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The following are international coffee Organization (ICO)prices for August 19.
Composite daily price = $0.9851.
15-day average of composite daily = $1.0252.
New York other mild arabicas = $1.1558.
Bremen/Hamburg other mild arabicas = $1.2858.
Weighted average of other mild arabicas = $1.1883.
15-day average of weighted average of other mild arabicas = $1.2557.
New York robusta = $0.7900.
Le Havre/Marseilles robusta = $0.7698.
Weighted average of robusta = $0.7819.
15-day ave. of weighted average of robustas = $0.7946.
Percentage difference between 15-day mild arabicas and 15-day robusta
averages = $0.3672.
Colombian mild arabicas = $1.2550.
Brazilian other mild arabicas = $0.9725.
U.S. IMPORTS OF RAW COFFEE
Last updated 8/20/98
IN THOUSANDS OF DOLLARS
_________________________________________________________________________
CALENDAR YEARS (JAN-DEC) | JANUARY - JUNE
1997 | COMPARISONS
IMPORT MARKETS RANK 1997 | 1997 1998
__________________________________________________________________________
LEADING 35 COUNTRY SUPPLIERS
COLOMBIA......................... 1 656,539 | 287,476 307,381
MEXICO........................... 2 545,814 | 394,642 334,637
BRAZIL........................... 3 450,081 | 203,272 120,309
GUATEMALA........................ 4 393,688 | 229,828 210,623
PERU............................. 5 168,191 | 40,140 39,662
INDONESIA........................ 6 139,684 | 52,370 43,892
COSTA RICA....................... 7 126,013 | 62,027 94,784
VIETNAM.......................... 8 104,031 | 78,518 82,209
EL SALVADOR...................... 9 100,433 | 54,934 73,839
HONDURAS......................... 10 67,772 | 53,328 110,990
ETHIOPIA......................... 11 60,279 | 27,167 28,187
ECUADOR.......................... 12 60,157 | 11,644 11,080
THAILAND......................... 13 45,949 | 38,637 37,709
INDIA............................ 14 36,632 | 10,423 19,726
DOMINICAN REPUBLIC............... 15 34,031 | 20,549 30,191
UGANDA........................... 16 33,551 | 21,466 6,342
SWITZERLAND...................... 17 25,489 | 10,980 1,425
KENYA............................ 18 18,802 | 7,767 9,486
NICARAGUA........................ 19 16,683 | 12,268 22,329
PAPUA NEW GUINEA................. 20 15,606 | 4,093 1,644
PANAMA........................... 21 14,770 | 8,423 14,429
BURUNDI.......................... 22 13,729 | 1,039 3,873
COTE D'IVOIRE.................... 23 13,171 | 4,827 20,615
VENEZUELA........................ 24 11,964 | 11,185 1,438
SINGAPORE........................ 25 6,075 | 3,702 786
UNITED KINGDOM................... 26 5,647 | 404 906
GUINEA........................... 27 3,596 | 3,321 1,607
LEEWARD-WINDWARD ISLANDS......... 28 3,469 | 1,632 83
YEMEN............................ 29 3,180 | 1,509 1,462
MADAGASCAR....................... 30 3,000 | 1,246 5,895
JAMAICA & DEP.................... 31 2,872 | 1,477 734
FRANCE........................... 32 2,868 | 2,542 853
SOUTH AFRICA, REPUBLIC OF........ 33 2,798 | 617 161
TANZANIA, UNITED REPUBLIC OF..... 34 2,692 | 1,480 1,350
GERMANY.......................... 35 2,572 | 1,947 2,822
REST OF WORLD.................... - 15,127 | 8,142 5,806
SOURCE: U.S. BUREAU OF THE CENSUS TRADE DATA
USDA WORLD GREEN COFFEE PRODUCTION ESTIMATE AS OF JUNE 26, 1998 (1,000 60-Kg Bags) 1/
Region and Country 1995/96 1996/97 1997/98 1998/99
NORTH AMERICA
Costa Rica 2,595 2,376 2,400 2,165
Cuba 285 301 300 300
Dominican Repub 795 640 700 650
El Salvador 2,325 2,498 2,017 1,990
Guatemala 3,827 4,141 3,527 3,127
Haiti 440 440 400 420
Honduras 2,254 2,279 2,607 2,600
Jamaica 45 45 50 50
Mexico 5,400 5,300 5,350 5,550
Nicaragua 986 831 879 1,070
Panama 189 165 200 225
Trinidad and To 10 15 15 15
United States 3 236 234 248 248
TOTAL 19,387 19,265 18,693 18,410
SOUTH AMERICA
Bolivia 120 165 140 150
Brazil 16,800 28,000 23,500 35,800
Colombia 12,939 10,779 10,800 11,000
Ecuador 1,900 1,815 1,255 960
Guyana 5 5 5 5
Paraguay 70 60 60 60
Peru 1,811 1,583 1,780 1,900
Venezuela 1,067 843 850 1,500
TOTAL 34,712 43,250 38,390 51,375
AFRICA
Angola 90 86 100 100
Benin 35 35 35 35
Burundi 426 445 330 400
Cameroon 1,000 1,000 1,100 1,000
Central African 300 350 350 350
Congo 25 25 25 25
Cote d'Ivoire 2,900 5,333 4,080 4,080
Equatorial Guin 15 15 15 15
Ethiopia 3,800 3,800 3,500 3,700
Gabon 25 25 25 25
Ghana 30 30 30 30
Guinea 100 100 100 145
Kenya 1,810 1,138 1,018 917
Liberia 10 10 10 10
Madagascar 1,133 917 900 950
Malawi 80 80 80 80
Nigeria 55 55 55 55
Rwanda 350 260 270 270
Sierra Leone 70 70 70 70
Tanzania 850 717 635 650
Togo 85 300 290 300
Uganda 4,200 4,350 3,300 3,800
Zaire 1,000 900 1,000 1,000
Zambia 27 33 45 50
Zimbabwe 75 200 200 200
TOTAL 18,491 20,274 17,563 18,257
ASIA
India 3,717 3,417 3,800 3,500
Indonesia 5,800 7,900 7,000 6,600
Laos 150 150 150 150
Malaysia 158 160 160 160
New Caledonia 5 5 5 5
Papua New Guinea 1,000 1,075 900 1,000
Philippines 876 980 700 725
Sri Lanka 60 60 60 60
Thailand 1,300 1,400 1,300 1,300
Vietnam 3,937 5,783 5,450 5,800
Yemen 150 175 150 150
TOTAL 17,153 21,105 19,657 19,450
WORLD TOTAL 89,743 103,894 94,321 107,492
1/ One bag = 132.276 pounds. 2/Coffee marketing year begins October
in some countries and April or July in others . 3/ Includes Puerto Rico
and Hawaii.
NOTE: Production estimates for some countries include cross-border
movements.
World coffee production in 1998/99 is forecast at a record 107.5 million
bags (60 kilograms or 132.276 pounds), 14 percent above the revised 1997/98
level and up 3 percent from the previous record set in 1996/97. Brazil's
production in 1998/99 is forecast at 35.8 million bags, up 12.3 million
bags from last season. Colombia's 1998/99 coffee crop is forecast to rise
2 percent from last season. Since the publication of the December 1997
circular, downward revisions in the 1997/98 harvest have occurred in most
major producing countries largely due to inclement weather. World total
coffee exports in 1998/99 are forecast at 81.1 million bags, up nearly
7 percent from the 1997/98 level, as total supply increases 7.5 million
bags, or 6 percent. But because of the downward revisions in production
in 1997/98, coffee exports in 1997/98 are estimated at 75.8 million bags,
a drop of 11 percent from the previous year and from the December forecast.
Ending stocks in 1997/98 are estimated at 23.3 million bags, down nearly
20 percent from the previous year. The increase in production in 1998/99
is forecast to lead to an increase of ending stocks to 24.5 million bags.
Brazil's arabica coffee prices on the New York spot market have declined
steadily since January 1998, in response to increasing supplies and the
prospects of a larger crop in Brazil. In May 1998, the New York spot price
for Brazil's arabica coffee was $1.25 per pound, down 12 percent since
April 1998, and down 41 percent from the May 1997 level. Brazil's coffee
production during 1998/99 is forecast at 35.8 million bags, up 52 percent
over the estimated 1997/98 level. Exportable supplies of coffee from the
world are forecast at 81.7 million bags in 1998/99, up 17 percent, or 12.1
million bags over the preliminary 1997/98 level.
