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Why Big Coffee Brands Are Switching to Cheaper Beans

The specialty coffee landscape is shifting beneath our feet. For decades, pioneering roasters built their reputations on sourcing premium single-origin beans and paying fair prices to farmers.

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Why Big Coffee Brands Are Switching to Cheaper Beans

The specialty coffee landscape is shifting beneath our feet. For decades, pioneering roasters built their reputations on sourcing premium single-origin beans and paying fair prices to farmers.

Why Big Coffee Brands Are Switching to Cheaper Beans

The specialty coffee landscape is shifting beneath our feet. For decades, pioneering roasters built their reputations on sourcing premium single-origin beans and paying fair prices to farmers.

But rising costs are forcing even established companies to reconsider their strategies, turning to more affordable coffee options to protect their bottom lines.

This trend has far-reaching implications that extend beyond corporate boardrooms. It affects the quality of coffee in your cup, the livelihoods of farmers around the world, and the future direction of the specialty coffee industry. Understanding these changes can help you make more informed choices about where to spend your coffee dollars and what to expect from your favorite roasters.

The shift represents more than just a business decision—it's reshaping the entire coffee supply chain and challenging the values that built the third-wave coffee movement. When coffee starts getting treated like corn syrup or soybean oil, you don't just lose traceability—you lose culture. Every shortcut in sourcing strips away the human story behind the cup. If we reduce coffee to price-per-pound, we’re dismantling the values the third wave fought to build.

How Third-Wave Coffee Built Its Foundation on Premium Beans

The specialty coffee revolution began with a simple yet powerful concept: single-origin coffees that showcase unique terroir and support transparent relationships with farmers. Pioneering roasters in the early 2000s used this approach to differentiate themselves in a crowded market, emphasizing traceability and quality over convenience and low prices.

Single-origin became more than a marketing term—it represented a commitment to highlighting the distinctive characteristics of coffee from specific regions, estates, or cooperatives. This focus allowed roasters to charge premium prices while building customer loyalty through education about coffee origins and flavor profiles.

The movement evolved further with micro lots—small, exclusive batches of coffee grown and processed separately to preserve their unique characteristics. These ultra-premium offerings command even higher prices due to the additional care required during cultivation, harvesting, and processing.

According to industry data, nearly half of global coffee company launches in 2020 mentioned sustainability values, double the number from 2012. This growth reflected consumer demand for transparency and ethical sourcing, values that became central to many small-batch coffee roasters across the country.

For air-roasted coffee roasters in Minnesota and other specialty coffee companies, micro lots and single-origins became essential offerings. These coffees allowed smaller operations to compete with larger companies by focusing on quality, craftsmanship, and direct relationships with farmers.

Economic Pressures Force Strategic Changes

The coffee industry faced a dramatic shift when green arabica prices surpassed $4.40 per pound in February 2025—the highest levels since the 1970s. This represents more than a 70% increase from just three years prior, creating unprecedented financial pressure across the supply chain.

Several factors contributed to this surge:

  • Supply shortages in major producing countries like Brazil and Vietnam
  • Climate change impacts affecting crop yields and quality
  • Rising fertilizer and labor costs increasing production expenses
  • US tariff policies adding additional cost burdens

Unlike typical coffee price volatility characterized by dramatic peaks and valleys, current prices have remained consistently elevated. This sustained high-price environment has forced roasters to adapt their strategies rather than waiting for traditional market corrections.

For specialty roasters—particularly those built around premium offerings—these price levels directly impact profitability. Let’s be clear—coffee’s only real value is its flavor. That’s the experience people come back for, and it’s what connects them to origin. When roasters compromise flavor to protect margins, they’re gambling with the very reason their customers show up. When green coffee costs exceed $2 per pound, many roasters express concern about maintaining margins without significantly raising consumer prices.

The situation creates a challenging dilemma: absorb the increased costs and sacrifice profitability, or pass them along to customers who may already feel they're paying premium prices to support ethical sourcing.

The Strategic Shift to Cost-Effective Sourcing

Faced with sustained high prices, larger roasters have implemented several strategies to maintain profitability while minimizing consumer price increases:

Sourcing from Affordable Yet Quality Origins

Brazil has emerged as a go-to source for coffee that balances quality with cost-effectiveness. The country's large-scale production capabilities and established infrastructure allow roasters to source consistent, flavorful coffee at more manageable price points.

