Drought in Brazil has raised drastically green coffee prices


Green coffee prices rocketed in the New York Stock Exchange between end of January and mid-March. Price increase for one kilo of green coffee was nearly 1.5 euros. Price has stayed on the same level. Price increase during a quarter is biggest since the Brazilian frost summer 1997. High green coffee prices will also affect consumer prices.

The price of Arabica coffee was in the end of January 120UScent/lb  (2€/kg) and in mid-March already 210 UScent/lb (3.40 €/kg) and is now about 190 UScent/Lb. Sourcing Director Katariina Aho, Paulig Group Coffee Division,  says the price increase is a consequence of severe drought in Brazil’s coffee cultivation areas.  There are fears that it will reduce coffee crop, which is just ripening.   ”There is a lot of uncertainty in the market. This severe drought has not been seen before in this stage of crop year.  Part of the harvest is already destroyed, but the final truth turns out in May when the harvest starts.  Just then we see how the drought has affected coffee quality and amount.”

This drought in Brazil may have long term effects to the harvests and prices in coming years, if coffee stocks decrease and coffee trees suffer. Brazil counts a lot to availability of coffee as world’s leading producer country. Its share of the world’s coffee production has during the last years been approximately 40 %. ”The other coffee producing countries in South and Central America won’t ease the situation very much. In Central America coffee rust -disease has destroyed plantations, but fortunately the recovered coffee production in Colombia can replace these losses”, Aho says.

There are also other threats affecting to price. Currently, El Niño –phenomenon is strengthening and some coffee countries are suffering from heavy rains and storms, some from severe aridity. Investors and funds are interested in coffee and they are expecting to gain good profit.

However, Katariina Aho accents that in order for the coffee farming to maintain as interesting business in the future, the profit assuring price level is very essential. ”At the end of last year the price level diminished onto too low level, even to 100 dollar cent per pound. This led to situation in which some of the farmers gave up using fertilizers and the effects can been seen already now.”

Background information on coffee:

  • Aridity is throttling the development of both coffee berries and its seeds, i.e. coffee beans. They remain little, are likely to dry in the coffee bushes or drop too early, affecting to quality.
  • There are about 25 billion coffee farmers worldwide.
  • Coffee is traded on major futures and commodity exchanges, most importantly in New York (arabica coffees) and London (robusta coffees).
  • Most coffees are blended from various origin coffee qualities, that each have their own special character. Each Paulig coffee variety has its own, carefully considered taste profile for the consumer who appreciates different flavours.
  • Thanks to blending, the characteristics of various coffee brands remain the same from package to package and from year to year despite the fact that the characteristics of coffee, as natural produce, are affected among other things by the weather conditions and growing place.

More information:

Paulig Coffee Division, Sourcing Director Katariina Aho, tel +358 9 3198 234 or mobile +358 40 702 4220



Whole dried chillies now available from Santa Maria


Three different types of whole dried chillies have appeared on the spice shelves in Norway, Sweden, Denmark and UK. They include the sweet Ancho chilli, the fruity Guajillo chilli, and smoky Chipotle Morita chilli. The chillies all come from carefully selected growers in Mexico, where conditions are perfect for growing and refining this special fruit.

- It’s a great feeling to be able to offer our customers whole chillies because we know that many people are interested in cooking Tex Mex and BBQ recipes from scratch, says Malin Eriksson, Food Concept Explorer.

Ancho is the mildest of the dried chillies. When it is fresh, it is called the Poblano Pepper and is one of the most popular chillies in Mexico.

In dried form it takes on a flavour reminiscent of raisins and dried plums along with hints of liquorice and coffee.

Guajillo is called Mirasol when fresh. In dried form it takes on the mild and sweet with flavours of dried red berries and green tea.

Chipotle is a jalapeño when fresh and depending on when it is harvested and how long it is smoked over an open fire, it can become a hot Meco, Tipico or Morita.



Paulig Group Christmas donation 2013 to Save the Children and the crisis-hit Philippines


As a tradition Paulig Group makes a Christmas donation to an established aid-organisation. This year we have decided to support the work made by Save the Children. This is a non-political and non-religious, democratic non-governmental organisation that fights for children’s rights. With extensive experience and knowledge, teamed with enthusiasm and boundless energy, this organisation works to improve the lives of millions of children, regardless of where these children live, whether they are boys or girls or whether or not they have parents. Paulig Group’s World Foods & Flavouring, Brands division has for many years supported the Save the Children and since 2009 with the project “Protecting the right to education of children affected by conflict in Colombia”.

