Chapter 75
In all large coffee-consuming countries, coffee additions and fillers have always been used. Large numbers of French, Italian, Dutch, and German consumers insist on having chicory with their coffee, just as do many Southerners in the United States.
The chief commercial reason for using coffee additions and fillers is to keep down the cost of blends. For this purpose, chicory and many kinds of cooked cereals are most generally used; while frequently roasted and ground peas, beans, and other vegetables that will not impair the flavor or aroma of the brew, are employed in foreign countries. Before Parliament pa.s.sed the Adulterant Act, some British coffee men used as fillers cacao husks, acorns, figs, and lupins, in addition to chicory and the other favorite fillers.
Up to the year 1907, when the United States Food and Drugs Act became effective, chicory and cereal additions were widely used by coffee packers and retailers in this country. With the enforcement of the law requiring the label of a package to state when a filler is employed, the use of additions gradually fell off in most sections.
In botanical description and chemical composition chicory, the most favored addition, has no relations.h.i.+p with coffee. When roasted and ground, it resembles coffee in appearance; but it has an entirely different flavor. However, many coffee-drinkers prefer their beverage when this alien flavor has been added to it.
_Treated Coffees and Dry Extracts_
The manufacture of prepared, or refined, coffees has become an important branch of the business in the United States and Europe. Prepared coffees can be divided into two general groups: treated coffees, from which the caffein has been removed to some degree; and dry coffee extracts (soluble coffee), which are readily dissolved in a cup of hot or cold water.
To decaffeinate coffee, the most common practise is to make the green beans soft by steaming under pressure, and then to apply benzol or chloroform or alcohol to the softened coffee to dissolve and to extract the caffein. Afterward, the extracting solvents are driven out of the coffee by re-steaming. However, chemists have not yet been able to expel all the caffein in treating coffee commercially, the best efforts resulting in from 0.3 to 0.07 percent remaining. After treatment, the coffee beans are then roasted, packed, and sold like ordinary coffee.
[Ill.u.s.tration: VACUUM DRUM DRIER
Vacuum drum drier, No. 1 size; diameter of drum, 12 inches; length, 20 inches; used for converting coffee extract and other liquids into dry powder form. This is the smallest size, and was developed for drying smaller quant.i.ties of liquids than could be handled economically in the larger sizes. To provide accessibility of the interior for cleansing, the outer casing may be moved back on the track of the bedplate (as shown in the cut), so that free access may be had to the drum and interior of the casing.
RAPID-CIRCULATION EVAPORATOR
Used to concentrate coffee extracts and other liquids. The tubes are easily reached through the open door for cleansing. Interior of the vapor body is reached through a manhole.
REAR VIEW OF DRUM DRIER
Vacuum drum dryer. No. 1 size; rear view, showing outer casing rolled back from the drum.
CROSS-SECTION OF VACUUM DRIER
This shows the interior arrangement and principle of operation. The drawing represents a larger size than the photograph, and while the arrangement of some parts is slightly different, the principle of operation is the same.
UNITS USED IN THE MANUFACTURE OF SOLUBLE COFFEE]
In manufacturing dry coffee extract in the form of a powder that is readily soluble in water, the general method is to extract the drinking properties from ground roasted coffee by means of water, and to evaporate the resulting liquid until only the coffee powder is left.
Several methods have been developed and patented to prevent the valuable flavor elements from being evaporated with the water.
A typical dry-coffee-extract-making equipment consists of a battery of percolators, or "leachers", a vacuum evaporating device, and a vacuum drier. The leachers do not differ materially from the ordinary restaurant percolators, a battery usually including from three to seven units, each charge of water going through all the percolations. The resulting heavy liquid then goes to the evaporator to be concentrated into a thick liquor. The evaporator consists of a horizontal cylindrical vapor compartment connected with an inclined cylindrical steam chest in which are numerous tubes, or flues, that occupy almost the whole chest.
These tubes are heated by steam. The coffee liquor is pa.s.sed through the tubes at high speed and thrown with great force against a baffle plate at the opening to the vapor chest. The vapor pa.s.ses around the baffle plate to a separator. The liquor drops to the lower part of the steam-chest (which is free from tubes), and is ready to be drawn out for the next process, the drying.
At this stage, the extract is a heavily concentrated syrup and is ready to be converted into powder. This is done in the vacuum drier, which consists of a hollow revolving drum surrounded by a tightly sealed cast-iron casing. The drum
C.W. Trigg and W.A. Hamor were granted a patent in the United States in 1919 on a new process for making an aromatized coffee extract. In this process, the caffeol of the coffee is volatilized and is then brought into contact with an absorbing medium such as is used in the extraction of perfumes. The absorbing medium is then treated with a solvent of the caffeol, and the solution is separated from the petrolatum. Then the coffee solution is concentrated to an extract by evaporation; after which, the extract and the caffeol are combined into a soluble coffee.
Five additional patents were granted on this same process in 1921.
[Ill.u.s.tration]
CHAPTER XXVI
WHOLESALE MERCHANDISING OF COFFEE
_How coffees are sold at wholesale--The wholesale salesman's place in merchandising--Some coffee costs a.n.a.lyzed--Handy coffee-selling chart--Terms and credits--About package coffees--Various types of coffee containers--Coffee package labels--Coffee package economies--Practical grocer helps--Coffee sampling--Premium method of sales promotion_
Coffee is sold at wholesale in the United States chiefly by about 4,000 wholesale grocers, who handle also many other items of food; and by roasters, who make a specialty of preparing the green coffee for consumption, and who feature either bulk or trade-marked package goods.
