Co-fermented coffees are still divisive, but they are becoming an increasingly bigger part of specialty coffee. Appearing at more trade shows and on café menus, it’s clear that some industry professionals and consumers are embracing these processing innovations.

As they diversify and become their own category, similar to how we classify different processing methods, the need to formally define co-fermented coffees emerges – especially as confusion persists with infusion processing methods.

There are certain similarities between co-ferments and yeast-inoculated coffees. Both involve using external organic substrates and compounds to produce flavours that terroir alone can’t create; yet, the former is sometimes perceived as more “artificial.”

To distinguish between the two and understand why negative perceptions persist, I spoke to Marty Pollack at Torch Coffee and Diego Robelo at Aquiares Estate.

You may also like our article on why co-fermented coffees are becoming a category of their own.

Interest in new processing methods rises

The demand for “funky” tasting coffees is increasing, especially among younger generations and coffee markets in East Asia and the Middle East, where fermented flavours are popular and rarity or exclusivity are highly prized.

Producers then had an opportunity to capitalise on this demand. Experimental and advanced processing methods enable them to develop specific sensory profiles with more interesting and prominent flavour notes. Moreover, novel processing techniques can increase cup scores by a few points, meaning farmers can add more value to their coffee and potentially receive higher prices.

Experimental processing, however, requires refinement, the necessary equipment, and sufficient capital. Without these, farmers face significant financial risk, sacrificing large volumes of cherries for little to no reward.

Previously, coffee producers experimented with processing by altering different fermentation methods – extended fermentations, carbonic maceration, and introducing various yeasts. However, with infused and co-fermented coffees now on the market, the lines between different experimental processing methods have become increasingly blurred.

“An infused coffee has been fermented on its own and is then infused with another ingredient,” says Diego, the general manager of Aquiares Estate in Costa Rica. “Those ingredients don’t aid with fermentation; the coffee is just absorbing them.”

Although there are no formal definitions for both infused and co-fermented coffees, many agree on the following descriptions:

• Infused coffee: Flavouring agents or additives are introduced externally, typically during or after fermentation, or post-harvest processing. These additions can include concentrated fruit powders or extracts, spices, essential oils, or synthetic flavourings such as artificial vanilla, hazelnut oil, or caramel essence.
  • For example, coffee is sprayed with synthetic vanillin to create a “vanilla” flavour, or green coffee is treated with hazelnut oil during storage to impart a nutty taste.
• Co-fermented coffee: External organic substrates (such as fresh fruit pulp, musts, or cacao pulp) are added during fermentation, producing flavour influences beyond the coffee cherry itself.
  • For example, coffee is fermented with frozen passion fruit pulp or cacao pulp alongside the mucilage.

The controversy surrounding infused and co-fermented coffees

Producers have long been utilising fermentation in coffee processing, including anaerobic and lactic fermentation, for instance, to alter flavour profiles. Yet, the emergence of co-fermented, and most notably, infused coffees in the late 2010s sparked considerable debate about flavour manipulation and transparency.

Since its inception, specialty coffee has prioritised terroir, origin, and careful cultivation and processing, all of which highlight naturally occurring flavour notes. In keeping with this point of differentiation, some view infused and co-fermented coffees, which they argue create synthetic flavours, as being at odds with industry values. 

Infused coffees are a particular point of contention. The growing use of artificial ingredients and essential oils for infusion processing methods raises questions about flavour authenticity and even health concerns, especially when there is little to no transparency about the use of additional ingredients.

The debate also extends to competitions and auctions. The 2024 Best of Panama competition notably excluded coffees which “were found to be altered from their natural DNA expression… by using foreign additives”. Organisers cited a desire to “protect the authentic identity” of the country’s coffee sector, which consistently commands premium prices on the international market.

The decision sparked mixed reactions within the industry. While some commended the prioritisation of “purity” and terroir expression, others stand firm in the belief that infused and co-fermented coffees are a welcome innovation in processing and flavour, especially when producers benefit.

Is co-fermentation similar to yeast inoculation?

Defining and differentiating between experimental processing techniques has become a new challenge in specialty coffee. There are now varying grades, qualities, and categories for these new processing methods, leaving the market to contend with the struggle of ensuring transparency to consumers.

With many agreeing that co-fermentation strictly involves the use of organic substrates (most notably fresh fruit pulp) to imbue new flavours or enhance existing ones, it raises the question of how different it is from yeast inoculation – a more commonly accepted practice in specialty coffee.

