By Marvin G. Perez
Coffee demand won’t expand until “we get the full recovery of the hospitality channels,” Andrea Illy, chairman of Illycaffe SpA, said in an interview on Bloomberg TV with Alix Steel and Guy Johnson.
Higher demand at home gave a “significant” boost to e-commerce and retail sales, though “total consumption is flat, and I think it will stay like that for a while”
The company, known for premium coffee sold mainly in hotels, restaurants and cafes, is seeking to expand in the U.S., the world’s top consumer and biggest luxury market
The company focus will include at-home demand, given the shift in consumption during the coronavirus pandemic
Closely held Illy, based in Trieste, Italy, also aims to increase sales in the domestic market, the chariman said
Two-thirds of sales are currently outside Italy
NOTE: Illycaffe Targets Retail Coffee Market in U.S. Expansion
Coffee Futures Extend Rally to 13-Week High as U.S. Supply Ebbs
Stockpiles of green coffee drop to lowest since 2015
Raw sugar rises for second day on Brazil crop outlook
By Marvin G. Perez and Patrick McKiernan
Arabica-coffee futures extended a rally to a 13-week high as a gauge of inventory dwindled in the U.S., the world’s top consumer. Raw-sugar prices climbed for the second straight day.
Stockpiles of green coffee in November fell for the fifth straight month to the lowest since 2015, U.S. industry data showed Tuesday. Hurricanes last month damaged prospects for some Central American crops, and a shift to an off-year in a biennial cycle looms in Brazil, the top producer and exporter.
The inventory drop was surprising and bullish, signaling demand is picking up as the outlook dims for supplies in the coming year, said Hernando de la Roche, senior vice president at StoneX Group in Miami.
Starbucks Corp. Chief Financial Office Patrick Grismer said Tuesday on an investor call that U.S. coronavirus restrictions will be relaxed in the second quarter. The shares of the biggest coffee chain rose to a record last week.
Arabica coffee for March delivery rose 1.4% to $1.264 a pound at 12:41 p.m. on ICE Futures U.S. in New York after reaching $1.286, the highest for a most-active contact since Sept. 14.
This year, the price has declined more than 3%. Global demand won’t expand until “we get the full recovery of the hospitality channels,” Andrea Illy, chairman of Illycaffe SpA, said in an interview on Bloomberg TV,
Raw-sugar futures for March delivery climbed 2% to 14.49 cents a pound, partly on the outlook for lower production next season in Brazil, the top producer and exporter. The price rose 0.6% on Tuesday.
India, Brazil’s biggest rival producer, approved $475 million of subsidies to help manufacturers export as much as 6 million metric tons in the current season.
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