Setting the Record Straight

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So I wanted to set the record straight on a few things. Not because I need to strengthen my ego (really it’s ok) and not to boast, but because we live in a world that at times seems to be controlled by the Ministry of Misinformation, full of those that actively wish to deceive and those that are well practiced at the sin of omission (deadly, right?).

Over the past decade Intelligentsia has introduced a number of ideas, concepts and practices to the Specialty Coffee Industry. It is my hope to illuminate when and where each of these things began.

Direct Trade

We were the first of any roaster in the world to codify the system of Direct Trade as a purchasing model with clear guidelines that reward quality and pay increasingly better prices to coffee growers around the world in a clear, transparent, traceable, model. Our first coffee purchased this way was La Maravilla from Huehuetenango, Guatemala in 2003. The vast majority of our coffee is now purchased this way. Other roasters in the US and around the world have adopted this model. Most of them call it Direct Trade too, some with good intentions and execution and others without (see Ministry of Misinformation above). We hope those doing it right continue to do so and those doing it wrong decide to do it right.

Seasonality

We first introduced our In Season initiative to the world of Specialty Coffee in 2008 at the SCAA show in Minneapolis. We were the first roaster in the world to have a clear set of parameters that defined green coffee seasonality as it relates to how far a coffee is off its harvest. Since that time a lot of other roasters have introduced seasonality into their offerings or are considering doing so. If this is done effectively, consumers will no longer perceive coffee as a commoditized “box of cereal” but rather as the marvelous, valuable, seasonal produce that it really is. This can only increase the perceived value of the coffee as well as the actual value of the coffee and will reverberate from source in the form of better prices to the producer all the way to the consumer who will be willing to pay for freshly harvested in season coffee.

The Micro-Lot

We introduced the term and the concept of the Micro-lot to the Specialty Coffee industry public for the first time in November of 2005 with our Colombia Cauca Almaguer Micro Lot produced by Alciabiades Garcia. This revolutionized the industry on many fronts from the specificity of lot separation, to the prices that a grower would be paid for a coffee to what the consumer would be willing to pay for coffee. Although Cup of Excellence offered this idea in the form of an auction, we pioneered it as an ongoing part of a successful Direct Trade buying model. Many roasters, exporters, and importers worldwide now offer Micro-lots on a regular basis.

Latte Art Throwdown

For a $1 entry fee on a rambunctious Friday afternoon in our lunchroom in Chicago the idea of the Latte Art Throwdown was born. Andy Wickstrom took my money that winter day. We sprung the idea of one pour, under pressure, for prize money during the SCAA show in Long Beach in May of 2007 at our Los Angeles Roasting Works amidst a lot of wine and beer and Taco Zone tacos. Since that time the concept of the throwdown has taken on many forms worldwide, but certainly hearkens back to an evening that is hard to forget in some ways and hard to remember in others.

Each of these except for the throwdown have the potential to change in a very positive way how growers are remunerated for their coffee as well as how the consumer perceives and values and in turn is willing to pay for coffee. Not a bad record for the past decade. Lookout next decade.

32 Responses to “Setting the Record Straight”

  1. gabe says:

    nicely done.

  2. ryan says:

    didn’t virmax start with the microlots in 2003? (allegro was purchasing la cacica that early)

    or are they not specialty?

  3. ryan says:

    an impressive list, no doubt.

  4. I can think of a company whose ownership of those “names,concepts,practices etc” would have been firmly established by a team of lawyers, and would have gone to extreme measures to ensure that everyone knew about it. The fact that Intelli put them out there for all is your triumph. Their beauty is that they were a gift to the industry and we all own them now. I hope that over the course of my involvement in specialty coffee I can refer to something I created that others embraced. It’s great to set the record straight, and infuriating when others get it wrong, but at least right now, Intelli has an unassailable position as a company we all look to as a leader in innovation and quality.