Borrowed from beer and winemaking, yeast inoculation involves introducing specific yeast strains to the coffee before or during fermentation. A yeast strain is a specific variant of a yeast species that possesses a unique set of genetic traits, influencing how it ferments sugar and affecting the final product’s flavour, aroma, and fermentation speed. One of the most prominent examples in the coffee, beer, and wine industries is Saccharomyces cerevisiae, which can be controlled in a number of ways to create a huge range of different flavour profiles. 

Much like co-ferments, the process involves using organic substrates, compounds, and microorganisms to produce specific sensory profiles that cater to the preferences of niche markets. Coffee producers can utilise local yeast strains or buy commercially available strains to impact flavour profiles.

However, to a certain extent, “accidental” yeast inoculation during coffee processing is unavoidable.

“Fermentation is the breakdown of sugar by microorganisms. This will occur with or without the external introduction of yeast,” says Marty, the co-founder of Torch Coffee in China. “There are plenty of naturally occurring yeasts and bacteria all over and in the coffee cherry that will participate in fermentation.”

The use of specific yeasts, rather than relying solely on strains that are naturally present, as well as the timing of when the yeast is introduced, are the differentiating factors. Processing and fermentation expert Lucia Solis refers to this as “wild fermentations” (relying on yeast and bacteria found in the environment) versus “inoculated fermentations” (purchased or cultivated yeast and bacteria). 

Co-fermentation and yeast inoculation share similarities, but the key difference lies in the inclusion of new sugars, specifically, Diego explains.

“With yeast-cultured coffees, you introduce yeast strains and new microorganisms that will digest and ferment the sugars in the fruit and mucilage of the coffee,” he adds. “But with co-ferments, you are not only introducing a new microorganism, but also a new sugar source.

“A co-ferment can be with fruit, such as guava or watermelon, that also has sugars that ferment at the same time as the coffee does,” he adds. “Those fruits also contain other microorganisms that will alter the fermentation, too.”

In theory, co-fermentation could add more complexity to the fermentation process and potentially provide producers with more opportunities to increase sweetness and customise flavour notes. 

Similarly, most fruits already have their own distinct flavours and aromas, meaning co-fermentation increases the chances of influencing the coffee’s final flavour profile. For some, this may be perceived as more “artificial” than simply using different yeast strains, which only break down sugars, rather than introducing new ones, and indirectly influence flavour.

However, the impact of using fruit to co-ferment coffee may be more minor than we think. The Hachi Coffee Project, a pioneer in experimental processing, recently shared data suggesting that only 3% of the fruit used in co-fermentation ends up in the cup, signalling that the specific flavours of fruit may have little influence on coffee.

Seeking clarity is challenging, but appreciation is growing

Co-fermentation and yeast inoculation are not straightforward processing techniques. But as coffee processing diversifies, splitting into newly defined categories, the need for clarification intensifies. 

“One of the big problems we have right now is a lack of formal definitions for different terms,” Marty says. Despite increasingly noticeable differences, the terms “infused,” “flavoured,” and “co-fermented” are often used interchangeably, exacerbating confusion and concerns about transparency. 

Ultimately, the real and most significant danger lies in inadvertently stripping producers of the value of their coffee and retaining it in majority-consuming markets.

“The main point is not fighting about the terms but rather asking everyone to be transparent about what was done to a coffee during and after the fermentation and drying stages,” Marty adds. “If anything was added to this process, tell people what and how it was added. These things shouldn’t be seen as trade secrets but rather as a part of real transparency.”

This is the collective responsibility of all supply chain actors, not just producers who process coffee. Whether it’s infused coffees, co-ferments, or yeast inoculations, all industry professionals must communicate honestly and transparently about the use of additional compounds and microorganisms, especially as coffee’s health claims are under greater scrutiny.

“For all the coffee we sell at Torch, we tell people what happens during the entire process, including how many days of fermentation under what conditions – anaerobic, underwater, or soaking in mango juice, for example,” says Marty. “If anything is added, we explain clearly and honestly so we don’t have any trouble marketing them.”

As these techniques evolve, there’s also a growing appreciation for co-fermentation and yeast inoculation. Although not all coffee professionals and consumers will embrace them, more people are increasingly recognising the skill and expertise needed to carry out these processing techniques successfully.

“What I like about co-ferments and yeast culture in their ‘pure’ forms is that there is a science behind them,” Diego says. “You need to understand more of the behaviours of the ingredients that you add in.”

Producers like Diego Bermudez, Allan Hartmann, and Matheus Antonaci of the Hachi Project are leading these efforts. Their work employs biotechnology, including the utilisation of various yeast strains during fermentation, to pinpoint and highlight existing flavours in coffee. In time, there’s potential to reimagine what’s possible in terms of coffee’s sensory characteristics.