Other traditionally more affordable origins are also seeing increased demand as roasters diversify their sourcing to include lower-cost options alongside their premium offerings.

Strategic Blending for Cost Management

Blending has become a crucial tool for managing costs while maintaining flavor consistency. By combining coffees from different origins and price points, roasters can:

  • Create consistent flavor profiles despite price fluctuations
  • Maintain quality standards while reducing overall costs
  • Offer familiar taste experiences that customers expect

Matt Berry, Head Roaster and Owner at Ember Coffee explains: “Blending should be a strategic tool, not a smokescreen. When we blend to elevate flavor, we’re respecting the craft. But when we blend to bury defects or pad the margin, we’re just fooling people—and not for long.”

Shawn Hamilton from Klatch Coffee explains: "Bigger roasters are buying cheaper coffee in general. They need larger quantities of consistent-tasting coffees, and when you require these kinds of volumes, you somewhat have to settle on quality to achieve consistency."

Launching Affordable Sister Brands

Some companies have introduced secondary brands targeting price-conscious consumers. Madcap Coffee's "Dito" exemplifies this approach, marketed as "a creative way to reach a broader audience" with aesthetic packaging and accessible price points while preserving the premium position of the main brand.

What This Means for Coffee Lovers

The industry-wide shift toward more affordable sourcing creates both opportunities and challenges for consumers:

Potential Benefits

More stable pricing: Roasters can manage margins without dramatic price increases, translating to smaller consumer price hikes.

Maintained accessibility: Coffee remains affordable for broader audiences, potentially growing overall market participation.

Innovation in blending: Roasters develop new skills in creating consistent, enjoyable blends from diverse sources.

Potential Drawbacks

Quality concerns: The trade-off between price and quality can be difficult to balance, potentially leading to diminished coffee experiences.

Reduced transparency: Complex blending strategies may make it harder for consumers to understand what they're purchasing.

Impact on farmer relationships: Long-term partnerships with premium producers may suffer as roasters shift purchasing patterns.

Hamilton warns about the broader implications: "If their coffee is now diminishing in quality, that can leave a bad taste in people's mouths. This could eventually lead to people switching from coffee to other beverages and decreasing consumption across the entire industry."

Matt Berry says: “Customers may not always articulate why their favorite coffee feels different—but they know. Quality slips, and something stops clicking. Cost-cutting isn’t just an internal decision—it’s a sensory one, and it shows up in the cup.”

Supporting Quality Through Transparency

The most successful roasters navigating this challenging environment prioritize transparent communication with customers. Rather than quietly reformulating blends or switching origins, they explain the steps taken to minimize price increases while maintaining quality standards.

This transparency helps preserve consumer trust and loyalty during a period of significant industry change. Customers who understand the economic pressures facing their favorite roasters are more likely to remain supportive during necessary adjustments.

Small-batch coffee roasters in Minnesota and other regions have an advantage in this environment. Their closer relationships with customers allow for more direct communication about sourcing decisions and quality commitments.

For air-roasted coffee enthusiasts specifically, the unique roasting method's ability to highlight coffee characteristics becomes even more valuable when working with cost-effective beans. The gentle, clean roasting process can help extract the best qualities from more affordable origins.

The Path Forward for Specialty Coffee

While current market conditions force difficult decisions, the most resilient coffee companies will be those that maintain their core values while adapting to economic realities. This means:

Prioritizing Relationships

Mutually beneficial partnerships between roasters and producers create stability in volatile markets. When both parties understand each other's challenges, they can develop solutions that preserve business viability while maintaining quality commitments.

Investing in Quality Systems

Roasters who invest in efficient practices, quality control systems, and value-added strategies position themselves to thrive long-term, regardless of green coffee price fluctuations.

Educating Consumers

Transparent communication about sourcing decisions, quality standards, and pricing helps customers make informed choices and maintains trust during challenging periods.

Finding the Best Coffee in Minnesota Amid Industry Changes

For coffee enthusiasts seeking quality during this period of industry adjustment, supporting local roasters offers several advantages. Minnesota's best coffee often comes from smaller operations that maintain closer relationships with both their suppliers and customers.

