Coffee Industry

Coffee Industry Trends to Look for in 2016

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Coffee Industry Trends to Look for in 2016Here at Galaxie Coffee, we welcome the new year with a lot of excitement and anticipation about how we can best serve our customers over the next 12 months. We will be keeping an eye on both the direction of the coffee and beverage industry as well as the changing and growing needs of those we serve. In light of that, there are some trends we expect to emerge in 2016. Most of those trends are very good; one is not so good, though nothing we cannot overcome.

How Coffee Will Be Served

The standard pot of coffee, hot brewed with a slow drip machine, will continue to dominate global coffee consumption. That is not going to change anytime soon. But consumers are looking at other ways to enjoy their favorite beverage. According to New York investor, entrepreneur, and coffee roaster Jonah Engler, there are three particular serving options that should be especially strong in 2016:

  • Espresso – Espresso is by no means a new beverage. Yet it is one that is not truly appreciated here in the United States. That may change. Engler cites the fact that brands like Dunkin’ Donuts and McDonald’s have already added espresso drinks to their menu; he expects others to follow. That should mean more espresso drinks in the office as well.
  • Cold Brew – We have been talking about cold-brewed coffee for a while now. Cold brewing is also not new, but it has recently taken hold as a trendy way to enjoy coffee here in this country. All of the major equipment manufacturers are now making cold brew machines for the individual consumer alongside their traditional hot brew, slow drip machines.
  • Draft Coffee – Creating draft coffee by infusing cold drip blends with nitrogen is all the rage in cities like New York and Los Angeles. We expect the trend to expand across the country in the coming months. Expect your local coffeehouse to be looking at a draft coffee system this year.

Coffee Shortages and Higher Prices

Back in October, Food World News reported on looming coffee shortages they expected to see 2016. Little has changed in the three months since that report was put together. Abnormal weather patterns being experienced as a result of a very strong El Niño in the Pacific are negatively impacting coffee production in Australia, Indonesia, and other parts of the world. Food World News estimates coffee yields could be 7% lower this year.

How big the gap between supply and demand grows will determine wholesale prices for this year. If coffee shortages remain relatively modest, we do not expect any drastic increases for consumers. However, shortages in excess of 7% to 10% could result in some significant changes in pricing. It is something we will be keeping our eyes on.

Galaxie Coffee is proud to be able to serve the greater New York area. We look forward to what 2016 has in store for us and our customers.

Changes on the Horizon for the Worldwide Coffee Industry

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Changes on the Horizon for the Worldwide Coffee IndustryYou depend on your morning cup of coffee to get things started at the beginning of the day. Two or three more cups keep you going as you make your way through the 9-to-5. Meanwhile, growers around the world are carefully cultivating their beans with full knowledge of how much you depend on them. Rounding out the picture is an army of roasters, distributors, retailers and companies such as Galaxie Coffee who make sure consumers get their daily fix.

We say all of this to introduce you to the idea that changes occur within the coffee industry all the time – changes you probably are not aware of because they do not directly affect what you put in your cup every morning. Nevertheless, there are some big changes on the way that you may begin to feel within the next couple of years. Those changes are directly related to Arabica coffee production and perceived climate change.

Whether you believe climate change is a reality or not, there are enough people in positions of power convinced it is a reality. They are armed with a new round of data that suggests some of the most productive tropical regions producing Arabica coffee right now could be damaged by climate change in the future. They say the data suggests a local temperature increase of just a degree or two would make it impossible to continue coffee production at current levels. The solution? Move coffee production to cooler areas.

Higher Wholesale and Retail Prices

Arabica coffee is the preferred coffee worldwide. It accounts for 70% of all coffee production and is second only to oil in terms of its importance as a global commodity. The problem for growers is that Arabica is especially sensitive to temperature. If temperatures get too high for sustained periods, the resulting beans will not have the same mild and inviting flavor that consumers have come to expect. Throw in a lack of adequate rainfall and a crop could be unmarketable altogether.

Whether climate change researchers are right or wrong will not change much in terms of perception. Most of the world already accepts climate change as a scientific fact, leading both governments and businesses to make preemptive changes now. We expect some of the world’s coffee producers to begin looking in earnest for new areas of production not likely to be as sensitive to climate change as others. This could lead to a loss of production and an increase in prices at both the wholesale and retail levels.

How soon we start seeing price increases depends on how soon producers start looking for new locations. It could be as early as a few years from now; it might not start happening for several decades. However, it probably will happen one way or the other.

Here at Galaxie Coffee, we will continue to serve our customers with the best office coffee products regardless of what happens. We are committed to your complete satisfaction with every single cup.

What Are the Most Prominent Trends in the Coffee Industry?