Much the largest proportion of the wholesale coffee trade today is made up of roasted coffees, though some wholesalers still sell the green bean to retail distributers who do their own roasting. Most of the roasted coffee sold is ground; although in some parts of the United States there is at present a growing consumer demand for coffee in the bean. Of the coffee sold in trade-marked packages in 1919 in the United States, about seventy-five percent was ground ready for brewing.
The larger wholesale houses generally confine their operations to the section of the country in which they are located, but some of the biggest coffee-packing firms seek national distribution. In both cases, branch houses are usually established at strategic points to facilitate the serving of retail customers with freshly roasted coffee at all times.
In recent years, too, it has become a general practise for the home offices, or main headquarters, to advertise their product in magazines, newspapers, street cars, and by mail and on billboards; while the branches solicit trade in their territories by means of traveling salesmen, local newspaper advertis.e.m.e.nts, booklets, circulars, and demonstrations at food shows.
_The Wholesale Salesman_
The traveling salesman is probably the most effective agency in securing the retailer's orders for coffee. A good coffee salesman not only sells coffee, but he teaches his customer how he can best build up and hold his coffee trade. He acquaints the retailer with all the talking points about the coffee he handles, how to feature it in store displays and advertis.e.m.e.nts, how to stage demonstrations and to work up special sales.
If he is a _good_ salesman, he does not permit the merchant to buy more coffee than he can dispose of while it is still fresh. And he shows the dealer the folly of handling too many brands of package coffees. If he sells coffee in bulk, the efficient salesman has also a sound working knowledge of blending principles, and is able to suggest the kinds of coffee to blend to suit the particular requirements of each grocer's trade. In short, he takes an intelligent interest in his customer's business, and co-operates with him in building up a local coffee trade.
_Some Coffee Costs a.n.a.lyzed_
In estimating the price at which he must sell his coffee to make a fair profit, the wholesale coffee merchant has many items of expense to consider. To the cost of the green coffee he must add: the cost of transportation to his plant; the loss in shrinkage in roasting, which ranges from fifteen to twenty percent; packaging costs, if he is a packer; the items of expense in doing business, such as wages and salaries, advertising, buying and selling, freight, express, warehouse and cartage, postage and office supplies, telephone and telegraph, credit and collection; and the fixed overhead charges for interest, heat, light, power, insurance, taxes, repairs, equipment, depreciation, losses from bad debts, and miscellaneous items.[334] The average loss for bad debts among grocers in 1916 was 0.03 percent of the total sales, according to the director of business research, Harvard University, who estimated also that the common figure for credit and collection expense was 0.06 percent. The total cost of doing business has been estimated as ranging between twelve and twenty percent of the total annual sales, so that a bag of green coffee costing $16 in New York or New Orleans costs the coffee packer in the Middle West from $22.33 to $24.56, according to the expense of carrying on his business.
_Terms and Credits_
Wholesale coffee trade contract terms and credits are not dissimilar from those in other lines of commerce. The wholesaler helps the retailer finance his business to the extent of granting him thirty to sixty days in which to pay his bill, offering him a cash discount if the invoice is paid within ten days of date of sale. Until recent years, these terms were frequently abused, the customer demanding much longer credits and often taking a ten-day cash discount after thirty or more days had elapsed. This abuse was particularly prevalent from 1907 to 1913, when coffee prices were low and compet.i.tion was especially keen.[335] In addition, the retailers often demanded special deliveries of supplies, which added to the wholesalers' costs; and some retailers refused to pay the cost of cartage from the cars to their stores.
With the coming of high prices after the close of the World War, the wholesalers showed a tendency to tighten up their credit and discount terms, the National Coffee Roasters a.s.sociation especially recommending thirty days' credit, or at most sixty days, and a maximum cash discount rate of two percent.
Another trade abuse which has been corrected almost altogether was the practise of "selling coffee to be billed as s.h.i.+pped"; that is, the wholesaler held coffee on order, and billed only when delivered, even though several weeks or months had pa.s.sed before s.h.i.+pment.
_About Package Coffees_
Since the beginning of the twentieth century, the sale of coffee in packages has increased steadily until now (1922) this form of distribution competes strongly with bulk coffee sales. While bulk coffee is still preferred in some eastern sections of the United States, coffee packers are making deep inroads there, to the extent that practically all high and medium grade retailers feature package coffees, either under their own brand name, or that of a coffee specialty house.
The prime requisite for success in any package coffee is the composition of the blend. One of the leaders in the field, which we will call Y, is said to be composed of Bogota, Bourbon Santos, and Mexican. In March, 1922, it was being sold at retail in New York for 42 cents. A competing brand, which we will call Z, is said to be a blend of Bogota and Bourbon Santos. It was being sold at retail in New York, at the same period for the same price. Simultaneously, in the retail stores of a well known chain system, a bulk blend composed of sixty percent Bourbon Santos and forty percent Bogota was to be had loose for 29 cents.
The second important factor that contributes to package coffee success is the container. It must be of such a character as will best preserve the freshness--the flavor and the aroma of the coffee--until it reaches the consumer.
Package coffee has not yet won universal favor. Some of the arguments used against it are: that the price is generally higher than the same grade in bulk; that it leads to price-cutting by stores that can afford to sell it at about cost as a leader for other articles; that the margin of profit is frequently too close for some retailers: that when the market advances, some packers change their blends to keep down cost and to maintain the advertised price; and that, when packed ground, there is a rapid loss of flavor, aroma, and strength.
[Ill.u.s.tration: COAL ROASTING PLANT IN A NEW YORK FACTORY
THE ROASTED BEANS HAVE JUST BEEN DUMPED INTO THE COOLER BOX]