall treat that features delicate pear and caramel notes in each sip. With the introduction of these new items, The Coffee Bean & Tea Leaf continues to highlight the craftsmanship that goes into the creation of each beverage and bakery item served.

This fall, The Coffee Bean & Tea Leaf will also introduce "mini" baked goods inspired by weekly tiny treats Weisler baked for employees of The Coffee Bean & Tea Leaf. Mini versions of classic pastries like The Seasonal Danish Bear Claw and a variety of signature muffins and Danishes will be offered in 4-ounce portions, offering a friendlier calorie range and price-point option in the bakery case.

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Smooth, creamy taste of coffee

AFTER more than 20 years supplying coffee products to the local and global markets, Exclusive Mark (M) Sdn Bhd decided to share its expertise with coffee lovers.

With its own brand of coffee – Café 99 – the company aims to bring the taste of coffee to Malaysian consumers with a "Richness Beyond Taste". Made from premium instant roasted coffee, Café 99 Ipoh White Coffee has a smooth, creamy taste and rich aroma.

"This brand is not to replace other brands out there, but more to complement them," Exclusive Mark senior business development manager Lau Chai Yap said.

Café 99, which is synonymous with "Kopi Kau Kau", is dedicated to "real coffee drinkers" and comes in two variants – Original and Less Sugar. The latter is 33% less sweet than the original, formulated for the health-cons-cious.

Exclusive Mark has appointed internationally ren-owned veteran local artiste Aunty Lai Meng as its brand ambassador.

"‘Richness Beyond Taste" is about life experience and Aunty Lai Meng has lots of experience. There’s a lot we can learn from her in building our own brand," Lau said.

"Coffee means a lot to me as it brings my family tog-ether. I have been drinking kopi o since young and as society progresses, there are many types of coffee available. I have tried many types of coffee, but the best is still Café 99," Aunty Lai Meng said.

For her 84th birthday, the company organised a surprise party after the Café 99 Ipoh White Coffee launch early this month, with her family, friends and colleagues in the local entertainment industry as guests.

Exclusive Mark is a member of CNI Holdings Berhad which manufactures a variety of products for the local and global markets. It has been supplying coffee to various brands and its facilities are GMP certified, halal compliant and ISO 9001, ISO 14001 and Ohsas certified.

Café 99 Ipoh White Coffee is available at all major
supermarkets and hypermarkets. Other products under the Café 99 brand include Café 99 3-in-1 Original, Café 99 4-in-1 Matcha Green Tea, Café 99 5-in-1 Tongkat Ali Maca and Nutri 99 Soya with Aloe Vera.

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Cocoa prices slump on signs of improved crop in West Africa

Cocoa fell for a fifth day to a one- year low in London on signs of a better crop in West Africa, the world’s biggest producing region. White sugar declined after four days of gains.

Bean deliveries by Ivory Coast farmers to the ports of Abidjan and San Pedro about doubled from a year earlier to 8,266 metric tons in the week ended Aug. 29, according to an industry official with access to the figures. The country’s exports climbed 77 per cent in July, data supplied by the ports shows.

“Most people are expecting a better crop than last year,” said Gary Mead, an analyst at VM Group in London. “There’s not much in fundamental terms to keep prices high. From late September onward, we should see a lot of cocoa flow out of Ivory Coast, Ghana and West Africa. That’s more than half the world’s supply.

Cocoa for December delivery fell as much as 32 pounds, or 1.7 per cent, to 1,824 pounds ($2,808) a ton on NYSE Liffe and traded at 1,851 pounds at 12:29 p.m. London time. December- delivery cocoa declined 0.1 per cent to $2,644 a ton on ICE Futures US in New York, rebounding from a slide as low as $2,603.

Ivory Coast harvests its main crop from Oct. 1 to March 31, while a smaller mid-crop is gathered from April to September. The country is the biggest cocoa producer, and Ghana ranks second.

29 Days

White, or refined, sugar for December delivery fell 1.4 per cent to $577.80 a ton in London, the first drop since Sept. 6. Raw sugar for March delivery was little changed at 21.70 cents a pound in New York.

Sugar climbed as high as $588 a ton in London last week as delays at ports in Brazil, the largest producer, disrupted exports of the sweetener. Ships will wait a record 29 days before loading this month at the Santos port in Sao Paulo state, said Nicolle Alves de Castro, a commercial associate at research firm Santos Associados Consultoria Ltda.

