Wednesday, 16 October 2024

Costa Rica - coffee

Costa Rica produces some of the world's highest-quality Arabica coffee, benefiting from ideal conditions like fertile volcanic soil, high altitudes, and consistent rainfall. 
It sits just north of the equator.

The country is a leader in the boutique micro-mill movement, with diverse microclimates producing distinct flavors. 

Known for being rich, balanced, and full-bodied, Costa Rican coffee often has notes of caramel, honey, and dark chocolate, with unique sweet and floral aromas. 

The government's investment in technology and support for small farms have solidified its status as a major, high-quality coffee exporter. 




Costa Rica's eight main coffee-growing regions are Tarrazú, Central Valley, West Valley, Tres Ríos, Orosi, Turrialba, Brunca, and Guanacaste. 
These regions are characterized by high altitudes, fertile volcanic soils, and a distinct dry and rainy season, which contribute to the production of high-quality, well-balanced Arabica coffee with bright acidity.  

Officially Costa Rica had eight primary regions for coffee production. Now it has 7: 
Northern zone, Western Valley, Central valley, Los Santos, Perez Zeledon, Turrialba, Corto Brus,

Processing Methods Used

Costa Rica is renowned for innovative coffee processing, primarily using washed (wet), honey, and natural (dry) methods to create varied flavour profiles. The country is a pioneer in honey processing—a hybrid method leaving mucilage on the bean—alongside specialized techniques like rare hot spring fermentation to improve sweetness and complexity. 

Washed (Wet) Process: Often called "beneficios," this traditional method removes all pulp and skin before drying, resulting in a cleaner, higher acidity cup.
Honey Process: A specialty of Costa Rica, this method removes the skin but leaves varying amounts of sticky mucilage (honey) on the bean while drying.
White/Yellow Honey: Lower percentage of mucilage; lighter, faster drying.
Red/Black Honey: Higher percentage of mucilage (up to 100% for black); creates a sweeter, heavier-bodied cup.
Natural (Dry) Process: The entire coffee cherry is dried intact, allowing the bean to absorb sugars from the fruit, resulting in a fruitier and full-bodied coffee.
Innovative Methods: Some farmers use unique techniques, such as the "Hot Springs Technique" utilizing, geothermal spring water to ferment the beans.
Decision Factors: Producers decide on the process based on rainfall, with honey and naturals often chosen when conditions allow to maximize sugar content.

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Northern Zone:
Guanacaste, Puntarenos, Alajuela
The Northern Zone of Costa Rica, also known as Huetar Norte, is a region in the northern part of the country, bordering Nicaragua to the north. It is located to the northeast of the capital, San José.

It is home to popular tourist destinations like the Arenal Volcano National Park near La Fortuna, the cloud forests of Monteverde, and the Tenorio Volcano National Park with its blue Celeste river. 

The Northern Zone of Costa Rica features varying altitudes, with lower mountain ranges compared to the rest of the country, featuring peaks reaching up to 2000m 
and several, lower mountain passes between 500m
 and 100m). This region transitions from low-lying plains near the Nicaraguan border to higher volcanic terrain. 

Key Elevation Features in the North:
Mountain Passes: Several key passages exist between 
500m and 1000m.
Peak Elevations: Mountain ranges in this area peak at around 200m.
Lowlands: The northern plains near the border are much lower, descending toward sea level.
Volcanic Influence: Areas surrounding features like the Arenal Volcano rise abruptly from the surrounding, lower-lying plains. 

This region generally has a lower and more broken terrain compared to the southern pacific and central highlands, affecting its local climate


West Valley: A crucial growing area with microclimates, fertile soils, and the ability to harvest cherries during the drier summer months. 

Coffee in Costa Rica's West Valley region is generally grown at high elevations, ranging from 1,200 to 1,900 meters above sea level (masl). This area is known for producing Strictly Hard Bean (SHB) coffee, typically cultivated between 1,200–1,700 masl, ensuring dense beans with rich flavor profiles like papaya, honey, and citrus. 

