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organic rules: impact on coffee industry
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us federal regulations on using the term "organic" only went into full effect on monday, but they are already rapidly transforming a niche of the coffee industry and will cost consumers more, experts say. "i think we're looking this year at sales growth of our double certified line in the region of 50-60 per cent as some of our larger customers distribute (organic coffees) to more mainstream channels," said rick peyser of green mountain coffee roasters based in waterbury, vermont. organic coffee is grown without prohibited synthetic substances. at the same time as medium and larger roasters seize on a new area to capitalise on, smaller roasters, particularly in the east, will be pinched by higher costs and what appears to be mountains of paperwork. "this will shake up the industry. organic coffee is very much west coast, so the impact will be even greater to the east coast roasters because it is a smaller part of most people's businesses," said donald schoenholt, president of gillies coffee co. in brooklyn, new york. sources said the financial load per pound could be from 2 or 4 cents up toward 17 cents for a small roaster. it depends on how many pounds the roaster will be spreading his costs across, they explained. "for smaller businesses, the regulations may be a challenge," said peyser, pointing out that retailers will have to change their labels and identify their certifier. one smaller roaster said: "the costs are running into the thousands. the new regulations require very strict, very detailed, careful record keeping, which only big corporations are good at." higher prices aside, the consumer of organic coffee should be better off with the new regulations. "the customer will have a much higher level of security and confidence in knowing the products are organic. this will be great for the buyer," said schoenholt. "come 21 october, anything that uses the term organic needs to be certified organic, unless your sales are less than $5,000. anyone who produces or processes has to be certified if they use that term. you must meet the federal rules," said lynn moorer, director of operations and general counsel for the organic crop improvement association international, of lincoln, nebraska. the national organic program (nop) is the name of the set of regulations that lays out what insiders call "the rule." the regulations were originally passed in 1990, but took a while to become final and are only now going into full effect, moorer explained. the road to formal certification has taken so long because of the us government's inexperience with organic coffee. also, roasters of organic blends are spread out and made up of widely divergent groups of individuals. "the organic community can be a real challenge to work with," one source said diplomatically. a certificate from the farmer is not enough. one small roaster complained that he had to complete a 140 page document. "you have to demonstrate that you have an organic plan. before there was no standard definition for organic. it is not just absence of prohibited substances, but also the proper use of the land," said moorer. there are 54 accredited certifiers to the nop and roughly 50 are in the united states. "i think the nop raises the bar and puts us on the map. the standards are verifiable and this takes the guess work out of certification. in the long run, it gives us more legitimacy in the eye of the consumer," said adam tietelbaum, co-founder of the organic coffee association. the concept of independent certification tells the consumer that the products he or she purchased have been grown, handled and processed without any synthetic chemicals, and are in compliance with earth-friendly standards. earth-friendly is a way of saying that organic practices take into account long-term sustainable stewardship of resources like land and water, moorer explained. "more people will become compliant and others will see what happens. consumers will now begin to demand proper certification paperwork," said jim cannell of jim's organic coffees in wareham, massachusetts. larger coffee and food companies have either purchased an organic coffee line or are shopping for acquisitions. tietelbaum started adam's organic coffees in 1992 in oakland, california, and it was snapped up by peerless coffee co. in 2001. the frontier coffee organic coffee brand was purchased by green mountain coffee roasters last year, and several roasters of organic coffee told reuters they have been approached with tempting buy-out offers in recent months. "we're bullish on organics. we bought frontier and now have 25 product offerings that are certified organic and fair trade," said green mountain's peyser. "it's like a dot-com rally for the organic coffee world," said one west coast roaster, referring to the prices being offered to some organic roasters.
Source :Food Ingredients Food Science - Additives, Flavours, Starch
Date :
23
October
2002
Category :
Beverages
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the nescafé plan contains a set of objectives which will help nestlé further optimize its coffee supply chain. in addition to the chf 200 million invested over the past ten years, nestlé will invest chf 500 million in coffee projects by 2020. this includes an investment of chf 350 million for the nescafé plan and chf 150 million for nespresso. the rainforest alliance, an international non-governmental organization, will support nestlé together with other partners of the sustainable agriculture network (san) and the coffee association, 4c, in meeting the nescafé plan objectives related to farming.
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the company is set to build new factories in angola, the democratic republic of congo (drc) and mozambique, while also expanding existing factories. nestlé will also increase its distribution capacity in the region by opening 13 new distribution facilities and more than double its work force by creating 750 new jobs by 2012. paul bulcke, nestlé ceo , who announced the investment at a press conference in kenyan capital nairobi, said: “nestlé is committed to unlock the business opportunities and to promote growth in equatorial africa.
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the world\'s largest coffee chain has reported strong business for the brand, which chief executive howard schultz is betting could become a billion-dollar business and galvanize growth for the chain. when asked if the company was aware of the situation, starbucks spokeswoman sanja gould said: \"there have been limited instances where some beverage sales have been rung up as via sales.\" via currently accounts for a small portion of sales at starbucks, but reported numbers suggest it is rapidly gaining traction with customers.
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same store sales grew 5.8 percent in july year on year, the company said in a statement on wednesday. that compared to a 9.3 percent increase reported for june. \"it was not an easy month, many players were unable to fully reap the additional income from summer cafes in the moscow region due to a difficult ecological situation,\" chief executive sergei beshev said in a statement. the average bill fell 0.
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new research does not contradict or change the conclusions drawn in the european food safety authority’s opinion on ochratoxin a (ota) in foods such as cocoa products and liquorice, claims the parma-based agency. ota is a mycotoxin produced by several fungal species of the genera penicillium and aspergillus. animal studies have linked the toxin to renal tumors at high dosages.
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nestlé has announced their commitment to stop buying palm oil from companies owning or managing plantations or farms linked to rainforest destruction. this would apply to notorious sinar mas, a palm oil and paper supplier that greenpeace has repeatedly caught destroying the rainforest - if it fails to meet nestlé’s new criteria - and also have implications for cargill, one of nestlé’s palm oil suppliers which purchases from sinar mas.
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the key food sectors in australia are weathering the global recession well, the latest research from leatherhead’s global food markets shows, with frugalism far less prevalent than in most other global markets. although there are signs that consumers have begun to economise during the slowdown, many sectors reported strong growth in 2008, with 2009 sales estimates also positive. baby food sales, for example, rose 8.
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as café chain starbucks announces plans to offer instant coffee at its stores to diversify in the current economic climate, the european coffee industry says it does not expect a similar shift in consumer habits in the near future. roel vaessen, secretariat of trade body the european coffee federation (ecf), says that with the economic downturn still relatively a new concern, it remains too early to tell if consumers may switch to instant coffee en mass on the back of financial concerns.
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Coca.Cola
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PEPSI
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Mcdonald
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Nestle
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Mars
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Baskin & Robins
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Chika
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