“For the time being, volatility is going to increase,” said Naim Beydoun, a broker and analyst at Rolle, Switzerland- based Swiss Sugar Brokers. “We are seeing more funds buying into the market. Overall, the supply is still behind.”

Robusta coffee for November delivery advanced 0.6 percent to $1,592 a ton on NYSE Liffe. Arabica coffee for December delivery rose 0.6 per cent to $1.91 a pound in New York.

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Coffee makers plan to raise rates

Your daily cup of cappuccino is now more expensive by almost Rs 20. Coffee chains such as Cafe Coffee Day, Costa Coffee and Fresh & Honest have raised menu prices to cope with coffee’s biggest global rally in five years. Companies selling branded coffee powder such as the world’s largest food company, Nestle, which owns Nescafe, and Tata Coffee are also likely to raise prices shortly.

Arabica, the world’s most-grown coffee, has become almost 50% more expensive in the past three months and touched a 13-year high last week, pulling up prices in India, the world’s sixth-largest coffee producer.

Costa Coffee, owned by UK-based Whitbread, which runs close to 60 cafes in India through its franchisee partner Devyani International, hiked prices by 6% in June. Santhosh Unni, CEO of Costa Coffee, said he did not expect an ‘immediate’ round of price hikes. But Mr Unni added: “So far, we have been able to absorb the hike in commodity costs. I am not, however, sure how long we can continue to do so.”

India consumes about one-lakh tonnes of coffee annually. This includes the retail packaged segment and coffee chains. Most coffee chains in India are yet to break even on investments, and rising commodity costs leave them with little choice, but to pass on the increase to consumers.

The country’s largest coffee chain, Cafe Coffee Day, owned by Bangalore-based Amalgamated Bean Coffee Trading Company (ABCTCL), hiked prices by 6% about four months ago across its 972 cafes in 142 cities. But K Ramakrishnan, president-marketing at Cafe Coffee Day, said that coffee from the company’s own estates is helping keep costs under control. “Since we rely on the coffee we grow at our own estates, the impact of rising global prices is limited for us,” he said. ABCTCL has 7,400 acres of own coffee estates, another 2,500 acres of managed estates, and it sources coffee from 11,000 small growers.

An official with Fresh & Honest Cafe, which makes the coffee brand Alive, said the company was aware of the rising trend in prices. “We have a limited presence in retailing, but the rising price of coffee means we would have to re-look the pricing. There is room for a 5-10% rise in prices,” the official said. Firms in the packaged retail segment are following suit. Foods maker Nestle, which makes Nescafe coffee among other packaged foods, is considering the option too.

“High commodity prices and food inflation are an ongoing challenge and we do not react to every increase. However, as a long-term strategy we have accelerated our cost optimisation initiatives and will take selective and staggered price increases at appropriate times,” the spokesperson for Nestle India told ET in an e-mail reply.

Tata Coffee’s US-based 100% subsidiary — Eight O’Clock — is also mulling a price hike to protect margins. Eight O’Clock predominantly sources coffee beans of central and south American origin. “The US market is highly developed and there is a pass through process. Already, brands like Folgers have hiked prices by about 9% and a gourmet brand

Eight O’Clock would also have to follow suit to maintain margins,” said H Huq, MD of Tata Coffee. Smaller coffee chains like Cothas Coffee, a roast and ground coffee supplier in Bangalore, said it would have to ‘rethink on pricing’.

Said CP Chandan, partner at Cothas Coffee, “Prices have risen beyond a point of comfort for roasters, forcing us to look at price hike.” The company’s coffee retails at Rs 250 per kg, and Mr Chandan said the company was looking to hike prices by Rs 20 per kg. V Sushilkumar, retail head at Concorde Cuppa Beverages, which operates a chain of 16 outlets in Bangalore, confirmed that prices in their cafes would be hiked effective October, though the pricing had not been frozen as yet.

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Coffee prices poised to come off the boil

The biggest rally in coffee in five years may be ending as the prospect of larger harvests spurs hedge funds to pare bets on higher prices, potentially cutting costs for big coffee sellers such as Kraft Foods and Starbucks.

Supplies of arabica, the world's most-grown coffee, will exceed demand by 6.67 million 60kg bags in the year ending in September 2011, according to ABN Amro Bank and VM Group.

That's the most in nine years and more than six times this season's expected surplus. Speculators cut their net-long position, or bets on higher prices, by 8.4 per cent since August 17, regulatory data show.