West Valley Altitude Highlights:
Primary Growing Range: 1,200–1,800 masl.
High-Altitude Specifics: Specific micro-lots and top-tier farms often operate at 1,600–1,700+ masl.
Key Locations: Many farms are located in areas like Llano Bonito de Naranjo. 

The region's sloped terrain, rich volcanic soil, and high altitudes contribute to a highly regarded, dense coffee bean. 

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Central Valley: 
The Central Valley of Costa Rica is located in the central highlands of the country and is the most populated region, containing most of the large cities and government centers. It is a highland valley defined by low volcanic hills and is divided into basins drained by rivers like the Reventazón. The valley includes the capital city, San José, and other provincial capitals such as Cartago and Alajuela. 

Coffee is well-balanced & high-quality, known for its chocolate, fruit, and honey notes, thanks to its rich volcanic soil and ideal climate. 
Coffee from this region is often a blend of Strictly Hard Bean (SHB) varieties, meaning it's grown at high altitudes where it matures slowly, resulting in a denser, higher-acidity bean. These beans stand up well to roasting, producing a strong, flavorful cup.  
Grown at altitudes from 1,000 to 1,200 meters, but is also highly produced at elevations up to 1,700 meters.
 The region has a well-defined wet and dry season, and a consistent temperature that allows for slow maturation of the coffee beans. 
Bean characteristics:
The slow maturation process makes the beans "hard" and dense, which contributes to their vibrant acidity and complex aromatic features. 
Varietals:
While many varietals are grown, some Bourbon and Caturra varietals are still cultivated in the Central Valley. 
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Tarrazú: A specific area within the Central Valley, known for producing some of the country's finest Arabica beans. 
Dota Tarrazu coffee refers to premium coffee grown in the Dota region of Costa Rica's Tarrazú mountains, known for its high altitude, volcanic soil, and the Coopedota cooperative. The coffee is celebrated for its bright, clean acidity, and complex flavors, which include notes of citrus, stone fruit (like peach and apricot), honey, and chocolate, with a smooth, full body and sweet finish. It is a versatile coffee, excellent for both espresso and various filter methods like Aeropress or V60, and is often available in light to medium roasts that highlight its bright, floral characteristics. 

Costa Rica Tarrazú coffee is cultivated at high altitudes, typically ranging from 1,200 to 1,900 meters (roughly 3,900 to over 6,000 feet) above sea level. These high-elevation, volcanic soil conditions in the interior mountains are ideal for producing dense, premium-quality, and complex coffee beans. 

Key Altitude Details for Tarrazú
Common Elevation Range: 1,200–1,800+ meters (approx. 3,900–5,900+ feet).
Specific High-Grown Areas: Many premium producers harvest at 1,500 MASL (meters above sea level) or higher, often classified as Strictly High Grown (SHG).
Location: The town of San Marcos, a key town in the region, sits at around 1,350 meters. 

Common Usage/Synonyms
When searching for Tarrazú coffee, the altitude is synonymous with terms indicating high quality due to slow bean maturation: 
SHG (Strictly High Grown): The standard classification for coffee grown above 1,200–1,400 meters.
SHB (Strictly Hard Bean): Used interchangeably with SHG to denote density.
High-Altitude Coffee: Emphasizing the cool, steep terrain that enhances flavor profiles. 

Usage Example: "A top-tier Tarrazú SHB washed coffee from 1,700 meters
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Tres Ríos: Located near the Pacific Ocean and the capital city of San José, this region produces distinct, bright, and sweet coffees. 

