Category: Low Carbon Coffee Roasting

In a strategic maneuver to boost efficiency and harness synergies, Hamburg-based Tchibo, a powerhouse in the European coffee industry, has made a decisive move. The company has chosen to consolidate its UK and Ireland businesses under the esteemed Scottish brand, Matthew Algie & Company Limited. This bold merger includes Tchibo Coffee Services and Capitol Foods, acquired in 2016 and 2018, respectively. The unified entity will now operate under the banner of Matthew Algie.

A Brief Glimpse Into Tchibo:
Tchibo, with a global presence spanning over 60 countries, boasts a diverse portfolio featuring renowned names such as Davidoff Café, Smokin’ Bean, Piacetto, and Caffè Molinari. The company manages 550 branded coffee shops across Germany and an additional 320 in Austria, the Czech Republic, Hungary, Poland, Slovakia, Switzerland, and Turkey. Despite impressive sales of €3.24 billion ($3.53 billion) in 2022, Tchibo faced challenges, grappling with an annual EBIT loss of €167 million ($182 million) attributed to rising raw material, energy, and freight costs. Responding to these challenges, Tchibo appointed Erik Hofstädter as its new CEO in December 2023.

Is Bigger Better for Customers?
The consolidation of Tchibo’s UK and Ireland businesses under the Matthew Algie brand prompts a crucial question: Is bigger better for customers? In an industry that constantly expands into new markets, this move signifies a strategic effort to grow revenue sources.

Considerations for Local Customers:
While a consolidated brand may seem advantageous, local customers are encouraged to consider the broader global environment and the associated commodities within the industry. Mergers can bring about positive changes, such as expanded product offerings and operational efficiencies. However, potential challenges should be on the radar when considering contracts for machines and supplies.

Potential Changes Customers May Experience:

Reduced Competition:
The consolidation might lead to reduced competition, potentially impacting choices and resulting in higher prices and decreased innovation. The coffee industry is filled with local suppliers offering alternatives tailored to specific markets.

Efficiency Improvements:
On a positive note, operational synergies may lead to streamlined processes, better supply chain management, and potential cost savings. However, larger organizations may struggle to adapt quickly to global consumer demands and ongoing economic changes affecting supply chains.

Loss of Unique Features:
Unique features from individual companies may be discontinued, affecting customers who value specific offerings.

Integration Challenges:
Temporary disruptions in service, changes in customer support processes, and adjustments to ordering systems may occur during the integration process, impacting local customers dependent on locally driven services.

Changes in Branding and Marketing:
Merged companies often undergo rebranding or adjustments to marketing strategies, reflecting changes in product packaging, logos, or promotional activities.

Potential Price Changes:
Depending on market dynamics, pricing structures for products and services may change. The global supply chain for green beans and geopolitical shifts, moving away from globalization to a more decentralized economy, can influence pricing.

Customer Service Changes:
Adjustments to customer service procedures, contact points, and support channels may be part of the integration process.

Higher Prices:
Consolidation can lead to increased market power, potentially resulting in higher prices for products and services.

Job Losses and Employee Morale:
Mergers often involve restructuring and cost-cutting measures, impacting employee morale and, subsequently, customer service.

In Conclusion:
While the consolidation of Tchibo’s UK and Ireland businesses under the Matthew Algie brand presents potential benefits, customers are urged to stay informed about potential changes and actively engage with the evolving business landscape. As the coffee industry undergoes transformative shifts, navigating these changes with a discerning eye will be crucial for customers seeking the best value and service in their coffee experience.

As companies embrace glocal thinking, understanding its implications becomes paramount for both businesses and consumers alike. By recognizing the interplay between global and local dynamics, stakeholders can adapt strategically to thrive in an ever-evolving marketplace.

In recent times, coffee lovers around the world have been noticing a gradual increase in the price of their favourite beverage. This trend can be attributed to a complex interplay of factors, ranging from agricultural practices to geopolitical tensions. In this blog post, we’ll delve into these reasons, highlighting how they contribute to the rising costs of coffee. Coffee Robusta Price is at a current level of 3.381, up from 3.264 last month and up from 2.291 one year ago. This is a change of 3.59% from last month and 47.57% from one year ago

The Harvest and Market Dynamics

Vietnam, a key player in the robusta coffee market, is seeing a successful harvest season. As the Tet New Year holidays approach, a time marked by increased commercial activity and selling, we can expect some fluctuations in coffee stock availability. However, the overall commercial activity within Vietnam is likely to slow down as we move closer to the holidays.

