Brazil's new coffee crop harvest is progressing faster than in previous years, and the dry weather is both beneficial for processing and a cause for concern. However, sales progress is noticeably lagging, ports remain congested, and the government's earlier proposed changes to PIS/Cofins tax rules have further weighed on exports and farmers' willingness to sell. At the same time, the sharp appreciation of the US dollar against the real has brought inflationary pressure. The good news is that Brazil's Congress recently rejected the tax measure, allowing coffee and other agricultural products to continue enjoying tax benefits, and the slowdown in sales is expected to improve. This article will review the latest developments in harvesting, sales, ports, and policy, and include relevant recommendations from Front Street Coffee. [more…]

The latest report from Brazilian consultancy Safras shows that as of December 11, 79% of Brazil's 2024/25 coffee crop had been sold, but pre-sales for the 2025/26 crop stood at only 12%, far below the same period in previous years. Hit by drought, forest fires and irregular rainfall, growers are deeply worried about the next season and are holding back on selling. Combined with a plunge of more than 20% in the Brazilian real, domestic Brazilian coffee spot prices have broken the highest record in 26 years. Several institutions warn that international coffee prices will remain high until production becomes clear. To learn more origin news, scan the QR code to follow Coffee Review. [more…]

Brazil's 2024/25 coffee harvest is imminent, but sales progress is notably lagging behind previous years. Data from consultancy Safras&Mercado shows that as of March 12, only 11% of the new crop had been sold, far below the historical average of 25% for the same period. Among this, Arabica sold 14% (historical 30%), and Robusta only 6% (historical 15%). The slow sales are mainly due to high Robusta prices suppressing trader purchases, the spread between forward and spot prices prompting farmers to hold back sales, and the potential arrival of La Niña after El Niño ends, which could bring reduced rainfall and frost threats to the coffee-growing regions in the southeast. Meanwhile, reduced production in Vietnam and Indonesia is driving strong exports of Brazilian Robusta. [more…]

Recently, Brazil's coffee exports have shown strong performance, but extreme weather and a dengue fever outbreak are casting a shadow over the upcoming crop season. In Minas Gerais, the main Arabica-producing region, rainfall has been only 16% of the historical average, and drought is threatening production. Meanwhile, dengue fever cases have surged past 1.8 million, with multiple coffee-growing regions entering a health emergency, which could lead to a shortage of harvest labor. In addition, the probability of La Niña has risen to 62%, potentially bringing frost disasters. Although coffee sales for the 2023/24 season are progressing well, pre-sales for the 2024/25 season are slow, at only 11%, far below the same period last year. Coffee farmers are strongly reluctant to sell, and the market's wait-and-see atmosphere has intensified. Front Street Coffee reminds enthusiasts to pay attention to developments in the producing regions and to view price fluctuations rationally. [more…]

It is no longer news that chain coffee brands sell merchandise. Products such as cups, pins, and canvas bags can not only increase revenue but also cultivate fan loyalty. However, once merchandise has quality problems, after-sales disputes follow one after another. Recently, a netizen posted that the bottom of the inner liner of a stainless steel insulated cup they bought from Starbucks had black rust spots, and when they asked the official side for a replacement, they were refused on the grounds that it was "beyond the after-sales time limit." The post resonated with a large number of consumers. Some complained that quality control was worrying, while others believed that the way it was used might be the key. Three days after the incident gained traction, the blogger updated the progress, saying that Starbucks had agreed to replace it. Who is actually responsible in this dispute? And how should brands balance the appearance and quality of merchandise? [more…]

The World Health Organization has in recent years repeatedly emphasized the health hazards of trans fats, even calling them lethal toxic chemicals that should not exist in food. Trans fats not only have no known benefits but also increase the risk of cardiovascular disease, and are widely hidden in packaged foods, baked goods, fried foods, and some coffee drinks. Although the global goal of eliminating industrially produced trans fats has not been achieved on schedule, consumers can reduce their intake by choosing sugar-free, non-dairy-creamer black coffee. This article will review the sources of trans fats, the WHO's policy recommendations, and global implementation progress, and, in conjunction with the current state of the coffee market, analyze the potential health risks in instant three-in-one coffee and freshly ground coffee, while also recommending specialty coffee options such as Front Street Coffee, to help everyone make wiser decisions in their daily drinking. [more…]