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What Are the Most Prominent Trends in the Coffee Industry?Nothing seems to deter dedicated coffee drinkers from enjoying their favorite morning habit. Not higher prices, not long lines, not anything. Therefore, it’s always interesting to keep an eye on what’s happening in our industry as a means of forecasting what might be in the future. For 2015, we are paying close attention to a few significant trends.

Keep in mind that the office coffee environment is but one small portion of the overall picture. The trends we are seeing also apply to independent coffee shops, large commercial chains, and even home brewing.

The Single Cup Revolution Is Slowing Down

Single cup brewer systems have been experiencing an explosive growth rate for the past 10+ years.  This has occurred despite the fact that people are aware of the significant price differential when compared with using an automatic drip machine or a bean-to-cup brewer. One particular coffee system has dominated the office and home single cup market with their wide choice of beverages and brewing equipment.  In the office, there are now some excellent single cup options that offer a more eco-friendly approach.  We are beginning to see these options gain momentum, even though there are fewer choices.  Office managers aren’t running coffee shops and they know it.  They can now offer a great cup of coffee at a more reasonable price, and still no clean up.  Most importantly, they feel better about the environment and their employees are demanding more eco-friendly alternatives.

Furthermore, we are seeing a comeback in traditional coffee brewing methods using the “old school” three burner or a more updated version with a thermal carafe brewer.  While there is some waste and coffee spilled out, the overall cost per cup is lower and the coffee options are totally up to the user.  We are working with a small batch roaster in Brooklyn who uses Brazilian beans in a medium roast and the coffee is excellent.  The coffee is sold in 5 lb. craft bags – you can’t get more eco-friendly than that!!

Greater Demand for Fair Trade Products

A fascinating survey conducted by PLOS ONE in 2014 clearly demonstrates a preference for fair trade products among individual consumers. The survey enlisted dozens of coffee drinkers in a blind taste test in which participants were told one brand was fair trade and the other was not. Despite both coffees being identical, 61% chose the brand they thought was fair trade as tasting better. The research also concluded that consumers are willing to pay extra to purchase fair trade products.

We expect the results of that survey to play out in sales numbers over the next few years. A rising political consciousness among young people is making free trade coffee more popular with this demographic; their numbers will only continue to grow as the numbers of older coffee drinkers gradually declines.

Office Support for Coffee Service

While workers generally prefer single cup coffee service, there are now lots of good options to consider.  It is now possible to reduce your break room expenses and increase employee satisfaction.  The key is to listen to your employees.  It will be interesting to see where the industry goes over the next 12 to 18 months. At Galaxie Coffee, we are ready for anything.

 

What Are the Most Popular Varieties of Coffee and Tea for 2015?

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What Are the Most Popular Varieties of Coffee and Tea for 2015?Americans are creatures of trend. In other words, we see the glimpses of a new trend catching on and we all hop on board like so many teenagers running to a rock concert. Being in the coffee industry, we find it fascinating to look ahead at the trends that might be coming our way. Every year we see certain products come, other products go, and still other products taking everybody by surprise in one way or another.

So, what are the most popular varieties of coffee and tea for 2015? Let’s take a look. You might be surprised by what we found. We will start with tea as it is more easily defined than coffee.

Popular Tea Varieties

Tea drinkers are more apt to not only prefer certain varieties, but also to know exactly what those varieties are. Coffee drinkers think more in terms of brand name. In light of this, it is fairly easy to pick out the most popular tea varieties based on retail sales and consumer trends. We have listed the top five below, according to Eater.com:

  • Pu’erh Tea –You may have never heard of this variety of tea if you do not consider yourself a connoisseur. Regardless, Pu’erh is a fermented tea that comes from China’s Yunnan province.
  • Black Tea – The tried-and-true black tea remains as one of the most popular teas sold around the world. Black tea is widely available, inexpensive and capable of producing very bold flavor.
  • Oolong Tea – A very well known tea that hails from Taiwan and China. It is known for its rich flavor brought out by steeping as many as 8 to 10 times.
  • Green Tea – Those who love green tea swear by its health benefits. It remains popular in America despite declining sales elsewhere.
  • White Tea – White tea is known for its gentle, delicate flavor and low oxidation. It requires very little processing between farm and market.

Popular Coffee Varieties

It is much harder to put our finger on popular coffee varieties because worldwide consumer preferences are not strictly measured. If you went to Ethiopia, for example, coffee drinkers could tell you details about each of the varieties grown in their country. Ask Americans about their favorite variety and they are likely to say something like Starbucks or Green Mountain.

What we can say is that standard, black coffee still dominates the market even though the hipster designer drinks are catching up. Among the strongest performers are lattes, cappuccinos, and Americano blend drinks. Iced coffee seems to have peaked, with sales now fairly flat.

Galaxie Coffee services the greater New York area with a full list of excellent coffees and teas. You can view all of our products here on our website. If you are currently being serviced by another coffee company, we would appreciate the opportunity to offer you a comparison. If not, can we have the honor of earning your business?