Local roasters can provide:

  • Direct communication about sourcing decisions and quality commitments
  • Flexibility in adjusting offerings based on seasonal availability and pricing
  • Transparency about the origins and characteristics of their coffee
  • Consistency in quality standards despite market pressures

Small-batch operations using specialized techniques like air roasting can often extract exceptional flavors from a variety of beans, making them well-positioned to navigate the current market while maintaining quality standards.

What You Can Do as a Coffee Consumer

The current industry transformation creates opportunities for conscious coffee consumption:

Ask questions about sourcing practices and quality commitments when visiting your local roaster. Most specialty coffee professionals are passionate about sharing their knowledge and approach.

Try new offerings with an open mind. Skillfully crafted blends and coffees from less traditional origins can offer surprising and delightful experiences.

Support transparency by choosing roasters who clearly communicate their sourcing practices and quality standards.

Consider value beyond price. The cheapest option may not provide the best overall experience, while the most expensive doesn't guarantee quality.

Brewing Through Change

The specialty coffee industry's response to sustained high green coffee prices reflects both the challenges and resilience that define this dynamic market. While larger roasters adapt their strategies to maintain profitability, smaller operations have opportunities to differentiate themselves through quality, transparency, and customer relationships.

For coffee lovers, this period of change offers chances to discover new flavors, support local businesses, and engage more deeply with the coffee community. The roasters who thrive will be those that balance economic necessities with their commitment to quality and ethical practices.

The future of specialty coffee doesn't depend solely on premium single-origins and micro lots—it rests on the relationships between roasters, farmers, and consumers who value quality, transparency, and sustainability. By supporting roasters who maintain these values during challenging times, you help shape a more resilient and equitable coffee industry.

Ready to explore exceptional coffee that maintains quality standards regardless of market pressures? Try our coffee and experience the difference that careful sourcing, expert roasting, and transparent practices make in every cup.

