Posted by Hafid > 2021-02-25 07:59 | Report Abuse

nta is only 40 sen.

Posted by ATARAH > 2021-02-25 08:11 | Report Abuse

Good morning.
I like coffee ...very much..
One home made cappucino please..

Today ...gap up ?
How much up ?

Fantastic result ...
Highest qtr...

Break higher high price RM 3.17 ...
Freedoom.....run

Uchitec ...go go go..

Taiwanese lang ...kaiki lang .
Hokkien lang

Up up up

Posted by investortrader88 > 2021-02-25 08:11 | Report Abuse

investortrader88 Uchi Technologies Berhad, an investment holding company, engages in the design, research and development, manufacture, and sale of electronic control systems in Europe, the Asia Pacific, and the United States. It offers real-time centralized energy measurement and control system, high precision hot fluid temperature control system, and ultra-low temperature and mass sensing control system for bio-chem equipment, touch screen advance displays, high precision light measurement equipment, mixed signal control systems for centrifuge/laboratory equipment, mixed signal microprocessor based application, and system integration products, as well as electronic modules. The company also engages in the assembly of electrical components onto printed circuit boards (PCB); and trading of electric modules and saturated papers for PCB lamination. In addition, it develops software programming, hardware design, and system construction of original design manufacturing products. The company serves multinational companies in the consumer and industrial electrical and electronic appliances industries. Uchi Technologies Berhad was founded in 1989 and is based in Prai, Malaysia.



# Market cap RM 1,137.2M


# Last 7 years profit RM 39.1 million - RM 75.9 million


# Earning are forecast to grow 6.8 % past year.



# PE 15


# FUTURE ROE 42.5% ( next 3 yrs )


# ROA 33.8 %


# ROCE 41.8 %


# EPS RM 0.16



# REVENUE ( Dec 2019 ) RM 156.673 million / per yr

# EARNING RM 75.948 million / per yr

# PROFIT MARGIN 48.50 %



# EARNING TREND have grown by 11.9% per year over the past 5 years.


# Short Term Liabilities: UCHITEC's short term assets (MYR157.8M) exceed its short term liabilities (MYR35.1M).


# Long Term Liabilities: UCHITEC's short term assets (MYR157.8M) exceed its long term liabilities (MYR1.2M).


# UCHITEC is DEBT FREE



# CASH & SHORT TERM investment RM 128.80 million.



# DIVIDEND 6.75 %



# Current payout dividend to shareholders from earning 94 %.



# CEO Mr. Yau Meng Chin serves as an Managing Director of Uchi Technologies Bhd since June 1, 2018 and its Executive Director since March 1, 2018. He served as Executive Officer at Uchi Technologies Bhd from March 1, 2018 to June 1, 2018. Mr. Chin has vast working experience in manufacturing and supply chain management. He is one of the pioneer staff members and joined in Uchi Electronic (M) Sdn. Bhd. (UEM) as a Production Officer in 1990. He served as Production Manager at Precima Sdn. Bhd. in 1993 and came back to re-join Uchi Optoelectronic (M) Sdn. Bhd. (UOM) in 1994 as M.I.S. Manager. He was advanced to Deputy Operation Manager in the same year. With his proven ability and reliability, he was then assigned to head the entire Uchi Technologies (Dongguan) Co., Ltd. (Uchi Dongguan) plant in 2007. Mr. Chin served as an Executive Director of UOM and UEM on January 1, 2007 and Uchi Dongguan on April 8, 2007 respectively. He holds a Master Degree in Electronic from Queen University of Belfast (UK).
11/07/2020 4:01 PM

