Data from NPD Group indicates that 11% of millennials use craft coffee brewing to satisfy their daily coffee cravings.
It's a trend to watch with younger consumers representing 44% of at-home craft coffee brewers of which a third live in urban areas.
It's not clear if the increase in at-home craft coffee consumption is peeling away meaningful packaged coffee sales or store traffic to chains, but there could be a reputational risk to national brands on quality in the future.
Twenty-five years after classifying coffee as a possible carcinogen leading to bladder cancer, the World Health Organization has reversed course, and is expected to say today that coffee isn't classifiable as a carcinogen.
WHO is also likely to state coffee has no carcinogenic effects related to other cancers and has even been seen to reduce the risk of liver and uterine cancers.
Coffee prices continue to fall as strong El Nino rains in Brazil help to boost crop yields. The next harvest in the nation is forecast to be up 20% Y/Y at 58M bags.
Even with Arabica prices down 28% this year, analysts see another swing lower for coffee in 2016 due to the oversupply situation.
Weak currencies in South America are also providing a strong incentive to local producers to sell as much as they can.
The trend toward low coffee prices is helping to lift margins for many coffee sellers with U.S. retail prices only down 4% to 5% this year. Companies light on hedging positions are seeing the biggest benefit.
Most execs play coy over the bottom line benefit of lower coffee commodity prices, but even Starbucks CFO Scott Maw had to concede that pricing looked a "little bit favorable" during the firm's last earnings call (transcript).
The steady drip of additions to JAB Holding's coffee empire, most recently Keurig Green Mountain, is threatening to leave a bitter taste for traders who supply its growing network of roasters with beans.
After being purchased by JAB, many roasters have increased their net financing terms to 120 days or more, up from an industry standard of 30 days, meaning that middlemen have to wait at least four months before being paid.
Such a move poses problems and gives importers a choice between paying more in interest payments on the additional credit, or losing the roaster as a customer.
El Niño has a reputation for triggering sharp run-ups for prices in markets as diverse as nickel, coffee and soybeans, and commodities investors, traders and analysts are bracing for impact at a time when global supplies of many raw materials already are stretched.
Global food prices - which at the start of 2014 were expected to be largely flat this year - could easily climb 15% to record highs in as a little as three months after an El Niño occurs, says World Bank economist James Baffes.
But Société Générale analysts say it is miners, not farmers, who have the most to worry about; since 1991, nickel prices rose the most (13.9%) during El Niño years among commodities the bank tracks.
Is your coffee getting cold? Coffee ETFs (JO -4.63%, CAFE -4.15%) fell today after robusta coffee fell in London to its lowest level in 17 months. Also today came a report in Wired U.K. that coffee rust is again epidemic in South America, threatening more than half of the October harvest. Jun. 12, 2013, 4:10 PM|1 Comment