We have also decided to make a donation through the Red Cross organisation to the crisis-hit Philippines where the typhoon Haiyan – one of the worst land storms ever registered – caused the death of thousands of persons and hundreds of thousands of people are reported displaced from their homes. The International Committee of the Red Cross (ICRC) is coordinating its relief efforts with the Philippine Red Cross, the International Federation of Red Cross and Red Crescent Societies, and a number of National Societies of other countries.




Paulig among top 20 employers in Universum survey

universum_logoThe international employer image research and consultant company Universum has announced the results of the Ideal Employers survey among professionals in Finland. The results are based on a yearly survey, which was completed by 7 273 university and high -skilled professionals during August–October. The study provides information as to where these people want to work and why. On average, the survey respondents have 10 years of working experience, and the average age of the respondents is 38 years.

In this year’s Universum employer image results Paulig rose to 19th place (24).



Paulig highly valued in a survey concerning reputation and responsibility

TNS Gallup studies yearly what consumers think about corporate reputation and responsibility. Paulig took the fifth place among the best companies in Finland (third last year).

This was the fourth time TNS Gallup carried out the survey concerning corporate reputation and responsibility. In the survey 59 companies from six branches were analysed: commerce, bank and insurance, service, energy, food, ICT and other industry. The data were collected in September – October. More than 22 800 company assessments were received from altogether 9800 interviews. The survey shows that the level of reputation varies a lot both between different branches and companies.

Top 10 companies

  1. Kone
  2. Rovio
  3. Fazer Group
  4. Fiskars and Konecranes
  5. Paulig
  6. Alko and Veikkaus
  7. Wärtsilä
  8. Valio and Stockmann
  9. Snellman and Raha-automaattiyhdistys (RAY)
  10. Altia and Helsingin Energia



Paulig makes a stylish coffee blend to suit the autumn mood

The much-awaited Presidentti Special Blend vintage coffee hits the shops on 1 September

Presidentti_Special_Blend_2013The product family of Paulig Presidentti coffees launches a new vintage blend on the market, the second of its kind. Prepared for the autumn market, Presidentti Special Blend 2013 vintage coffee is a strong product with a unique character in which you can sense the classiness characteristic of Presidentti blends. The secret behind its particularly nuanced taste is in the famous Kenyan SL 28 and SL 34 beans, with an admixture of smooth Brazilian and well-balanced Mexican coffee beans.

The vintage blends of the Paulig Presidentti product family are always roasted from the best, carefully selected beans from each harvest and they are only produced in a limited batch.  Presidentti Special Blend 2013 blend is available in fine-ground, half-kilo packages. The coffee is best brewed with a French press, but it can also be made with a filter coffee-maker. The blend also works well with milk.

The backbone of the new coffee blend is high-quality coffee beans from Embu County in Kenya. The Gakundu Co-operative has been cultivating coffee for a long time and shows a genuine respect for this raw material. The facilities of the cooperative produce selected beans for the new vintage blend with passion and many years of experience.

Presidentti Special Blend 2013 blend is strong and roasted in character. It comes from the typical chocolate and blackcurrant flavours of Kenyan coffee. “In the planning for the new Special Blend 2013, we wanted to figure in the arrival of the coffee for the autumn market. To add joy to the days of autumn colours, we created a strong coffee which will put a zing into increasingly short days,” says Paulig’s Chief Taster Marja Touri.

A good flavour partner for the high-quality vintage blend is date cake. “A strong coffee calls for a snack that is its equal. The flavour of a date cake is deep enough to make a harmonious combination with the coffee,” Marja reports.

For further delicious taste pairs, see www.pauligcafe.fi/makuparit (in Finnish)

Further information:

Gustav Paulig Ltd
Brand Manager Ulrika Kotimäki, Tel. +358 40 538 8158, ulrika.kotimaki@paulig.com
Consumer Service Manager Kaisa Junikka, Tel. +358 50 5510109, kaisa.junikka@paulig.com

The Paulig Group is an international, family-owned company in the food industry, noted for its high-quality brand products. Its business divisions are Coffee, Industrial Flavouring and World Foods & Flavouring. It has almost 2,000 employees in fifteen different countries and its net sales in 2012 were EUR 858 million.

The Group’s coffee business is the responsibility of Gustav Paulig Ltd. The company is market leader in Finland and the Baltic countries, and in Russia it is the second-biggest supplier of roasted coffee. Paulig supplies its products and services to the retail trade, the Horeca sector and workplaces alike. Among the best-known Paulig brand products in Finland are Juhla Mokka, Presidentti, Brazil and Paulig Mundo as well as the cold coffee drink Frezza and the cocoa beverage Tazza. Among the most popular products in Russia and the Baltic markets are the Paulig Classic and Paulig President blends and Paulig espresso products. The company’s coffee roastery and head office are in the Vuosaari district of Helsinki. The roastery produces roughly 100 million packages or some 45 million kilos of coffee per year.