Brazil’s Coffee Crop and Weather Concerns

Brazil, another major coffee producer, is now focusing on the development of its new crop. The upcoming 2024 harvest is anticipated with great interest, as forecasts and weather conditions will play a significant role in determining the production potential. Brazil’s export performance has shown considerable improvement, which, under normal circumstances, could stabilize prices. However, the weather remains a critical factor that could affect the supply chain and pricing.

Logistics and Geopolitical Tensions

A significant factor contributing to the rise in coffee prices is the current state of global logistics. Major shipping lines are rerouting their vessels via the Cape of Good Hope due to geopolitical tensions and security concerns in the Red Sea and Suez Canal. This rerouting adds to the lead times and costs of moving goods, including coffee. The Suez Canal, facilitating a third of global container ship cargo, plays a crucial role in the timely and cost-effective transportation of coffee. Disruptions here could have ripple effects, potentially leading to global inflation.

Certified Coffee Stocks and Market Sentiments

The stability of certified washed Arabica coffee stocks and the distribution of these stocks between Europe and the USA reflect a tightly controlled supply chain. However, any fluctuation in these stocks or in the logistics of transporting coffee can have immediate effects on prices.

The Bottom Line

The rise in coffee prices is not attributed to a single cause but is the result of a combination of agricultural, logistical, and geopolitical factors. From Vietnam’s harvest dynamics to Brazil’s weather conditions and the impact of global shipping routes, each element plays a part in shaping the market. As we continue to navigate through these complex dynamics, one thing remains clear: the world of coffee is as interconnected as it is diverse, with each change in the supply chain having a direct impact on coffee lovers worldwide.

In summary, while coffee enthusiasts might have to pay a bit more for their beloved brew, understanding the reasons behind these price hikes can help us appreciate the global journey coffee takes to reach our cups.

The Recent announcement of Hamburg-based Tchibo purchased Matthew Algie in 2016 and Capitol Foods in 2018 – since then, we have all been operating under their names. Recognizing the strong values and reputation for quality and sustainable practices, parent company Tchibo has taken the bold decision to consolidate its UK and Ireland businesses under the Scottish brand’s name, Matthew Algie & Company Limited.

This strategic merger will see Tchibo Coffee Services and Dublin-based Capitol Foods trade under the Matthew Algie brand – a move intended to generate synergies and efficiencies across a consolidated coffee, beverages, food, and equipment portfolio.

Hamburg-based Tchibo acquired Matthew Algie in 2016 and Capitol Foods in 2018, with each continuing to operate under its name. Tchibo is one of Europe’s largest coffee groups, operating in more than 60 countries with a portfolio of packaged coffee brands including Davidoff Café, Smokin’ Bean, Piacetto, and Caffè Molinari.

Tchibo also operates a vast wholesale business alongside 550 branded coffee shops across Germany and a further 320 across Austria, the Czech Republic, Hungary, Poland, Slovakia, Switzerland, and Turkey.

Posting sales of €3.24bn ($3.53bn) in 2022, Tchibo incurred an annual EBIT loss of €167m ($182m amid increased raw material, energy, and freight costs. In December 2023 Tchibo appointed Erik Hofstädter as its new CEO.

It is understood that Hamburg-based Tchibo according to the World Coffee portal Posting sales of €3.24bn ($3.53bn) in 2022, Tchibo incurred an annual EBIT loss of €167m ($182m amid increased raw material, energy, and freight costs. In December 2023 Tchibo appointed Erik Hofstädter as its new CEO.

Is bigger better for customers It is understood Coffee continues to be one of the fastest-moving sectors, and the announcement confirms that they are looking to take operations in the new markets that emerge as businesses look to grow their sources of revenue.

Sectors such as garden centers no longer simply use their cafes as a footfall driver but as a critical part of their income. However, in general, when companies in the coffee service industry or any industry merge, customers may experience various changes.

What Should customers consider when they go to replace their contract for machines and supplies in the light of a global economy that is decentralizing in favor of more flexible suppliers that are local to their markets? 

Mergers often lead to the pooling of resources, technologies, and expertise. Customers may appear on the face of it to benefit from an expanded range of products and services, combining the strengths of both companies.

Expanded Product and Service Offering size can limit innovation and can go hand in hand in A reduction in the number of competing companies may result in decreased incentives for innovation. With fewer companies striving to outdo each other, there may be less pressure to develop new and improved products or services. This lack of innovation can negatively impact the variety and quality of offerings available to customers.

