Your weekly round-up of the five biggest stories from across the global coffee industry...
- One of Sweden’s largest coffee chains files for bankruptcy
- Court ruling signals big win for fair competition in China
- South Korean coffee chain unveils major brand refresh
- Nestlé takes greater foothold in Southeast Asia with major RTD investment
- High coffee prices could be here to stay, Chairman of major coffee roaster warns
1. Waynes Coffee files for bankruptcy in Sweden as cost pressures mount
Sweden’s hospitality industry has been grappling with rising inflation, lower consumer confidence and subdued footfall over the last few years – leading to stalled growth for the majority of its branded coffee chains.
Highlighting the difficult trading conditions facing operators, Stockholm-based Waynes Coffee has closed stores, exited international markets and now filed for bankruptcy.
Having put plans in place to strengthen operations moving forward, can Sweden’s second largest branded coffee chain bounce back?
2. Major win for Cimbali Group as Chinese court upholds counterfeit ruling
More than a year after first securing a landmark victory against counterfeiting in China, Italy’s Cimbali Group has announced another major win for its Slayer Espresso brand in court.
A Chinese Court of Appeal has fully upheld the findings of unfair competition from a group of unnamed imitation machine brands and acknowledged the distinctive character of Slayer’s design under Chinese law.
The ruling comes as genuine competition in China’s professional coffee equipment category intensifies with domestic brands announcing major supply deals and courting significant investment.
3. Paik’s Coffee drops key part of brand identity ahead of international push
The Seoul-based coffee chain’s Founder and CEO, Paik Jong-won, is a highly recognisable celebrity and TV personality in South Korea, known for Netflix’s Culinary Class Wars among other ventures.
Outside of his home market, however, he is less well known. With Paik’s planning a key overseas launch in the coming months, the value-focused chain has made significant changes to its brand identity to better resonate with international audiences.
But, with changes afoot at home as well, is Jong-won’s personal brand becoming less of an asset than it once was?
4. Nestlé to expand Nescafé and RTD production in Southeast Asia with major investment
Swiss F&B giant Nestlé has announced plans to build a new multi-million-dollar Nescafé and RTD production facility in Southeast Asia.
The investment is set to give the group a greater foothold in one of the region’s “most dynamic” markets, while increasing support for local coffee farmers and strengthening its supply chain.
5. Coffee prices to stay high for the next two years, Lavazza warns
Speaking at this year’s Wimbledon tennis tournament, Lavazza Group Chairman Giuseppe Lavazza cautioned that retail coffee prices were unlikely to come down for at least two years.
The warning follows concerns spikes for both arabica and robusta prices and concerns over coffee production amid unpredictable weather patterns.
Lavazza, which has stressed the need for market stability, later announced a multi-year extension of its iconic partnership with Wimbledon – building on a 15-year association.
