• Looks to NCA for Potential Partnership
• Africa, not if, but when to hold auction
• Program discovers regional potential
• Brazil's new found respect

By Marvin Perez CoffeeNetwork  

New York, July 21 (CoffeeNetwork) The Alliance for Coffee Excellence, Inc., ACE, a non-profit group which owns the Cup of Excellence competition, is moving along its expansion plans, with future initiatives including a potential partnership with the National Coffee Association and possible coffee auctions in Africa.  

The Montana-based group, which now coordinates coffee auctions in six countries, has been enjoying success as the group has reached more South American partners, in turn helping growers across Latin America ­ for now, to have their coffees tasted ­ and discovered - by a wide spectrum of roasters and buyers across the globe.  

"We are talking to the NCA trying to develop a partnership plan that would benefit both groups, finding synergies to help both organizations focus on quality can help NCA members," many of which have a large portion of their business concentrated in high qualities, commented Susie Spindler, executive director of the Alliance, during a recent conversation with CoffeeNetwork.  

The NCA, whose members are responsible for 90% of all coffee traded in the U.S., includes companies such as Starbucks and other major roasters, including Procter and Gamble, Sara Lee and Kraft, all of which have gourmet products.  

The Alliance currently coordinates auctions in Honduras, Nicaragua, El Salvador, Bolivia, Colombia and Brazil.   

"Eventually well will do something in Africa, the question is not if, but when," said an ebullient Ms. Spindler, who travels the world promoting the program as well as talking to buyers and roasters of high quality coffees.  

She said the Alliance was expecting to do something in East Africa next year but different rules applicable to the region delayed the start of the program there.  

Ms. Spindler noted that in 2004 the average price fetched during the auctions was just above $4/lb and in many cases records were broken in certain countries. Colombia, for example, held its first auction this year and the high prices fetched have encouraged larger participation from growers for its second competition later this year.  

Ms. Spindler dismissed critics who say that the auctions continue to attract the same buyers, noting that from a buyer-base of only 3-4 during its first year in 1999, the buyer list now includes over 100 of the world's top roasting and buying companies.  

"The core base of buyers remains loyal," said Ms. Spindler, adding that even though some new buyers are hesitant at first, they too eventually come on board.  

The Cup of Excellence Competition typically includes three phases: a local contest, with local judges, who select the farms that go on to the international jury selection, who then choose the final list that will be auctioned off. These judges typically become the buyers of the coffees offered.  

She also noted that while Japanese buyers have been prominent repeatedly during the recent auctions, the buyer-base include many top European, U.S. and Scandinavian buyers. She said that the strong participation of Japanese companies tells more about the uniqueness of the Japanese market, where drinkers continually demand higher quality. She noted that in some cases, Japanese coffee drinkers underrate roasters who don't offer a Cup of Excellence winner.  

"Consumers in Japan are willing to pay more so the base price there is higher."  

SECONDARY BENEFITS  

Surprisingly, growers and producing nations are also seeing secondary benefits.  

"We are not just identifying farmers, but entire regions," said Ms. Spindler, adding that some government authorities, aware of a region's potential, are getting more involved in quality program to help those areas become more active in the specialty market.  

Also, well-trained local judges are spreading the word about the potential rewards of a strong quality program, raising the bar for the entire sector where the competition is held.  

"In a sense, there is an analogy here like when a country decides to go for the gold there is an entire push from the sector to support the program," she said.  

Brazil is another example of benefits the competition has brought. She said that few years ago, there was a stigma about Brazil's coffee quality ­ or lack of - and the competition has demonstrated the nation can produce some amazing beans, in many areas, as is the case in the Cerrado region.

Colombian growers will get a chance to show their goods later this fall, when the nation holds its 2nd Cup of Excellence auction, scheduled for Oct. 6.  

As reported, ACE recently elected its board of director. At a recent meeting in Tokyo, Becky McKinnon, president and COE of Timothy¹s World Coffee was named the ACE Chairman. Timothy¹s has been a long time supporter of the Cup of Excellence program having participated as a bidder in every auction. 

Along with Becky McKinnon, the ACE Board of Directors will include long time members Marcelo Vieira, coffee farmer, past president of BSCA and co-creator of Cup of Excellence and Hidetaka Hayashi, President of the Hayashi Coffee Institute in Tokyo.

Stephen Hurst past chairman and founder of London based Mercanta, the Coffee Hunters, Mike Ebert, President of Chicago based Coffee Masters, Steve Leach Director of Green Coffee for Deidrich¹s and Roberto Bendaña founder of the Nicaragua Specialty Coffee Association will continue as board members.

New members to the Board of Directors include Peter Smit, Director, International Trade Center (ITC/UNCTAD) in Switzerland, Luis Norberto Pascoal, owner of the Daterra coffee farm  and Chairman and CEO of Brazil based Dpaschoal and Oscar L. Schaps, Managing Director at Hencorp Futures, and President of Coffee Network in Miami, Florida.

"The 11 person board is an increase from 2003 and reflects the growth potential and interest in the program, Cup of Excellence has proven extremely successful and there are so many opportunities for the future that it was necessary to bring in more diversity and skill to help manage the program." said Ms. Spindler.

A panel of experts consisting of producing country partners, roasters, importers and NGOs from around the world also advises the Alliance for Coffee Excellence, Inc.

Marvin Perez, mperez@coffeenetwork.com