Tres Ríos, located in the La Unión canton of Costa Rica’s Cartago province, lies at an elevation of approximately 1,345 meters (4,413 feet) above sea level. This mountainous region is known for its coffee-growing altitude and lies between San José and Cartago. 
Elevation Details: 1,345 meters (approx. 4,413 feet).
Location: 12 km east of San José, 11 km west of Cartago.
Context: It is part of the central valley highlands characterized by high-altitude coffee cultivation.
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Orosi: A region known for its lush landscapes and high-quality coffee production. 
 Based on regional data for the Cartago Province where the Orosi Valley is located, the altitude in the area typically ranges from roughly 1000m to over 1500m in surrounding hilly regions. 
The Orosi Valley itself sits lower, creating a lush, subtropical microclimate suitable for coffee cultivation, while nearby peaks like Irazú rise to over 3400m. 

Key Altitude Details and Context
Location: Orosi Valley, Cartago Province, Costa Rica.
Average Elevation: The surrounding Cartago province has an average elevation of 
1374m.

Usage Examples: The high-altitude, cool, and humid environment (often above 1000m) is primarily used for specialized agricultural production, specifically high-altitude Arabica coffee farming, which thrives in this climate.

Regional Topography
Lower Valley: The town of Orosi is located at a lower elevation along the Orosi River.
Surrounding Mountains: The area is bordered by mountains, including portions of Tapantí National Park, which contribute to rapid increases in elevation.
Nearby Volcano: The nearby Irazú Volcano reach maximums of over 3400m.

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Turrialba: A fertile area with winding rivers and thriving coffee plantations, also recognized for chocolate. 

The Turrialba Volcano summit reaches an altitude of approximately 3,340 meters or 10,958 feet above sea level, making it the second-highest active volcano in Costa Rica. The town of Turrialba sits lower, at roughly 2,119 feet (646 meters). The area is known as the "Central Highlands," characterized by high altitude, lush landscapes, and active volcanic activity. 

Key Altitude Details for Turrialba:
Volcano Summit: 3,340–3,350 m 
Town Elevation:646 m.
Crater Depth: The volcano has three main craters, with the largest having a diameter of 50m 
Location: The town lies roughly 45 minutes from the volcanic summit. 
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Brunca: Another of the country's distinct coffee-growing regions. 

The Brunca region in southern Costa Rica is characterized by a wide range of altitudes, generally spanning from sea level up to high-mountain areas, with coffee cultivation typically occurring between 800 and 1,700 meters above sea level (masl). 

Key Elevation Details for Brunca:
General Coffee Range: 800–1,700 meters.
High-Altitude Coffee: High-quality lots are often found at upper elevations, such as 1,400–1,800 meters.
Lower Elevations: Some areas in the region, particularly near the coast (Osa, Golfito), are at or near sea level, but these are not the primary areas for specialty coffee cultivation.
Key Coffee Sub-regions: Coto Brus and Pérez Zeledón are the primary coffee-producing cantons in the region, with elevations varying significantly, including some at roughly 1,500 meters.
Topography: The region is bordered to the north by the Cordillera de Talamanca, which includes Chirripó, the highest peak in Costa Rica at 3,819 meters, allowing for steep elevation gradients. 

Coffee Profiles by Altitude in Brunca
High Altitude (1,400–1,800m): Produces higher-quality coffee with more acidity, featuring notes of stone fruit, green apple, and complex flavors.
Lower Elevation: Generally produces higher volumes but is often used for, or blended for, its mild character.

Guanacaste: One of the eight official coffee regions in Costa Rica

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Coffee index. Click here :

Craig Lyn - Weber Workshops HG-1 grinder

HG-1 hand grinder (sometimes styled “HG-1 Grinder” or “HG-1 Hand Grinder”) — it’s a high-end, manual (i.e. hand-crank) espresso grinder with premium construction and burrs.


The HG-1 was one of the original “heirloom” manual espresso grinders produced by Weber Workshops / Craig Lyn Design Studio. 

Links:

Its name “HG” presumably stands for “Hand Grinder.”
It’s no longer actively produced (it’s been succeeded by later models), but many aspects of its design live on in newer versions (e.g. the HG-2) 

The HG-1 is geared toward serious coffee enthusiasts who want control, precision, and durability, at the cost of more manual effort.