Brazil
Coffee production in Brazil is forecast to reach 35.8 million bags in
1998/99, 52 percent more than last season, but 10 percent less than the
record 39.6 million bags harvested in 1961/62. Arabica coffee production
is forecast at 30.8 million bags, while robusta output is forecast at 5.0
million bags. The reason for the 1998/99 increase is due to favorable weather
that induced good vegetative development. In addition, most coffee growers
could afford to invest in good crop management practices due to the strong
and steady prices in 1997. The U.S. agricultural attache's office in Sao
Paulo made four field trips through Brazil's main coffee producing areas
in order to assess Brazil's coffee production for 1998/99. In Minas Gerais,
the 1998/99 forecast is 18.85 million bags, a 76-percent increase compared
to the previous season. Good cherry setting and fruit formation, which
stemmed from the two major flowerings, was observed in all regions of the
state during field inspections. The dry spell that occurred in late December
and early January slightly damaged the cherry setting for those fruits
which resulted from a third and smaller flowering. Progress in fruit maturation
is late compared to the previous season, since major blooming occurred
in late September and late October. Progress in maturation in the southeastern
producing region is notably ahead compared to the other producing regions.
New plantings were observed in all regions visited. The new seedlings were
planted to replace old coffee trees, or resulted from new area planted
to coffee. Coffee production in Espirito Santo in 1998/99 is forecast at
5.35 million bags, 34 percent above the 1997/98 outturn. Field trips were
made to the center-north, where robusta production is dominant and the
south where arabica is grown. The coffee production breakdown by variety
is 3.2 million bags of robusta, a 14-percent increase over last season
and 2.15 million bags of arabica or a 79-percent increase over last year.
Arabica trees displayed good to very good vegetative development reflecting
favorable weather in that region providing for flowerings that led to good
cherry setting and fruit formation. Large-sized cherries were observed
in the areas visited. Robusta trees, however, were affected by the dry
weather. The first good flowering on robusta trees was damaged by unfavorable
weather which resulted in flower abortion. The ensuing flowerings are expected
to offset the damage to the first flowering. Coffee production in Parana
is forecast at 3.2 million bags for 1998/99 an increase of 28 percent compared
to 1997/98. Coffee trees in this state had good to very good vegetative
development and good cherry setting. Older coffee trees pruned and/or stumped
after the 1994 frost and severe drought are fully recovered. The warm temperatures
during the 1997 winter and the adequate volume of rainfall stimulated multiple
flowerings, especially on older trees which may lead to quality-related
problems during harvest. Coffee production in the state of Sao Paulo for
1998/99 is forecast at 4.2 million bags, a 40- percent increase from last
season. While coffee trees in the Mogi Mirim and Marilia producing regions
show good vegetative development, elsewhere in the state coffee trees had
from good to very good vegetative development. Late flowerings were partially
damaged by hot temperatures during December 1997 and January 1998, but
no major negative effect is expected in 1998/99 output. Coffee production
in other producing states is forecast at 4.2 million bags, up 27 percent
from last year. Breakdown by variety is 2.4 million bags for arabica and
1.8 million for robusta. Total domestic consumption for marketing year
(MY) 1998/99 is forecast at 12.5 million bags, with soluble coffee contributing
500,000 bags, green bean equivalent, close to a 9-percent increase compared
to MY 1997/98. The expected higher coffee production for 1998/99 is likely
to lead to a decrease in retail coffee prices, which should promote greater
coffee consumption. Total domestic coffee consumption for MY 1997/98 has
been revised downward to 11.5 million bags, with 500,000 bags accounted
for by soluble coffee consumption. This revision is due to a slowdown in
consumption caused by higher retail coffee prices. The expected higher
coffee production for MY 1998/99 is likely to increase Brazilian coffee
exports. Total coffee exports for MY 1998/99 are forecast at 18.5 million
bags, green bean equivalent. Green coffee beans ("arabica" and
"robusta") should account for 16.4 million bags, while the remaining
2.1 million bags should come from the soluble industry. Brazil's coffee
traders should be more competitive in international markets since domestic
coffee prices should be lower, given expected increase in supply. Brazil's
coffee exports for MY 1997/98 are revised to 14.3 million bags.
Colombia
Colombia's 1998/99 coffee production is forecast at 11.0 million bags,
up 2 percent from the revised 1997/98 crop of 10.8 million bags. The reason
for the projected increase was the return to normal rainfall patterns beginning
in April 1998, followed by widespread showers in coffee growing areas.
The bloom from this rainfall was excellent and is expected to result in
increased yields in the principal growing states. The downward trend in
world coffee prices in recent months caused uncertainty among Colombian
coffee growers. One area of concern is whether the National Coffee Fund
will support grower programs. Another concern among growers and exporters
is the increasing incidence of broca-damaged coffee. Broca, a tiny coffee
cherry borer tends to lower the quality of the coffee that it invades.
In 1996/97, broca incidence was estimated at only 7 percent, but as much
as 15 percent of this year's crop may become affected. Dry weather during
the first half of this year has favored the spread of infestation. In past
years, the National Coffee Growers Federation (FEDECAFE) purchased broca-damaged
coffee beans for resale to the local processing industry. Colombia's coffee
production peaked at 18 million bags in 1991/92, but declined steadily
to 10.8 million in 1997/98. Colombia's coffee output over the next 3 to
5 years is projected to fluctuate around 11 million bags. El Nino did not
result in a dramatic drop in Colombia's 1997/98 coffee production as feared
by the industry. Coffee output during the first half of the 1997/98 season
actually increased 1 percent over the same period in the previous year.
There are two main coffee crop cycles in Colombia. The main harvest occurs
during the October-December period and accounts for 37 percent of annual
production. The minor crop is harvested in May-July and represents another
26 percent of output, while the remaining 37 percent is evenly spread throughout
the remaining six months of the year.
Indonesia
Coffee production in 1998/99 is forecast at 6.6 million bags, down 6
percent form last year's revised estimate and down 16 percent from the
record 7.9-million-bag harvest set in 1996/97. The projected decline is
due to drought, caused by El Nino, which has affected coffee production
since its onset in June 1997. For 1998/99, the drought has pushed back
the peak harvest period by about two months--from March/April to May/June--as
there was insufficient moisture or humidity for the coffee trees to form
blooms during July/September. The 1997/98 coffee crop in Indonesia was
revised downward to 7.0 million bags due to the El Nino-induced drought
that affected the country for much of the past year. The drought-affected
areas included the major growing regions of Lampung, Bengkulu, and South
Sumatra, which account for about 70 percent of Indonesia's coffee production.
Export figures for MY 1997/98 have been revised downward to an estimated
4.9 million bags. The figure is based on the April-December 1997 export
data released by the Central Bureau of Statistics and based on the January-February
1998 preliminary export data released by the Ministry of Industry and Trade.
Exports during 1998/99 are also expected to decline due to lower production,
with an initial forecast level of 4.75 million bags. Although Indonesia
is a major coffee producer, the per capita consumption of coffee is relatively
small. In MY 1996/97, per capita consumption was estimated at 629 grams.
This level is projected to have fallen slightly in MY 1997/98 as the economic
crisis that continues to plague Indonesia has had a dramatic impact on
consumer prices, including almost all food and beverage items. However,
total coffee consumption is estimated to have increased by 0.5 percent
to 2.09 million bags from the previous year's level of 2.08 million bags.
For MY 1998/99, consumption levels are forecast to decline to 2.0 million
bags as the economic situation remains depressed. The local processing
industry is trying to adjust to rising coffee prices by blending coffee
beans with higher percentages of roasted corn. Lower priced powdered coffee
(sold locally) sometimes contains a mixture of low quality coffee beans,
roasted corn and coffee essence.
