Sponsored by Forest Grove Economic Development
Home Back Issues March 2011 Roasters cope with rising coffee costs

Roasters cope with rising coffee costs

| Print |  Email
Articles - March 2011
Wednesday, March 02, 2011

 

0311_Roasters
Adam McClellan at Sustainable Harvest says rising costs challenge local roasters to maintain quality. // Photo by Teresa Meier
0311_RoastersDataburst

Raw coffee beans are getting more expensive. Whether or not the price you pay at the local café or grocery story for roasted beans or coffee has increased because of it depends largely on where you buy them.

Stumptown, Ristretto Roasters and Portland Coffee Roasters have increased prices to varying degrees on both roasted beans and drinks; Whole Foods has maintained prices on its premium line, Allegro Coffee, but has passed on the increases from its wholesale accounts with local roasters.

“I’ve seen some of the local roasters certainly being challenged with the market price,” says Bonnie Meyer, the regional coffee and tea coordinator for Whole Foods. But, she says sales of the higher-quality beans haven’t been significantly affected at her stores. “I think customers are willing to pay a little bit more to support their local favorites.”

Arabica beans, the variety almost exclusively used by premium roasters, increased by 54.8% per pound from February 2010 to January 2011. Industry professionals disagree on what is the driving force behind the increase, citing  increased demand from emerging markets, bad weather, low production and commodities spectulation.

Aleco Chigounis, a buyer for Portland-based Stumptown, says premium buyers are having an increasingly difficult time securing high-quality beans because they now must compete with the high prices farmers can get by selling their beans on the open market, without fretting over quality controls that companies like Stumptown have built their reputations on. Competition has increased from large buyers such as Nestle and Kraft — even at the higher price points once exclusive to high-quality buyers. “So now with this crazy spike, since August or September, we’re starting to notice that there are a lot more players in our arena for coffee,” Chigounis says.

Adam McClellan, with Portland-based Sustainable Harvest, which works with small farmers around the world to source high-quality beans to North America, says the premium roasters for which Portland has become famous will have to work harder to maintain their quality distinction. “I think what you’re seeing is an even greater separation of what is specialty coffee,” McClellan says. “The small roasters are really well positioned to separate further that good quality, and people will keep paying for that.”

ILIE MITARU
 

More Articles

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment. 

Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.


Read more...

Oversight? Or gaming the system?

News
Monday, July 14, 2014
AmazonBY VIVIAN MCINERNY | OB BLOGGER

Some people think Amazon’s winking eye logo is starting to look like a hoodwink.


Read more...

Risks & rewards of owning triple net investments

Contributed Blogs
Thursday, July 24, 2014
NNNinvestmentBY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR

With the increasing retirements of Baby Boomers, a massive real estate shift has created a significant increase in demand for NNN properties. The result? Increased demand has triggered higher prices and lower yields.


Read more...

Register for 100 Best Companies survey

News
Wednesday, August 20, 2014
OBM-100-best-logo-2015 150pxwBy Kim Moore | OB Editor

The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.


Read more...

OB Video: Dress for Success

News
Wednesday, July 02, 2014
DFSOBY JESSICA RIDGWAY | OB WEB EDITOR

Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.


Read more...

Is this employee right?

Contributed Blogs
Wednesday, August 13, 2014
081314 thumb employeefeelingsBY TOM COX | OB BLOGGER

When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS