Visiting this Summer a specialty coffee shop in Xinshu, Taiwan.
When I was first asked by Lukas Grosfeld, founder of Wakuli, if I knew what specialty coffee means, I mumbled that it’s something like the specialty beer trend, but then for coffee. Lukas said “Yes. No.” Yes, because it fits the consumer trend that they look for pure, locally sourced, original products. Maybe with special flavors, a local brand with a story, a view on the place where the product is brewed. No, because specialty coffee is more narrowly defined than specialty beer.
The term specialty coffee was first used in 1974 by Erna Knutsen in the Tea & Coffee Trade Journal to describe beans of the best flavor which are produced in the most fitting micro-climates. However, nowadays, the definition evolved to coffee scoring at least 80% on the Specialty Coffee Association (SCA) cupping form. SCA grades coffee scoring above 90% as outstanding, coffee scoring 85% to 90% as excellent, and coffee scoring 80% to 85% as very good. Apart from the subjective tasting, there are objective criteria related to the allowable defects, water standards and brew strength. Regarding defects: only selective picking of green beans leading to not more than five defects per 350g coffee is allowed.
Apart from quality, the newest coffee trend is also about transparency. Consumers want to know the story behind it. Where do the beans come from? This led to a focus on single-origin beans, direct trade relationships with farmers, and detailed information about the coffee’s journey from farm to cup. Transparency includes sustainable practices, given that consumers are more sensitive to these. Therefore, sustainability is a major factor in the specialty coffee movement. Many specialty coffee producers and roasters commit themselves to environmentally friendly practices, such as organic farming, and fair trade practices.
Further, specialty coffee is known for its diverse and complex flavor profiles. With an emphasis on artisanal roasting techniques, coffee enthusiasts explore a wide range of flavors that go beyond the traditional profiles of bitterness and acidity. The artisanal approach includes methods like pour-over, Chemex, and siphon brewing, which highlight the unique characteristics of each coffee bean. On the other hand, there’s a growing interest in various high-tech espresso machines allowing coffee lovers to experiment and find their preferred brewing style.
Finally, as the specialty coffee trend grows, so does the emphasis on barista training and coffee education.
The rise of numerous independent, craft coffee shops reflects the trend towards specialty coffee. These establishments often focus on high-quality beans, skilled brewing, and a unique customer experience. This sets them apart from mainstream coffee chains. An example is Intelligentsia Coffee, founded in 1995 in Chicago, and renowned for ensuring that coffee farmers receive fair compensation. Their meticulous approach to roasting and brewing set high standards in the industry. Furthermore, they innovated the menu of coffee offerings.
Blue Bottle Coffee (2002) of James Freeman emphasized freshness and artisanal roasting, further popularizing specialty coffee. Freeman’s commitment to quality and innovation helped elevate the movement in the early 2000s. Intelligentsia and Blue Bottle developed into chains. Apart from them, more regional chains developed: Stumptown Coffee Roasters from Portland, Verve Coffee Roasters in California, La Colombe Coffee Roasters from Philadelphia, Tim Wendelboe in Norway, Square Mile Coffee Roasters in London, and of course Wakuli in the Netherlands.
The rise of specialty coffee chains, spelled trouble for Starbucks. The not-so-special coffee chain experiences an increased competition from the new and innovating chains and stores. It forces Starbucks to review its strategy, it changed its CEO, and go back to its roots: brewing better coffee. Starbucks lost its touch with young professionals of 20+ who prefer the new menu options like cold brew coffees, with or without nitro foam, and macha variants. This younger generation doesn’t want to be seen on Facebook, and doesn’t want to be spotted in a Starbucks as well. Because that’s where their parents go.
Read further: News, specialty coffee, Wakuli
Founder and CEO of Icecat NV. Investor. Ph.D.