Vietnam
Coffee production in Vietnam for the 1998/99 season is forecast at a
record 5.8 million bags, up 350,000 bags from last year's estimate and
up slightly from 1996/97. Vietnam, principally known as a robusta producer
is expanding area into arabica production. Of the 1998/99 total, arabica
production is expected to account for 150,000 bags, a three-fold increase
over the previous season. Vietnam's coffee exports during 1998/99 are forecast
at 5.5 million bags, unchanged from the estimated 1997/98 level. If realized,
these levels of coffee exports will make Vietnam the third largest exporter
of coffee, behind Brazil and Colombia, and the largest exporter of robusta
coffee.
Mexico
Coffee production in 1998/99 is forecast at a record 5.6 million bags,
4 percent above the 1997/98 crop and 3 percent above the previous record
set in 1995/96. The expected increase is due to larger planted area and
new plants coming into production. Government assistance to support coffee
growers' income is also expected to increase output. However, significant
increases are not anticipated from small producers because of their continued
poor tree maintenance habits. The 1997/98 production estimate was revised
downward from the previous estimate to reflect damage caused by hurricanes
and freezing weather towards the end of 1997 in certain areas of Oaxaca,
Chiapas, and Guerrero states. The continued social unrest in Chiapas has
not caused significant production losses, but an uncertain climate prevails.
For MY 1998/99, Mexico's coffee exports are not forecast to recover to
1996/97 levels in order to avoid low stocks and the need to import coffee
beans from other countries. Mexico's green coffee bean exports are revised
slightly upward for MY 1997/98 due to attractive export prices, however,
prices will likely be lower than in MY 1996/97. For MY 1997/98, due to
higher retail prices, sluggish domestic demand and consumer preferences
for soft drinks, domestic coffee sales are expected to remain unchanged
from our previous estimate. Consumption for MY 1998/99 is forecast to slightly
drop from the previous year despite the expected improvement in the economy
and consumer purchasing power. Exports remain more attractive than sales
in the domestic market. With increased exports, domestic coffee supplies
have been insufficient to meet processor requirements through MY 1997/98.
Thus low-quality green coffee beans were imported by processors from Asian
sources to the chagrin of domestic producers who feared that such imports
would endanger Mexico's domestic coffee production with pests and diseases
not present in Mexico. According to government authorities, processors
could also import semi-roasted coffee, if necessary, for MY 1998/99. Import
volumes will basically depend on export levels and Mexico's commitment
to not import significant amounts of low-quality coffee in order to gain
more access to export markets. More than 80 percent of total Mexican coffee
exports go to the U.S. market.
Cote d'Ivoire
Coffee production in 1998/99 in Cote d'Ivoire is forecast at 4.1 million
bags, the same as last year, but 33 percent less the 1980/81 outturn of
6.1 million bags. Dry weather in the latter part of December through January
did not prevent trees from flowering, but the harsh drought in February
caused flowers to fall. The second flowering started in March, but the
duration of drought extending into early April also contributed to some
loss. While cherry formation is low in many areas, especially in old plantations,
the higher cherry formation in young and regenerated plantations, and in
areas which received sufficient rains is expected to maintain production
levels near 1997/98. Field visits indicated that overall cherry formation
was about the same as last year. However, there was wide variation in cherry
formation within the same geographical area due to climate differences,
and maintenance level of individual plantations. There were many cases
where cherry formation was poor on one plantation while one adjacent to
it was very high. Exports of total coffee from Cote d'Ivoire are forecast
at 5.4 million bags in 1998/99, an increase of nearly 9 percent from 5.0
million bags estimated for 1997/98. Following the government of Cote d'Ivoire's
decision to liberalize coffee exports in October 1998, it has established
a one-stop shop for the exportation of coffee and cocoa with the aim of
facilitating and accelerating administrative procedures. It is also meant
to produce uniform export statistics by the different administrative sectors.
With the new system, exporters will now be required to provide only an
export certificate instead of several documents previously required.
Uganda
Uganda's production of coffee during 1998/99 is forecast at 3.8 million
bags, up 15 percent from the estimated 1997/98 level of 3.3 million bags.
The 1997/98 level represents an estimated decline from the previous year
of 24 percent. Uganda's exports of coffee in 1998/99 are forecast to increase
to 4.0 million bags, up over 50 percent from the depressed 1997/98 level.
India
India's 1998/99 coffee production is forecast at 3.5 million bags, down
8 percent from the previous season's record crop of 3.8 million. The forecast
consists of 2.2 million bags or robusta and 1.6 million of arabica. Good
leaf growth following the 1997/98 harvest created optimism that the 1998/99
crop would exceed the prior year's output. However, the absence of rain
(January-March 1998) has dimmed prospects for a larger robusta crop, although
more recent rains should enable the arabica crop to remain stable. The
goal of the Indian Coffee Board is to increase production to 4.0 million
bags within the next several years. To achieve this goal, growers need
to improve their yields, which currently average 850 kilograms per hectare.
Guatemala
Coffee production in Guatemala for 1998/99 is forecast at 3.1 million
bags, a decline of 11 percent from last year and 24 percent below the record
crop of 4.2 million bags in 1996/97. The lower crop expectations for 1998/99
are mostly weather related. Late rains and an unusually dry period between
the months of January and May 1998, have already affected around 30-40
percent of coffee flowering. Decreases in world prices is likely to result
in less investments in coffee crop inputs. Farming of organic coffee is
increasing in popularity in Guatemala. Guatemala's registered organic coffee
production accounts for about 7 percent of total output, up from 3 percent
in 1997. The tendency to increase organic coffee production is due to the
bonus given above the regular price for non-organically grown coffee. Guatemala's
exports in 1998/99 are forecast at 3.2 million bags, unchanged from the
revised 1997/98 level. The 1997/98 revised level is down 1.0 million bags
from the December estimate. This decrease in exports is due to a decrease
in production and an excess of low quality coffee called "natas"
which do not fulfill the international specifications for exports and are
left for local consumption.
Honduras
The 1998/99 coffee production is forecast at 2.6 million bags, slightly
less than the record crop produced last season. However, the continued
expansion in crop area and the recent development of a rust-resistant variety,
suggest that production will continue to expand in the near future. Although
the effects of El Nino on volume was not too significant, the unusually
dry and irregular rainy season in 1997 did diminish the bean size of the
1997/98 crop.
Costa Rica
Coffee production for 1998/99 is forecast at 2.2 million bags, down
8 percent from last year and 21 percent less than the record 2.8-million-bag
crop of 1988/89. The expected lower production is due to later rains than
normal. For the 1997/98 crop, the influence of El Nino on production was
felt mainly on the quality, with bean size slightly smaller than normal.
This resulted in lower prices received by growers.
El Salvador
Coffee production for 1998/99 is forecast at 2.0 million bags, nearly
the same as last year, but 500,000 bags less than 1996/97. The reason for
the decline is the delay of the rainy season for over a month that has
damaged coffee trees. In low altitude plantings the drought is so severe
that large areas of coffee have dried up. Water is badly needed at this
stage of plant development in order for trees to flower.
Peru
Coffee production in Peru for 1998/99 is forecast at 1.9 million bags,
about 120,000 bags more than last year. Coffee in Peru is produced in the
"high jungle region" on the eastern slopes of the Andes mountains.
This region has been one of the areas most affected by terrorism and drug
trafficking activities. These problems have hampered any increases in production
and though terrorism has greatly diminished, it continues to be a perceived
threat in this area.
Venezuela
Coffee production in 1998/99 is forecast at a record 1.5 million bags,
650,000 more than last year as weather has been favorable and new plantings
begin to produce. The Venezuelan National Coffee Fund (FONCAFE) has promoted
the planting of new trees over the past several years. The goal of FONCAFE
is to revive 25,000 hectares by the end of the century in an effort to
boost production. The coffee harvest in 1996/97 and the following season
were plagued by heavy rains which shortened the flowering season and caused
blight problems.
Nicaragua
The 1998/99 coffee crop is forecast at 1.1 million bags, 22 percent
above the previous year's outturn due to renovation of trees in some coffee
areas and better availability of credit. The outlook for the next 3-5 years
is to gradually increase production. The country only produces arabica
coffee with plantations located in the Pacific highlands and northern side
of the country.
Ecuador
Coffee production for 1998/99 is forecast at 960,000 bags, 24 percent
less that the 1.3 million bags produced in 1997/98. The upcoming harvest
will be the lowest crop ever recorded. The projected reduction is caused
by adverse weather due to El Nino.