Noora Ylikoski was selected as the 18. Paula

Paula_nooraThe 26 year old Noora Ylikoski was selected among near 200 candidates as the new Paulig’s Paula. Paula is a PR-person that knows the world of coffee and the latest trends. The modern Paula meets with coffee lovers increasingly also in social media. She officially began her work as Paula on the 6th of June 2013.

Gustav Paulig Ltd was searching for the new PR-person in the beginning of year 2013. The criteria were that she had to be open-minded, joyful and have good social skills. Noora was chosen after a demanding process.

”Working as the PR-person Paula has been my dream; therefore the application process has been really exciting for me. I believe that due my experience in customer service and my social personality the work suits me well. I could never have imagined that I’ll go this far when I sent the application. When I heard that it was me who was chosen to be the 18. Paula I couldn’t believe my ears. It took a while to understand how lucky I was”, says the new Paula Noora Ylikoski.

The job description of the modern Paula, ambassador of good coffee, is wide. She goes to different events, does visits and keeps coffee trainings. She tells about preparing and storing coffee as well as about coffee trends and the journey from bean to cup. Paula is meeting people every day also on her Facebook page, blog and Instagram application. Furthermore she spreads joy and good feeling to coffee lovers.
“I want to be a Paula of my time but also respect the traditions. There is a great adventure in front of me and I’m really looking forward to it”, Noora says and smiles.


Paulig acquires all remaining shares in Vendor

Gustav Paulig Ltd has acquired the remaining 49 per cent of shares in Oy Vendor Group Ab and is now the sole owner of Oy Vendor Group Ab’s issued stock. Vendor, which provides coffee dispenser services, has been part of Paulig’s Coffee Division since 2010, when Gustav Paulig Ltd acquired a 51 per cent interest in Vendor. “Vendor’s specialist expertise has successfully augmented Paulig’s offering of coffee service solutions, and now it is time for the next step,” says Paulig Group Elisa Markula, Director of the Paulig Group’s Coffee Division.

The acquisition of Vendor supports the Paulig Coffee Division’s strategic goal of growing dynamically in the coffee service solutions business sector. “In spite of a slight recession, out-of-home consumption of coffee is growing steadily in all markets and we aim to be in on this growth with a clearer business model that serves customers better than before,” Markula continues.

Vendor, which operates in Finland, Sweden, Norway and the Baltic countries, has nets sales of EUR 25 million and 170 employees. The party selling the shares, Managing Director Erik Wiljanen, will continue in his post until the end of 2013. Recruitment for a leader for the Coffee Division’s coffee service solutions will be started immediately.

Further information:

Director of the Paulig Group’s Coffee Division Elisa Markula, +358 50 596 0978, elisa.markula@paulig.com


The Paulig Group

The Paulig Group is a company noted for its high-quality brand products, concentrating on seasonings, international food concepts and coffee, operating in 15 countries in Northern and Western Europe, the Baltic countries, and Russia and its neighbouring regions. Its net sales in 2012 were EUR 858 million with roughly 2,000 employees.

The Group’s coffee business is the responsibility of Gustav Paulig Ltd. The company is market leader in Finland and the Baltic countries, and in Russia it is the second-biggest supplier of roasted coffee. Paulig supplies its products and services to the retail trade, the Horeca sector and workplaces alike. Among the best-known Paulig brand products in Finland are Juhla Mokka, Presidentti, Brazil and Paulig Mundo as well as the cold coffee drink Frezza and the cocoa beverage Tazza. Among the most popular products in Russia and the Baltic markets are the Paulig Classic and Paulig President blends and Paulig espresso products. The company’s coffee roastery and head office are in the Vuosaari district of Helsinki. The roastery produces roughly 100 million packages of or some 45 million kilos of coffee per year. www.paulig.com




Johan Sundelin to lead Santa Maria within the Paulig Group

Johan_SundelinM.Sc. (Economy) Johan Sundelin (43) has been appointed to Head of Division for World Foods & Flavouring within Paulig Group. Santa Maria is the biggest brand within the division that offers international food concepts and flavorings.

Johan Sundelin has a broad experience in fast moving consumer goods and brand products having worked with brands such as ABBA, Ekströms, Knorr, Lätta, Becel and Crème Bonjour.