The rise in coffee coincided with surging food prices as flooding in Canada and drought across Russia and Europe ruined crops.

Wheat as much as doubled since June, contributing to riots over bread costs in Mozambique, and a United Nations price-index of 55 foods advanced to its highest since September 2008 last month.

No such shortages in arabica are forecast, with ABN Amro and VM Group anticipating a 7.4 per cent increase in output to almost 86 million bags, the most since at least the season ended in 2001."You cannot justify the spike on the upside if you look at the supply situation," said Christoph Eibl, co-founder of Switzerland-based Tiberius Group. "People who have been betting on coffee may lose. In the long run, fundamentals always overrule."

Arabica rose as much as 50 per cent since June 7 in New York trading, reaching a 13-year high of US$1.98 a pound on September 8, partly on speculation that rainfall in Colombia, the second-biggest producer after Brazil, would damage crops. Colombian coffee output gained 55 per cent to 615,000 bags last month, the Bogota-based National Federation of Coffee Growers said this month.

Coffee will average about US$1.52 a pound in the fourth quarter, or 20 per cent less than now, according to a Bloomberg survey of seven analysts.

Speculators accumulated a net-long position of 44,505 contracts by August 17, Commodity Futures Trading Commission data show. That's almost three times the five-year average and equal to about 750 million kg of coffee. They cut that in two of the last three weeks, to 40,757 contracts by September 7.

The last time prices rose this fast, in a rally ending in March 2005, they fell 38 per cent in the next six months.

Futures on the ICE Futures US exchange are anticipating a decline next year. Contracts from March 2011 are trading at a premium to longer-dated ones, a sign investors may be concerned about near-term supply.

Cheaper beans could help cut costs for companies including Illinois-based Kraft, which raised US prices twice since May on some types of Maxwell House and Yuban coffee.

Starbucks, the world's largest coffee-shop chain, said last month that more spending on commodities, mostly coffee, would add about 4c a share to expenses in the year ending in September 2011.

Shares of Starbucks are 10 per cent higher this year in New York trading, while Kraft gained 13 per cent.

Higher prices for commodities including coffee, oil and natural gas helped strengthen the Colombian peso and Brazilian real against the US dollar in the last 12 months.

The peso rallied 11 per cent against the US currency, and the real is up 5 per cent, trimming returns from dollar-denominated exports.

"The stronger peso takes a little of the shine off," said Rupert Stebbings, head of the Medellin-based unit of Chilean brokerage Celfin Capital.

"It's eroding some of the gains, but this is a coffee price level they couldn't have imagined."

While harvests may expand, supply now is still tight, said Nestor Osorio, the outgoing executive director of the International Coffee Organisation. Declining inventory "makes the markets much more nervous and much more vulnerable," he said.

Stockpiles monitored by ICE Futures US fell 35 per cent this year to 2.01 million bags, the lowest level in more than a decade.

This season's arabica surplus will be 1.01 million bags, the smallest amount since the 2007-2008 season, according to ABN Amro and London-based VM Group.

Problems with crops may also spill over into next season.

Colombia's harvest could fall next year after wet weather caused the worst outbreak of a plant-damaging fungus in 25 years, said Jose Sierra, who represents Antioquia, the nation's largest coffee-growing province.

Prices may keep rising as supplies increase because demand will also climb, said Judith-Ganes Chase, a former Merrill Lynch analyst who runs a consulting firm in Katonah, New York.

Global demand for arabica will expand 0.4 per cent to 79.32 million bags in the 2010-11 season, the highest since at least the 2000-2001 season, ABN Amro and VM Group estimate.

Unlike staples such as grains, coffee drinkers may not be willing to pay higher prices, said Raymond Keane, a coffee trader for Balzac Brothers in Charleston, South Carolina. "There will be a point when consumers say: 'This is it'."

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Four cups of coffee a day 'helps women halve their chances of gout'

Four cups of coffee a day can more than halve the risk of gout in women, according to researchers. They found those drinking that amount or more were 57 per cent less likely to suffer the agony of a gout attack than those who drank none. Two to four cups lowered the chances of gout by about 22 per cent but one a day only by three per cent.

Gout has seen a resurgence in the UK in recent years, and now around 250,000 people suffer the painful condition. It is estimated that drugs to treat it cost the NHS more than £6million a year. Once dubbed 'the disease of kings', it affects men more than women and has traditionally been associated with over-indulgence in certain foods and drink.