Kenya
Kenya's 1998/99 coffee production is forecast at 917,000 bags, the lowest
outturn since 1969/70 when 913,000 bags were harvested. The projected outturn
is down 10 percent from the 1996/97 crop and down nearly half from the
record 1.8 million bags harvested in 1995/96. The projected decline is
due to unusually heavy rains caused by El Nino. The erratic weather resulted
in abnormal coffee tree flowering and cherry setting. In addition, the
industry is undergoing political and management problems that have tended
to discourage farmers from producing at optimal levels.
Philippines
The 1998/99 coffee forecast is 725,000 bags, 4 percent above the outturn
of the previous season. About 85 percent of all coffee grown is robusta,
arabica accounts for 5 percent and all other types about 10 percent. Largely
because of El Nino, 1997/98 coffee production is estimated to have declined
by around 29 percent from the previous year's output.
**End**
ABECAFÉ BRAZIL 2nd. ESTIMATE OF THE 1998/99 CROP Total
1998/99 production is estimated at 35.2 million bags, unchanged from the
first estimate. If this estimate is confirmed, this wil be the largest
Brazilian crop since 1987/88. The main reasons for the crop increase are:
favorable weather conditions, aided by the positive effect of El Niño
(except in parts of Espírito Santo and Bahia which lost production
due to drought); better care of coffee trees as a result of high prices
in the previous three years; recovery of trees affected by the 1994 frosts
and drought; increase in productivity due to adoption of modern agricultural
techniques; the on-year of the biannual production cycle; and the entry
in production of new plantings. Exporters report that initial samples of
the crop are of higher than average quality but with bean size lower than
normal. In comparison with the first estimate, the estimate of arabica
coffee production increased in Minas Gerais (300,000 bags) and decreased
in São Paulo, Bahia and Others (includes the states of Rio de Janeiro,
Pernambuco, Ceará, Goiás, Mato Grosso and Maranhão)
by 50,000 bags each. The robusta coffee crop estimate was reduced in 150,000
bags, split between Espírito Santo and Rondônia. In Minas
Gerais, the largest producing state, prodiction is forecast at 18.9 million
bags, of which 10.6 million in the South and West, 4.1 million in the Cerrado
and 4.2 million bags in the Zona da Mata (includes 100,000 bags of robusta).
With regard to arabica coffee, Minas Gerais is followed by São Paulo
(4.15 million bags), Paraná (2.9 million), Espírito Santo
(2.1 million), Bahia (1.3 million) and Other ( 1.05 million). The robusta
(conillon) crop is concentrated in Espírito Santo (3.1 million bags)
and Rondônia (1.25 million). The remaining states are forecast to
produce a further 550,000 bags.
OUTLOOK FOR 1998/99
The 1998/99 crop as estimated will be of sufficient size to meet the demand
for Brazilian coffee. Based on na internal consumption of 12.5 million
bags and soluble coffee exports of 3 million bags, the difference of 19.8
million bags represents green coffee exportable production. Part of this
volume will be used to build up private sector stokcs which are at critically
low levels. The rest will be available for exports thereby permitting Brazil
to regain some of the markets lost after the 1994 frosts. ABECAFE forecasts
green coffee exports of 17 to 18 million bags in the 1998/99 crop year.
2nd ESTIMATE OF THE 98/99 CROP
(in thousands of 60kg bags)
ARABICA CONILLON (ROBUSTA)
Minas Gerais 18.800 100
Zona da Mata/Others 4.100 100
South & West 10.600 0
Cerrado 4.100 0
Espírito Santo 2.100 3.100
São Paulo 4.150 0
Paraná 2.900 0
Bahia 1.300 250
Rondônia 50 1.250
Others 1.000 200
Total Brazil 30.300 4.900
Grand Total 35.200
COMPARSION BETWEEN 1st & 2nd ESTIMATES
(in thousands of 60 kg bags)
ARABICA COFFEE
1st. Est 2ª Est Diff %
Minas Gerais 18.500 18.800 300 1,6
Zona da Mata 4.150 4.100 (50) (1,2)
South/West 10.350 10.600 250 2,4
Cerrado 4.000 4.100 100 2,5
Espírito Santo 2.100 2.100 0 0,0
São Paulo 4.200 4.150 (50) (1,2)
Paraná 2.900 2.900 0 0,0
Bahia 1.350 1.300 (50) (3,7)
Rondônia 50 50 0 0,0
Others 1.050 1.000 (50) (4,8)
Total 30.150 30.300 150 0,5
ROBUSTA COFFEE
1st. Est 2ª Est Diff %
Espírito Santo 3.200 3.100 (100) (3,1)
Rondônia 1.250 1.250 0 0,0
Bahia 300 250 (50) (16,7)
Zona da Mata-MG 100 100 0 0,0
Others 200 200 0 0,0
Total 5.050 4.900 (150) (3,0)
Total Brazil 35.200 35.200 0 0,0
Source: ABECAFÉ BRAZIL
(August 20) Robert Rodriquez, a 30-year veteran of the food industry,
is joining Coffee People, Inc. (NASDAQ:MOKA) as president of its Gloria
Jean's Inc. unit, the company announced today. Rodriquez most recently
has been divisional vice president of strategic planning and regional manager
vice president based in San Diego for McDonald's Corporation. "We're
extremely pleased to have Robert on board to assume responsibility for
day-to-day operation of Gloria Jean's," said Alton McEwen, president
and chief executive officer of Coffee People, Inc. The move frees up McEwen,
who has been in charge of Gloria Jean's since the merger between Coffee
People, Inc. and the U.S. operations of Second Cup Ltd. in May 1998, to
focus on the development of the overall corporation. "As the new president
of Gloria Jean's, Robert brings experience that will be valuable as we
position this portion of the business as well as the broader company for
continued growth," said McEwen. Rodriquez has been with McDonald's
since 1992 and as vice president and regional manager was responsible for
350 restaurants in southern California. He also served a 10-year stint
with the Taco Bell division of PepsiCo, becoming zone vice president responsible
for 300 restaurants in the Midwest. In addition, Rodriquez held positions
with a division of Hunt, Wesson Foods and Burger King. He graduated from
the University of Redlands with a BS in Business Administration and received
a Masters of Management from Northwestern University. "Robert has
extensive background in franchising and more than 240 of the 282 Gloria
Jean's stores are franchised operations," McEwen pointed out. "His
knowledge and strength in this area will be key as we continue growing
Gloria Jean's through franchising." The Gloria Jean's segment is currently
the largest piece of Coffee People's operation and, prior to the merger
with Coffee People, had been a wholly owned subsidiary of The Second Cup,
Ltd. (TSE:SKL). In the fiscal year ended June 28, 1997, Gloria Jean's had
systemwide sales of $104 million and $30.6 million in revenue. Coffee People,
Inc., the second largest specialty coffee retailer in the United States,
is headquartered in Castroville, Calif. and has 321 stores throughout the
United States and in six foreign countries. Operations include 282 Gloria
Jean's stores in 38 states, 14 Coffee Plantation outlets in Arizona and
25 Coffee People locations in Oregon. For the 24 week period ended Dec.
13, 1997, the merged company had systemwide sales of $60.5 million with
pro forma revenue of $30.4 million and pro forma net income of $1.5 million,
or $0.14 per share. The company's year end was June 27, 1998 and results
for the fiscal year will be released on Sept. 8, 1998. This news release
contains forward-looking statements that involve a number of risks and
uncertainties. Actual results may differ materially from projected results.
For a complete discussion of the risks associated with forward-looking
information, refer to the Risk Factors contained in the company's 10-KSB
for 1996 and the Registration Statement on Form SB as filed with the Securities
and Exchange Commission effective Sept. 25, 1996.
Source: Coffee People, Inc.
