Don't Get Roasted by 'Beanless' Coffee

Here's the latest dispatch.

On Monday, I stumbled upon this Axios headline about “beanless” espresso being the next climate-friendly food and beverage fad. Note the Earth Day tie-in.

Axios writes, “Coffee farming is linked to deforestation, shipping beans creates carbon emissions and research suggests climate change could impact the global coffee supply.”

What are the ingredients in “beanless coffee”? The website claims these ingredients are found in their product: millet, guava, fructose, date seeds, ramon seeds, pea protein, baking soda, sunflower seeds, lemon and fenugreek to get a coffee-like flavor.

I highlighted pea protein for a reason because it’s the same ingredient found in Beyond Meat’s “plant-based” burger.

INGREDIENTS

Water, Pea Protein*, Avocado Oil, Natural Flavors, Rice Protein, Lentil Protein 2% or less of Methylcellulose, Potato Starch, Pea Starch, Potassium Lactate (to preserve freshness), Faba Bean Protein, Apple Extract, Pomegranate Concentrate, Potassium Salt, Spice, Vinegar, Vegetable Juice Color (with Beet).

And it’s not a coincidence since Atomo is backed by the same folks who back Beyond Meat, as reported by Reuters.

A Seattle-based startup backed by some of the investors behind Beyond Meat (BYND.O), opens new tab is launching the world's first beanless coffee this week as it bids to slash the environmental impact of the popular brew.

The innovation has caught the eye of investors, who have poured $51.6 million into Atomo Coffee in the hope that its brew - which uses superfoods and upcycled ingredients to mimic the molecular structure of coffee - will be a hit with consumers.

As the world's climate heats up, coffee farms, specifically those growing the more delicate arabica variety favoured by baristas, are moving uphill, destroying forests along the way in the search for cooler climes.

Why this product, why now? Atomo says it wants to fight deforestation. It also claims their product, compared to conventional coffee, will reduce emissions by 83% and use 70% less farmland. (If you can take them at their word.)

How much does this “coffee” fad cost? It, unsurprisingly, doesn’t come cheap. Atomo sells their product wholesale for $20.99 per pound versus the typical coffee shop paying $10-14 per pound for beans.

This is typical for every net-zero product and by-product. Upfront costs are higher to pivot consumer behaviors to these supposedly “eco-friendly” alternatives and promise lower costs in the end. (How’s this working for heavily-subsidized industries like offshore wind?) Ultimately, producers naturally pass on these added costs to consumers. You can blame this on Environmental, Social, and Governance (ESG) postering - which discourages investment in conventional energy and food products. Therefore, this negative chain reaction results.

Deforestation is Already on the Downward Swing

As I noted at IWF blog today, “beanless” coffee will be another fad with few diminishing returns on ameliorating and preventing deforestation. Why? Smarter forest management practices are already in effect.

Don’t take my word for it. The U.N. Food and Agriculture Organization (FAO) says American forests are improving—a phenomenon predating this coffee fad:

The Food and Agriculture Organization (FAO) of the United Nations’ 2020 Global Forest Resources Assessment report found deforestation actually is decreasing in North America, including the United States, thanks to smarter forestry practices. 

“North and Central America had an average annual net loss of forest area of 293,000 ha (hectares) in 1990–2000, a net annual gain of 184,000 ha in 2000–2010, and a net annual loss of 148,000 ha in 2010–2020,” the report noted. The same report said the U.S. ranked No. 7 in Top Ten countries “for average annual net gain in forest area, 2010–2020.” 

The U.N. report added the U.S. saw the most significant increase in land occupied by trees in urban settings, noting, “The area of land occupied by trees in urban settings, as reported by 36 countries and territories, increased by 7.45 million ha between 1990 and 2020, from 9.66 million ha to 17.1 million ha. There were increases in all regions, with the largest in North and Central America (up from 7.66 million ha in 1990 to 13.8 million ha in 2020), mostly in the United States of America.”

Reality Bites: Americans Aren’t Embracing Questionable Eco-Friendly Food Trends

Like Beyond Meat, Atomo will be faced with reality that Americans don’t like behaviors forced on them—especially if ever inspires policy at the state or federal level. Don’t underestimate them. (See the soon-to-be-finalized Department of Agriculture rule to label lab-grown meat.)

A November 2023 AP-NORC survey found taste, cost, and health concerns weigh heavily on consumers over perceived environmental concerns.

“Taste, cost, and nutrition are people’s most important considerations when purchasing food. Other concerns such as environmental effects, animal welfare, and where or how food is produced are considered less important,” the survey noted. “About one in five adults say they understand how to eat in a way that is environmentally friendly, and few adults consider how the food they eat affects the environment.”

Why forcing behaviors is bad policy? Food mandates are unpopular across partisan lines. The survey continues, “Overall, there is little support for some policies suggested to reduce meat consumption in order to help the environment. Both Democrats and Republicans oppose increasing taxes on the sale of meat. While most Republicans disagree with requiring public schools to serve vegetarian meals once a week or banning public advertising for meat on government property, Democrats tend to be more conflicted on these issues.” 

Key Takeaways

If Americans want to splurge on and imbibe questionable coffee derivatives with all sorts of ingredients, they’re free to do so. But with all these eco-friendly fads, don’t underestimate bureaucrats to take them and craft policy to force us to adopt them.

Like red meat and EVs, I expect most Americans won’t be warming up to this new fad. Expect it to fizzle out before it brews nationally.

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