Coffee

Starbucks to implement 'significant changes' to company structure

(Sept 25): Starbucks Corp. is planning an organisational shake-up, including corporate layoffs that will start at top levels, as the coffee chain tries to reverse stagnant sales and rekindle investors’ interest.

“We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business,” Chief Executive Officer Kevin Johnson said in a memo to employees viewed by Bloomberg News. “To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company.”

Olam pays $3.1 mil for 29% stake in coffee & nuts JV in Spain

SINGAPORE (Apr 19): Olam International says it has paid 1.88 million euros ($3.05 million) for a 29% stake in a joint venture (JV) company with Guzman Global, the distributor of industrial raw materials as well as coffee & nuts.

Guzman Global holds the remaining 71% stake.

Based in Spain, the JV company is named Guzman Coffee & Nuts (GC&N), and is now an associated company of Olam.

It will import and distribute coffee & edible nuts in the Spanish and Portuguese markets.

Olam adds East African coffee specialist to business brew with $10.4 mil acquisition

SINGAPORE (Oct 24): Agri-business Olam International has acquired a 100% stake in Schulter S.A., an East African coffee specialist, for US$7.5 million ($10.44 million).

The acquisition is funded by a combination of internal accruals and existing debt facilities, says Olam in a Monday announcement.

Upon completion of the deal, Schluter will become the speciality arm of Olam Coffee in Europe.

Based in Switzerland, Schulter specialises in trading East African Arabica coffees, and is a founding member of the Specialty Coffee Association in Europe.

Super Group shares bland on higher raw material prices and volatile forex

SINGAPORE (Oct 13): Daiwa Capital Markets is maintaining its “sell” call of instant coffee manufacturer Super Group with 65 cents target price on doubts of a recovery and lack of earnings visibility.

In a report published on Wednesday, analyst Jame Osman notes that while competitive pressures are easing, near-term headwinds such as unfavourable foreign currency movements and volatile raw material prices continue to bog down the stock.

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