  5. Mark Prince says:

    Sorry to bring this up Doug, but since yours is a fairly powerful post, I have to correct you on microlots. George Howell was using the terminology as far back as 2003 (I remember him using it during my first meeting with him), and a perusal of CoffeeGeek’s forums shows one of his employees used it on CoffeeGeek to talk about various Daterra microlots in 2004:

    http://www.coffeegeek.com/forums/espresso/blends/75820#75820

  6. Social comments and analytics for this post…

    This post was mentioned on Twitter by NickGriffLA: CEO of Intelli wants to clarify a few things. http://tinyurl.com/ygvvu6e...

  7. Doug says:

    Mark,

    In looking back at these posts I see that Daterra certainly had a portion of something they were selling called a micro-lot which they sold to a roaster. So you are correct in that someone else was first in introducing this internally into the industry. In searching all of the public records, can any one find any earlier use of the term Micro-Lot as it relates to a coffee marketed and sold to the consumer before our Colombia Cauca Almaguer?

  8. Mark says:

    I think Howell was still under his no-compete from Starbucks in 2003, so he wouldn’t have been using microlot as a termin retail because he had no coffee to sell retail; I know Peter was using the term in 2004 based on our forum participation, but there’s no other record of Howell & Co using it for retail marketing purposes.

    The earliest marketing to the public usage of “microlots” shown in our forums is for the Cauca Almaguer – it’d be interesting to go back and check any verbage Howell had on his own first website for his new coffee roasting ventures.

    On Direct Trade – always knew Intelli started that term, always thought it was brilliant, but equally – I always thought that you should have opened up that term from the get go – put it out there to be an independent, third body new certification process embraced (and initially funded) by independent, quality minded roasters. Set base standards for transparency, farmer involvement, lack of brokers, farmer / roaster partnerships, etc, and make it a powerful, “true ethics” quality driven brand that multiple roasting companies would use and drive home the concept of a certification process with balls.

    Of course, you and I have had this conversation many times in the past. But I still feel it’s something that could be done today – the time is not too late. But I, just like you, worry about the increasing dilution of “Direct Trade” and how unscrupulous roasters might start using it 100% for marketing purposes and nothing to really back it up.

  9. Hunt Slade says:

    Doug,

    I think that it is arguably indisputable (I live in paradox) that without Intelli, there would not be anything near the recognizability of these practices within the industry, much less known by the consumer, at this point in time. What is more important than where these practices originated is where are they being practiced. As a very small micro-roaster, we aspire to achieve these practices as our standard one day. Knowing that even Intelli was once a fledgling roastery means that any of us can rise to this level of responsibility to the producers and the honor of having their finest harvests in our stores.

    That being said, I understand the frustration of the slow climb that leads to the ability to facilitate direct trading, but take comfort in the availability of fully traceable, truly seasonal coffees from fine green importers that have been directly trading with farmers and co-ops for a few seasons now. Micro-roasters do have access to that level of quality, if at a higher price. Thank you for setting the bar so high for us and for showing that it can be done if one puts the work in.

  10. David Walsh says:

    Where can I read more about this Ministry of Misinformation? Do they have a mailing list?

  11. Doug says:

    David,

    They are those that use Direct Trade recklessly, say they work at source, but really visit once every few years for photo ops and simply buy off an importer’s offering sheet with nary a sample roast, say they take good care of their staff, but offer no benefits, say they are committed to great quality, but work by low balling on price. They want the public to believe they are doing the right thing, but in reality they are diminishing the efforts of those that are. Their mailing list goes out to all that are willing to believe without really knowing. I have a feeling you are not on their mailing list.

  12. Liza Freeman says:

    I’ve been reading your blog – and am really impressed. I have always been impressed by the excellence of your products – so I guess that your personal point of view shouldn’t surprise me. Your coffess are extraordinary, your global perspective is no less so. I’ve been reading back installments of this blog, and find myself reminded of the midset required to do remarkable things. I imagine that it’s rewarding to have your company do buisness on such a large scale that you see your principles espoused and even copied. I also imagine that the amount of travel you must do in order to maintain your ideals and your quality must be hard on your personal life. Just wanted to drop a note to say that I admire what you do, adore your cofeess and esteem your ethos. You’ve forced the entire industry to up it’s game.

