Welcome to the May Edition of our Coffee Newsletter! As Autumn settles in, we're torn between iced coffees and hot lattes in Melbourne's unpredictable weather.

This month, we're thrilled to unveil our new premium microlot arrivals from Lohas Beans and share highlights from our recent trip to the SCA in Chicago. We also dive into our monthly coffee market report and anticipate our upcoming Origin Trip to Brazil.
Grab your favourite brew and join us for a month filled with coffee adventures!

MICROLOT HIGHLIGHT - COLOMBIA - LOHAS BEANS

In the realm of specialty coffee, Lohas Beans stands as a beacon of excellence and sustainability. Since its inception in 2011, Lohas Beans has been on a mission to redefine the coffee landscape, not just in Colombia but across the globe. Specialising in a diverse range of offerings, from exotic Competition lots to well-crafted Regional, Lohas Beans has become synonymous s with exceptionally high-quality products.

At the heart of their business lies a commitment to fostering positive change, both socially and environmentally. Proudly B Corp certified since 2014, the company is dedicated to transforming the way business is done, placing emphasis on inclusivity, equity, and regeneration within the global economy. This dedication extends to their partnerships with small farmer associations throughout Colombia, where they provide support and promote sustainable practices.

One of the hallmarks of Lohas Beans is their unwavering dedication to collaboration and innovation. Through close partnerships with forward-thinking producers, such as Nestor Lasso, Adrian Lasso, and Jhoan Vergara, the company has been able to push the boundaries of coffee processing and flavour profiles. These partnerships have resulted in a diverse array of Microlots, each boasting its own unique characteristics and terroirs. Whether it's a clean, bright washed profile or a fruit-forward natural process, Lohas Beans offers something to tantalise every palate.

The proof of their dedication to quality and innovation is in the cup. Through Bennetts, they have supplied coffee to previous World, and Australian Barista and Brewers Cup Champions, cementing its reputation as a purveyor of excellence. As they look ahead to the future, with champions from across the globe eagerly anticipating their offerings, Lohas Beans remains committed to providing their partners with a high-value portfolio and an experienced team capable of meeting the ever-evolving needs of the coffee industry.

On that note, we are pleased to announce that our newest Lohas Beans arrivals are about to touchdown! With a wide array of premium coffees and profiles, we are sure there's a perfect fit for you!

However, with VERY limited availability, these in demand coffees will be sure to sell out quick.

Register your interest with your Bennetts Account Manager before it's too late!

You can view our Lohas Beans offerings here

Competiton Microlot Processing at El Diviso - Colombia

SPECIALTY COFFEE ASSOCIATION (SCA) EXPO - UPDATE

After a jam-packed week at the SCA in Chicago, we are now straight back into the swing of things at the Bennetts HQ.

It was an amazing opportunity to network with those in our industry, from far and wide. These expos always provide us great value in learning about our ever-changing industry, so keep an eye out for our full SCA report in the coming weeks as we share our recent insights.
We would also like to extend our congratulations to Tom Hutchins, and the Code Black Team! Between meetings, our team took the time to support the Australian Brewers Cup champion, Tom Hutchins who competed in the World Finals Brewers Cup Championship. Tom made his way through both the preliminary round and semi-finals with great applause.

Tom’s elegant performance incorporated a blend of two amazing coffees - a Cerro Azul, Geisha from Café Granja La Esperanza, and an Ombligon from Finca El Diviso - both amazing Colombian coffees from two of our close supply partners Café Granja La Esperanza and Lohas Beans. Both producers took to the stage to discuss how they view the use of their coffee in these types of global industry competitions.

In the final round, Tom took out 4th place, an amazing achievement in the World Finals, and a privilege for us to see him live on the stage.

SCA 2024 - Chicago, USA

MARKET REPORT

If any of these terms in the market report are confusing, we urge you to use Investopedia to make sense of them. We have found it to be a brilliant tool when learning about all things trading, futures and currency.
 
NY C movements and the Brazilian Impact
 
Well, well, well, wasn’t April a mover. From the low on the 1^{st of} April of 186.75 c/lb to the monthly high of 245.40 c/lb on the 18^th, we saw a range of 58.65 c/lb. To put this into perspective the range in March was only 13.65 c/lb, under a quarter of April’s number. By the final day of the month the NY C had settled back down to close at 216.65 c/lb but to understand this bullish run we’ll have to look at a number of different factors.

Largely, the increase in the Arabica price has been driven by the Robusta London market rally as shown in the graph below.  Robusta has faced supply issues from several major producing countries, namely Vietnam, Indonesia, and India, which look to further worsen in their upcoming crops in 2024/25. This fundamental supply and demand issue naturally causes prices to increase. The fact that Robusta is leading the charge of the two markets is highly unusual and something that has never been this sustained in their history.
 
What made April so interesting was the First Notice Day for the May 2024 futures contract terminal month. This is the day that all futures contracts against May have to be settled and the crucial dates were on the 22^nd of April for Arabica and 25^th of April for Robusta. After months of waiting/ hoping for prices to go down, many roasters and buyers of green coffee around the world were finally faced with a deadline. This caused a flurry of physical buying at destination, which means the suppliers at origin buy futures contracts, adding to the upwards pressure. Banks, hedge funds, and other investment institutions are always on the lookout for quick, liquid markets and it never takes them long to jump on the highway, and this time, they were gonna ride it all night long. With prices looking like they were only going one way they bought futures and added fuel to the fire. Any market participants with shorts quickly saw their margin calls rapidly increase and so a number of stop losses were triggered. Once again, another injection of buying. This chain of events resulted in the market moving very quickly.
 
By First Notice Day the pressure eased off and prices were able to flatten out. As supplier woes continue for Robusta could we see another market jump in June as we approach the FND for July?

In the coming months some the Bennetts Team are embarking on another exciting journey to the heart of coffee, Brazil! Following our successful trip last year, we are thrilled to return to this dynamic country, which holds a special place in the global coffee landscape.

As we prepare to depart for Brazil, we are reminded of the importance of connecting with our supplier partners at their source. There is no substitute for firsthand knowledge and experience when it comes to understanding the intricacies of coffee production and the unique challenges faced by farmers in different regions. Our visits to origin allow us to forge strong relationships with our partners, gaining valuable insights into their practices, challenges, and innovations.

Furthermore, our commitment to sustainability and quality is reaffirmed with each visit, as we witness firsthand the dedication and passion of the farmers who cultivate the coffee we proudly serve to our customers.

As we embark on this journey, we are filled with anticipation and excitement for the experiences and discoveries that await us in Brazil. Keep an eye out on our socials for updates on this trip!


EMPLOYEE UPDATE

It is with a heavy heart that this month we bid farewell to one of our very own. Dave, one of our Account Managers will be departing the Bennetts HQ during May, to embark on some travels and venture back home to England.

Dave has been with us for the best part of 18 months and has become a valued member and dear friend to all here at Bennetts. His classic British humour, and all-round good vibes will be solely missed, and we wish him all the best in his future endeavours. So, if you see him in the office or on the road, be sure to bid him farewell!

Bon voyage, Dave.