Cold Brewed Coffee, The New Summertime Favorite

Cold Brewed Coffee, The New Summertime Favorite

$SBUX

Usually in the US business slows down as the weather heats up in Coffee shops.

But as cold brewed Coffee, moves from a hipster to a mainstream staple, that traditional seasonal pattern is changing.

Cold brewed Coffee uses more beans than traditional iced coffee, it boosts overall US demand for Coffee beans, partially offsetting the effect of single-serve pods.

The nation’s largest Coffee chain, Starbucks (NASDAQ:SBUX) launched cold brew at 2,800 stores this Cummer.

My favorite Los Angeles Coffee shop, Javista on Sunset Blvd in Hollywood began serving cold brew this Spring and sees sales climbing.

One day, there will be no regular iced Coffee in upscale Coffee shops.

Cold brew is made by steeping fresh ground Coffee in cold water for between 12 and 24 hrs, while traditional iced Coffee is made by cooling hot-brewed coffee and serving it over ice.

The cool temperature and lack of movement means not as much flavor and strength is extracted from each bean compared to hot or traditional iced Coffee so there is a larger dose of ground Coffee in cold brew blends.

Some specialty roasters argue it that cold brewing Coffee fails to extract quality beans’ full flavor potential.

Still, Americans’ thirst for cold Coffee has been rising for years.

In Y 2014 Americans consumed 90-M gals of ready-to-drink Coffee beverages, ranging from bottled Starbucks Frappuchinos to cartons of Stumptown cold brew, up 52% from Y 2009, data from Beverage Marketing Corporation show.

By contrast, sales of carbonated soft drinks dropped for 5 straight years to 12.8-M gals last year. That was down 9% from Y 2009.

In addition, the percentage of Coffee shops and restaurants serving iced coffee rose from 19% in Y 2009 to 24% in Y 2013, data from market research firm Mintel show.

Cold brew was popularized when Portland-based, private equity-backed Stumptown Coffee Roasters started selling ready-to-drink coffee in a “stubby” bottle in Y 2011, with Starbucks’ entrance, cold brew has hit the mainstream.

The popularity growth of this stronger brewing method may support overall US Coffee demand, providing a counter-weight to the growth of single-serve Coffee pods, which are widely seen as limiting demand by reducing Coffee waste.

US Coffee consumption will fall next year for the 1st time in 6 years, according to a US Department of Agriculture (USDA) forecast.

Have a Cold Brew Organic Coffee, its good and good for you.

HeffX-LTN

Paul Ebeling

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