The debate about infused, co-fermented, and yeast-inoculated coffees requires nuance and an open mind. Ultimately, it underscores the importance of honesty and transparency in coffee processing. 

Simultaneously, if we seek to define these coffees more clearly, it’s imperative that those who have direct experience creating and refining these techniques – producers and farm workers – lead these conversations.

Enjoyed this? Then read our article on why we should treat infused and co-fermented coffees differently.

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A coffee shop’s atmosphere is based on many factors – even down to the clothes their baristas wear.

To enhance the customer experience, some high-end specialty coffee shops opt to implement dress codes and uniforms, thereby fostering a cohesive, professional appearance among their staff.

However, the recent backlash against Starbucks’ decision to tighten its dress code raises concerns about stifling self-expression and individuality – two factors that are inherent to the values of specialty coffee.

Stephanie Dawn Holm of Tim Wendelboe and Aric Miller of Sterling Coffee Roasters share their thoughts.

You may also like our article on how to attract and retain the best baristas.

Starbucks announces new dress code for baristas

Staff uniforms and dress codes are standard across the food and beverage, as well as the hospitality, industries. They make staff easily identifiable and project consistency and professionalism, elevating the customer experience.

Many larger coffee chains enforce dress code standards or require staff to wear company uniforms. However, Starbucks’ recent decision to update its dress code was met with criticism, mainly stemming from the ongoing unionisation movement.

In May 2025, the company announced that staff must wear specific items of clothing – solid black tops, with denim, khaki, or black trousers – to highlight its iconic green apron. This is part of the Back to Starbucks turnaround plan, an attempt to revive the chain’s coffeehouse culture following declining sales.

The brand’s current CEO, Brian Niccol, has held previous executive roles at fast food chains like Chipotle, Pizza Hut, and Taco Bell, which may be a primary reason behind the decision to adopt a new dress code. But perhaps most obviously, the updated uniform rules signal that Starbucks is pushing to reclaim the “third place” as it struggles to keep up with competitors like Luckin.

While uniform consistency could enhance the customer experience, staff had mixed reactions to the recent decision. Some baristas have retaliated, stating that it can be stressful to have the correct shirt for work and that they can’t afford to lose hours if incorrectly dressed. The rules also state that staff need to wear specific shoes and can’t wear pin badges, certain earrings, or blemish patches – popular among Gen Z, who unapologetically prioritise their skincare.

The Starbucks Workers United union, which represents approximately 570 Starbucks stores in the US, stated that baristas and management should have negotiated these terms. Already, there have been walkouts in over 175 stores, with 2,000 baristas striking in direct response to the new dress code.

How uniforms can elevate the specialty coffee shop experience

Starbucks’ decision to update its dress code seemingly came at the wrong time, exacerbating tension between union employees and the executive board. However, it raises questions about whether dress codes and uniforms have a place in specialty coffee shops.

Many specialty cafés enforce a basic level of dress code, requiring baristas to present themselves clean, neat, and appropriately at work. But implementing a stricter, more cohesive uniform policy can have its benefits.

Dress codes and uniforms can foster unity among the staff, potentially boosting their morale, and provide a more refined experience for customers. 

“When working behind the bar, we all wear clean white shirts and black or dark denim jeans with aprons,” says Stephanie, the bar manager at specialty coffee roastery Tim Wendelboe in Oslo, Norway. “When you enter a coffee bar and see the staff wearing clean and neat uniforms, it adds to the whole experience.

“We iron our uniforms, put them on, and go into service mode before entering the bar with the rest of the team, so we feel unified,” she adds.

This also has the potential to enhance the staff experience, encouraging baristas to take pride not only in their appearance but also in their work. For some coffee shops, uniforms reinforce a more professional work environment, reflecting the talent and skills that baristas possess.

“You feel sharp, you stand straight, and it only adds positive things to being a coffee professional,” Stephanie says. “I imagine that when athletes, chefs, dancers, or artists put on their uniforms, they log on with this mindset – they are ready to work or perform.

“Tim doesn’t do anything halfway, so it’s the thoughtfulness behind everything,” she adds – highlighting how clean, white shirts also emphasise the cleanliness of the coffee shop, reflecting a clear, identifiable commitment to excellence across the board.

But do they stifle barista self-expression?

There are clear advantages to barista uniforms in specialty coffee shops. They can boost brand credibility and staff professionalism, a point that specialty coffee professionals have been advocating for for years. The role of the barista, often considered a stopgap job, is now taken more seriously than ever – and uniforms can help reinforce this.