(August 18) Brothers Gourmet Coffees, Inc. (Nasdaq: BEAN), today announced a loss of $63 million, or $4.86 per share, for the three months ended June 26, 1998, as compared to a loss of $1.2 million, or $0.11 per share, a year ago. The net loss for the quarter includes the write-off of goodwill in the amount of $50.3 million, an impairment loss on fixed assets of $1.6 million and an allowance for market decline in inventories in the amount of $1 million. In addition, the loss for the quarter ended June 26, 1998 includes a loss from discontinued retail operations of $2.5 million, resulting principally from the settlement of claims arising out of the sale of Gloria Jeans and certain liabilities associated with retail coffee bar leases. At June 26, 1998 the Company stated that it was in violation of its financial covenants in its senior and subordinated debt agreements. In addition, the Company failed to make its June 30, 1998 interest payment to its subordinated lender. The Company's cash flow position has continued to deteriorate. The Company is currently in negotiations with its lenders to restructure its debt facilities. However, to date, the parties have not been able to reach agreement on the terms of such restructuring. The Company's liquidity needs are at their annual peak. If the Company is unable to successfully renegotiate its debt structure with its lenders, it will be forced to consider other alternatives. On August 5, 1998, the Company attended a hearing before NASDAQ Stock Market, Inc., concerning the possible de-listing of its common stock from the NASDAQ National Market System because of the Company's failure to satisfy the net tangible assets continued listing requirement. The Company submitted a plan for regaining compliance with this requirement, which plan was based in part on the Company reaching an agreement on a restructuring plan with its lenders before that date. The Company was not able to reach an agreement with its lenders before that date. The Company has asked NASDAQ to stay any de-listing action pending the outcome of the Company's continuing discussions with its lenders. As of yesterday, NASDAQ has not rendered a decision in this matter.
(August 12) GREEN MOUNTAIN COFFEE, INC. (Nasdaq: GMCR) today announced results for the twelve week and forty week periods ended July 4, 1998. For the fiscal quarter ended July 4, 1998, net sales from continuing operations increased 30% to $12.7 million, from $9.8 million reported for the third quarter of 1997. Gross profit increased 32% to $4.6 million from $3.5 million a year earlier. Income from continuing operations for the quarter was $79,000, or $0.02 per share, compared to $76,000 or $0.02 per share, reported for the comparable 1997 period. During the third quarter, the Company recorded a $1.3 million charge related to the previously announced discontinuance of its company-owned retail store operation in order to allow the Company to focus its resources on developing its rapidly growing specialty wholesale business. The net loss for the third quarter, including results from discontinued operations and the one-time charge, was $1.2 million, or $0.35 per share compared to net income of $1,000, or $0.00 per share for the third quarter of 1997. For the 40 weeks ended July 4, 1998, net sales from continuing operations increased 35% to $42.5 million, from $31.4 million reported for the comparable 1997 period. Gross profit for the period increased 20% to $14.2 million compared to $11.9 million last year. Income from continuing operations for the year to date period was $37,000, or $0.01 per share, compared to $1.5 million, or $0.43 per share, reported for the comparable year-ago period. Commenting on the results, Robert Stiller, Chairman and Chief Executive Officer said, ``We are continuing to aggressively pursue our long-term growth strategy to expand the Green Mountain Coffee Roasters(R) brand by focusing on the convenience store, food service, supermarket and office coffee service markets. We believe the investments we are making to our infrastructure in order to pursue this strategy are beginning to pay off as evidenced by the profitability of our continuing operations and the strong sales growth of our specialty wholesale distribution channel.'' Green Mountain Coffee, Inc., a leader in the specialty coffee industry, roasts over 25 high quality arabica coffees to produce over 60 varieties of coffee that it sells under the Green Mountain Coffee Roasters(R) brand. The majority of Green Mountain's revenue is derived from its wholesale operation which services fine dining, supermarket, specialty food store, convenience store, food service, hotel, university, travel and office coffee service customers. Green Mountain also has a direct mail operation serving customers nationwide from its Waterbury, Vermont headquarters. Certain statements contained herein are not based on historical fact and are ``forward-looking statements'' within the meaning of the applicable securities laws and regulations. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, business conditions in the coffee industry and food industry in general, the impact of the loss of a major customer, fluctuations in availability and cost of green coffee, economic conditions, prevailing interest rates, competition, the management challenges of rapid growth, variances from budgeted sales mix and growth rate, consumer acceptance of the Company's new products, the impact of a tighter job market, weather and special or unusual events, as well as other risk factors described from time to time in the Company's SEC filings.
(August 5) Effective on the open of business Thursday, Aug. 6, 1998, and until further notice, Coffee, Cocoa and Sugar Exchange (CSCE) members shall require from customers who are members or members of the trade a minimum of $3,000 (includes $750 spot charge) for net long or short positions in the September 1998 and $2,500 (includes $250 spot charge) for the December 1998 Coffee "C" contracts (the spot months), the CSCE announced today. The current original margin required for the September 1998 and December 1998 contracts is $2,250 (includes $0 spot charge), the CSCE reported. The margin required on all other Coffee "C" contracts will remain at $2,250, the exchange said. Members shall also require from customers who are members of the trade a minimum of $500 for each straddle or arbitrage transaction. In addition, all the spot charges will be applicable. For example, the September 1998/December 1998 straddle will be charged an original margin rate of $1,500 for all members of the trade.
(August 4) Shaw's Supermarkets, Inc. has agreed to place a large selection
of coffees from Green Mountain Coffee, Inc. (Nasdaq: GMCR) on the shelves
of 115 supermarkets by mid-August, 1998. This agreement, which Green Mountain
Coffee(R) first announced in its preliminary stages in May, expands Shaw's
current distribution of Green Mountain Coffee by approximately 90 additional
supermarket locations, with some additional stores to be added this fall
as they are remodeled. Shaw's, founded in 1860 in Portland, Maine, is one
of the oldest, largest, and fastest growing supermarket chains in New England.
The company, with FY 1998 sales of $2.8 billion, currently operates 125
supermarkets in the six New England states. Green Mountain is installing
point-of-purchase displays that enable Shaw's customers to choose from
8 to 10 wholebean Green Mountain coffees in self-serve bins, and from 15
to 20 prepackaged varieties. Bernard Rogan, Corporate Spokesperson for
Shaw's Supermarkets, Inc. recently commented, "We are very pleased
to offer our customers a high quality coffee that has excellent brand recognition
throughout New England. Green Mountain Coffee Roasters provides us with
an excellent product that is well received by our customers. We are proud
to offer this fine coffee, which shares a New England heritage with Shaw's."
Robert Stiller, President and CEO of Green Mountain Coffee, Inc. stated,
"I am very excited to have Green Mountain Coffee available to Shaw's
customers. Our relationship with the excellent Shaw's organization provides
consumers with additional access to our coffees for home consumption, and
is a direct result of our continuing focus on supermarkets as a growing
source of distribution for the Green Mountain Coffee brand." Green
Mountain Coffee, Inc., a leader in the specialty coffee industry, roasts
over 25 high quality arabica coffees to produce over 50 varieties of coffee
that it sells under the Green Mountain Coffee Roasters(R) brand. The majority
of Green Mountain's revenue is derived from its wholesale operation which
serves fine dining, supermarket, specialty food store, convenience store,
food service, hotel, university, travel and office coffee service customers.
Green Mountain also has a direct mail operation serving customers nationwide
from its Waterbury, Vermont headquarters.
SOURCE Green Mountain Coffee, Inc.
(July 30) Starbucks Corporation (Nasdaq:SBUX) today reported consolidated net revenues of $101 million for the four-week period ended July 26, 1998, an increase of 25 percent from consolidated net revenues of $81 million for the same period in fiscal 1997. On a comparable store sales basis (stores open for at least 13 months), sales increased 2 percent for the four weeks ended July 26, 1998 as compared to the same four-week period in fiscal 1997. For the 43 weeks ended July 26, 1998, consolidated net revenues were $1.05 billion, an increase of 35 percent from consolidated net revenues of $782 million for the same period in fiscal 1997. Comparable store sales increased 6 percent for the 43-week period ended July 26, 1998, as compared to the same 43-week period in fiscal 1997.