Recent evidence suggests younger adults in the UK are being affected, partly because of the increase in obesity.
Diet and excess alcohol are trigger factors for the condition, though some people have a genetic predisposition to it.
It develops when uric acid, a natural byproduct, is not disposed of properly by the body.

During an attack, the joint of the big toe swells and becomes so sore that even a sheet resting on it can produce unbearable pain. Attacks can last up to a week.

The latest findings, published in the American Journal of Clinical Nutrition, come from a long-term study of almost 90,000 female nurses in the U.S.Researchers from Boston University and Harvard Medical School tracked the nurses over a 26-year period, monitoring their health and dietary habits. During that time almost 900 of the nurses developed gout. When researchers analysed their beverage intake they found those consuming-large amounts of coffee over a long period of time were least at risk.

The researchers did not know why coffee had the positive effect, but one theory is that it can lead to lower insulin levels in the blood. There is a known link between higher insulin and higher uric acid.

It seems unlikely that caffeine is the reason for coffee's healing powers because decaffeinated brands also lowered the risk to a similar extent. The researchers said: 'Long-term coffee consumption is associated with a lower risk of gout in women.'

The findings support the results of similar research, published in 2007, which showed that coffee appeared to protect both men and women against gout.

Some studies point to gout as an early warning sign of heart disease. Researchers have found middle-aged men with the ailment tend to have higher blood pressure, raised cholesterol and diabetes.

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Arabica Push in the Philippines

Local coffee producers are currently being urged to plant and grow Arabica coffee in an effort to market Philippine coffee beans across the globe.

At present coffee farmers are concentrating on Robusta coffee, the beans of which are stronger in flavour and are the type used by the majority of instant coffee manufacturers, according to Allen Arvin A. Tan. He’s the manager director of Red Cherry N’ Silver Tips Corporation, owners of franchises of The Coffee Bean & Tea Leaf in the province of Cebu.

Tan said that his company were encouraging local farmers to start cultivating Arabica coffee following the higher level of demand the coffee type globally. He added that Philippine soil had the capacity to produce a more expensive variety of Arabica beans but that growers have so far been reluctant to switch because of uncertainty over where they could sell them.

In his efforts to promote Arabica coffee and reach out to local producers, Tan’s company has partnered with non-government organisations, Bukidnon province-based Kasilak Foundation, which is coordinating with farmers already growing Arabica coffee beans and expecting their first harvest by the end of 2010. Once collected, these beans will apparently be sent to California where the yield will be tested. Provided the beans achieve positive results, they will then be packaged as Philippine coffee and sold to shops. Tan also revealed that as well as exporting Arabica coffee, it’s hoped that domestic interest in the bean will also be boosted.

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Caffeine and Sleep

Yes, it should be obvious that caffeine does cause you to not sleep…so the obvious solution? Just don’t drink coffee couple hours before bedtime. tudies have demonstrated that caffeine disrupts sleep. When caffeine is consumed immediately before bedtime or continuously throughout the day, sleep onset may be delayed, total sleep time reduced, normal stages of sleep altered, and the quality of sleep decreased.

Caffeine’s effects on sleep appear to be determined by a variety of factors including dose, the time between caffeine ingestion and attempted sleep, and individual differences in sensitivity and/or tolerance to caffeine.

Caffeine-induced sleep disturbance is greatest among individuals who are not regular caffeine users. Although there is evidence for some tolerance to the sleep disrupting effects of caffeine, complete tolerance may not occur and thus habitual caffeine consumers are still vulnerable to caffeine-induced sleep problems.

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Where to get great coffee on I-95

Just in time for this weekend's road-trippers, snowbirds getting an early start or parents driving kids to college comes this list of great java stops on Interstate 95.

It's from Sandra Phillips-Posner and Stan Posner, a couple that knows most nooks and crannies of the exits off that great north-south artery. They're the authors of Drive I-95, which gives an exit-by-exit look at services, lodging, attractions, radar traps and more.

Here are their coffee stop recommendations:

*Willoughby's Coffee and Teas, New Haven, Conn., at Exit 47. Here's what they say: "The 25-year-old local institution is a serious coffee shop which competes in international competitions. The huge plus here is that they roast their own coffee, so four freshly roasted options (along with their house blend) are offered up daily. This is out of a repertoire of about three dozen. There are two dozen or so teas, and they come in tea bags." 258 Church St.