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A Minnesota Roaster's Perspective As the sun rises over the snowy landscape of Minnesota, the aroma of freshly roasted coffee wafts through the air at Ember Coffee's roastery. It's a scent that has become increasingly precious in recent months, as the coffee industry grapples with unprecedented challenges. As a local roaster deeply committed to our community, we want to share our journey through these turbulent times and our vision for the future. The Perfect Storm Brewing in Our Cups The story of today's coffee crisis begins far from our cozy Minnesota cafes, in the lush hillsides of Colombia and the vast plantations of Brazil. A series of events have converged to create what many in the industry are calling a "perfect storm": Climate Chaos: Mother Nature has not been kind to coffee growers lately. In Brazil, the world's largest coffee producer, severe droughts followed by unexpected frosts have decimated crops. Farmers watched helplessly as their carefully tended plants withered under the scorching sun or succumbed to the icy grip of frost. The result? A staggering 40% reduction in yields in some areas. Unseasonal Deluges: Meanwhile, in Vietnam, the second-largest coffee producer globally, unseasonal rains have wreaked havoc. Coffee cherries, which should have been ripening under gentle sunshine, instead rotted on the branches, leading to significant crop losses and quality issues. Geopolitical Jitters: As if weather woes weren't enough, the coffee market found itself caught in a political crossfire. In early 2025, rumors swirled about potential U.S. tariffs on Colombian coffee. Though never implemented, the mere whisper of trade restrictions sent prices soaring by 15% in just a week, highlighting the fragility of global coffee trade relationships. Supply Chain Snarls: The journey of coffee beans from farm to cup has become increasingly complex and costly. Ongoing logistical challenges, exacerbated by fuel price hikes and labor shortages, have inflated transportation costs. The price of shipping a container of coffee has tripled since 2023, adding another layer of pressure to already strained margins. Market Speculation: As news of crop failures and potential shortages spread like wildfire, market speculators pounced. Their actions drove coffee futures to unprecedented heights, with the C-market price for Arabica coffee reaching a jaw-dropping $3.84 per pound in February 2025 – a 47-year high. The Ripple Effect Reaches Minnesota Here at Ember Coffee, nestled in the heart of Minnesota's vibrant coffee scene, we've felt the tremors of these global shifts. The impact on our operations and community has been profound: Margin Squeeze: Green coffee now accounts for a staggering 60-70% of our production costs, up from 40-50% just two years ago. This dramatic increase, coupled with rising energy and labor costs, has put immense pressure on our margins. Sourcing Struggles: Maintaining the consistent flavor profiles our customers love has become increasingly challenging. We've had to be more flexible in our sourcing, sometimes substituting origins or adjusting roast profiles to compensate for changes in bean characteristics. Pricing Predicaments: As a community-focused roaster, we're acutely aware of the impact price increases have on our customers. We've been forced to make difficult decisions about when and how to adjust our pricing to reflect the new market realities while remaining accessible to our loyal patrons. Crafting a Sustainable Future, One Bean at a Time Despite these challenges, we at Ember Coffee believe that this crisis presents an opportunity for positive change. Like the phoenix rising from the ashes, we're determined to emerge stronger and more sustainable. Here's how we're adapting: Nurturing Direct Trade Relationships: We're doubling down on our direct trade partnerships, offering long-term contracts at stable prices to our farmer partners. This approach not only secures our access to high-quality beans but also provides farmers with the financial security to invest in sustainable practices and climate adaptation measures. Diversifying Our Offerings: To offset rising costs and keep things exciting for our customers, we're expanding our product range. Limited edition micro-lots, experimental processing methods, and unique Minnesota-inspired coffee blends are just a few of the innovations we're exploring. Empowering Through Education: We believe that an informed customer is a loyal customer. We've launched a series on Roasting 101 on our YouTube site, and we're planning a Coffee 101 cupping sessions at our Big Lake roastery. These programs help our community understand the complexities of coffee production and pricing, fostering a deeper appreciation for the craft behind each cup. The Power of the Minnesota Coffee Lover As we navigate these challenges, the support and understanding of our customers are more crucial than ever. Here's how Minnesota coffee enthusiasts can contribute to a more sustainable coffee ecosystem: Embrace Transparency: We encourage our customers to ask questions about pricing, sourcing, and roasting practices. Understanding the true cost of producing exceptional coffee can help justify price adjustments when necessary. Value Quality Over Quantity: By choosing to invest in higher-quality, ethically sourced coffee, consumers can help support fair wages for farmers and sustainable agricultural practices. Support Local Roasters: Minnesota's local roasters, like Ember Coffee, are deeply invested in our communities. By choosing local over national chains, consumers help keep money circulating in the local economy and support businesses that prioritize sustainability and ethical sourcing. Experiment with Brewing Methods: Different brewing methods can extract unique flavors from coffee beans. By exploring various brewing techniques, consumers can maximize the value and enjoyment they get from each bag of coffee. Envisioning a Brighter Future for Minnesota Coffee As we look to the horizon, we see challenges, but also immense potential. Our vision for the future of specialty coffee in Minnesota is one of resilience, innovation, and community: A More Resilient Supply Chain: We're exploring collaborations with other Minnesota roasters to potentially secure better prices and more stable supply chains through collective purchasing power. Increased Local Collaboration: We envision a future where coffee is increasingly integrated into Minnesota's local food scene. Imagine coffee-infused craft beers, chocolate truffles featuring our single-origin roasts, or seasonal menus at local restaurants built around coffee pairings. Innovation in Sustainability: We're investing in research on more sustainable packaging options and exploring ways to upcycle coffee chaff and other by-products of the roasting process. Our goal is to minimize our environmental impact while maximizing the value we create. A More Educated Consumer Base: Through continued education efforts, we aim to cultivate a community of coffee enthusiasts who appreciate the craftsmanship behind every cup and understand the global impact of their purchasing decisions. Conclusion: United in Our Love for Great Coffee As the aroma of freshly roasted coffee continues to fill our roastery, we're reminded of why we do what we do. The current coffee price crisis is undoubtedly one of the most significant challenges our industry has faced in decades. However, at Ember Coffee, we believe that by staying true to our values of quality, sustainability, and community, we can not only weather this storm but emerge stronger on the other side. To our loyal customers and coffee lovers across Minnesota: your support during these turbulent times means more than you know. Every bag of Ember Coffee you purchase, every latte you enjoy in our cafe, is a vote for a more sustainable and equitable coffee future. As we navigate these uncharted waters, we remain committed to transparency, quality, and the relentless pursuit of the perfect cup. Together, we can ensure that Minnesota remains a beacon of excellence in the world of specialty coffee, no matter what challenges lie ahead. Thank you for being part of our journey, for your understanding during these difficult times, and for your unwavering love of great coffee. Here's to many more shared moments over a steaming cup of Minnesota's finest brew. Warmly,The Ember Coffee Team
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