STARBUCKS STORE INFORMATION
Stores opened during
the 43 weeks ended Stores open as of
July 26, 1998 July 26, 1998
------------- --------------
Company Operated Stores
Continental North America 295 1,561
United Kingdom 34 64
Licensed Stores
Continental North America 39 127
International 41 58
---- ----
Total 409 1,810
Looking forward, the Company announced its plans to open at least 400
new stores, including licensed locations, in Continental North America
and at least 100 new stores in its International markets during fiscal
1999. As previously announced, the Company plans to have at least 500 stores
in each of the Pacific Rim and Europe by the end of 2003. Starbucks Coffee
Company is the leading retailer, roaster and brand of specialty coffee
in North America. In addition to its 1,810 retail locations i North America,
the United Kingdom and the Pacific Rim, Starbucks sells whole bean coffees
through its specialty sales group, direct response business and supermarkets.
Additionally, through its joint venture partnerships, Starbucks produces
and sells bottled Frappuccino(R) coffee drink and a line of premium ice
creams.
Source: Starbucks Coffee Company
(July 30) Diedrich Coffee Inc., (Nasdaq:DDRX) a leading retailer, wholesaler
and custom roaster of the world's finest coffees, continues to add experienced
executives to its management team. The company announced Thursday that
Catherine Saar, former vice president of California-based eyeglass retailer,
Frame-n-Lens, has joined Diedrich Coffee as vice president, marketing and
wholesale sales. ``Catherine has a proven track record of talent and experience
which will allow her to guide Diedrich Coffee into a nationally recognized
and successful brand,'' according to John Martin, chairman of Diedrich
Coffee. ``The Diedrich Coffee brand is legendary in Orange County, Calif.
and growing in sales and awareness in Denver and Houston. ''With our planned
franchise expansion into new markets across the country she will manage
the introduction of this brand as successfully as she has done with other
products and services in her career.`` As vice president, marketing for
Frame-n-Lens, Saar directed the marketing and merchandising departments
and was responsible for the recent repositioning of the brand. Frame-n-Lens,
with $80 million in sales has 150 freestanding retail stores and 130 vision
centers in Sam's Clubs and Wal-Mart stores. Prior to joining Frame-n-Lens,
Saar was director of corporate marketing for Smart-n-Final a $1 billion
wholesale grocer, with headquarters in California, with 150 stores targeting
restaurants and the public. At Smart-n-Final, Saar ran advertising, database
marketing and worked closely with the wholesale distribution subsidiaries.
With over 10 years of retail marketing, Saar began her career at Taco Bell
International, a division of Tricon Restaurants Inc., during its record
growth period. Saar served in several positions, including product development,
merchandising, sales promotions, regional marketing and strategic planning.
``I'm very excited about joining the management team that's been assembled
at Diedrich Coffee. Diedrich Coffee is the leader in specialty coffee in
Orange County and has made tremendous strides in Denver, Houston, San Diego,
and Los Angeles. It is a brand that has the potential to lead the coffeehouse
and wholesale segments in every market it enters. The opportunity to be
a part of the team that accomplishes that is both exciting and challenging.''
Saar holds a BA from Stanford University in Palo Alto, Calif. and a MBA
from UCLA's Graduate School of Management in Los Angeles, Calif. She resides
in Newport Beach, Calif. with her husband Mike Kranzley and their son Jonathan.
Diedrich Coffee has headquarters in Irvine, and has been in business since
1972. The company operates 36 coffeehouses and seven coffee cart operations
in California, Colorado and Texas. The company is lead by John Martin,
chairman, Tim Ryan, president and chief executive officer, and company
founder, Martin Diedrich, vice president and chief coffee officer. Diedrich
Coffee has been publicly traded on Nasdaq since September of 1996.
Source: Diedrich Coffee
(July 29) Chock full o'Nuts Corporation (NYSE: CHF) today reported that
it has completed its purchase of the flavored and specialty coffee business
of River Road Coffee Company of Massena, N.Y. The line of business being
acquired by Chock full o'Nuts involves the sale of flavored and varietal
coffees, primarily to food service chains and distributors. It generated
revenues in excess of $2 million in 1997. Terms of the purchase were not
disclosed. Marvin Haas, president and chief executive officer of Chock
full o'Nuts, said the River Road acquisition will help Chock to increase
its position in the food service chain and distributor markets and compete
effectively in the flavored coffee category. To achieve economies of scale,
he said, River Road's machinery and equipment will be moved from Massena
to a Chock facility in Rochester, N.Y. "In addition to adding to our
customer base, the acquisition will enable us to offer River Road's unique
resealable packing capabilities across our entire customer base,"
Mr. Haas said. "It is example of the synergistic acquisitions that
can add breadth to our product line and depth to our market penetration,
and that we are watching for as our industry continues to consolidate."
Chock full o'Nuts roasts, packs and markets regular, instant and decaffeinated
coffees under the Chock full o'Nuts label. Its best known coffee product
is its premium, vacuum-packed, all-method grind coffee. The Company is
also one of the largest marketers of food service and private label coffee,
tea and related products. Chock is also franchising Quikava, a 600-square-foot
drive-through and fresh-baked-goods concept, in its core markets in the
Northeast and Mid-Atlantic states. This news release contains statements
regarding expected business performance that are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are based on current expectations and information available
to management at this time. They may differ materially from actual results,
and therefore they necessarily involve risks and uncertainties. Factors
which could cause actual results to differ from the forward-looking statements
include, among others, the availability of green coffee; green coffee prices;
competition; the success of operating initiatives; development and operating
costs including green coffee prices; advertising and promotional efforts;
brand awareness; the existence of or adherence to development schedules;
the existence or absence of adverse publicity; availability, locations
and terms of sites for Quikava outlets; changes in business strategy or
development plans; quality of management; availability, terms and deployment
of capital; business abilities and judgment of personnel; availability
of qualified personnel; labor and employee benefit costs; changes in or
the failure to comply with government regulations; and construction costs.
The company undertakes no obligation to revise its forward-looking statements
if unanticipated events alter their accuracy.
SOURCE: Chock full o'Nuts Corporation
(July 23) Starbucks Corporation (Nasdaq:SBUX) today announced revenues and earnings for the third quarter ending June 28, 1998, which included the results of its acquisition of Seattle Coffee Holdings Limited ("Seattle Coffee"), a United Kingdom retailer/roaster of specialty coffee. All periods presented are restated to include Seattle Coffee results. For the third quarter ending June 28, 1998, consolidated net revenues increased 37 percent to $334.4 million from $244.2 million for the third quarter of fiscal 1997. Retail sales (including Seattle Coffee retail sales) increased 34 percent for the same quarter to $283.5 million, specialty sales revenues increased 68 percent to $47.0 million, and direct response sales decreased 8 percent to $4.0 million. Comparable store sales increased 7 percent for the quarter ending June 28, 1998, as compared with the third quarter of fiscal 1997. Net earnings, excluding pretax direct merger costs of $8.9 million and one-time integration costs of $6.6 million for the acquisition of Seattle Coffee, were $20.9 million for the quarter ending June 28, 1998 compared to $14.2 million for the third quarter of fiscal 1997. Including these costs, net earnings were $7.9 million. Diluted earnings per share, excluding direct merger costs and incremental integration costs, were $0.23 for the third quarter of fiscal 1998 compared to $0.17 for the third quarter of fiscal 1997. Including these costs, diluted earnings per share were $0.09. For the 39 weeks ending June 28, 1998, consolidated net revenues increased 36 percent to $951.0 million from $700.7 million for the same period in fiscal 1997. Retail sales increased 34 percent for the same period to $811.7 million, specialty sales revenues increased 58 percent to $123.8 million, and direct response sales decreased 11 percent to $15.6 million. Comparable store sales increased 6 percent for the 39 weeks ending June 28, 1998, as compared to the same 39-week period in fiscal 1997. Net earnings, excluding the direct merger costs and incremental integration costs, were $55.8 million for the 39-week period ending June 28, 1998 or $0.61 per share compared to $37.3 million for the same 39-week period in fiscal 1997. Including these costs, net earnings were $42.8 million. Diluted earnings per share were $0.47 for the 39-week period ending June 28, 1998, compared to $0.45 for the same 39-week period in fiscal 1997. Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in North America. In addition to its 1,778 retail locations i North America, the United Kingdom and the Pacific Rim, Starbucks sells whole bean coffees through its specialty sales group, direct response business and supermarkets. Additionally, through its joint venture partnerships, Starbucks produces and sells bottled Frappuccino(R) coffee drink and a line of premium ice creams.
