Coffee prices fluctuate with supply, but a severe drought in Brazil and a fungus called coffee rust in Central America have taken a toll on crop yields, sending coffee bean costs soaring this year with the expectation that they’ll go even higher in 2015.
A report earlier this year from the International Center for Tropical Agriculture in Colombia predicts that climate change will bring more of the same in the future. Arabica bean prices rose at least 72% this year, and they’re likely to continue climbing in 2015, according to Citi Research.
Total global supply is on track to rise 1.5% this year compared to 2013, but it’s the second year of a supply deficit, according to a report by Rabobank earlier this month. And the hit comes as coffee consumption around the globe continues to rise, driven in large part by Starbucks and Dunkin’ Donuts expansions into new markets, and the expansion of quickservice coffee programs like McDonald’s McCafe line. (read more…)
Food fraud is a problem that has sounded global alarm bells in recent years, from tainted meat in China to last year’s horse meat scandal in the U.K. to the revelation that at least 10% of the cheese labeled “Swiss” sold in supermarkets is actually counterfeit. What until a few years ago was a relatively unexplored area of study will be one of the top five critical global issues the European Commission will tackle in 2015.
Defined simply as “intentional deception using food for economic gain,” food fraud has become easier to detect through sophisticated DNA and other tests designed to detect ingredients down to the molecule, but criminology may play just as important a role as science in preventing food fraud.
“The big area we’re focusing on now is not so much on the latest methods to detect fraud, we’re focusing on understanding the fraudster, why he would commit the crime and why he perceives a fraud opportunity,” said John Spink, director of Michigan State University’s Food Fraud Initiative. (read more…)
Private labels are so much more than they used to be for food retailers, and it looks like they’re here to stay, according to a report from Planet Retail and Trace One. From Trader Joe’s and ALDI, which have built their businesses with a focus on private labels, and Kroger, whose Simple Truth and other private labels have grown to make up 25% of grocery sales for the retailer, according to the Cincinnati Enquirer, private labels are giving national brands a run for their money. And according to the Planet Retail report, grocers should take note.
After detailing some key trends that are prevalent among private label retailing in the U.S., like drugstores pushing food sales and the emphasis on value in the private label market, it identifies some key takeaways for retailers that have also appeared in SmartBrief’s coverage of the food retail industry. (read more…)