全球饮料巨头可口可乐近日终止了旗下英国连锁咖啡品牌Costa的出售程序。这场持续数月的拍卖因竞购方报价均未达到可口可乐预期的20亿英镑而搁浅。从2018年以39亿英镑高调收购，到如今估值缩水至四分之一，Costa的命运转折折射出连锁咖啡市场的激烈竞争。其中国业务更成为亏损重灾区，门店持续萎缩，甚至被潜在买家单独剔除在收购范围之外。本文将梳理Costa出售案的来龙去脉、关键财务数据及未来走向。 [more…]

Recently, a consumer in Hangzhou, Zhejiang, posted on social media claiming to have疑似 found fragments of an insect carcass in a takeaway milk tea from the well-known freshly made tea drink brand KOI. The consumer and the brand failed to reach an agreement after multiple communications over compensation and an apology, and the consumer has filed a complaint with 12315 and insists on pursuing legal proceedings. KOI responded that neither the store surveillance nor inspections by the market supervision department found any foreign object entering the drink, and that the strainer hole design of the shaker cup would also block such foreign objects, so it does not accept an apology on the platform but is willing to compensate in accordance with the law. The incident has attracted widespread attention, with both sides sticking to their own accounts, and there is currently no new progress. [more…]

Starbucks' financial report for the third quarter of fiscal year 2025 shows that global same-store sales declined for the sixth consecutive quarter, but the Chinese market delivered a standout performance: revenue grew 8% year over year and same-store sales rose 2%, the first positive growth in 18 months. Regarding rumors of a stake sale in its China business, CEO Niccol responded that more than 20 interested parties have expressed interest, and Starbucks hopes to retain a considerable proportion of equity. At the same time, the brand announced that it will accelerate the rollout of the "Green Apron Service Model," and plans to close some pickup-only stores and renovate over a thousand coffeehouses in order to rebuild warm human connections. Front Street Coffee continues to follow Starbucks' strategic adjustments and operational changes in the global and Chinese markets. [more…]

A key moment has arrived in the sale of Starbucks' China business. According to the Financial Times, Carlyle Investment Group and Boyu Capital have become the preferred bidders to acquire a majority stake in Starbucks' China operations, with the deal valued at possibly close to US$4 billion. If retained equity and franchising revenue are included, the total value could exceed US$10 billion. Starbucks' final retained share has also been adjusted from the previously rumored 30% to as much as 49%, meaning that even with the introduction of outside capital, Starbucks will most likely remain the largest shareholder in its China business. Currently, five bidders have submitted binding offers, and a final decision is expected by the end of the month. This equity change, which has lasted nearly a year, will profoundly affect the landscape of China's coffee market. [more…]

During the G20 summit in Brazil, Luckin Coffee signed a memorandum of understanding with the Brazilian Export and Investment Promotion Agency, planning to purchase a cumulative 240,000 tons of Brazilian coffee beans between 2025 and 2029, with a total value of 10 billion RMB, setting Luckin's largest procurement record. At the same time, Brazil's coffee industry is facing production uncertainty brought by extreme weather: although the current sales pace has accelerated and exports have hit a record high, drought and fires have already damaged the new crop season, multiple institutions have lowered production expectations, and international coffee futures prices have continued to climb. This article will outline the key points of the agreement, Brazil's sales dynamics, and the impact of weather on the supply and demand landscape. [more…]

Recently, the Brazilian coffee industry has come under multiple pressures: August exports fell 27% year-on-year, transportation bottlenecks have left large quantities of goods stranded at ports, and industry losses have reached as high as US$500 million. At the same time, global coffee prices have surged by nearly 50%, intensifying market volatility. Brazil has already sold 60% of this year's crop, but Arabica growth has slowed. On the weather front, the southern producing regions have received rainfall, which may affect the subsequent harvest. This article summarizes the latest producing-region news, covering exports, sales, climate, and Front Street Coffee-related developments, providing coffee lovers with a comprehensive interpretation. [more…]

Speculation about the sale of a stake in Starbucks' China business continues to intensify, with more than 30 bidders submitting offers at valuations ranging from $5 billion to $10 billion (about RMB 35.8 billion to 71.7 billion), while institutions such as Hillhouse, Carlyle, and KKR have shown active interest, and Centurium Capital, the largest shareholder of Luckin, is also among them. Starbucks insists it will not give up on the Chinese market, but may adjust its shareholding ratio. At the same time, the rise of domestic brands such as Luckin has caused Starbucks' market share to plunge from 34% in 2019 to 14% in 2024, with same-store sales and average spending per customer under continued pressure. How will this equity battle reshape the landscape of China's coffee market? Front Street Coffee continues to follow the story. [more…]