(July 23) Gourmet's Choice Coffee Co., Inc. (OTC Bulletin Board: GMCH),
reported that the development-stage Company recorded sales of $132,145,
in its fourth quarter ending June 30, 1998, compared to sales of zero for
the same period a year ago. The Company said that it posted a loss of $39,498,
or less than three-tenths of one-cent per share, for the fourth quarter
ending June 30, 1998, compared to posting a loss of $344 in the same period
one year ago. The Company recorded sales of $262,397 for its first fiscal
year which ended June 30, 1998, even though the Company had no revenues
in its first or second quarter. The Company said that it recorded a loss
of $129,956, or about one-cent per share, for its first fiscal year. Commenting
on its operating results, Jeffery N. Young, the Company's President, said,
``For a total start-up company with limited capital, I think we have done
well for our first fiscal year. The first half of the year was spent organizing
the Company and raising initial working capital. We really did not begin
sales until the second half of the fiscal year. I want to thank our shareholders
for having patience as we begin our development stage of building a business.''
Gourmet's Choice Coffee Co., Inc., is a development-stage coffee company
engaged in the production and sale of fine 100% Arabica gourmet coffees,
including Gourmet's Choice(R), ``unconditionally guaranteed the world's
finest coffee.'' The Company is actively pursuing the acquisition and integration
of additional complementary and coffee-related businesses. The statements
included in this press release contain certain forward-looking statements
regarding the Company, its business, prospects and results of operations
that are subject to certain risks and uncertainties posed by many factors
and events that could cause the Company's actual business, prospects and
results of operations to differ materially from those that may be anticipated
by such forward-looking statements. Factors that may affect such forward-looking
statements include, without limitation: the Company's acquisition of, or
failure to acquire, other businesses; the Company's loss of a large customer
or key personnel; the Company's ability to successfully develop new products
for both new markets and markets currently served by the Company; customer
acceptance of new products; the impact of competition, including competition
and the ability to generate recurring revenue from certain products; and
delays in the Company's introduction of new products from production and
transportation difficulties or acts of God. Accordingly, no assurances
can be given that events or results mentioned in any such forward-looking
statements will in fact occur.
SOURCE: Gourmet's Choice Coffee Co., Inc.
(July 23) Second Cup Ltd. (TSE:SKL) The Second Cup Ltd. has started
to roll out the world's finest coffee to select Canadian supermarkets.
With this active presence in grocery stores, Second Cup gains access to
the fastest growing segment of the estimated $450 million grocery coffee
category. Customized merchandising units offer a broad selection of Second
Cup's superior range of products from premium exclusive blends to popular
flavoured coffees. Customers can purchase whole bean coffee or grind it
to their own specifications in-store. Conveniently pre-ground, pre-packaged
coffee is also available at the kiosk. In Toronto, the Dominion Grocery
Store in Don Mills Centre began featuring the Second Cup kiosk on July
21. The rollout has also brought Second Cup coffee to Longo's Grocery Store
(Walkers Line) in Burlington, Ontario and over the next month, Second Cup
will make its products available in more supermarkets across Canada. ``We
are extremely excited to see Second Cup coffee now rolling out to grocery
stores throughout Canada,'' says Randy Powell, President and CEO of The
Second Cup Canada. ``It's another step in delivering against our vision
of bringing the Second Cup brand to Canadians wherever they work, play,
shop and live.'' This rollout represents the latest initiative in Second
Cup's strategy of broadening its brand penetration. In addition to visiting
any one of Second Cup's 355 cafes across Canada, consumers now have access
to the Company's premium products in supermarkets, on Air Canada flights,
VIA Rail trains and in select restaurants. ``This is a win-win situation
for everybody involved,'' says Mr. Powell. ``Second Cup has better access
to a fast growing market, our franchising partners gain a tremendous awareness
and trial generating tool and most importantly, more Canadians have the
opportunity to share in the ultimate coffee experience that is Second Cup.''
Canadian owned and operated, The Second Cup Ltd. is a leading consumer
products and services company which trades on the Toronto Stock Exchange.
As the leading specialty coffee retailer in Canada, Second Cup operates
more than 355 cafes across the country offering a broad selection of the
world's finest coffee. Its 70 per cent owned affiliate, Coffee People,
operates more than 300 locations in the U.S. and abroad.
Source: The Second Cup, Ltd.
(July 22) Second Cup Ltd. (TSE:SKL.) The Second Cup Ltd. has started to roll out the world's finest coffee to select Canadian supermarkets. With this active presence in grocery stores, Second Cup gains access to the fastest growing segment of the estimated $450 million grocery coffee category. Customized merchandising units offer a broad selection of Second Cup's superior range of products from premium exclusive blends to popular flavoured coffees. Customers can purchase whole bean coffee or grind it to their own specifications in-store. Conveniently pre-ground, pre-packaged coffee is also available at the kiosk. In Toronto, the Dominion Grocery Store in Don Mills Centre began featuring the Second Cup kiosk on July 21. The rollout has also brought Second Cup coffee to Longo's Grocery Store (Walkers Line) in Burlington, Ontario and over the next month, Second Cup will make its products available in more supermarkets across Canada. "We are extremely excited to see Second Cup coffee now rolling out to grocery stores throughout Canada," says Randy Powell, President and CEO of The Second Cup Canada. "It's another step in delivering against our vision of bringing the Second Cup brand to Canadians wherever they work, play, shop and live." This rollout represents the latest initiative in Second Cup's strategy of broadening its brand penetration. In addition to visiting any one of Second Cup's 355 cafes across Canada, consumers now have access to the Company's premium products in supermarkets, on Air Canada flights, VIA Rail trains and in select restaurants. "This is a win-win situation for everybody involved," says Mr. Powell. "Second Cup has better access to a fast growing market, our franchising partners gain a tremendous awareness and trial generating tool and most importantly, more Canadians have the opportunity to share in the ultimate coffee experience that is Second Cup." Canadian owned and operated, The Second Cup Ltd. is a leading consumer products and services company which trades on the Toronto Stock Exchange under the symbol SKL. As the leading specialty coffee retailer in Canada, Second Cup operates more than 355 cafes across the country offering a broad selection of the world's finest coffee. Its 70 per cent owned affiliate, Coffee People, operates more than 300 locations in the U.S. and abroad.
(July 17) Starbucks Coffee International and Coffee Partners Co., Ltd.,
celebrated the grand opening of the first Starbucks retail location in
Thailand today at the Central Department Store, Chidlom, Bangkok. The Starbucks
store offers a complete menu of Starbucks internationally acclaimed coffee
beverages, a selection of more than 30 varieties and blends of the finest
arabica coffee beans, freshly baked local pastries and desserts and a wide
selection of coffee brewing equipment and accessories. "The people
of Thailand can now enjoy a great cup of coffee and a unique specialty
coffee experience with the opening of the first Starbucks retail location,"
said Chairman Sudhitham Chirathivat of Coffee Partners Co., Ltd. "With
its passion for quality and excellent customer service, Starbucks will
become the market leader in the specialty coffee industry in Thailand."
"The commitment of Coffee Partners Co., Ltd. to people and coffee
is important in bringing the Starbucks Experience to the Thailand market.
When you go into a Starbucks store, the experience is pleasant, uplifting
and diverse. It is a place with a heart and soul," said Howard Behar,
president of Starbucks Coffee International. "Every store opening
enhances our brand recognition, which continues to grow throughout the
Asia-Pacific region." As part of Starbucks commitment towards contributing
positively to the communities, a percentage of the net proceeds from the
opening day will benefit the United Nations International Children Educational
Foundation in Thailand. Coffee Partners Co., Ltd., a subsidiary of Central
Pattana, holds the licensing rights to open Starbucks retail locations
throughout Thailand. The company is a joint venture between Central Pattana
and Keyumars Shirdel, Managing Director, Coffee Partners Co., Ltd. Starbucks
Coffee International is a wholly owned subsidiary of Starbucks Coffee Company
(Nasdaq:SBUX). Starbucks is the leading retailer, roaster and brand of
specialty coffee in North America. Thailand represents Starbucks Coffee
International's seventh Pacific Rim market. Starbucks Coffee International
has opened retail locations in Japan, Hawaii, Singapore, the Philippines,
and Taiwan.