How Big Is the ‘Green’ Movement in Coffee?

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How Big Is the 'Green' Movement in CoffeeThe ‘green’ movement is everywhere these days. From cars to the groceries you purchase down at the local market, everybody wants to get in on it. In some cases, going green is embraced out of genuine concern for the environment. Other times, companies claim to be green in order to market themselves better. We were curious as to how big the green movement is in the coffee industry; we were surprised by the results of our research.

Going green is as much about semantics as it is practice. In the coffee industry, whether or not we are embracing the green movement depends a lot on your definition. In a broad sense, there are those who consider everything from fair trade to sustainable farming practices as part of the green movement. There are others who limit the green movement to those things that directly affect the environment.

Truly Green Initiatives

We have divided current practices within the coffee industry into two categories: truly green initiatives and non-green initiatives. At the top of the truly green list is an emphasis on organic farming practices that eschew the use of pesticides and genetically modified materials. Organic farming seeks to produce a robust crop while doing little to no environmental damage. It is catching on across the globe.

Side-by-side with organic farming are sustainable practices that seek to conserve water and other natural resources in the growing process, while using sustainable energy sources for processing. Again, sustainability is catching on around the globe. Yet despite these efforts, there is one inherent problem: going green on the farm makes coffee too expensive to compete in the marketplace. Organic farming also requires more water in most cases, mitigating any water conservation efforts organic farmers engage in.

Non-Green Initiatives

There is a long list of initiatives that are presented under the green label without actually affecting the environment. The fair trade concept is a great example. The idea behind fair trade is to pay farmers a higher price for their crop, through either government subsidies or higher retail prices, in order to encourage them to practice organic and sustainable farming. Proponents of the green movement claim fair trade does help the environment and, perhaps it does indirectly. However, in light of how much fair trade coffee is sold on the open market, it is having little to no impact.

There are certain aspects of the green movement that are in play for the coffee industry. There are other aspects that are completely irrelevant. At this point, it is up to each player to determine how much green involvement is appropriate for his or her current business model.

In light of this, Galaxie Coffee will continue to do our best to provide the greater New York area with premium coffee, water, and beverage service. We invite you to take a look at our complete inventory of products. We combine an extensive list of product choices with excellent service upon which you can depend.

Coffee Industry 2015: Major Players and Emerging Competitors

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Coffee Industry 2015 - Major Players and Emerging CompetitorsIf there is one thing we know about the coffee industry, it is the fact that it is highly competitive. Coffee is the world’s number one hot beverage, with a seemingly endless list of varieties being grown all over the world. So, who are the major players in the industry for 2015? Who are the up-and-coming competitors who will fight tooth and nail for their share of the market? We have put together a selection of both producers and coffee companies under both categories. We expect to see a pretty heated battle for market dominance through the end of 2015.

Coffee Producers

The top three coffee producing countries in the world since the start of the 21st century have consistently been Brazil, Vietnam, and Colombia. That is not expected to change for 2015, but all three will probably produce and export less product this year than in previous years. Brazil, for example, has been going through a pretty significant drought over the last 12 months. This year’s crop does not look nearly as robust as previous years.

In Honduras, things are considerably different. Production and export within the Central American country was up 4.2% in January alone, continuing a steady climb that producers in the country have enjoyed since 2009. Other coffee producing countries to watch in 2015 include Ethiopia, Nicaragua, and Cameroon. Robusta and Arabica exports look especially promising out of Cameroon.

Coffee Companies

Back here in the U.S., we are more concerned about the companies processing and roasting coffee than the countries producing it. After all, what we buy comes from the roasters.

At the top of the list of major players are Starbucks, Dunkin’ Donuts, and Folgers (owned by J.M. Smucker). Not only are Starbucks and Dunkin’ Donuts dominant in the retail coffee house sector, they also compete with Folgers by producing their own blends that consumers can purchase for use in their home coffee machines. Coffee service companies are even beginning to offer Starbucks and Dunkin’ Donuts products to their customers.

In the emerging arena, we think one of the players to keep an eye on is a company named Community Coffee. They are not new by any stretch, having been established in the early 1900s, but they are getting a lot of media attention these days. You may have even seen some of their commercials popping up on your local television station.

Others to watch include Temple Coffee Roasters, Klatch Coffee, Intelligentsia Coffee & Tea and the UK’s answer to Starbucks – Costa Coffee. Costa Coffee is the UK’s largest coffeehouse chain and a premium roaster. They are just now making inroads into the American market.

The competition is heating up as coffee is taking hold among a younger and more particular audience. At Galaxie Coffee, we will continue striving to meet the needs of all of our customers regardless of their tastes and preferences. We are proud to offer the New York area a wide selection of hot and cold beverages for office consumption.

