Vietnam’s production of robusta coffee likely shrank this year to the smallest in four years as farmers focused more on growing durians and were drawn away by a property boom.
The harvest fell more than 7 percent from the previous year to 1.67 million tons, according to the median estimate of exporters and traders in a Bloomberg survey. Crop expectations gradually declined as the harvest progressed.
The global market for robusta beans—the type used in instant drinks—has grown as roasters and consumers seek cheaper options to cope with high inflation. Prices have also been supported by worries about the impact of weather on some key crops. That’s driven futures for the variety up 35 percent this year in London to the highest level in more than a decade.
“Actual output was lower than people had forecast,” said Phan Hung Anh, chief executive of exporter Quang Minh Coffee Trading in the southern Vietnamese province of Binh Duong. “Growers invested less in their coffee farms because their eyes were fixed on growing durians and other profitable fruit.”
Another coffee shipper, Le Duc Huy, general director of Simexco Daklak, said the smaller harvest was explained by a down year in the crop production cycle, increases in fertilizer costs and a property boom early last year, which pulled some growers away from farming.
The reduced crop and strong demand spurred a surge in local coffee prices to 53,000 dong ($2.26) a kilo last month, the highest since at least 2014. Farmers have sold over 85 percent of their crop and exports have been running at a fast clip.
The country shipped 1.16 million tons of coffee in the first seven months of the season, the highest ever, according to customs and statistics office data compiled by Bloomberg. But the pace may slow over the rest of the season.
Hero Bread
Hero Bread, a maker of low-carbohydrate bread, tortillas and buns, has raised $15 million in a Series B financing round. It’s also expanding its grocery footprint, with distribution growing to about 2,300 retail stores by the end of the month from just 23.
Investors in the round include former McDonald’s Corp. Chief Executive Officer Don Thompson’s firm, Cleveland Avenue, as well as DNS Capital, Union Grove Venture Partners and the D’Amelio Family Fund by 444 Capital. The total funding for the startup now amounts to $47.5 million. Its backers also include athletes Tom Brady and Kevin Durant.
The $15 million was a figure designed to support the company’s growth through the end of the year, founder and Chief Executive Officer Cole Glass said in an interview. But sales have thus far outpaced projections, and if that continues, another round of financing will come soon.
“If things are going better than what we planned, the rest of fundraising is going to go ahead of schedule as well,” Glass said.
Globally, fundraising for agriculture, food and related tech startups totaled $29.6 billion in 2022, a 44-percent drop from 2021, according to a report from investor and researcher AgFunder.
Hero Bread and Subway Restaurants Inc. have paused their partnership, Glass said, as Hero focuses more heavily on retail and direct-to-consumer sales online.
Hero makes its products by replacing standard flour with plant-based proteins and fibers, resulting in breads with 0 to 2 grams of net carbohydrates, compared with more than 20 grams of carbohydrates for a slice of conventional white bread. They’re also higher in protein.
Following its success in e-commerce and a small number of brick-and-mortar retailers, the company is set to launch in 32 states, including with Sprouts Farmers Market Inc. and in regional grocers Tom Thumb, Randall’s and Heinen’s. Albertsons Cos. will also sell Hero products across Texas and Louisiana.