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

How to help your staff solve their own problems

Contributed Blogs
Friday, March 21, 2014
03.21.14 thumb coxcoffeeTOM COX | OB BLOGGER

During a recent talk to HR Directors, I asked if they saw leaders trying to solve every problem, instead of delegating to and empowering staff. Every head nodded. Every single one.


Read more...

Downtime with Ron Green

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

Ron Green became president and CEO of Oregon Pacific Bank in August 2013.


Read more...

Buy the book

News
Tuesday, March 25, 2014
2 03.25.14 thumb bookshopBY VIVIAN MCINERNY | OB BLOGGER

Oregon is home not only to many fine writers but also several accomplished small publishers.


Read more...

Barrister bands

March 2014
Tuesday, February 25, 2014
IMG 4691BY LINDA BAKER

An intellectual property attorney by day, 48-year-old Stoll Berne attorney Tim DeJong is a singer and guitarist by night.


Read more...

How to handle the unexpected

Contributed Blogs
Friday, March 28, 2014
03.28.14 thumb disasterBY TOM COX | OB BLOGGER

The next mysterious (or disastrous) event could be one that you or your team might suddenly need to respond to, probably under intense scrutiny.


Read more...

Workplace benefits

March 2014
Tuesday, February 25, 2014

Health care and vacations rule. That’s the consensus from our reader poll on workplace benefits that help retain and recruit employees.


Read more...

Car ignition recalls and lean product design

Contributed Blogs
Friday, April 11, 2014
04.11.14 thumb gm-gettyTOM COX | OB BLOGGER

The auto industry is starting to share more costs across manufacturers for complex and challenging design work, like new transmission design, and certain new engine technologies. What we’re not yet seeing is wholesale outsourcing of “unavoidable waste” components to specialist companies.


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