Navigating Rising Coffee Costs Together

03/24/2025

To our valued wholesale partners,

Per the letter sent on or around March 4th, 2025, we have made the difficult but necessary decision to adjust our wholesale coffee pricing. It is our first price adjustment since June 2023. Price changes are never easy, but the challenges we are facing today are not unexpected. The cost of green coffee has reached historic levels, climbing more than 123% in the last 12 months, surpassing any price level seen in over 50 years.

This increase is being driven by several global factors. Extreme weather events in Brazil and Vietnam, the world’s two largest coffee-producing countries, have severely impacted harvest yields. Institutional investors have shifted their attention to coffee as other soft commodities like wheat and corn have stagnated, further inflating costs. Speculation over potential tariffs on coffee imports from Mexico and Colombia has added even more uncertainty, driving prices even higher.

TAKING A THOUGHTFUL APPROACH TO PRICING

While the current cost increases are significant — on average 46% higher than four months ago, with some coffees more than 100% over our last contracted prices — we recognize that drastic price adjustments could strain our partnerships. Rather than implementing a full increase all at once, we are taking a step-by-step approach to help ease the transition and provide optimism for the softening of the future prices. Our goal is to absorb as much of the increased costs as we can while still maintaining the sustainability of our business and yours. That said, we plan to make further adjustments by June 2nd if market conditions remain volatile, and we will continue to communicate with you along the journey.

For orders due today by 3 p.m. Monday, March 24, the wholesale price increased from 9% to 10% for nearly all wholesale coffee products purchased by the bag, the pound, or the case. A full schedule of your pricing is available in your account online. We will continue to communicate with you every step of the way. There is nothing you need to do at this time.

A SILVER LINING: A MORE EQUITABLE COFFEE INDUSTRY

One bright spot in this situation is that farmers at the beginning of the value chain are finally receiving a fairer price for their work. For nearly our entire 12-years in business, coffee farmers have endured unsustainable wages, often selling their crops for less than the cost of production. Today, for one of the rare times in our history, many farmers are earning above their annual cost of production. This shift brings long-overdue equity to those who sustain our entire industry. It is hard to expect to have a bottom line in our business interests yet turn our heads knowing that cheap coffee prices cause a near impossible situation for those we depend on for this product we all love and depend on.

At Reverie Coffee Roasters, we have always believed in building an equitable and stable business—one that values every key contributor along the supply chain. Just as we’ve prioritized offering above-average wages and benefits for our employees, we are committed to ensuring that farmers receive fair compensation for their labor. That means fostering long-term purchasing relationships, working towards price stability, and ensuring that our customers, our business, and our farming partners all benefit from consistent and sustainable practices.

SUPPORTING YOU THROUGH THIS TRANSITION

We recognize that these pricing changes will have an impact, and we want to help. Our wholesale manager, Jason Hendry, is available to work with you to explore ways to adjust product offerings, sizes, or recipes to accommodate your budget while maintaining quality.

For example:

  • Cafés purchasing espresso: With small adjustments to dosing, the cost increase per shot may be as little as $0.04, a minimal change that could help offset overall increases.

  • Fractional package sizes: We offer multiple pack sizes for our fractional packages, and some may help reduce your costs while still delivering excellent coffee to your customers.

Our goal is to help you navigate these changes with as little disruption as possible, ensuring that you can continue to serve great coffee while maintaining your bottom line.

MOVING FORWARD TOGETHER

The challenges facing the coffee industry today — rising production costs, weather extremes, and supply chain disruptions — are not going away overnight. However, we see this as an opportunity to work together toward a more sustainable, equitable future for coffee. By strengthening relationships, prioritizing consistency, and making strategic choices, we can build a business that benefits everyone—our customers, our partners, and the farmers who make it all possible.

We appreciate your trust and support as we navigate this landscape. If you have any questions or would like to discuss how we can support your business during this transition, please reach out to us. Thank you for being part of this journey with us.

In solidarity,

Andrew Gough, Owner