Posted by investortrader88 > 2021-02-25 08:14 | Report Abuse

investortrader88 Top 25 shareholders own 69.04% of the UCHITEC BERHAD

De-Tsan Kao
19.1%

Te-Pei Kao
8.44%

Public Mutual Berhad
6.97%

Employees Provident Fund of Malaysia
5.35%

Kumpulan Wang Persaraan
4.95%

Sumitomo Mitsui DS Asset Management Company, Limited
2.81%

Eastspring Investments (Singapore) Limited
2.63%

Sumitomo Mitsui Trust Asset Management Co., Ltd.
2.61%

Bekal Sama Sdn Bhd
2.23%

Principal Asset Management Berhad
2.06%

Bank Negara Malaysia National Trust Fund
1.55%

AIA Investment Management Private Limited
1.54%

Hong Leong Asset Management Bhd
1.23%

Zulkifli Bin Hussain
1.11%

Affin Hwang Asset Management Berhad
0.79%

Ying-Ying Kao
0.78%

PMB Investment Berhad
0.77%

Schroder Investment Management Limited
0.65%

Shin-Fang Chang
0.57%

OP-Pohjola Group, Asset Management Arm
0.56%

Dimensional Fund Advisors L.P.
0.55%

Libra Invest Berhad
0.54%

UOB-OSK Asset Management Sdn. Bhd.
0.53%

RHB Asset Management Sdn Bhd
0.46%

Norges Bank Investment Management
0.26%
11/07/2020 4:01 PM

Posted by ATARAH > 2021-02-25 08:40 | Report Abuse

Next recovery stock play.

Posted by ATARAH > 2021-02-25 08:41 | Report Abuse

Perfect timing with great highest qtr result

Posted by ATARAH > 2021-02-25 09:01 | Report Abuse

Yessssssss yeahhhhhhhhh yahooooo

Posted by ATARAH > 2021-02-25 09:04 | Report Abuse

Limit up one time please...
Pe 35 ok lah ...still cheap

Posted by investortrader88 > 2021-02-25 09:08 | Report Abuse

congrats guys .finally fly higher ! :):)

Posted by ATARAH > 2021-02-25 09:11 | Report Abuse

Chart ...no roadblock..
Freedom run..
Nosh very small with highest qtr profit
Many traders still dont know

Posted by ATARAH > 2021-02-25 09:12 | Report Abuse

Look like limit up today.

Taiwanese power...kaiki lang....

Posted by chshzhd > 2021-02-25 09:37 | Report Abuse

steady price movement..

Posted by Targeted > 2021-02-25 09:42 | Report Abuse

Market mopping up Kenaga tickets......... Lol........ Koyak la Kenaga this time.........

Posted by Hush77 > 2021-02-25 09:44 | Report Abuse

excellent results and dividend

Posted by Hush77 > 2021-02-25 09:45 | Report Abuse

dividend is better than most tech counter

Posted by Hush77 > 2021-02-25 10:09 | Report Abuse

earnings per share 7.2 sen this qtr..
and dividend increase to 9.5 sen!

Posted by gemfinder > 2021-02-25 10:27 | Report Abuse

buy in 3.31

Posted by chshzhd > 2021-02-25 10:45 | Report Abuse

ci expires on 16 August

Posted by jackylcs > 2021-02-25 14:24 | Report Abuse

suka suka je limit up .. Main market ni ..

Posted by amateurJR > 2021-02-25 14:24 | Report Abuse

This stock deserves more

Posted by RainT > 2021-02-25 17:12 | Report Abuse

With lockdown every year

Most companies report drop in revenue & profit

UCHITEC just report drop 1% in revenue only & sustainable profits

very comemdable results

Posted by RainT > 2021-02-25 17:13 | Report Abuse

@chshzhd

too late already buy in at 3.31

u expect share price can shoot to 10.00 ??

Posted by staypositive > 2021-02-25 18:23 | Report Abuse

Looking at breaking previous ATH at 3.560 and slowly moving up to hit 4.500 by mid this year.

Posted by Targeted > 2021-02-25 22:00 | Report Abuse

Slow and steady is the name of Uchitech's game.....

Posted by Targeted > 2021-02-25 22:01 | Report Abuse

Just remember, enjoying coffee is the new smoking......... can live longer as well.....

Posted by Targeted > 2021-02-25 23:14 | Report Abuse

Caffine is almost as addictive as nicotine....

Posted by Targeted > 2021-02-26 03:36 | Report Abuse

.
Coffee machines sales skyrocketed during covid lockdown, worldwide frm US, europe to korea, new norm of work frm home culture,

Uchi used to provide in house developed, with IP,
electronic modules etc, fr several companies, now just focus on 1ultra premium brand 'Jura' while phasing out others so ultra high profit margins here on......

Posted by investortrader88 > 2021-02-26 07:51 | Report Abuse

probability investortrader88, may i know where it was reported that earnings are forecast to grow at 6.8%?



