Wow, it feels like we have blinked and are already halfway through 2025! How did that happen?! The months seem to be moving faster than ever (or maybe its all the coffee we’ve been drinking) but as we approach the summer and we begin the drawdown of coffees from new contracts, the time has come for us to discuss pricing…

We know it will not be news to you that the cost of everything is going up. If anything, you are probably sick of reading things like this! But as small business owners, the prospect of raising prices is, quite frankly, terrifying and we want to convey to you the context for our decision along with the challenges we are working through. So bear with, this one is a bit of an epic…

The world of specialty coffee has traditionally detached itself from the workings of the global coffee market (known as the C market) because historically, it has been perceived as being a distant/irrelevant mechanism. This is because as a procurement tool, it has never taken into account quality or costs of production to calculate the price of what are often unique and outstanding, smaller volumes of coffee. 

For my entire coffee career, the C market has, for the most part, hovered between $1-$2/lb. I have, therefore, often gone whole years without even glancing at it because the contracts we fix with our supply partners work on an outright or differential basis to bring the price we pay in line with the quality of the lots we are buying. Prices that reflect the higher costs involved in production (due to selective picking, extended drying, hand sorting, protective shipping etc) along with a desire to build more resilient and viable business models for our producing partners to ensure we are kept in supply of excellent coffee in the years to come. 

It might come as a surprise to some of you that a commodity as large (and to most of us, as crucial) as coffee has a question mark over its future. Well not to us, it was 2010 when we first became aware of the threats facing the industry thanks to decades of neo-colonial ways of working (creating imbalanced power dynamics) along with  environmental and economic volatility. Since our inception in 2013, we have dedicated our efforts to understanding how we can become an impactful customer to our producing partners to try and build more resilient and viable business models that are able to withstand the challenges of climate change and an ageing producing population. And for the most part, we have been proud of our approach which seems to be proving that by prioritising quality and impact, all businesses in the coffee supply chain can thrive…

So what has been happening?

• That was until 2021 when a black frost hit Brazil (the world’s largest coffee producer) and drastically reduced yield both that year and for the coming harvests too, sending the C market into turmoil. Coupled with supply chain disruptions from Covid, suddenly there were doubts over supply and the market soared to $2.50/lb in February 2022. The specialty industry had to then work hard to remain competitive given the complexities that go into producing coffee of this grade when commodity prices looked relatively attractive. And so, towards the end of 2022, our prices had to go up. 

• Then came announcements made about new deforestation regulations putting a question mark on how much of the world’s coffee will have the required certification to be accepted into the EU market.

• 2023-2024 - stocks of coffee held fell to a 5 year low.

• Aug/Sept 2024 - The worst drought in 70 years in Brazil followed by heavy rains as the trees were flowering, sparking fears that the crop could fail.

• Sept 2024 - typhoon Yagi hits Vietnam, threatening supply in the world’s second largest producing country.

• November 2024 - the C market hits $3/lb.

• 6th February 2025 - the C market hits $4/lb
  
  

How does this affect the coffee I buy from NS*?

In short, since 2022, the price we pay for our green coffee beans has gone up by 100%. We have been taking some time on our side to figure all of this out and give some notice around upcoming increases to pricing because we forward contract our coffee as opposed to working on the ‘spot’ market.

However, with the C market reaching these levels, we have no option but to match and exceed our offers to secure the supply we need. Combined with increases to wages, national insurance and business rates, we are having to raise our pricing from 1st June 2025. 

You will be hearing from us directly to detail exactly how your purchases will change, this article is just here to provide some context around the decision we have had to make.

We do see and understand that times are hard right now, we feel it ourselves also. We can only hope that our unbelievably delicious and impactful coffee remains to be an affordable luxury you stick with in these challenging times! We remain committed to our mission which not only seeks to ensure the start of the supply chain is resilient and future-facing, but also the end too. If you are a business serving our coffee and feel you could use with some support to uncover coping strategies in this current climate, we really would love to chat. We have two of our own retail spaces too and really can see this from every angle!

Finally, I want to thank you. For the years you have supported our work, the countless times you have already prioritised regenerative ways of working over short term gain. This is it now, I really feel we are at a crossroads in determining how coffee is valued/how much it is available in the coming years, both within the supply chain and by the end consumer. We have a unique opportunity to reiterate the value of quality coffee harvested, roasted and brewed with care, not only in creating elevated experiences but in building meaningful changes for the thousands of families producing it. 

Hols x

C market - the price that future contracts are set at, traded on the Intercontinental Exchange (ICE).

Futures contract - an agreement on the price of a coffee today that will be delivered at some point in the future.