Reduced Competition: One of the main concerns with mergers is that they can lead to a decrease in competition. When two companies merge, they may eliminate a competitor from the market, reducing choices for customers. This lack of competition could result in higher prices, decreased product or service quality, and less incentive for innovation.

Efficiency Improvements: Mergers can result in operational synergies and efficiency improvements. This might lead to more streamlined processes, better supply chain management, and potentially cost savings that could be passed on to customers.

Loss of Unique Features: If the merging companies have distinct and unique features or offerings, the merger might result in the discontinuation of one company’s products or services. Customers who value specific features from each company may be disappointed if those features are no longer available.

Integration Challenges: The integration of the companies can also bring challenges. Customers might experience temporary disruptions in service, changes in customer support processes, or adjustments to ordering systems as the companies work to align their operations.

Changes in Branding and Marketing: Merged companies may decide to rebrand or adjust their marketing strategies. Customers might see changes in product packaging, logos, or promotional activities as the companies integrate their identities.

Potential Price Changes: Depending on the nature of the merger and the market dynamics, there might be implications for pricing. Customers should be attentive to any announcements or changes in pricing structures for the products and services they regularly use. Higher Prices: Mergers can lead to increased market power for the newly formed company, allowing them to set higher prices for their products or services. With fewer alternatives available due to reduced competition, customers may end up paying more for the same goods or services.

Customer Service Changes: There could be adjustments to customer service procedures and policies. New contact points, revised customer support channels, or changes in the handling of customer inquiries may occur. Mergers often involve the integration of different systems, processes, and cultures. This integration can lead to operational challenges and disruptions in customer service. Customers may experience issues such as longer wait times, confusion about products or services, and changes in customer support quality.

Cultural Differences: Merging companies may have different corporate cultures, and if not managed effectively, this can result in a negative impact on customer experience. Changes in the way business is conducted, communication styles, or overall company values can be unsettling for customers accustomed to a certain culture.  Job Losses and Employee Morale: Mergers often lead to restructuring and cost-cutting measures, including layoffs. This can result in a loss of expertise and experience among employees, potentially affecting the quality of products or services. Additionally, if employees are dissatisfied or demoralized due to job uncertainty or changes in work conditions, it can impact their ability to provide good customer service.

Blendly.co.uk, as a brand with a focus on coffee blending and customization, can play a valuable role in helping customers navigate the changes resulting from the recent merger involving Tchibo, Matthew Algie, and Capitol Foods. Here are ways Blendly can assist customers during this transition acting as a building block to build value in local markets at scale – and integrating in new relationships with customers –

In recent years, the global conversation has been shifting from the advantages of globalization to the merits of a more decentralized world. Governments around the globe are looking inward, focusing on protectionism, job security, and the safeguarding of domestic production. High subsidies are being allocated, and growing threats to national security have prompted a reevaluation of priorities. Key areas such as energy, food, and health security are gaining prominence, along with the everyday effects on people and businesses, notably the cost of living crisis.

This evolving worldview is driving policy changes, particularly in the realm of the low-carbon economy. The transition towards a low-carbon economy is bringing about changes for individuals and companies at an ever-increasing pace. Simultaneously, we’re witnessing a surge in government regulations aimed at facilitating the day-to-day management of this transformative process.

According to the Economist Across the rich world, Governments are

implementing more than ten times as many policies as they were each year in 2010 – 2015 If their Manifestos are anything to Go by, Politicians Plan a lot more in the coming years to achieve dominance in renewable energy, Electric Trasport and Generative AI this is the biggest policy shift in a generation 

However, as we navigate this transition, it’s essential to recognize that one of the effects of globalization is its ability to foster innovation to address global challenges. With the move towards decentralization, there is a concern that we might be losing out on the innovation needed to tackle these pressing global issues.

With more Policy comes more regulation and more uncertainty in an already changing world requiring greater flexibility for companies to deal with compliance costs, Market Access, create  Innovation 

Blendly is a food security system built on the global infrastructure to allow

sustainable and transparent access to fresh coffee production. Developed for the global coffee consumer giving them transparent access to the components that make up your everyday cup of coffee.