It's a beautiful piece of art. More than just a grinder.

I use it for Classic Espresso (never filter) as it generates lots of fines 



Uses a 10 core/point inner, 83 mm conical burr set from Mazzer (same as in their Robur series). The outer ring has 18 points.
The burr edges are treated with a TiN (titanium nitride), food-safe coating to extend life and reduce wear. 

Diameter: Ø 83 mm (3 1⁄4 inches)
Phase: three phase




The larger number of cores allows cutting at multiple angular positions which should reduce vibration and improve speed.

The base tool steel is hardened; coatings like TiN help reduce wear rate, 
so effective lifespan might be many hundreds to thousands of kg of beans.
Mazzer website;


Frame is milled from 20 mm thick 6061 T6 aluminum plates, sandblasted and anodized for durability.
Contains hardened spiral mitered steel gears on stainless shafts linking a 15 mm flywheel to the burrs. 
CNC milled burr housing / gear housing; uses sealed bearings.

Portion of design is “user serviceable” with standard parts.

The gear wheel spins forever when the hopper is empty.

The design aims for low retention and a “direct path” for grounds: once ground, coffee falls straight down (gravity) rather than being channeled or flung around internally. This reduces clumping, friction, and heat.

Upper funnel lifts off to expose top burrs for cleaning. 

- Lower funnel attaches magnetically (rare earth magnets) and is twist-removable, facilitating access to bottom burrs. 


- Design intends that cleaning is fast (seconds rather than hours) so users are more likely to keep it clean.


Micro-stepped adjustment: by lifting a locking ring and rotating the burr mount. Each etched mark corresponds to ~0.013 mm (13μ) vertical travel between burrs (i.e. fine adjustment capability). 


- “Zero point” calibration: the burrs are set to lightly touch at the zero point, then rotated (e.g. ~1.25 turns) into a usable espresso zone, and the locking ring set

It’s quite heavy: ~ 29 lbs (≈13 kg) for the 2020 version (per Craig Lyn listing) 
craiglyn.com

- Very tall: because of the flywheel lever, clearance above it is needed (they recommend at least ~6 in / ~15 cm above the flywheel handle). 


- Needs solid, stable mounting or placement (it’s not a lightweight grinder you just plonk on any counter

Because it’s manual, speed depends on user, but the design intentionally runs slowly to reduce heat. The burr set itself is designed for relatively low rpm (400–500 rpm) in motorized use; the HG-1 in hands turns the flywheel around 100–120 rpm for a typical 18 g dose, yielding ~28 s of grind time (for espresso region).

I find that grinding about 5g at a time is much easier and quicker overall than trying to grind 18g at once.

the “straight drop / low retention path” design of the HG-1 complements the burr geometry: once beans are cut, they drop directly, minimizing friction, minimizing static or “hang up.








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How do I know if I have replaced the burrs correctly?

Once the burrs have been changed, open the grinding collar 5 notches away from the point of contact of the burrs (found when the motor is off) and grinding 5/6 g of coffee, in order to check that the operation has been successfully completed and to ensure that the burrs are parallel. The resulting ground coffee should have similar characteristics to talcum powder, i.e. a very fine homogeneous particle (be careful not to grind too much coffee at this adjustment point because you risk clogging up the burrs). After this check has been completed, the appliance can be adjusted to the espresso grain size. 

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Pros / strengths:
Outstanding burr size for a hand grinder — Using 83 mm burrs gives it a performance edge in uniformity and stability, especially for espresso. Many hand grinders use much smaller burrs. 

Low retention / clean path 
— The gravity / straight-drop design reduces ground retention and internal friction, which helps consistency and reduces waste. 
Durable construction & serviceability — The robust metal construction, use of standard parts, sealed bearings, and a user-friendly design for servicing make it a grinder built to last. 



















Fine adjustment and precision — The micro-stepped adjustment allows fine tuning of grind for espresso dialing. 
Ease of daily cleaning — The quick release of funnels and burr access make cleaning manageable and encourage regular maintenance.













