We Are Increasing Our Pricing
As we head into the new year, we take time to step back and review our business to make sure we can remain stable, healthy, and true to what we believe in: offering excellent coffee at a fair price, paying living wages to our full time team and sourcing coffee responsibly and ethically.
Like many everyday goods, the cost of coffee has continued to rise quickly and significantly. The primary driver of this increase is the cost of green (unroasted) coffee, the raw agricultural product we roast every day. Because of these ongoing increases, we will be adjusting the price of all our coffees by $1 (less than 5%), effective today January 8th. We want to be clear about why this is happening.
Coffee is traded globally, and its base price is set by what’s known as the “C Market.” This is a commodities market that treats coffee somewhat like oil or wheat, a global benchmark price determined by supply, demand and speculation. While this price doesn’t account for quality or sustainability, it strongly influences what roasters pay for coffee worldwide. The price we pay is in the range of double the commodity price. Several major factors are pushing the C Market and coffee prices overall, including..
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Geopolitical / Economic Uncertainty
Global instability creates volatility in commodity markets. When uncertainty rises, prices tend to rise with it..coffee included. Brazil and Colombia the two largest producers are in Trumps (very few) cross hairs, which combined with tariff uncertainty, increases prices.
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Global Supply Pressure
When large producers experience shortages, roasters around the world compete for a smaller pool of coffee. This competition drives prices up across the entire industry, even for coffees grown in other countries.
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Climate / Weather Impacts
Coffee is an agricultural crop, and it is extremely sensitive to weather. In recent years, major coffee producing countries such as Brazil, the world’s largest producers have faced severe droughts, unexpected frosts, and unstable growing conditions. These events reduce harvest sizes, meaning there is simply less coffee available globally.
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Rising Transportation / Import Costs
Once coffee leaves the farm, it still has a long journey to reach our roastery. Shipping, fuel, tariffs, insurance, and logistics costs have all increased substantially, and those costs are added on top of the market price of coffee. We do not source coffee that travels through the United States.
* All Prices In The Graph Below Are In USD
Over the past year alone, the cost of green coffee has risen dramatically…nearly doubling in some cases. While we absorb as much of this as we can, this small price adjustment helps us continue sourcing high quality coffee, paying our team fairly, and operating sustainably without compromising our values.
For additional reference, we conducted a brief market analysis of what other roasters, comparable to our size, are charging. We have the utmost respect for our fellow roasters; this information is shared solely for transparency. It’s also important to note that many roasters are reducing the size of their coffee bags as a way to offset price increases (e.g., 200–340 grams). We will not be changing our bag size.
|
North Roast Coffee |
$22.45 - $24.95 with price increase Per LB |
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Roaster A |
$34.73-$40.48 Per LB |
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Roaster B |
$33.29-$37.83 Per LB |
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Roaster C |
$26.70-$28.04 Per LB |
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Roaster D |
$30.19-37.07 Per LB |
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Roaster E |
$35.87-$44.50 Per LB |
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Roaster F |
$32 - $100 Per LB |
With all of this being said, we strongly believe in providing excellent value, transparency, and integrity in everything we do. This change allows us to keep doing exactly that.
Thank you for your understanding and for being part of the North Roast community. We’re grateful for your support and look forward to another great year ahead.
-Alex