@probability.i get it from here bro.


https://simplywall.st/stocks/my/tech/klse-uchitec/uchi-technologies-berhad-shares

Posted by probability > 2021-02-26 09:55 | Report Abuse

thanks investortrader88

Posted by huat8787 > 2021-02-26 10:06 | Report Abuse

https://www.freemalaysiatoday.com/category/world/2021/02/26/us-allows-pfizer-vaccines-to-be-kept-in-common-freezers/?fbclid=IwAR2b0qCooUdnCwN7fvu39OYeCW3MqhmI-6OJYAzk651cYT1unZwDMLT1z2E

Posted by information > 2021-02-26 10:34 | Report Abuse

Ultra-cold freezer sourcing up 522% with vaccine logistics underway

https://www.supplychaindive.com/news/cold-chain-ultra-low-temperature-freezer-demand-coronavirus-vaccine/592279/

The ULT freezer producer stated that demand for its products for healthcare operations will remain, as dry ice is not a long-term storage solution.

Posted by information > 2021-02-26 10:56 | Report Abuse

Restaurants and Pubs Can Reopen Outdoors From 12 April

https://london.eater.com/22289541/when-will-restaurants-pubs-reopen-after-coronavirus-lockdown-england-roadmap

Posted by RainT > 2021-02-26 10:56 | Report Abuse

buy

Posted by investortrader88 > 2021-02-26 11:09 | Report Abuse

probability thanks investortrader88
26/02/2021 9:55 AM


@probability .:):)

Posted by ATARAH > 2021-02-26 11:59 | Report Abuse

Not much profit taking..price sustain up.
That very good sign.
Great FA company.
Will be up more

PE only 17.91.
Looking forward PE 35
Up up up..

Taiwanese power
Best QTR ..
All good company from Taiwan

Posted by troy88 > 2021-02-26 17:05 | Report Abuse

This company has very good potential. A low profile gem.

Posted by gemfinder > 2021-02-26 17:16 | Report Abuse

wil cross rm4

Posted by chshzhd > 2021-02-26 22:24 | Report Abuse

should have value between 3.50 - 5.00
it's fair to have pe between 20 -30

Posted by chshzhd > 2021-02-27 13:12 | Report Abuse

bonus issue may be a good idea

Posted by kokchengkai > 2021-02-27 14:41 | Report Abuse

Taiwan company is very care abt management quality.. thts why small country can bcum one of the rich country in world..
Lay out many World top 500 company

Posted by probability > 2021-02-27 15:27 | Report Abuse

FACT 1: REVENUE MAIN DRIVER (HOME USE SALES)
............................

http://swisscenters.org/wp-content/uploads/2013/11/Jura.pdf

JURA’s core business is centered on high-end fully automatic coffee machines for home and commercial use, with home use sales representing about 70% of the total.

JURA’s entire product range is characterized by exceptional design, user-friendly control functions and the ultimate coffee taste quality.

(70% of Uchitec revenue is from Jura)



FACT 2: THE WORST IMPLICATION IS OVER IN 2020 (OUTSIDE HOME DEMAND)
...............................................

https://coffeebi.com/2020/11/03/the-future-of-coffee-away-from-home/

At the end of 2020 in Italy, an average drop in value of 45% is expected in coffee consumption away from home. Compared to other major countries, the very restrictive, initial policies that led to the complete suspension of activities for several months, will have a greater impact on HORECA, while the decrease in consumption in the office will be slightly more contained than the European average.

In Spain, the decrease in coffee sales will be close to 50%, while in France, the initial, more permissive policies regarding closures and opening hours have slowed down the decrease in consumption within HORECA. The drop in consumption in the office will have the greatest impact on the annual trend of the away-from-home market (-48.1%), due to large-scale remote working.

The coffee market in Germany is the largest in Europe. In 2019, the consumption of coffee away-from-home recorded a 2.5% increase in value, with an even greater increase in the office segment. In 2020, the reduction in consumption is expected to be 41% in value. The loss will be greater in the office segment, due to the strict home-working policies adopted, while HORECA has been affected by restrictive, regional regulations and also as a result of the increase in takeaway coffee sales.

Despite the uncertainty related to “Brexit”, the coffee market away from home in the UK continued to grow until 2019 (+ 2.9% in value). In 2020, restrictions on the operation of many facilities are expected to have resulted in a 42.7% reduction in coffee consumption outside the home. The greatest losses will be recorded in the offices, while the decrease in sales in the HORECA industry will be partially mitigated by the widespread use of take-away coffee and by the increase in delivery services.




