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July 2023

mycuppa July 2023 Newsletter

Don’t be distracted by criticism. Remember, the only taste of success some people have is when they take a bite out of you." - Zig Ziglar

mycuppa July 2023 Newsletter

The coffee market in Australia is currently experiencing another round of minor structural shifts, not unlike the impact of the pandemic, albeit way less brutal.

Vibrant hospitality and wholesale segments feeding cafes and restaurants are facing considerable headwinds from lower demand coupled with increasing pressure on margins. Over the last quarter, for the first time since lifting of restrictions, the wholesale segment lowered order volumes.

At the same time there are greater levels of competitive friction with wholesale buyers seeking cheaper alternatives to offset surging costs of labour, supplies and energy. Where it gets too tough places are closing at faster cycles than normal with the shutdowns far exceeding new openings.

These forces are creating higher volatility where both value and loyalty are being tested at greater intensity. The economic conditions of rising interest rates, inflation and the "cost of living" crisis continue to influence consumer behaviors such as cutting back or sacrificing non-essential expenses. In simple terms, there is less foot traffic in food service outlets.

But just like during the lock downs and restrictions, consumers don't stop drinking coffee and instead switch to others options such as instant, single-serve capsules or DIY espresso coffee in the home. So whilst the overall consumption of coffee may not dip as growth in retail ingredients compensate for lower wholesale.

The signs of distress have been evident over the last couple of months with brands that traditionally play in wholesale now switching their focus to retail by offering unsustainable or questionable discounts in desperate attempts to rebuild their revenues.

How long and how low can things go ? Who knows, but the short-term outlook is not entirely positive, except for the long-promised boost in economic prosperity on the back of higher immigration and population. 

Unfortunately, a growing population may not directly translate into the meaningful stimulus the hospitality industry needs.

Secret Label

July's Secret Label is now available in the mycuppa store.

This month we have shifted away from the richer body and dark chocolate attributes to a more complex theme of dark red fruits, brown sugar, caramel and toffee with a restrained milk chocolate finish.

Secret Label is about doing things differently, searching for new flavor experiences and sensations.

This blend pairs the sweetness of red fruits with rustic caramel and toffee  tones to produce an unusual and distinctive cup.

A hint of malic acid offers a delicate contrast against the more dominant citrus acidity.

Yes, it will indeed be a departure from the last few Secret Labels and in particular the medium body offer a chance for sweetness and cup complexity to feature instead of the viscosity of body taking over the palate.

New arrivals we are loving right now

Organic Ethiopia Nespresso-compatible capsules

Our latest Nespresso-compatible single origin premium quality capsule is a delicious Ethiopia Organic with flavors of fruit cake and chocolate.

Fresh roasted and converted in small batches weekly.

Try the new sweet tasting coffee here- Organic Ethiopia Capsule.

Ceylon BOP Tea

High-grown, Ceylon Broken Orange Pekoe (BOP) loose leaf tea is now back in stock after some challenging supply problems obtaining stock.

Orange Pekoe makes a stronger, fuller bodied black tea with a long oak finish.

Pick up a pack here - Ceylon BOP tea.

Colombia Supremo

The new crop Colombia Supremo has landed and tasting amazing.

Elegant, developed acidity, clean and sophisticated caramel with sweet berries and a delightful floral aroma.

Nicely balanced and a superb choice for those wanting to venture into single origin coffees with it's well-rounded features.

Grab it here - Colombia Supremo.

Ethiopia Bensa

Our top pick of the new crop coffee has to be the Ethiopia Bensa with delicious, intense fruit notes of rich red and dark berries.

Bensa is an excellent choice for coffee lovers of black (no dairy or alternatives added) brews.

A stunning coffee in every regard - grab it here Amazing Ethiopia Bensa.