  13. Cory Neal says:

    Mr Zell,

    I greatly respect the work you have done for coffee and in particular what you have done for the farmers. You have set the bar incredibly high for anyone who wants to be in the Specialty Coffee Industry, and for that I am thankful.

    That being said, it frustrates me to read this post, I find it very unnecessary. Why must you list what you have done for the coffee community? Anyone who is involved in it certainly already knows your accomplishments. One of the things I cherish most about being in coffee is the camaraderie between my peers in coffee. This rant is about as far away from that as possible. Does it really matter who came up with the idea for latte art throwdown? Isn’t what matters the fact that barista’s are getting together and improving their skills?

    For all the progress you have made in specialty coffee in the past, this post is certainly taking a step or two backwards.

  14. Chris Schooley says:

    Dang, I was going to use “Ministry of Misinformation” as the name for my Information Society cover band.

  15. Doug says:

    Cory,

    I respectfully disagree with you here. The reason for this post is to give a historical basis as to what has happened. Based on many conversations I have heard or had, there are a lot of folks taking credit for things they haven’t done and are not doing. It is difficult for me to sit idly by and watch this happen repetitively. I think it is bad for the industry. That is why I posted this-nothing more, nothing less. As for baristas and the coffee community getting together to sharpen their skills or their coffee knowledge, I have always been and will always be for that.

  16. Cory Neal says:

    Doug-

    Thank you for your response. I can certainly understand your frustration with other people taking credit for your work. I would be pretty upset if someone laid claim to something I did. I don’t think I agree with it still but I can respect and understand where you are coming from.

    Wish you the best

  17. chad says:

    doug,

    thank you for your pioneering, your commitment to the industry, your commitment to your employees, and for helping identify parameters for those trying to do their best in direct sourcing. thank you, also, for putting yourself out there and being willing to aggressively pursue excellence at all costs.

    while we may be the undercard compared to you being the title bout, so to speak, we battle the same issues of educating the consumer as to how we are different. i hope on some level, we are unified in our educational voice, so that consumers wont continue to be confused as to what direct trade truely means.

  18. Jason Dominy says:

    I will address this, as I recently addressed a tit-for-tat post regarding a certain Mr. Cho, and a certain Double Shot Coffee. And I mean nothing but respect, as I have nothing but respect for Mr. Zell, or what he’s been able to accomplish, and what he hopes all others will someday be able to accomplish when they get big enough like Intelly is, to enact most of the buying practices currently practiced by Intelly, and seen as the Holy Grail by roasters all over the country doing a 1/4 or less of his business.

    I see no value in this post that strengthens the coffee community, the opinion anyone has of Intelly, or pushes forth on a constructive conversation that makes any of us better. A rant? Yes. Understandable? Yes. Necessary or helpful? No. Why can’t we all just get along? Why can’t we just do what we do, and let that speak? Who cares who came up with the term “throwdown?” Does it make me think more highly of Intelly because you claim you did? No. Who cares who first used the term “Direct Trade” in a specific sense, out of something that’s an adjective? Besides, wasn’t Batdorf & Bronson doing “direct trade” long before that? Or was yours different because it used more specific parameters, or marketed better? Again, this kind of banter doesn’t further the cause for excellent coffee, better community, or better buying and selling practices.

    With that being said, you should have a free place where you can vent and rant about the things that most frustrate you, and this is that place. Anyone who contributes should do so with respect and understanding of what it is. Your opinions. Which I’m sure we’re all thankful for, or we wouldn’t have read this in the first place. I sincerely hope we can get to place one day where it’s all about the coffee and community. Where there’s no animosity company vs. company, and where we all push each other forward. As Ben Helfen reminds us all the time, “A rising tide floats all boats.”
    (open the floodgates….)