FACT 3: THE NEW DEMAND (HOME USE) HAD SPIKED & WILL SUSTAIN GOING FORWARD & ADDED WITH RECOVERY FROM OUTSIDE HOME
.......................................

https://perfectdailygrind.com/2020/11/how-covid-19-changed-home-coffee-consumption/

The Rise In Home Coffee Consumption
...................................

Out-of-home coffee consumption, such as in cafés and restaurants, makes up around 25% of total consumer demand for coffee. So, when some 95% of these businesses closed in early 2020, temporarily or permanently, the coffee industry took a tremendous hit.

“We have seen an increase in grinder sales, and it’s the most substantial increase that we have had in any six-month period. We are up 70% since Covid-19 started,” Joyce tells me.


Trends Within Home Coffee Consumption
.....................................

So, now we know that home coffee consumption has increased during Covid-19 – but what have consumers bought?

Firstly: coffee. Amid concerns the supply chain was struggling with Covid-19, around one in four people in the US reported stockpiling coffee to avoid running out. During the pandemic, 27% of home brewers reported drinking brewed coffee at home, while 25% used pod or capsule machines.

Most people have stated that they are still using the same equipment and coffee products that they had before the pandemic. However, people are trying new things. It was reported that just over 40% of millennials stated that they have experimented with different brewing methods.

Consumers are also becoming more confident in their coffee-making capabilities, with two-thirds stating that they have “perfected” their recipes and techniques. This makes sense – with more time at home and out of the office, coffee drinkers have more space to to repeat and refine a target recipe.

However, some coffee drinkers still seek convenience, despite having more time at home. Sales of bulk cold brew and iced lattes rose by 129% throughout the first few months of the pandemic, and recent forecasts show that the ready-to-drink (RTD) coffee market is expected to keep increasing. It is anticipated that it will be worth a staggering US $42 billion by 2027.

Posted by probability > 2021-02-27 15:39 | Report Abuse

....and CHINA will be the next Europe with a growing upper class with leisure time

Posted by probability > 2021-02-27 16:41 | Report Abuse

Uchi’s vaccine storage play
..........................

AMID the rally in technology stocks that has pushed valuations through the roof, one particular company has remained a relatively cheaper proxy to the sector despite its attractive dividend yield and strong profit margin.

In comparison to the industry’s “big boys” such as Vitrox Corp Bhd, Pentamaster Corp Bhd and Greatech Technology Bhd that have price-to-earnings (PE) ratios in the range of 60-80 times, Penang-based Uchi Technologies Bhd has a PE of just 19 times.

The company, which designs and develops electronic control systems, has seen its share price rising by nearly 77% from the lows of 2020. However, the current share price of RM3 remains slightly lower than the levels seen in 2017-2018.

Based on its website, Uchi says it serves a wide base of multinational companies, located primarily in Europe. The region contributes over 90% of Uchi’s annual turnover.


However, unknown to many, Uchi (pic above) has been supplying components to one of the world’s leading ultra-low temperature (ULT) freezer makers, the Germany-based Eppendorf AG.

In December 2020, it was reported that Eppendorf and Scientific Laboratory Supplies have been chosen to supply ULT freezers for the storage of Covid-19 vaccines in the United Kingdom.

It is noteworthy that the Pfizer-BioNTech’s Covid-19 vaccine needs special freezers that could store the doses in ultra-cold temperatures of -70°C.

Countries have been rushing to purchase ultra-cold storage facilities, which are necessary to maintain the potency of the vaccine and ensure its effectiveness.

In the case of Malaysia, the Science, Technology and Innovation Minister Khairy Jamaluddin said in January that the government would spend RM6.7mil to purchase deep freezers to store the Pfizer-BioNTech vaccine, which will be arriving on Feb 26.

A source close to Uchi tells StarBizWeek that Eppendorf has been a long-term client of the company.

“Under its biotechnology segment, Uchi has been making deep freezer components for Eppendorf.

“In the last six months or more, the demand for such freezers had risen sharply as many companies and governments were preparing to roll out the vaccination programmes. The demand may likely rise further in 2021 as countries turn more aggressive in vaccinating their population. To an extent, Uchi will benefit from this demand, ” the source says.

A quick check on its 2019 annual report showed that the biotechnology segment contributed 18% of Uchi’s revenue.

