Quick Update on What's Happening with Coffee Prices

We wanted to give you an update about the current situation in the coffee world and how it might affect the prices you see from us. You've probably noticed or heard that coffee prices have been acting a little wild lately, jumping up quite a bit.

So, what's going on?

There are a few big things happening globally that are making coffee more expensive right now:

Wonky Weather

Unfortunately, the places where a lot of the world's coffee comes from, like Brazil and Vietnam, have been severely impacted by extreme weather events. Prolonged droughts, followed by instances of heavy rain, have negatively affected coffee yields and the quality of the beans. This reduction in supply from key origins is a primary driver of current price increases.

Shipping Headaches

Getting coffee beans from farms to our roastery is still trickier and pricier than it used to be. Shipping containers cost more, ports can be congested, and delays add up. All those costs get added along the way.

Everyone Loves Coffee!

Demand for great coffee keeps growing around the world! Which is awesome, but with less coffee available because of weather issues, this high demand pushes prices even higher because there's more competition for the beans.

Low Stock

Basically, there isn't a huge amount of coffee sitting around in warehouses right now. When stocks are low, any little problem with getting in new coffee can make prices jump quickly.

Farming Costs More

It's also costing farmers more to grow coffee these days – things like labor and fertilizers are more expensive. That naturally factors into the price they get for their green beans.

Plus, There's This Tariff Situation...

On top of all that, there's a new layer of cost because of the recent tariffs. Even though coffee has been exempt from tariffs in the past, the new tariffs that started in April hit coffee too. That means we now have a new 10% cost added to the coffee we buy.

This isn't something the farmers benefit from; it's a cost paid to the US, added to the green beans just to bring them into the country. It increases the price of the coffee before we even roast it.

Put it all together, and unfortunately, it means the cost of the green coffee we buy has increased significantly. We've been trying our best to absorb these increases where possible. But to keep providing you with the quality coffee you expect, we'll likely need to adjust our wholesale prices on some items soon.

We're figuring out the specifics now and will let you know exactly what those changes will look like as soon as we can. Right now, we are considering averaging the cost of our current contracted inventory with replacement inventory, reducing the full impact of the price increases. As of right now, we are projecting that coffees will increase by $1 per pound for retail will go into effect on June 1, 2025. Please know, this is not easy. On our end, green coffee prices are up 92.6% over this time last year. So we are absorbing quite a lot to make this work.

Thanks so much for your understanding and for being such great customers.

~Emeran Langmaid