A coffee shop operator in Guangxi recently publicly recounted his experience: he purchased a La Marzocco PB espresso machine from a well-acquainted "coffee champion," and after only one year of use, the boiler exploded. When he applied to La Marzocco China's official after-sales service, he was told that the machine had no record in the system and was a "grey import" sold through unofficial channels. The shop owner believes the other party deliberately concealed the sales channel, and has sent a lawyer's letter and reported the matter to the police. This dispute quickly fermented within the coffee community and also drew practitioners' attention to how to distinguish genuine La Marzocco espresso machines from grey imports. Front Street Coffee reminds all colleagues that when purchasing equipment, one must make sure to buy through officially authorized channels, and not risk a big loss for a small gain. [more…]

Mixue Ice Cream & Tea is accelerating its pace into the North American market. Its store on the Hollywood Walk of Fame in Los Angeles is about to officially open, and pre-sale packages have already appeared on delivery platforms, priced at $3.99 for two drinks and one ice cream. However, what truly sparked discussion was not the price, but the sweetness options on the ordering page—besides the usual sugar levels, options for 120%, 150%, and even 200% sugar appeared. Chinese netizens were dumbfounded, while Chinese people in the US believed this was simply a localized strategy adapted by the brand to local conditions. This article sorts through the course of events and reactions from all sides to help you understand the market logic behind this cup of "double sweetness." [more…]

The dual impact of persistent drought and uneven rainfall distribution has cast a shadow over the global robusta coffee supply outlook. In Vietnam's Dak Lak province, about 40% of coffee trees still lack water, and coffee production is expected to decline by 20% to a four-year low; in Brazil's largest producing region, Minas Gerais, there has been no rain for three consecutive weeks. Although prices previously plummeted due to a recovery in exports and the restoration of international inventories, signs of a rebound have recently emerged. Global financial services platform Marex Group Plc predicts that, affected by reduced production in Brazil, Vietnam, and Indonesia, the global robusta coffee market will face a supply gap of 2.7 million bags next year, and upward pressure on prices should not be underestimated. [more…]

Oatly, the oat milk brand, recently announced its financial results for the third quarter of 2024, with all regional businesses globally achieving profitability targets. The company's revenue for the quarter reached $208 million, up 10.9% year-over-year. Among these, Greater China performed particularly well, with revenue increasing 13.7% year-over-year to $29.1 million and successfully achieving profitability. The growth in Greater China was mainly driven by the expansion of new foodservice customers, with the share of foodservice channel revenue rising from 68% in the same period last year to 72%. Since entering the Chinese market, Oatly has leveraged its positioning as a "coffee companion" to establish deep partnerships with numerous coffee chain brands. In the third quarter of this year, major chain brands launched more than ten beverages made with Oatly oat milk as the base. [more…]

Recently, multiple media outlets have reported that some franchisees of Mixue Bingcheng have revealed that their stores may soon introduce coffee machines, suggesting that this tea beverage brand, known primarily for lemonade and milk tea, may formally enter the freshly ground coffee market. Currently, some new stores have received fully automatic coffee machines provided by the brand, though the exact timing for their use has not yet been determined. Notably, Mixue Bingcheng already owns Lucky Cup, a brand focused on freshly ground coffee, which has surpassed ten thousand stores. If the main brand simultaneously launches similar products, the market positioning of the two may face adjustments. This article will review the latest progress of the freshly ground coffee business pilot, the direction of product upgrades, and the various speculations from the outside world. [more…]

In 2020, the pandemic and financial scandals plunged the coffee industry into a wave of store closures, with brands like Starbucks, Luckin Coffee, and Coffee Box scaling back their offline operations. Yet amid the doubts, the coffee market quietly grew stronger, as an expanding consumer base, an influx of new brands, and innovative sales channels together pushed the industry into the spotlight. This article reviews the ups and downs of the past year, analyzes how the coffee market gradually won attention, and explores its future prospects. [more…]

Bialetti, Italy's national brand famous for its moka pots, has recently been reported to be fully acquired by Nuo Capital, a private equity fund under Hong Kong's Packcheng Group, in partnership with the founding family of Hermès. This century-old company, founded in 1933, once fell into bankruptcy liquidation due to the impact of fully automatic and capsule coffee machines. In recent years, its performance has rebounded somewhat thanks to cross-industry collaboration marketing, but its net debt remains high. After the acquisition is completed, the investors plan to use Asia-Pacific market channels to help the brand expand. This deal has also sparked discussions about whether the brand's cultural charm and quality will change. Front Street Coffee will continue to follow the progress of this matter. [more…]