Sodexo Research finds “20% Suppliers do not have a Carbon Reduction Plan”

Sodexo Research finds that ‘20% of suppliers do not have a carbon reduction plan in place.’ Blendly.co.uk collaborates with companies to facilitate their transition to Net Zero with its food security technology. Blendly PAAS is a digital platform that empowers volume coffee users to craft their unique blends using a diverse selection of high-quality green coffee beans from around the world. These blends are delivered through Blendly’s food security system, streamlining the coffee supply chain by reducing intermediaries and enabling direct shipment across complex networks………….. Learn more about carbon reduction with Blendly

Home Roasting Packs : Three Steps to a Great Coffee

The Blendly roasting packs enable you to join a community of coffee lovers that grows everyday, fostering a deeper understanding of your coffee’s contents. It assists you in developing your knowledge of beans, taste, and roasting colour for your home, friends, family, and workplace via blendly.co.uk. With the Home Roasting packs, all you need to do is start making and enjoying coffee. Blendly offers unique tools to help you create your blend, which is then managed and delivered to your satisfaction..…………. Explore more about home roasting packs

Glocalization – The Future of Coffee Shops in the UK

The Highlander coffee chain, working with Blendly.co.uk, allows local baristas to talk about the provenance of its coffee, with tastes that are unique to the local population. This enables them to serve coffee to a growing number of customers who desire transparent products that are unique to their life choices  ………… Read more on Glocalization of coffee shops in UK

The Low-Carbon Economy and Its Impact On Businesses – Navigating a Decentralized World

In recent years, the global conversation has been shifting from the advantages of globalization to the merits of a more decentralized world. Key areas such as energy, food, and health security are gaining prominence, along with the everyday effects on people and businesses, notably the cost of living crisis. This evolving worldview is driving policy changes, particularly in the realm of the low-carbon economy. The transition toward a low-carbon economy is bringing .…………. Read more on Low Carbon Economy in a decentralized world

The Blendly Model Differs From Traditional Commercial Coffee Roasters

The Blendly model differs from traditional commercial coffee roaster model in several ways, offering a new and secure standard for the commercial coffee industry. Blendly provides a unique approach that enhances food security, transparency, and omnichannel distribution. Tools like Data Standardization, Customization and Collaboration: Blendly empowers coffee users to customize their blends by leveraging the Brand Search facility on their website. Users can mix and match green beans to create unique flavor profiles, replicating popular global coffee brands …………… Read more on Blendly Coffee Roasting Model  

The Blendly roasting packs allow you to join a community of coffee lovers that grow every day to understand the contents of your coffee

Blendly helps you develop your own knowledge of beans, taste and roasting colour for your home, friends family and workplace via blendly. co. uk

The Blendly roasting packs allow you to understand the comments of your coffee and develop your own knowledge of taste, colour and grind via your blendly. co. uk account

With the Home Roasting packs all you have to do is start making and drinking coffee.  Blendly offers unique tools to allow you to build on your own blend and have it managed and delivered when it is most needed keeping your coffee Unique and fresh for you

STEP ONE:- Simply take out one of the coffee packs and make your coffee in the usual way each blend has a Unique production QR code on the label just scan and go to the blendly line production portal where you can look at the bend and its components the beans, the roast, the Taste Profile

STEP TWO:- Blendly.co.uk allow you to change the Roast and the Beans and also add your own name to your new blend via the blendly.co.uk portal.  The portal allows you to add components to your blend and select beans from all over the world you can add your blend allowing you to share your blend with other blendly.co.uk customers

STEP THREE:-  Once you have gone through the check and ordered your blend it will arrive in a few days you can also publish your blend to the Blendly.co.uk marketplace and share your tasting notes with other baristas, or you can select from the many blends already published. Blendly Offers monthly subscriptions that allow you an allowance of coffee every month that you can use to create great coffee or share your coffee with friends

If you need help with the creation of your blend why not reach out to one of teams at blendly.co.uk

Blendly the commercial coffee roasters allow baristas to create their own unique coffee blends that are unique to you and your machine and with so much content shared about how to choose the right coffee machine and how to prepare the perfect coffee. blendly.co.uk allows you to take your knowledge and research to create a blend, with your own signature

Blendlly Home roasting packs are available via a network of Coffee shops and baristas that have also developed coffee blends for their own unique experience

Blendly understands that 40% of millennials in particular have experimented with becoming a “home Barista” and consumers are becoming more confident with their coffee-making capabilities. blendly offers Online tools that allow home baristas to understand more about what they can achieve in terms of taste and body from the creation of their own Coffee blend