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Gourmet News September 2013

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4 GENERAL NEWS GOURMET NEWS SEPTEMBER 2013 www.gourmetnews.com General News Hershey Hosts Cocoa Summit to Restore Cocoa Farming in Mexico A little more than a year after announcing an initiative to restore Mexico's beleaguered cocoa farming industry, on July 13, The Hershey Company, in collaboration with cocoa supplier Agroindustrias Unidas de Cacao SA de CV, held a Cocoa Summit in Tapachula, Chiapas. The summit brought together a wide range of stakeholders committed to saving Mexico's cocoa industry. The summit marked the next phase of "The Mexico Cocoa Project," a 10-year, $2.8 million initiative to provide training in farm renovation and good agricultural practices, as well as to distribute hundreds of thousands of disease-tolerant cocoa trees. The Mexico Cocoa Project hopes to restore more than 1,000 hectares of cocoa farmland in the Chiapas region of Southern Mexico that have been devastated by tree disease. The effort intends to quadruple yields, substantially increase family incomes and contribute to the worldwide supply of sustainable cocoa. Since the project began, Hershey and AMCO have built and maintained nurseries to grow disease-resistant tree stock. The area has been hard hit by Moniliasis, also known as frosty pod rot, a disease that attacks the fruit of the cacao tree, causing its cocoa beans to become unusable. As a result, cocoa yields in the area have dropped by nearly half since 2005. "This summit [was] a great opportunity after more than a year of hard work to share the great progress we have made with the producers, build on farmers' commitment to restore their cocoa farms and regain pride for cocoa growing in the region," said Tonathiu Acevedo, Director of AMCO. "A summit with so many important stakeholders demonstrates the power of what happens when all interested parties come together around a common cause with a goal of benefiting farm families, communities and consumers who love chocolate." The inaugural cocoa summit was designed to raise awareness about the work underway to return the Mexico cocoa industry to a thriving business. The program partners also hope to grow interest among young adults working in the cocoa industry. "We have a strong and growing Hershey business here in Mexico serving local consumers for more than 40 years and our employees in Mexico are very proud to be part of an effort to improve the livelihoods of local cocoa farmers," said Hector de la Barreda, Vice President and General Manager for Hershey Mexico and Central America. "We are also very proud about the fact that today we are already using Chiapas cocoa in our chocolate in Mexico and we look forward to the opportunity to increase the use of this delicious, high-quality Mexican cocoa in our products." The Mexico Cocoa Project is one of The Hershey Company's numerous cocoa sustainability programs around the world as part of its "21st Century Cocoa Plan." The plan addresses an ongoing concern of the cocoa industry, which is supporting the long-term sustainability of the world's cocoa supply. Last year, Hershey committed to using 100 percent certified cocoa in its products globally by 2020. Hershey's percentage of certified cocoa will surpass 10 percent of its total cocoa volume this year and increase to between 40 and 50 percent by 2016. GN With Brazilian Thirst for Java on the Rise, Experts Predict Rise in Global Coffee Prices As the leading coffee export market in the world, Brazil is no stranger to high quality coffee beans. However, until now, the country has sent its best beans overseas for international enjoyment. Today, new research from Mintel reveals that Brazilians are developing a taste for premium coffee, with a quarter of Brazilian coffee drinkers claiming they prefer premium over regular brands of coffee. And experts worry that this new interest in high quality coffee among Brazilian consumers could impact the price of coffee on a global scale. Today, five in six Brazilian consumers report drinking coffee, with three in five drinking the product daily. This makes Brazil the second largest market for coffee in the world, with an estimated consumption of 1,230,000 tons of coffee in 2012. Only the United States beats this volume, with an estimated annual consumption last year of 1,454,000 tons. The United States may not keep the lead in the coffee race for long, however, with market volume for coffee in Brazil currently growing faster than that of the United States. As consumption there rises, Brazil is set to take the number one spot in the next few years. Still, while Brazilians have one of the highest per capita volume consumption rates in the world, Mintel's research reveals that Brazilian consumers actually spend very little on coffee ($18.17 per head in Brazil compared to $30.79 in the United States in 2012). This indicates that coffee has, at least until now, been seen as a cheap commodity in Brazil. However, this attitude could be changing. "As Brazilians