DARRIN DANIELDirector of Sourcing and Quality Control

ALLEGRO COFFEE COMPANYDenver, Colorado

Rust: A Roaster’s Perspective

Rust Summit II, Febrero 25th 2016

Guatemala

• 1977- Jeffrey Cohn brings superior coffee to the market in Boulder, CO.In a time when people thought all coffee was the same, Jeffrey Cohn hatched the idea to bring truly superior

coffee to the market. In 1977, his vision became a reality with the establishment of The Brewing Market in Boulder, Colorado.

ALLEGRO COFFEE COMPANYALLEGRO HISTORY

• 1980- Jeffrey Cohn begins freshly roasting his own specialty coffees.

• 1985- Cohn launches Allegro Coffee Company (import, roasting & whole sale.)After opening his second shop in 1980, Cohn began roasting his own beans, exposing Boulder, CO

to authentic, freshly roasted specialty coffees for the first time. In 1985, increasing demand in the wholesale market prompted Cohn to sell The Brewing Market and launch Allegro Coffee Company, an import, roasting

and wholesale distribution venture. Cohn used only the purest quality ingredients and traditional, handcrafted roasting methods, sparking the interest of Boulder’s natural food retailers just as natural foods markets were

beginning a phase of dynamic, nationwide expansion.

• 1995- Allegro was distributing coffee throughout the Canada, U.K. and United States. By 1995, Allegro was distributing its coffee throughout the United States. With a secure reputation

as a national leader in specialty coffees, Allegro continued to enjoy particular success in the natural foods arena. Today Whole Foods Operates 440+ with sales topping $15 billion dollars in 2015.

ALLEGRO COFFEE COMPANYALLEGRO HISTORY

SOME COFFEE NUMBERS

• 125 million people rely on coffee for the primary income.

• 25 million smallholder farmers produce 80% of the world’s coffee.

• 60-70% of the production cost for coffee farming is physical labor.

• Since 1998 Fair Trade USA has created over $200,000,000 in social premiums

• According to a 2013 finding, (Coffee Rust Summit in Guatemala), nearly 300,000 Central American farmers need to replant due to the ongoing issues with rust.

• World Coffee Research (WCR) estimates nearly 50% of the trees in East Africa are over 50 years old.

• The disease has caused $1 billion in damage to coffee plants across Latin America and the Caribbean since 2012. USAID estimates that production will fall by as much as 15-40 percent in the next few years, with job possible job losses as high as 500,000.

• “The current coffee rust outbreak is the worst in Latin America's history," the agency said in its statement. "It is estimated that production will fall by as much as 15-40 percent in the coming years.” WCR 2014

Roya and its impact from a buyer’s view

• Struggle to secure organic certified coffees and Rainforest Alliance in the worst hit areas; Honduras, ElSalvador, Nicaragua, Mexico, Costa Rica, Guatemala.

• Experiencing more “semi-quaker” and nutritionally challenged raw material from 2013-15.

• Overall volume of quakers seems to be higher in areas/regions that were not as susceptible.

• Cup quality in worst effected areas has shown more nutty and drying effect in aftertaste. We can only speculatethat roya must be contributing to some of this? Is that a fair assumption from a biological and compoundperspective?

• Are there ways for us to work with pruning, grading and shade management that can be a quicker way forcoffee growers to manage roya outside of traditional fungicide management. Short term is more essential forgrowers than long term research and development from traditional nursery variety selections that are resistant.

Sonsanate El Salvador January 2013

Santo Tomas Pachuj February 8th 2015

Finca Felicidad Antigua, 2016