“Products in this category include electronic control systems such as high precision weighing scales, centrifuges and deep freezers, ” according to Uchi.

Meanwhile, the biggest revenue contributor of 81% is the “Art-of-living” product group.

This product category comprises electronic control systems for household appliances as well as professional appliances for the office and office services sector.

It is unclear whether Uchi has seen a significant jump in orders for deep freezer components, as the company does not provide a breakdown.

Uchi’s performance in the first nine months of financial year 2020 (9M20) has been adversely affected by the challenges arising from the Covid-19 outbreak globally.


The company had issued a profit warning in its first quarter results filing, anticipating a low double-digit revenue decline in US dollar-denominated receipts for the year due to lower sales.

However, as orders turned stronger in the second half of the year, Uchi amended its expectations to “a low single-digit revenue decline in US dollars” in its third quarter results’ filing on Nov 25,2020.

“Nevertheless, the group is confident that we will remain profitable and maintain a strong balance sheet, ” it said.

Affin Hwang Capital analyst Kevin Low said in a Nov 26,2020 report that Uchi’s core profit in 9M20 was above expectations, accounting for 84% of his full-year forecast due to better-than-expected margins.

In tandem with the higher revenue and hence better operating leverage, he pointed out that Uchi’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin in the third quarter of financial year 2020 (3Q20) jumped by 10 percentage points quarter-on-quarter to a high of 63.4%.

“While this may have also been due to a better revenue mix, we think that there may have been lower production costs due to one-off cost savings implemented during the movement control order which may not be repeated in the subsequent quarters, ” he said.

For comparison, the Ebitda margin recorded in the pre-pandemic 3Q19 was 57.1%.

In fact, Uchi has recorded a consistent operating profit margin averaging 45% since its listing in 2000.

Low also added that the company’s revenue outlook has improved, as the management has revised its 2020 revenue guidance with a narrower decline.

Posted by probability > 2021-02-27 16:41 | Report Abuse

Low left his revenue forecasts for Uchi unchanged, but raised the earnings per share estimates for 2020-2022 by 8.3% to 8.5%.

Affin Hwang Capital currently has a “buy” call on the stock, which it upgraded in November last year.

“We like Uchi for its strong relationship with its key customer and how it remains the sole supplier of its coffee modules.

“Its niche strategy and well-regarded management team has helped sustain the company’s solid financial track record and likewise its strong dividend payout ratio.

“Its dividend yields of 5%-6% also looks attractive, ” according to Low.

Since 2013, Uchi has maintained a dividend policy of allocating at least 70% of its profit after taxation.

Uchi also has a sturdy balance sheet with zero debt against a cash and cash equivalents of RM117.39mil.

Such a financial position would provide ample room for Uchi to expand its operations, both organically and inorganically.

Currently, Uchi has two operating plants, one in Malaysia and another in Guangdong, China.

Posted by probability > 2021-02-27 17:47 | Report Abuse

https://www.factmr.com/report/5115/ultralow-temperature-freezer-market

Global Ultra-low Temperature Freezer Market Overview

Ultra-low temperature freezers, or ULT freezers, are used to store biological items such as blood & blood components, drug compounds, chemicals, enzymes, etc. They are used across the healthcare industry, such as in hospitals, research institutes, blood banks, etc. The ultra-low temperature freezer market is predicted to expand at a CAGR of 4.4% over the forecast period of 2020-2030.

The market is expected to experience immense growth due to the ever-growing demand for blood & blood products, which is one of the key driving factors of this industry.

Growing research & development activities among key players and government support for clinical trials have also proven to be propellers for the expansion of the ultra-low temperature freezer market size. Amidst all these factors, the COVID-19 pandemic has also notably affected the market in a positive way. Due to the pandemic, there has been an exorbitant increase in blood & blood component demand throughout the globe, thereby boosting the ultra-low temperature freezer market.

..................

https://www.factmr.com/images/reports/ultra-low-temperature-freezer-market-competition-analysis.jpg

we can see from above Eppendorf AG is the frontrunner who source from Uchitec

Posted by investortrader88 > 2021-02-27 18:08 | Report Abuse

probability
https://www.factmr.com/report/5115/ultralow-temperature-freezer-market

Global Ultra-low Temperature Freezer Market Overview

Ultra-low temperature freezers, or ULT freezers, are used to store biological items such as blood & blood components, drug compounds, chemicals, enzymes, etc. They are used across the healthcare industry, such as in hospitals, research institutes, blood banks, etc. The ultra-low temperature freezer market is predicted to expand at a CAGR of 4.4% over the forecast period of 2020-2030.