  19. Doug says:

    Jason,

    I was not trying to be combative. It is about coffee and community and I think if you were to look at my record of service in the industry as well as Intelligentsia’s record of service in the industry, you will find that we have always been there for the coffee and the community. I agree about and subscribe to the rising tide. Misinformation does not make the tide rise. It confuses things. It misleads the community and the public. That’s it. I’ve always been for leading by one’s actions. But when someone else takes credit for my actions or my company’s actions, I cannot sit idly by and watch. I will always take the high road (although sometimes it is not easy) but I will not let deception win the day.

  20. [...] Andrew Brewtbart, famously reclusive leading figure in the conservative coffee movement, has aimed his poisoned pen at Intelligentisia’s CEO Douglas Zell. The controversy stems over a recent Zell Speaks blog post in which he claimed credit for a number of specialty coffee innovations. [...]

  21. thompson says:

    this is just dumb from start to finish. who gives a crap. you can only own a “way of doing things” if you come up with some silly name for it. the names are all silly. the meaning is in how it improves the process and the product. i know many would agree with that, so get over it.

    things like this make me really appreciate all the quiet people in the coffee trade who have contributed so much, and don’t twitter about it. think christy or chad, for example…

  22. Doug says:

    Tom,

    I appreciate the criticism. So then why call it Farm Gate Coffee™ (http://www.sweetmarias.com/farmgatecoffee.php) on your site? Is that a silly name? Why not call it nothing? Would you feel differently if Farm Gate Coffee were used recklessly by a lot of other roasters that completely distorted its original well-founded meaning and risk that it becomes meaningless? Would you sit quietly? I agree with the idea of improving the process and the product. I always have and always will. I think our track record in coffee has proven this to be true. I have been quiet for many, many years, but when folks are merely following suit and say they are the ones that hatched an idea, I will probably speak up. If this offends you, I apologize. If you think it’s dumb, I can live with that. As for the quiet folks you mentioned, I think they are great too.

  23. Although Intelligentsia might have put a name to these principles first, I do disagree that Intelligentsia was the first company to think about seasonality, direct trade, etc.
    I think it is hard for a company based in the USA to have a clear overview of what is going on in other countries at all times. Remember the world is actually includes more countries than the US (although in baseball the world series only includes US teams;-) So, you might have been the first in the US, I wouldn’t know, but being the first in the world? I don’t know….

    The first time I heard about the concept of buying directly from farmers paying a higher price was through Solberg & Hansen in Norway back in 1999. This concept actually became a result of the first Brazil Cup of Excellence in 99 and I know S&H has ever since they bought that winning lot, tried to buy all their coffees directly. Wether they call it Direct trade or not, I really don’t care as long as the principles of quality coffee for a quality price and a transparent trade model is followed.

    As for seasonality this has been around for some years too. KAFFA in norway has had seasonality in their brochure of coffees ever since they started in 2001. We have focused on seasonality ever since our start in 2007 with our espresso blend changing according to coffee harvest seasons.

    But as Tom says, who cares who named it first. The most important is that these ideas are helping the industry forward. So stop fighting about “who was first” and start spending your energy on coming up with more of these briliant ideas on how to make the coffee world better.

    Lastly I would like to applaud you, Doug, and Intelligentsia for being a fantastic role model for a lot of people in the coffee industry. You guys are doing fantastic work!

  24. Doug says:

    Tim,

    I think you are right to say that we in the US definitely can miss what else is going on in the world. Solberg and Kaffa have always been leading edge companies and have done great work. I certainly think coffee roasters have been buying direct (probably for awhile) and have had seasonality (more recently) as part of what they do for some time. I do however think offering a formalized system with specific guidelines and a name is helpful and can absolutely act as a catalyst industrywide. It would be difficult to argue that the guidelines for and the name Direct Trade have not had this effect.

