(a) Yes (b) No?
Yes. It is deductible in Canada to the employer as a deductible benefit to employees.
This brings up another question? If the benefit of having coffee available to you at the office taxable? In Canada, yes technically it is taxable, but Canada Revenue Agency has an administrative policy of allowing it. See publication T4130(E) Rev. 18:
“Policy for non-cash gifts and awards You may give an employee an unlimited number of non-cash gifts and awards with a combined total value of $500 or less annually. If the FMV (fair market value) of the gifts and awards you give your employee is greater than $500, the amount over $500 must be included in the employee’s income. For example, if you give gifts and awards with a total value of $650, there is a taxable benefit of $150 ($650 – $500). Items of small or trivial value do not have to be included when calculating the total value of gifts and awards given in the year for the purpose of the exemption. Examples of items of small or trivial value include coffee or tea, t-shirts with employer’s logos, mugs, plaques or trophies.” Apparently though, this policy is under review at the official web page, which says:
“Please note that Folio S2-F3-C2, Benefits and Allowances Received from Employment, is currently under review. Employers should continue to follow current practices consistent with the information available in Guide T4130, Employers’ Guide – Taxable Benefits and Allowances.”