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nestlé announces $550 million sustainable coffee plan
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sales strength of starbucks' via coffee questioned
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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. gould said the activity had no impact on via reaching $100 million in global sales in 10 months. "with more than 16,000 stores around the world, isolated incidents and mistakes do occur. however, we do take this seriously and are working with our store partners to ensure accuracy for all purchases," gould said. even so, it potentially is a black eye for the seattle coffee giant, which only recently turned its business around after a long and painful restructuring. tyler swain, a barista in omaha, nebraska, said his store is under intense pressure from its district manager to deliver via sales. swain said he has given out complimentary drinks to persuade customers to buy via and that he has been coached to teach others to do the same. "it is a never-ending pressure," said swain, who is involved in a movement to unionize starbucks employees. "i don't feel like a barista anymore. i feel like a salesman." two business school students, who asked not to be named, told reuters that a manhattan barista this week gave them two free drinks in exchange for buying a package of via. a los angeles office worker, who said she spends a lot of time studying at starbucks in the evenings and wants to keep her options open to work at the company one day, said she witnessed the practice multiple times in march. starbucksgossip.com -- a site frequented by starbucks devotees and employees -- has gotten similar complaints on the issue for several months from some posters, who use screen names to protect their identity. store checks by reuters in los angeles, new york, san francisco and chicago on thursday did not turn up the behavior, which is not sanctioned by the company. other employees told reuters that their stores do not engage in the practice. starbucks launched via in september 2009 to a skeptical investment community. it has aggressively marketed the product, and store managers are under pressure to deliver on via sales goals. for context on the pace of via sales, consider the trajectory of frappuccino, which is widely viewed as starbucks' most successful customer launch. that blended product, which now accounts for $2 billion in annual sales, took three years -- adjusted for inflation -- to reach $100 million in sales. the bulk of via sales so far has come from the united states, where it is most widely available but where instant coffee is not as popular as it is in parts of europe and asia. starbucks said it expects via to have a "slightly positive contribution" to earnings in the fiscal year ending oct. 4, even as it puts significant marketing and advertising dollars behind the coffee brand.
Source :flex-news-food.com
Date :
20
August
2010
Category :
food industries Economic
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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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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.
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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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Nutrika
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Mumika
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Chika
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in the latest part of our focus on clean labels and 