Of course there are some Cons, trade-offs & challenges with a grinder such as this.
The first is you need some manual effort & time — Because it's hand-cranked and using large burrs slowly, grinding 18 g or so takes ~25–30 seconds by some user reports. That requires physical effort and consistency of hand motion. It's definitely not my everyday grinder. More my Sunday morning one when I'm not in a rush.

Next there is it's Size / weight / footprint — It’s really heavy and tall; you need space above for crank operation and a stable, solid placement. Not ideal for small kitchens or mobile setups. 

The Magic Tumbler is gorgeous.

It's out of production & there is limited availability — Since the HG-1 is no longer in production, getting a new unit is difficult; many existing ones are in the resale / secondhand market. and thus the 
Cost is great — Even secondhand, these grinders tend to command high prices due to their specialty niche. 




Learning curve & consistency — As with most manual grinders, achieving consistency (equal pressure, steady pace, avoiding stalling) takes practice. The instructions warn about “hopping” or stalling if motion is uneven.

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Grinder adjustments for Espresso: 
Many grinders have a 30-micron increment that can be too coarse for dialing in espresso.
In general, the lower the the microns per click, the better your grinder will be for espresso.
By increasing the threads on the adjustment axle, we can increase the number of available adjustment settings thus making it easier to achieve the very precise grind sizes needed for espresso.
A good grinder adjustment for espresso is a step size that's between 5 and 15 microns per click to allow for precise dialing in the shot. Though some grinders are stepless, offering infinite adjustment. The best adjustment size depends on the specific grinder and the sensitivity of your espresso setup, as a single click can significantly affect your shot time and flavor.

Examples of Grinder Adjustments 
Kinu M47: each full revolution having 50 divisions,
                  resulting in a precision of approximately 5 microns per click
1-Zpresso Jmax: 8.8 microns per click
1-Zpresso J-Ultra : 8 microns / click
1-Zpresso JE-Plus & JX-Pro : 12.5 microns / click
Comandante C40: 25-30 microns per click
Comandante C40 with Red Clix: 15 microns per click
HG-1 by Weber Workshops : 13 microns per click
Pietro by Fiorenzato : 15 microns/click
Timemore C3 (standard not the ESP version): 83 microns per click
Timemore C3 ESP: 23 microns per click
Timemore C5: 31 microns per click
Timemore C5 ESP: 15 microns per click

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COL -coles

 COL Coles
25 july 2026


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Over the last 5 years, Coles Group (ASX: COL) has delivered stable, defensive, and slow-growth performance. Net profit has remained anchored around $1.0B to $1.1B annually, revenue has grown steadily to $44B, debt remains highly leveraged due to long-term lease liabilities, and ROE has consistently hovered between 26% and 37%. [1, 2, 3, 4, 5]
A breakdown of the key financial metrics over the past five years highlights specific trends:
1. Revenue and Profit
  • Revenue: Grew steadily from $39.4 billion in FY2021, hovering around $44.5 billion heading into 2026, driven by consistent supermarket and e-commerce sales. [1, 2, 3, 4]
  • Net Profit (NPAT): Remained firmly resilient but largely flat. After-tax profit fluctuated in a tight range: peaking at $1.12 billion in FY2024 and landing at $1.08 billion in FY2025. Coles posted about $1.01B in profit over the trailing 12 months, impacted by normalization from previous years. [1, 2, 3, 4, 5]
  • Margins: Profit margins remained characteristically thin but stable, with net profit margins sitting between 2.4% and 2.7%. [1]

