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MILAN – Coffee futures markets saw opposite trends yesterday, Thursday, September 25. In New York, the ICE Arabica contract for September delivery gained almost 1%, closing at 371.35 cents. In London, the contract for November delivery of the ICE Robusta lost almost 3%, settling at $4,094, the lowest level in the last six weeks.
The New York market was driven upwards by low certified stocks, which fell yesterday to 579,961 bags, their lowest level in the last 15 months.
London turned downward after reassuring news from Vietnam, which ruled out the possibility that coffee-growing areas would be affected by the tail end of Typhoon Ragasa.
In an exclusive interview with Times Brasil, Marco Guimarães, , vice president of the technical area at Nestlé Brazil, announced investments in Brazil of 7 billion reais ($1.3 billion), with a particular focus on the coffee supply chain.
Specifically, 450 million reais will be invested in new production lines at the Montes Claros plant (Minas Gerais). The goal is to increase production of both Dolce Gusto capsules and instant coffee by 40%.
In Araras, São Paulo, Nestlé will invest one billion reais in modernising its instant coffee factory, which exports to over sixty countries worldwide. Advanced technologies based on artificial intelligence will be implemented at both plants to improve processes, productivity and product quality.
As part of the Nescafé Plan, Nestlé is also committed to supporting coffee producers upstream in the supply chain, with the aim of improving productivity and reducing environmental impact by encouraging the adoption of regenerative agricultural methods.
Guimarães emphasised Brazil’s fundamental strategic importance for Nestlé, noting that the country is not only the world’s leading coffee producer, but also the second-largest consumer.
As part of a $1 billion restructuring effort, Starbucks announced Thursday it will close hundreds of stores this month, or about 1% of its locations. The company had 18,734 North American locations at the end of June, and the company said it will end September with 18,300 stores.
“Our goal is for every coffeehouse to deliver a warm and welcoming space with a great atmosphere and a seat for every occasion,” the CEO Brian Niccol said in a letter to employees.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed.”
Niccol added, “Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”
In addition to the store closures, Starbucks announced an additional 900 corporate layoffs, on top of the roughly 1,000 layoffs in February.
