The global coffee industry has been rocked by an unprecedented surge in prices, with green coffee costs doubling in the past year alone. This dramatic increase has left roasters in a precarious position as their margins are squeezed even tighter.

While the specialty coffee sector has weathered various storms before – from pandemic disruptions to supply chain complications – the current pricing predicament forces a particularly difficult decision: how can roasters pass on the necessary price increases to customers without driving them toward competitors, especially those offering lower prices?

I spoke to Mike Verwoert, the co-founder of Doe & Fawn Coffee, and David Jameson, the founder of Danelaw Coffee, to find out.

You may also like our article on how smaller roasters can mitigate risk.

Why communication between roasters and customers is vital

With operational costs already trimmed, many roasters now face the reality that price adjustments are no longer optional but essential for survival in an increasingly volatile market.

Communicating price increases to wholesale and retail buyers is challenging, and the conversation can be uncomfortable for both parties. However, in the reality of today’s market, it’s become unavoidable.

Successful roasters recognise that price transparency isn’t just an ethical approach, it’s a strategic one. By openly discussing specific market pressures and logistical hurdles driving costs upward, roasters can shift the narrative about price increases from a unilateral decision to a collaborative, two-sided conversation.

“My approach is to be frank, honest, and upfront,” says David Jameson, the founder of Danelaw Coffee, an award-winning specialty coffee roaster in Holmfirth, UK. “I told my customers that the price of one component of my blends had increased by 38% in between orders and that it wasn’t possible to hold the price any longer.

“I also made it clear that if the market didn’t fall again, by the time the Central American harvest landed, I might need to apply a second price hike,” he adds. “All but one customer accepted this – I’m still negotiating with the last one!”

Effective price increase strategies require thoughtful communication and comprehensive explanations for all stakeholders. Roasters need to emphasise not just the necessity of the increases but also the tangible benefits that come with maintaining quality and supporting ethical sourcing during turbulent market conditions. 

“The coffee industry has always been built on collaboration and shared knowledge. We frequently connect with other roasters to exchange insights, discuss challenges, and explore solutions,” says Mike Verwoert, the co-founder of Doe & Fawn Coffee, a small batch specialty coffee roaster in Milton Keynes, UK.

“Open conversations – whether through industry forums, events, or articles like this – help maintain consistency in messaging and strengthen the industry as a whole,” he adds. “For new roasters, building a strong network is invaluable. Whether through fellow roasters, other entrepreneurs, or local businesses, a supportive community can provide fresh perspectives and opportunities to navigate difficult times together.”

Adding value for customers

With price hikes becoming inevitable, the specialty coffee industry faces a difficult truth: losing customers can happen quickly, while rebuilding those relationships can take years. Even the most loyal coffee consumers have thresholds where price sensitivity overtakes brand attachment, particularly in a saturated market like coffee.

Building resilience is then crucial in this challenging environment. To do that, roasters need to take measured rather than reactive approaches. Those who implement significant, abrupt price hikes, attempting to recoup losses in a single adjustment, often discover the catastrophic impact on customer loyalty and wholesale relationships.

Instead, adopting incremental pricing strategies that introduce smaller adjustments over a longer period of time is a more constructive path to take. 

“The key is to provide value beyond just the price of a cup of coffee. Transparent communication about the reasons for price adjustments is essential, but so is maintaining consistent quality and continuing to innovate,” Mike says. “Customers are more likely to stay loyal when they feel engaged and excited about what you offer, whether through new product launches, unique experiences, or creative ways to enjoy coffee.

“Additionally, we focus on the lifetime value of our customers rather than just the margin on a single transaction. By building strong relationships and offering an outstanding experience, we create long-term loyalty that withstands market fluctuations.”

By treating customers as informed partners rather than passive consumers, roasters can maintain the trust essential for weathering market volatility while preserving their brand positioning. 

“As a small independent roaster, I can’t compete with big commercial roasters on price. All I can do to differentiate my brand from bigger businesses is to focus on quality,” David tells me. “I believe that there will always be customers out there who are willing and able to pay a little more for great coffee. 

“I’ve changed my packaging sizes over the last few months so that less of the price paid is spent on postage and packaging per amount of coffee purchased. I also offer savings if customers subscribe to a coffee.”

This methodical approach allows customers to adapt gradually while preserving the perceived value proposition that initially attracted them to a brand. By carefully timing these increases and potentially pairing them with small product improvements or packaging refinements, roasters can minimise resistance while maintaining revenue streams.

Strengthening industry ties as coffee prices rise

While the coffee industry faces perhaps the most challenging market conditions in its modern history, these unprecedented times call for renewed conviction in shared values. Demonstrating price adjustments not merely as financial necessities but also as opportunities to reinforce what makes specialty coffee exceptional can help roasters weather the storm.

The most successful price navigation strategies are those embedded within a broader community-centric framework. Forward-thinking roasters recognise that their businesses exist within an ecosystem of relationships – from producers to consumers – and that preserving these connections is paramount during market upheaval. 

“The coffee industry is a small world, and I talk to other local roasters all the time. Knowing that we are all going to need to deal with the same problem is helpful,” says David. “It has certainly helped me to understand how I can maintain quality while managing budgets.”

By positioning a rise in retail coffee prices as a collective challenge that requires shared solutions, roasters can demonstrate their commitment to long-term partnerships rather than short-term profits.

Additionally, doubling down on branding and quality standards resonates with consumers who recognise the integrity behind difficult decisions.

“If you believe in what you do, then hold the line, maintain your quality, and increase your prices when you need to,” David advises. “You need to have faith that your customers believe in what you do, and that they will stick with you if you are honest, open, and respectful.”

Opportunities for coffee roasters to be creative

Beyond conventional pricing strategies, the path forward demands creative thinking. 

“Diversification is key,” Mike says. “Roasters should look beyond just wholesale or direct-to-consumer sales and explore additional revenue streams such as hosting events and coffee tasting experiences, selling merchandise and complementary products, offering B2B support for cafés and restaurants, and collaborating with like-minded brands.”

Working with businesses in other industries can be an effective way for roasters to scale operations in less conventional ways. Selling products other than coffee helps capture the attention of a more diverse range of customers, including those new to or unfamiliar with specialty coffee.

The craft beer industry serves as a useful example. A growing number of roasters have teamed up with breweries to launch artisanal beers that enable them to tap into a global market valued at over US $210 billion, one in which consumers are willing to pay higher prices proportional to quality.

“It’s also worth scouring the offer lists for interesting coffees. Is there a forgotten vacuum-packed past crop coffee that will still be fresh and tasty but looks like a bargain now?” David asserts. “Many well-processed natural coffees only really peak after about a year, so could there be a micro lot option that works well and is still at last year’s prices.

“Think outside the box for different origins, too – could you use a Burundi or Uganda in place of a Kenya or Tanzania in a blend? Cup plenty of samples and see if you can work out a solution.”

Rising prices are a lasting reality for the coffee industry. A recent UN FAO report suggests that up to 80% of coffee price rises will trickle down to EU consumers within the next 11 months, and to US consumers in just eight. It also estimates that the residual effects of these price rises will last for four years.

This undoubtedly presents a number of challenges. But if specialty roasters stay true to their values, manage their finances carefully, and communicate transparently, customers are likely to remain loyal.

Enjoyed this? Then read our article on why roasters now have to compete on more than just price.

Photo credits: Doe and Fawn Coffee, Danelaw Coffee

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