Source: Starbucks Coffee Company
(July 8) Folgers, today it will lower the retail price of its 13-ounce
cans of ground regular and decaffeinated coffee by 20 cents. The price
cut is effective August 24. The price cut lowers the price of regular ground
Folgers to $2.31 and decaffeinated ground coffee to $3.01. The list price
of Folgers Instant Coffee 8-ounce size will be lowered 12 cents down to
$3.54. Folgers Singles will remain unchanged.
**End**
(July 2) Starbucks Corporation today reported consolidated net revenues,
which included the results of its acquisition of Seattle Coffee Holdings
Limited ("Seattle Coffee"), a United Kingdom retailer/roaster
of specialty coffee. All periods presented are restated to include the
Seattle Coffee results. For the five-week period ended June 28, 1998, Starbucks
reported net revenues of $131.0 million, an increase of 33 percent from
consolidated net revenues of $98.7 million for the same period in fiscal
1997. On a comparable store sales basis (stores open for at least 13 months),
sales increased 4 percent for the five weeks ended June 28, 1998 as compared
to the same five-week period in fiscal 1997. For the 39 weeks ended June
28, 1998, consolidated net revenues were $950.6 million, an increase of
36 percent from consolidated net revenues of $700.7 million for the same
period in fiscal 1997. Comparable store sales increased 6 percent for the
39-week period ended June 28, 1998, as compared to the same 39-week period
in fiscal 1997.
SOURCE: Starbucks Corporation
(June 26) Diedrich Coffee Inc. (Nasdaq:DDRX), a leading retailer, wholesaler
and custom roaster of the world's finest coffees, Thursday announced the
rollout of the "Diedrich Iced," a collection of (ice) blended
and iced (on the rocks) specialty drinks created by company founder, Martin
Diedrich. "The Diedrich Iced category fits well with our new product
development plan," said Tim Ryan, president and chief executive officer.
"Iced-blended and over-ice drinks will lead us into the summer season
and become an important part of our daily product mix even after summer.
These five new drinks are delicious and reflect Martin Diedrich's passion
for providing our guests only the best." The Diedrich Iced category
focuses on specialty drinks prepared with ice. The blended drinks will
include Mocha Java, Vanilla, Vanilla Java and Orange Vanilla to be featured
along side of Diedrich's original Blended Mocha. The "On the Rocks"
drinks include The Diedrich Jumper Cable, a wild and crazy blend of creamy
vanilla coffee, to be featured with Diedrich's Cappucino, Mocha, Latte
and Coffee, each prepared for those who crave something icy. Stated company
founder, Martin Diedrich, "During our research and development of
the Diedrich Iced products, our goal in perfecting excellence in this expanding
category was to achieve the highest quality in the products while selecting
flavor profiles that would be appealing to a broad audience. These cool
and exotic recipes have the finest ingredients and each is a Diedrich original,
guaranteed to refresh the soul." Diedrich Coffee has headquarters
in Irvine and has been in business since 1972. The company operates 36
coffeehouses and seven coffee cart operations in California, Colorado and
Texas. Diedrich Coffee has been publicly traded on Nasdaq since September
of 1996. Statements in this news release that relate to future plans, financial
results or projections, events or performance are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended and
fall under the safe harbor. The company's actual results and financial
position could differ materially from those anticipated in the forward-looking
statements as a result of a number of factors, including but not limited
to, the price and availability of coffee, successful execution of the company's
franchise area development plans, impact of competition, the availability
of working capital and other risks and uncertainties described in detail
under "Certain Factors and Trends Affecting Diedrich Coffee and Its
Business" in the company's annual report on form 10-K for the fiscal
year ended Jan. 28, 1998 and in the company's subsequent report on Form
10-Q. Copies of these reports are available from Diedrich Coffee.
Source: Diedrich Coffee Inc., Irvine
(June 23) Visitors to the Garden Island of Kauai, have a ne attraction
to add to their list of unique Hawaiian experiences. Starting July 10,
coffee connoisseurs and the generally curious can visit the largest c ffee
plantation and estate in Hawaii, where coffee production is approached
with the same attention to quality as fine wines. The Visitor Center is
nestled in the 3,400-acre Koloa Estate where 100% of Kau i Coffee Company's
arabica beans are grown, harvested and processed. Inside th Visitor Center,
visitors can learn everything about coffee from the ground to the grind.
Careful attention to coffee production from planting, harvesting, s rting
each bean, to ``cupping'' (or tasting), grading and roasting are done by
coffee experts on the plantation, making this a true state coffee. Stroll
through the coffee museum and exhibit and explore a collection of coffe
culture through time from all over the world. After the tour, you may be
aske ``I wahi kope nau?'' (``Will, you have some coffee?'') Be sure to
savor a cup of the mild, aromatic coffee, and with a newly acquired appreciation
for the n ances of specialty coffee production, you decide if Kauai Coffee
makes the gra e! Visitors who want to take home the fresh, estate-roasted
coffee to friends and family can purchase a variety of ground or whole-bean
coffees as well as other keepsakes from Kauai. If you can't visit Kauai
Coffee Company or the Hawaiian slands, you can still enjoy the coffees
and a taste of Kauai by mail order through the World Wide Web site at http://www.kauaicoffee.com.
The Kauai Coffee Company Estate and Visitor Center are located on the leeward
southwest) side of Kauai, about 17 miles from the Lihue Airport, on Highway
54 on the way to Waimea Canyon. The Visitor Center is open daily from 9
a.m. to 5 p.m. Admission is free. For information call 800-545-8605.
SOURCE: Kauai Coffee Company
(June 22) Diedrich Coffee Inc., (Nasdaq: DDRX) a leading retailer, wholesaler
and custom roaster of the world's finest coffees, Monday announced a partnership
with Islands Restaurant Inc. as the exclusive provider of fresh roasted
coffee for the company's coffee program which includes 27 restaurants in
California, Arizona and Texas. Adding to Diedrich Wholesale Division's
growing list of restaurant clients, such as Ruth's Chris Steakhouses, Disneyland
hotels and coffeehouses, The Pacific Restaurant Adventures Group and Pascals,
Islands adds more clout to Diedrich's rapidly expanding wholesale division
which grew 32.1% in the first quarter. Diedrich's Wholesale Division estimates
that approximately 25,000 pounds of fresh-roasted coffee will flow through
Islands' restaurants annually. States Diedrich Coffee's Director of Wholesale,
Ed Apffel, "We've raised the bar on coffee quality. The Diedrich product
is such a premium product that the Islands' customer will notice added
value immediately. We developed an exclusive blend of the world's finest
coffee for Islands that provides a clear flavor with bright acidity and
has a very smooth finish." Islands' Director of Operations, Mike Smith,
says, "Diedrich Coffee is exactly the partner we were looking for.
The Diedrich brand is legendary in Orange County, Calif., and their reputation
is stellar. We wanted a strong brand that would provide us with the highest
quality product and service possible to improve our coffee category, and
Diedrich fit the bill. We looked at a lot of coffee companies and Diedrich
Coffee was head and shoulders above everyone else. Together we created
a product that provides the Islands' customer with the cup of coffee they
deserve." Diedrich Coffee has headquarters in Irvine and has been
in business since 1972. The company operates 36 coffeehouses and seven
coffee cart operations in California, Colorado and Texas. The company is
led by Tim Ryan, president and chief executive officer, and company founder,
Martin Diedrich, vice president and chief coffee officer. Diedrich Coffee
has been publicly traded on Nasdaq since September 1996. Statements in
this news release that relate to future plans, financial results or projections,
events or performance are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended and fall under the safe
harbor. The company's actual results and financial position could differ
materially from those anticipated in the forward-looking statements as
a result of a number of factors, including but not limited to, the price
and availability of coffee, successful execution of the company's franchise
area development plans, impact of competition, the availability of working
capital and other risks and uncertainties described in detail under "Certain
Factors and Trends Affecting Diedrich Coffee and Its Business" in
the company's annual report on Form 10-K for the fiscal year ended Jan.
28, 1998, and in the company's subsequent report on Form 10-Q. Copies of
these reports are available from Diedrich Coffee.
Source: Diedrich Coffee Inc.