  25. thompson says:

    You are enjoying this a helluva lot, eh Doug? You bastard! Anyway, I too have a business (thanks for the free link) and need to consolidate our activities under nifty names so we can communicate them to people who might care. Yes, farm gate (groan). But I did not invent the idea of guaranteeing minimums to farmers and working on an ongoing basis with escalating prices and involvement. People will riff on any good idea. They will change it. “Natural” meant something real when my mom ran a natural food store in the ’70s, and it meant nothing a few years later. McCafe has “MicroLots” and everyone from Caravan to Kraft are “roasting in small batches.” It’s the way of the world. Plunk down your intelli flag and try to claim your little chunk of turf and you are going to get dragged down into the subduction zone, Doug… you just can’t fight it. Give up, or sue someone, be graceful and move on, or keep blogging your way to the top of Sprudge mountain. -Tom

  26. Doug says:

    Tom,

    Ok I’m ready to move on. I do like a good fight. And yes, maybe I am enjoying this a bit more than I should. We’ve met on many occasions and I happen to think you are a really nice guy. You may now think I am an ass, but I hope not. Anyway you are right in saying that people will riff on a good idea and in the case of Direct Trade and seasonality I think that was honestly always the hope. Believe it or not, our desire was that these things become expansive and change how coffee is developed, purchased, perceived and enjoyed. They were to be “open source” so to speak. So here’s the deal. We promise to keep pouring our energy into making the coffee better and more valuable and that everyone involved can benefit from this evolution. That’s it. As for blogging to the top of the Sprudge mountain, I’ll leave that to those that have a lot more time on their hands than I do. We’ve got work to do.

  27. Edwin says:

    Doug,

    You get the “3rd cojon” award!

    I understand the spirit of your post in that you’ve publicly risked a lot, and it’s paid off for you, other roasters, growers, exporters, importers, retailers and ultimately consumers. Education is not cheap and you’ve certainly paid the price. More than people know, I’m sure. You’ve articulated your commitments to your customers as well as competitors. What I find most distinctive though is not that you may or may not have done something first. But that you were ballsy in the first place and that you continue on with you’re commitments constantly looking to improve.

    I’m sure you won’t be suing anyone, and lets be honest I’m sure you won’t be giving up or getting over it any time soon either. Sorry Tom. I can’t imagine its less frustrating every time a new roaster puts DT or FARM GATE COFFEE on their website because they tacked on a farm visit to their vacation and got some great photos along the way.

    Nice job keeping the gloves on though.

    Sometimes we learn the most from failures. Anyone who has taken big risks has probably had some big falls. priceless stuff. I’m sure you must have had some bumps in the road back in 2003 in your green buying efforts? and even today..? I’m sure offering coffee In Season comes with it’s challenges beyond what most perceive. – Edwin

  28. Al Gore says:

    BALDERDASH!!! YOU DID NOT INVENT DIRECT TRADE, THROWDOWNS, OR MICRO-LOTS! I DID. THOSE THINGS AND THE INTERNET. I CAN’T BELIEVE YOU WOULD EVEN TRY TO CLAIM AS SUCH. I’M SUING. YOU WILL RECEIVE COMMUNICATION FROM MY ATTORNEYS SOON…..

  29. Terry Z says:

    And what about the Dradel? I once made one out of clay, and I suppose you made one first, huh?

    Video proof http://www.youtube.com/watch?v=EKAJkzvGSB4

    I do know for a fact that you invented the first ever 360 spin off on an Intelly deck at Chicago Coffeefest in 2008? I had always worn dress shoes while working in my booth, until that day. Now Van’s are the official foot wear of EP….. Your free to take credit for that if you would like.

    Oh and by the way, get back to work.

  30. [...] am a bit inspired by Dog Zell’s post regarding Intelligentsia’s positive contributions to specialty coffee industry over the past [...]

  31. [...] Doug Zell’s Setting the Record Straight [...]

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