2. Debt
  • Debt to Equity: Appears very high, generally ranging between 228% and 272%. However, this is largely attributed to retail property/store lease liabilities (which are counted as debt under AASB 16 accounting standards) rather than aggressive corporate borrowing. [1, 3, 4, 5]
These are the D/E ratios for the last 5 years:
2026 - 2.72
2025 - 2.71
2024 - 2.78
2023 - 2.67
2022 - 3.13
3. Return on Equity (ROE) & Financial Health
  • ROE: Historically high and excellent for a defensive retailer, consistently averaging between 26% and 35%. It peaked at around 37% in FY2021 and was recorded at 26.5% heading into early 2026. [1, 2]
  • Cash Flow: The company generates strong, reliable operating cash flow and free cash flow (consistently over $1.1 billion annually), allowing for stable and growing dividend distributions. [1]
4. Share Price & Dividends
  • Share Performance: Market valuation has remained robust. The share price has generally climbed, pushing past the $23 to $24 mark by mid-2026, with a solid dividend yield generally hovering near the 3.0% to 3.5% range. [1, 2, 3, 4, 5]


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PE Ratios
The mean historical Price-to-Earnings (P/E) ratio of Coles Group Limited (ASX: COL) since its listing is 20.48x, while its current trailing twelve months (TTM) P/E ratio sits significantly higher at 30.63x. [1, 2]
Because Coles Group was spun off from Wesfarmers and re-listed as an independent entity on the ASX in November 2018, independent 10-year historical data does not exist prior to that date. [1]
Historical P/E Ratio Breakdown
The table below tracks the independent fiscal year-end or calendar year-end P/E ratios for ASX:COL:
Year [1, 2, 3, 5]P/E RatioValuation Context
2026 (Current TTM)30.63xDriven by a strong rally in share price ($23.28) outpacing short-term EPS.
202527.2xReflects premium valuation multiples as defensive consumer staples became highly favored.
202420.3xNormalized closer to Coles' long-term average trading band.
202321.6xModest multiple expansion balancing post-pandemic supply chain adjustments.
202220.5xStabilized valuation inline with historical baseline averages.
202121.1xElevated demand metrics from pandemic-driven grocery volume spikes.
202017.4xEarly independent trading year normalization patterns.
20196.36xAll-time low right after the corporate spin-off due to initial restructuring distortions.
2016 – 2018N/AColes operated internally under parent company Wesfarmers Ltd.
Peer and Market Benchmark Comparisons
To put Coles' current 30.7x P/E ratio into perspective against competitors and the broader Australian market:
  • Industry Average: The global and local consumer retailing industry averages approximately 16.1x.
  • Direct Competitor: Wesfarmers Ltd sits closely at 31.9x.
  • The Broader Market: The overall ASX Market P/E Ratio historically averages a much lower 17.2x. [1, 2, 3]
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ROIC Vs WACC

Coles Group (Coles Group (ASX:COL)) has consistently maintained a return on invested capital (ROIC) of roughly 6.6% to 11.1%, which comfortably exceeds its stable weighted average cost of capital (WACC) of roughly 5.1% to 5.3% over the past 10 years, indicating steady economic value creation. [1, 2, 3]
Return on Invested Capital (ROIC)
  • Recent Range: Trailing ROIC sits between 6.58% and 9.23%, with 3-year to 5-year averages historically tracking higher between 10.0% and 11.1%. [1, 2, 3, 4]
  • Trend: Stable and historically resilient performance, though showing minor compression in recent periods relative to earlier post-demerger peaks. [1, 2, 3, 4]
Weighted Average Cost of Capital (WACC)
  • Recent Range: Current WACC estimates hover around 5.13% to 5.27%.
  • 10-Year Median: Historically centered near a 5.23% median, reflective of defensive retail characteristics, reliable cash flows, and a balanced debt-to-equity posture. [1, 2, 3]
Economic Spread (ROIC vs. WACC)
  • Value Creation: Because Coles' ROIC (~7–10%) persistently outpaces its WACC (~5.2%), the business generates positive excess economic returns. [1, 2, 4]
  • Efficiency: Every dollar reinvested into the business yields a return higher than the blended cost of its debt and equity, supporting stable dividend distributions and high cash conversion. [1, 2]

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