Harvest adjustments and regional development
ICAFE reports show regional harvest estimates in Costa Rica fell by 10% to 15% because of heat and irregular rainfall. I see these figures as significant adjustments to earlier projections. Miguel Barquero, the agronomic deputy manager at ICAFE, says irregular rainfall disrupted fertilization and changed the quality and weight of green coffee intended for export. These revised estimates follow a USDA forecast that predicted modest production growth. Black Rifle Coffee Company reported a $8.7 million net loss for the third quarter, which is a massive jump from its $1.2 million loss a year ago, even as revenue rose 7.3% to $108 million. The company also plans to close 12 company-operated coffee shops and will sell its Manchester, Tennessee, roasting facility to a manufacturing partner. Rainforest Alliance introduced an EUDR Producer Report that allows certified producers to share farm geolocation data and deforestation risk assessments with buyers. Organizers in Nairobi plan to bring 300 professional cuppers together to evaluate more than 500 coffee samples from 34 counties for the Kenya Coffee Flavor Map project.
Retail recalls and shifting ownership
Kraft Heinz agreed to sell its North American coffee business, including Maxwell House and Gevalia, to private equity firm One Rock Capital Partners for $650 million. This transaction, which should close in mid-2027, leaves Kraft Heinz with a 30% non-controlling stake. I find the Bodum USA recall even more problematic, as the company pulled approximately 5.9 million French press coffee makers because 70 reports of glass carafes breaking during use included 48 reports of burns. The recall covers eight models sold in the United States from 1974 through October 2026. Dutch Bros reported third-quarter revenue of $549.8 million, an increase of 29.8% from the previous year, and net income of $37.2 million, up from the $27.3 million reported in the same period last year. Swiss Water saw growth, with third-quarter processing volumes increasing by 16% and revenue rising 5% to C$65.9 million. I find the situation at Outset Coffee particularly bleak, as the three-year-old specialty coffee company closed both of its cafes following landlord disputes that included a $200,196 default judgment. Luckin Coffee reported 17% revenue growth and a 45.4% increase in net income, despite declining sales at established stores. Kearney found that 71% of surveyed U.S. consumers would change their primary coffee machine type within two years, despite reporting high satisfaction with current setups.