A Look at the Coffee Industry Horizon for 2015

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A Look at the Coffee Industry Horizon for 2015With the arrival of November and the annual holiday season, consumers are looking at closing the books on 2014 and starting afresh in 2015. We are expecting some interesting changes in the coming year for the coffee industry. Some of those changes are expected, others will be a surprise. One thing will not change – America’s love of coffee in any form.

Americans are the largest consumers of coffee in the world. Coffee is our morning wake-up beverage, our fuel to get through the workday, and the beverage of choice for social gatherings. That will stay the same. However, there are changes on the horizon:

1. Coffee Prices

Coffee prices reached a nearly three-year high last month thanks, in part, to severe drought in Brazil that has taken out nearly 10% of the coffee crop. Brazilian government officials say next year’s crop could end up being weak as well. The news has pushed the price of coffee futures ever higher, which, in the end, results in higher prices at the retail level. Unfortunately, we will all be paying more next year for our favorite caffeine beverage.

2. Brewing Equipment

Throughout 2014, there has been a noticeable increase in the use of single cup brewers both at home and the office and a correlating decrease in the use of drip brewers. Surveys released over the summer suggest that trend will continue into 2015. People love single cup brewers because of the convenience and flavor choices; they are willing to pay more for both the equipment and coffee in order to make brewing as convenient as possible.

We expect the demand for single cup machines to continue rising in the office coffee industry, though not as quickly as the demand for them in homes. Companies paying for office coffee programs are less likely to absorb the extra cost of single cup brewing. We believe traditional drip brewers will remain strong for office coffee.  In fact we are seeing a resurgence in brewing pots of coffee in offices due mainly to taste preferences and sustainability issues.  Call us at 631-694-2688 to talk about this and Kitten Coffee, our new high-end coffee product.

3. Espresso Drinks

The National Coffee Association says the daily consumption of espresso drinks has risen from 13% to 18% over the last year. They expect that trend to continue and so do we. Espresso is the new, trendy coffee drink among those who use their choice of beverages to make a statement. The only question is how much consumers will be willing to pay if retail prices spike in response to demand.

The coffee industry horizon also looks favorable to flavored coffees, nontraditional creamers, and better pairings of coffee drinks and pastries for morning commuters. It does not look good for straight, non-flavored coffees and the neighborhood coffee shop. As far as coffee shops go, today’s coffee drinkers are more about drive-through and less about sit-down and long lines.

At Galaxie Coffee, we will continue watching the trends in order to provide the best possible service to our customers. We offer office coffee, bottled water, and a full range of juices and teas to customers throughout the New York area.

Three Coffee Industry Trends to Watch For in 2015

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Three Coffee Industry Trends to Watch For in 2015Coffee is among the best selling commodities in the world. In fact, coffee is a beverage that is enjoyed by hundreds of millions of people on nearly every continent. As such, the coffee industry is one that is constantly evolving to meet consumer tastes. As those tastes go, so does the industry in America.

A number of important research studies this year have shown some interesting trends among American coffee drinkers. These trends will shape the future of both home brewing and office coffee service in 2015 and beyond. Here are three specific trends to watch for in the coming months and years:

1. Coffee Will Displace Other Beverages

Data from earlier this year shows that coffee consumption in America is on the rise. Some 61% of American adults report drinking coffee daily, up two percentage points from the year before. Furthermore, coffee continues to dominate other popular beverages such as sodas and teas. We expect that to be the case for the foreseeable future. In addition, we could see the start of the decline in energy drinks early next year with a corresponding increase in coffee interest. Now that the word has gotten out about the high caffeine content of energy drinks, consumers are less willing to embrace them.

2. Home Brewing Will Make a Comeback

The rise of popular coffee shop chains back in the 1990s led to fewer people brewing their own coffee at home in favor of grabbing a cup on the go. It was a lot more convenient to stop at the drive-through on the way to work than to set up a drip brewer every morning. However, the introduction of the single cup brewer has changed that.

Today’s single cup brewers are capable of producing a tasty cup of coffee in less time than it takes to make toast. The consumer just inserts a pod or cup, presses a button, and waits no more than a minute or two for a fresh cup of coffee. We believe this will create a resurgence in the home brewing market as evidenced by research data that suggests 15% of Americans already have a single cup brewer and 25% of those who do not are planning to buy one.

3. Fair Trade Coffee Will Become Extinct

When the idea of fair trade coffee was first presented, it was offered as a way to eliminate poverty among the world’s coffee growers by paying them above-market prices for their beans. Yet even as Americans pay more for this coffee, the poverty it was supposed to eliminate is still pervasive. We expect consumers to gradually stop buying fair trade coffee as they begin to understand they are paying higher prices for little or no results.

Here at Galaxie Coffee, we are excited about the future of our industry. We look forward to providing our customers industry-leading coffee and beverage service for years to come. It is what we do better than anyone else.