The following post is from the latest NCA Member Alert.
On Thursday, Republican leaders announced that the controversial border adjustment provision, which threatened to saddle coffee imports with duties that could have added as much as 20% to declared values, has been dropped from the proposed tax plan.
“While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform,” House, Senate and White House leaders working on a tax plan said in a joint statement Thursday, CNBC News reports.
The following article was originally published by Bloomberg Markets
By Marvin G. Perez
For roasters and producers, cold brew can lead to more bean sales at a time of year when demand traditionally slackens. The need to soak up extra supply is especially important with the price of arabica coffee futures in New York dropping as much as 21% in the past year, and the pace of demand growth in the U.S. forecast to slow.
The benefit of cold brew is twofold: it uses more than twice the amount of ground beans, and it does battle against the efficient single-serve pods that have whittled coffee use and waste.
In the 12 months ended in February, sales of cold brew in the U.S. were up about 80% over the prior year, according to estimates from Cedarhurst, New York-based researcher StudyLogic. Sales of hot coffee fell 3% over the same period. Americans drank 105 billion cups in the 12 months ended in May, StudyLogic Chief Operating Officer Samuel Nahmias said.
“As a regressive tax borne largely by consumers, the proposal can hurt […] hundreds of independent roasters, coffee shops, restaurants, retailers, and suppliers. Aimed at promoting a healthy diet, the tax would have the opposite effect if applied to coffee.” – William M. Murray, CEO, NCA
The Seattle City Council will vote on introducing a “soda tax” in the city on Monday. The measure would put a one-cent per ounce tax on sugary beverages, and would impact coffee as collateral damage. Furthermore, small businesses would be disproportionately affected.
The National Coffee Association has submitted the following letter to the City Council to express the industry’s strong position on how the tax would severely impact the local coffee economy and that coffee should be exempt should any soda tax be ratified.
Read the full NCA comment letter.
In the News
Is Seattle’s proposed soda tax also a tax on sugary lattes?
Tell the Seattle city council that levying a soda tax on coffee would have unintended and unanticipated consequences for the coffee industry and local businesses. Send an email to firstname.lastname@example.org, or call 206-684-8888.
Comments? Share your thoughts in the comments below, or get in touch at email@example.com.
By William (Bill) Murray, CEO, NCA
The 2016 U.S. presidential election provoked deep passions across the U.S. that continue to be felt today, as the policy implications continue to unfold.
Last December, we took a first look at how coffee-related policies might be impacted by the election, while conceding that there was much yet to be discovered about the new administration.
Among the various initiatives under discussion by the new administration, a “border adjustment tax” potentially has huge implications not only for the coffee sector, but for every coffee drinker in the U.S. – more than 180 million Americans.
Most ironically, in the case of coffee a “border adjustment tax” could raise the price of everyone’s daily coffee, while not having the intended effect of “bringing jobs to America.”
This popular pick-me-up fuels not only our daily energy levels, but the global economy as well.
What’s ahead for the international coffee industry?
The USDA recently released their biannual report, which includes data on U.S. and global trade, production, consumption and stocks, as well as analysis of developments affecting world trade in coffee.
Key highlights from the 2016/17 forecast include: Continue reading
By Tyler Hubbell
This post originally appeared on the Repsly blog
In one form or another, chances are almost everyone you know starts their day with coffee – be it home-brewed, bottled, or purchased hot or iced from a coffee shop. As longstanding as its popularity may be, the coffee industry is in the midst of a rapid change.
As millennials’ fast-paced lifestyle becomes ubiquitous, consumers are preferring to get their caffeine on the go. In turn, retailers are experimenting with novel ways to speed up ordering and get busy shoppers back in their stores.
Here are the five coffee industry trends that will dominate 2017: Continue reading
By Joseph DeRupo, Director of External Relations, NCA
The following is an excerpt from a recent NCA Member Alert. (Want to receive the latest industry updates directly? Learn more about NCA membership.)
After a deeply divisive campaign, a new administration is poised to assume power in Washington, having been elected on a platform which has expressed skepticism toward big government and regulatory intervention.
The transfer of power has only just begun, cabinet and agency appointments are a still in progress, and budget negotiations are far off – including the implications of funding cutbacks or additions.
In the meantime, we’re preparing for the changes that may be ahead. Earlier this year, the NCA released the first-ever Economic Impact Study to measure the U.S. coffee economy, and the NCA’s 2017 plan already includes outreach in Washington to raise awareness of the industry’s importance. That outreach will now take on even greater significance as the coming months unfold.
The NCA will not speculate as to what these changes in Washington may mean for coffee. But it’s never too soon to begin planning, and here are some key issues on the industry’s docket:
By David Sprinkle, Research Director, Packaged Facts (@packaged_facts)
If you haven’t paid attention to the sales success of coffee creamers, you are missing a sign of the times in the coffee market.
Packaged Facts estimates that U.S. retail sales of coffee creamer products will grow by $400 million between 2011 and 2016, to exceed $2.5 billion. This sales spurt in a niche product segment is not wholly surprising, given the current landscape of consumer food priorities and concerns.