Johan Sundelin comes to Paulig Group from the position as Managing Director for Almondy AB. Before this he was the Managing Director for ABBA Seafood AB. He began his career at Unilever, where he was stationed both in the Nordics and in Central Europe.

At Paulig Group Johan Sundelin will be member of the group management team. He will begin his work at Paulig Group on June 3rd 2013 and he is stationed in Sweden.

For further information contact Anita Laxén, VP Communications, Paulig Group
Tel: +358 40 77 00 873
E-mail: anita.laxen@paulig.com


About Paulig Group and World Foods & Flavouring

At Paulig Group we are united in the quest of exploring great taste. We are a family-owned international company in the food industry; founded in 1876 and noted for our high-quality products in key sectors World Food & Flavouring, Coffee and Industrial Flavouring. Our portfolio includes strong brands such as Paulig, Santa Maria and Discovery. The group has almost 2,000 employees in 15 countries and the net sales for 2012 were 858 million euros. www.pauliggroup.com

Paulig Group’s World Foods & Flavouring division, with the Santa Maria brand, is one of the leading flavoring companies in Europe. The business idea is to develop and drive food trends in the categories of spices, Tex Mex, Thai, India and BBQ in both retail and foodservice. The Santa Maria products are sold in more than 30 markets and the division has 900 employees in 13 countries. The production is located in Sweden, Estonia and UK. www.santamariaworld.com

2012 was a good year for the Paulig Group

The Paulig Group achieved a good result in 2012 by focusing on the product range and developing the core businesses. Net sales were EUR 858.3 million and operating profit amounted to EUR 70.0 million.

Despite the general uncertainty in the market caused by the global economic situation, Paulig Group achieved a good result in 2012. Net sales totalled EUR 858,3 million (870,2), which is a decrease of 1.4 per cent. However, the net sales for 2011 included the Oscar division that was sold in December 2011. Therefore, comparable net sales grew by 1.8 per cent. The low growth in net sales was largely due to the decrease of the world market price of coffee from the previous year as well as the low overall growth in the market.

Operating profit amounted to EUR 70.0 million (51.8), which was 8.1 per cent (6.0) of the net sales.

“During the year we focused on the development of our core businesses, which are international food concepts, coffee and spices. Strong brands, high-quality service and competent employees will also be the foundation for our future success,” says CEO Jaana Tuominen.

2012 in a nutshell

  • Net sales were EUR 858.3 million (870.2)
  • Operating profit was EUR 70.0 million (51.8), 8.1 per cent (6.0) of the net sales
  • Return on equity (ROE) was 9.2 per cent (7.2)
  • Net debt decreased to EUR 96.6 million (219.2)
  • Equity ratio was 57,8 per cent (48,3)
  • Number of employees at the end of the year was 1,846 (1,969)

The result of Paulig Group’s Coffee division developed particularly satisfactorily. The division strengthened its market position in Finland and the Baltic countries with actions such as successful product launches and store campaigns.

“We also gained a stronger foothold in the coffee market in Russia, both in Moscow and St Petersburg. The new roastery in Tver, which was inaugurated in autumn 2011, completed its first whole year of operations and is functioning efficiently and performing well,” says Jaana Tuominen.

The World Foods & Flavouring division achieved the targets set for the year. Sales in the Nordic and Baltic countries and within the foodservice sector were especially gratifying.
The Paulig Group’s Industrial Flavouring division also reached its targets for 2012 despite the competition caused by volatile raw material prices and price pressures.

Successful product launches

The Paulig Group’s brands include among others Paulig (coffee) and Santa Maria (international food concepts and spices). In 2012, a number of new products and concepts were introduced.

One of the successful new products was Paulig Juhla Mokka Dark Roast. The product is the lightest of Paulig’s dark roast coffees (roasting grade 2.5 on a scale 1-5), and its flavour contains the nuances that Finns love.

Another successful launch was the Santa Maria Pizza Tortilla concept, a prebaked tortilla to be used as a pizza base. The concept also includes a tomato-based pizza sauce and a topping that is added on the pizza just before serving.

“Listening to the consumer is immensely important in our industry. The insight we receive this way can create added value in our various product categories,” says Jaana Tuominen.

The significance of corporate responsibility has grown in the food industry, and this is an important area within Paulig Group.

“We are a family-owned business with 137 years of history. Long-term success is our goal. We know that responsibility will also be an important factor for the success of our future business. We have worked purposefully for this in our divisions, and this work will continue,” says Jaana Tuominen.

Further information: CEO Jaana Tuominen, tel. +358 9 3198 330