*Ashland Coffee & Tea in Ashland, Va., at Exit 92: "Coffee can be as fun as pufferbelly (a toasted toffee hazelnut latte); to Celtic caboose (an Irish cream cappuccino); racehorse latte (five shots); or a sidetrack (milkshake with espresso). There's a blend-your-own tea bar: chai, Japanese sencha, sunshine rooibos (what the heck is that, your blogster asks?) and more. Besides the hot drinks, there's munchies -- bagels, quesadillas, chicken chile, paninis and desserts. There are comfy couches to stretch out on, books to read, games to play and live music Tuesday through Saturday night and Sunday brunch. Trainspotters will be awestruck by the Amtrak trains whizzing by right outside the shop. "100 N. Railroad Ave.

*Downtown Books and Espresso, Walterboro, S.C., at Exit 53 or 57. "You'll like the location in Walterboro's main street, where you can unwind from your drive browsing through the dozen quirky antiques and collectibles stores. This coffee/bookstore serves up what you would expect: café au lait, espresso, Americano, cappuccino, latte, mocha latte and frozen latte. Some purists would faint, but you can add flavored syrups: vanilla, hazelnut, Irish cream, amaretto, almond, cherry, coconut, raspberry, chocolate sauce (brown or white) or caramel, and they even have sugar-free ones: chocolate, caramel, hazelnut and vanilla. They buy from a local coffee roaster, Island Coffee, who sources his beans from small farms all over the world. For non-coffee drinkers, the tea is Harney & Sons. You can add a sweet and you can, of course, sit and read a book (yes, they do sell Drive I-95 here). Don't miss the used book room." 213 E. Washington St.

The Posners also recommend Wawa coffee. Wawas are convenience stores popular in the northeast and Mid-Atlantic and known for good brews. "You can buy the beans to go," the authors say. " Bring your own mug in and they will refill it," starting at $1.21 for 12 ounces.

Readers, especially those in other regions, please recommend wonderful coffee stops while on the road? I always seem to end up in a long Starbucks line at a crowded rest area, when it would be more fun to get off the interstate and get a jolt of local flavor along with the java.

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Coffee is secret to long life: study

Researchers have claimed that drinking a cup of coffee everyday could be the secret to long life. According to a study, people who drank one to two cups of coffee a day had more elastic arteries than those who drank little or no coffee, reports the Daily Mail.

The subjects of the research were all aged between 65 and 100 and long-term inhabitants of the Greek island of Ikaria. It is known as the ''land of longevity'' and a third of residents reach the age of 90.

University of Athens researchers looked at 485 people with high blood pressure, medically known as hypertension. Christina Chrysohoou, who led the study, said there was conflicting evidence about the effect of coffee drinking on heart health, with some research showing it aggravated high blood pressure.

But drinking coffee is a deeply embedded social tradition in Greek culture, which made it imperative to investigate on this island of ''high life-expectancy'', she said.

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Coffee The Secret To Long Life

Sipping a hot cup of coffee daily could give you more than a healthful lift of energy. The drink helps people live longer by warding off heart disease, a study has revealed. Researchers at the University of Athens have carried out the study and found that drinking a cup of coffee everyday improves elasticity of the arteries, which can stave off heart disease, the 'Daily Mail' reported.

In fact, the researchers have based their findings on an analysis of 485 people with high blood pressure. The subjects of the study were all aged between 65 and 100 and long term inhabitants of Greek island of Ikaria. It is known as the "land of longevity" and a third of residents reach the age of 90.

Dr Christina Chrysohoou, who led the study, said there was conflicting evidence about the effect of coffee drinking on heart health, with some research showing it aggravated high blood pressure.

"But drinking coffee is a deeply embedded social tradition in Greek culture which made it imperative to probe on this island of 'high life-expectancy," she said.

In the study, the subjects' arteries were assessed for distensibility - or elasticity. The 56 per cent who were moderate coffee drinkers consuming between one and two cups a day, had best arterial health, with their blood vessels behaving like those found in younger people.

Their arteries were more elastic than those measured in people who drank little or no coffee. Around one in 10 who drank three or more cups a day had the least elasticity.

Dr Chrysohoou said moderate coffee drinkers consumed 25-50ml of coffee a day. Typically they were drinking strong Greek coffee but other types might work as well.

She suggested that ingredients such as caffeine and antioxidants may partly improve arterial function by increasing the ability to take up nitric oxide, which is impaired in hypertensive patients. The findings have been released at European Society of Cardiology Congress in Stockholm.

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