get more demanding about their coffee, the country's better quality Arabica beans will increasingly be used to service its burgeoning domestic market, rather than merely sent overseas," said Jonny Forsyth, Global Drinks Analyst at Mintel. "The global supply of the best quality Arabica beans is hugely dependent on Brazil, and by reducing supply at a time of huge, and still rising, global demand, this could force a sharp rise in global coffee bean prices down the line." For American coffee companies, the rise in consumer desire for premium coffee among Brazilians is of interest not only because of the potential impact on global prices for the commodity, but also because of the emergence of a potentially valuable new market for these products. Young adults in Brazil represent the greatest market in the country for premium coffee. Contrary to the normal at- tributes of the category, with coffee in general having higher penetration among older consumers (93 percent of Brazilian consumers 55 and older claim they consume coffee, compared to 74 percent of those aged 16-24), the usage of higher value-added coffee is higher amongst younger consumers and decreases amongst older age groups. Only 12 percent of young Brazilians say they consume chilled specialty coffee, compared to 5 percent of consumers aged 45-54. Overall, 7 percent of Brazilian consumers claim they drink this type of coffee. "Considering that the long-term future of the category depends on the younger age groups of today, it is essential that the market successfully engages them now, with a view to long-term gains. Products tailored to their tastes, such as mixing coffee with other ingredients and preferences, represents the key avenue for introducing young people to the category," said Lucas Marangoni, Senior Drinks Analyst at Mintel Products. "However, given the limited demand for such products in Brazil today, restricted to the higher socio-economic groups, the launch of ready-to-drink products in general should still be treated with some caution." GN BRIEFS Coffee Fest Headed to Seattle, October 4-6 On October 4-6, Coffee Fest Seattle will return to the Washington State Convention Center bringing fresh, new, innovative and relevant programming. Coffee Fest's organizers have planned a number of events, designed and provided to inspire attendees and help them grow their business. More than 300 booths featuring everything found on either side of the counter (and including the counter itself) will be on the exhibition floor. Whether you are a barista, a roaster or a coffee shop owner, collaboration is always inspiring and beneficial. Coffee Fest is the place to gather to meet talented, passionate professionals and respected industry experts and to reconnect with your friends in the industry. The Retailer Connection session and the Opening Night Reception are just two of the many times to network with your peers throughout the weekend. Visit coffeefest.com to view the complete lineup of events. Kosherfest Celebrates 25th Anniversary Kosherfest 2013 will take place October 29 and 30 at the Meadowlands Exposition Center in Secaucus, N.J., and will feature special events and programs to mark its 25th anniversary as the largest annual meeting place and product resource for the kosher trade industry. Kosherfest gives manufacturers, distributors and suppliers of kosher certified products and services the opportunity to reach thousands of mainstream and independent kosher trade buyers from across the globe. Kosherfest exhibitors receive exposure to high volume buyers, access to education sessions, media exposure, advertising opportunities and exhibitor-only entries to the Kosherfest New Product Competition. Products at Kosherfest encompass kosher certified foods and beverages for retail sale and ingredients and prepared foods for foodservice, including wine and spirits. "No doubt, this is a show not to be missed by anyone looking to grow their kosher business," said Yakov M. Yarmove, Ethnic Marketing and Specialty Foods for NAI/JEWEL-OSCO. Almond Conference and Trade Show to Spotlight Important Crop this December The Almond Board of California's 41st Almond Conference will take place December 3-5 in Sacramento. An industry trade show will run concurrently with the conference. California's Almond growers produce 84 percent of the world's almond supply and 100 percent of the U.S. supply. It is the top specialty crop export in California. Industry members attending the 2012 Almond Conference represented more than 90 percent of the 2011-2012 almond crop. The Almond Conference is the annual event where the Almond Board of California presents a multifaceted program of production and environmental research results, marketing activities and guest speakers on a variety of subjects of interest to almond growers and handlers. More than just education, The Almond Conference is a great social and networking event. Former Almond Conference featured entertainers include Penn & Teller, Roy Firestone and Bear Grylls.

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