The market is expected to experience immense growth due to the ever-growing demand for blood & blood products, which is one of the key driving factors of this industry.

Growing research & development activities among key players and government support for clinical trials have also proven to be propellers for the expansion of the ultra-low temperature freezer market size. Amidst all these factors, the COVID-19 pandemic has also notably affected the market in a positive way. Due to the pandemic, there has been an exorbitant increase in blood & blood component demand throughout the globe, thereby boosting the ultra-low temperature freezer market.

..................

https://www.factmr.com/images/reports/ultra-low-temperature-freezer-market-competition-analysis.jpg

we can see from above Eppendorf AG is the frontrunner who source from Uchitec
27/02/2021 5:47 PM



@probability.good sharing bro.tks

Posted by investortrader88 > 2021-02-28 07:42 | Report Abuse

https://www.facebook.com/109503830949657/posts/196878035545569/

Posted by probability > 2021-02-28 12:31 | Report Abuse

thanks investortrader88 on above, some useful information on coffee makers where more than 70% revenue comes, cant paste the link on below

.............

The drink that kept us going through Covid-19
By William Park

One of the world’s most popular beverages has overcome remarkable hurdles to carry on during the pandemic. What does it take to make a cup of coffee in 2020?

In what has been a strange year for those people forced to work from home, little daily habits have helped to sustain normality. But there are a lot of people you have to thank for your mid-morning coffee break.

This year has not been easy for people in the coffee industry, including 25 million smallholder farmers who are responsible for growing 80% of the world’s coffee. In total, 125 million people depend on coffee for their livelihood, from transporting and roasting the beans to selling the final product. Baristas and coffee shop owners were some of the first to close the doors to their businesses as lockdowns began. Some never reopened.

Despite the incredibly challenging working environment imposed by Covid-19 restrictions, consumers have still been able to get their hands on their favourite drink, thanks largely to the resilience of coffee producers and supply chains.

Watch our film about how coffee kept us going in 2020.
Why have some parts of the industry thrived while others struggled to survive? And how did producers and retailers innovate to keep delivering our daily caffeine hit?

The pandemic turned the well-oiled coffee supply chain into a global logistical challenge (Credit: Getty Images)
The world’s largest producer of coffee, Brazil, is having a bumper year. Coffee harvests naturally fluctuate year-on-year as the premium bean – arabica – follows a biennial cycle. Arabica makes up the majority of Brazil’s coffee crop, and while efforts to smooth out the year-on, year-off cycle have helped to make each annual return more consistent, there is still a bit of a dip in bean production in off-years.

With an output of 67.9 million bags of coffee, each weighing 60kg, 2020/21 is set to be the best year on record for coffee production in Brazil – up more than three million bags compared to the previous on-year for arabica.

Coffee producer Daterra are no exception. Daterra’s chief agronomist João Reis forecasts an “exceptional” harvest for quantity and quality this year as weather conditions worked in their favour. The problem posed by coronavirus for Reis was in harvesting the crop.

2020 has been a bumper year for the coffee crop, but getting from field to cup was not so easy (Credit: Getty Images)
Reis had seen the news about business closures in Asia at the start of the year and began to make preparations. He is reliant on migrant labourers from the north-east of Brazil, who stay in lodgings on Daterra’s site. With social distancing rules, he had to prepare to have half the number of migrant workers staying on the farm, meaning the harvest would take longer.

The race was on to harvest the bumper crop safely with fewer workers before the rains spoiled the beans. Fortunately for Reis the skies stayed clear. The farm’s harvest this year is set to be 6,000 tonnes (about 100,000 bags), he says. “In 2019, we filled 70,000 coffee bags.”

“The impact of Covid on coffee production is relatively minor,” says José Sette, the executive director of the International Coffee Organization. Governments moved to safeguard workers by declaring coffee production an essential economic activity. Despite the difficulties finding sufficient migrant labour, even much smaller coffee-producing countries like Ethiopia , which exports about four million bags of coffee per year, have largely been able to continue production as planned.

“But with consumption, the uncertainty is greater,” warns Sette. “We do not know how the global economy will settle after this shock. When government support is no longer possible, we may see mass unemployment.”

Italy is a country of coffee lovers. As one of the first nations in Europe to impose tight restrictions on leaving the home, consumers had to adapt quickly to get their daily fix.

Longstanding traditions around coffee had to be reinvented to protect public health .

Coffee grocery sales increased by 23% in the first full week of lockdown in Italy. Renata Bracale of Italy’s Molise University and Concetta Vaccaro of the Censis socioeconomic research institute in Rome compared Italians’ weekly grocery purchases with the equivalent sales in 2019. The method is not perfect, as year-on-year sales might fluctuate for any number of reasons, but compared to single-digit growth for wine and beer, coffee was a product Italians could not go without. A daily caffeine boost remained essential but Italians were happier to miss out on their aperitivi, Bracale and Vaccaro say.

Posted by probability > 2021-02-28 12:32 | Report Abuse

For cafes and coffee shops, the picture was less rosy. Leonardo Lelli, a coffee roaster in Bologna, knew immediately that Covid-19 would cause chaos for his business. With the centre of Italy’s outbreak in the north of the country, Lelli was in the eye of the storm. Ninety percent of Lelli’s beans are sold to coffee shops, restaurants and hotels, which were among the first to close down.

“We found ourselves out of work with warehouses full of raw materials,” says Lelli.

He was not alone. Reis says that some of Daterra’s clients are choosing cheaper beans or delaying orders as they ride out the pandemic.

Coffee was already the number one e-commerce grocery product before 2020
With few options to sell his stock, Lelli decided to give a portion of it away to frontline workers and sell some online before waiting for the storm to pass.

Online grocery retailers seem to have coped well with lockdown. Coffee was already the number one e-commerce grocery product before 2020 and the prevalence of subscription services and partnerships between delivery services and high-street chains have ensured customers could still get their hands on some.

While many things have changed, businesses are still seeing thriving demand for coffee (Credit: Getty Images)
With people confined to working from home and with limited options to leave the house, making coffee was one of few ways to take a break from work. It became a kind of self-reward, says Francesco Visioli, who studies active compounds in food at the University of Padua in Italy and co-authored a recent paper on lifestyle lessons from the pandemic. “Spending your day working in front of a screen, doing long-forgotten chores, calling your mum, friends, whomever might have increased the need for something rewarding, energising.”

Unlike aperitivi, coffee doesn’t have to be consumed socially at a bar.

“Many people in Italy do not really drink coffee in social settings,” says Visioli. “As a recent example I took a break at 10:30, went downstairs, crossed the street, entered a small local coffee place, had an espresso, went to the bakery, bought bread and came back upstairs. All by myself.”

Consumption of coffee at home offset the decrease in drinking in bars, restaurants and cafes around the world, from Brazil to Bali. But countries who reopened their cafes early are already seeing a bounce back.

Markets in Asia have been among the quickest to rebound (Credit: Getty Images)
“Before the pandemic, Asia was the fastest growing coffee market in the world,” says Sette. This is one trend the pandemic hasn’t changed. The Asian coffee market is growing between 4% and 5% a year, says Sette, while the rest of the world is growing at between 2-2.5% a year.

But even the Asian market was not untouched by the pandemic. “There was a slight dip at the start, especially in China,” says Sette. “Many coffee shops had to close in that initial phase. But everything seems to be picking up again and we're returning to normality – whatever that may mean these days.”

And in coffee markets harder hit by lockdown, there are again signs of regrowth. Fortunately for Lelli, restrictions in Italy were eased in June and he was able to open his business again. “It was not a complicated transition,” says Lelli. “One of the great advantages of being a craftsman is flexibility.”

After three months of losing about 90% of his normal turnover, things are picking up. “Today we are almost at the pre-lockdown turnover,” says Lelli.

In an industry where so much is changing fast, from where people buy coffee to how they consume it, there are some upsides. “E-commerce has grown a lot and now it’s very easy to use for the consumer,” says Lelli. It’s a change that could alter the face of the coffee industry as we know it. “In my opinion, it’s here to stay.”

Posted by probability > 2021-02-28 12:47 | Report Abuse

How coffee has kept us going in 2020

05 NOVEMBER 2020

//www.bbc.com/reel/video/p08x7yk9/how-coffee-has-kept-us-going-in-2020


at minute 6.50 - indicates that it is the 'FASTEST GROWING' consumption market in Asia