However, there are also downsides to adopting a stricter approach to the clothes baristas can wear. In an industry built on creativity, inclusivity, individuality, and self-expression, uniforms and dress codes risk stifling these factors inherent to specialty coffee.

By removing the freedom to dress however they choose (within reason), baristas may feel alienated, suppressed, or controlled – potentially harming relationships between staff and management.

Barista well-being is also a concern, and dress codes should take their needs into account. Staff are typically standing all day and are constantly moving in ways that can lead to repetitive strain injury (RSI).

A Wilfred Laurier University study found that 68% of surveyed baristas reported shoulder pain, while 73% experienced lower back pain. In many cases, these conditions stem from RSI, which results from performing the same movements repeatedly, such as tamping or placing portafilters in group heads.

Restrictive uniforms, such as button-down shirts or formal trousers, could potentially exacerbate these issues, posing health risks if not managed correctly. Additionally, some baristas may feel uncomfortable wearing more formal attire, which can prompt them to seek other work opportunities.

Is there a middle ground?

The decision to implement a dress code is dependent on the owner or manager of a café, but it’s one that should be made in conversation with the people it affects the most: the baristas. Starbucks is a case in point of how enforcing significant changes to uniforms needs to include staff perspectives – otherwise, owners could face backlash.

This then raises questions of how cafés interested in adopting new dress codes or uniforms can approach the conversation with their staff.

“The barista is a manifestation of the space, and having them in uniforms makes it easy to distinguish between customer and employee. If a customer has a question, they know who to ask,” says Aric, the co-owner of Sterling Coffee Roasters in Portland, Oregon, US, known for its refined service style.

In its earlier days, Aric explains that Sterling’s staff used to wear shirts and ties, but now adopts a simple all-black dress code.

“Our baristas can do whatever they want – have piercings, tattoos, and accessories – as long as they look clean, showered, and are dressed all in black,” he adds. This approach combines a cohesive look while still allowing baristas’ personalities to shine through.

It’s also important to consider how a uniform or dress code complements the brand identity of a coffee shop. For example, an omakase-style café offering high-end coffee service would require a dress code or uniform, highlighting the brand’s refined and professional elements that meet consumer expectations.

Conversely, barista uniforms in a cosy neighbourhood coffee shop that prioritises community building and engagement could shift the ambience, potentially alienating its core customer base.

Barista uniforms and dress codes are a divisive issue in the specialty coffee industry. While many assert the positives – a sense of unity, an easier choice of clothing, and the potential to be perceived as more professional – the downsides are also evident. Uniforms and strict dress codes can risk stifling self-expression and minimising comfort, both of which are important for many baristas.

Ultimately, café operators need to weigh up the pros and cons – and make sure their staff are on board with the decision.

Enjoyed this? Then read our article on how omakase could transform specialty coffee.

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Coffee and wine have always shared similarities: emphasis on craftsmanship, expression of terroir, processing, varieties, sensory appreciation, and ritualistic consumption. 

So for a growing number of businesses, serving wine has felt like a natural extension of their focus on specialty coffee. Cafés and roasters such as the UK’s Notes Coffee and Kofra, the US’ Bartavelle, Hungary’s Kelet Café, and Italy’s Luna by Faro, among many others around the world, have been setting the trend.

But for some, the decision isn’t purely led by sensory appreciation and culinary excellence; it’s also a strategic manoeuvre. Extending opening hours and attracting a broader customer base can generate more revenue – offering a competitive advantage in today’s difficult market.

Nik Daughtry of ELM and food and beverage consultant Mark Wood share their thoughts on whether wine could become a more prominent part of specialty coffee shop offerings.

You may also like our article on how aeration can improve wine and coffee flavour.

Why more coffee shops are serving wine

Specialty coffee and wine share many similarities. Both industries focus on terroir, varieties, fermentation, sensory appreciation, palate development, and quality, highlighting the connections between the two.

Winemaking’s most noticeable influence in the coffee industry is on processing methods. Coffee producers have long been inspired by winemakers, utilising controlled fermentation and yeast inoculation to develop specific flavour profiles, enhance quality, and command premium prices. Carbonic maceration, originally developed by winemakers, is the most notable example. 

For many, these shared traits reinforce the inherent connections between specialty coffee and wine. In turn, coffee shop owners are increasingly positioning them as complementary menu offerings.

More cafés are diversifying and extending their opening hours to serve wine, as well as other alcoholic beverages like craft beer and cocktails. Coffee shops like Abraço in New York City, Either/Or in Portland, Oregon, Intermezzo in Florida, The Corner in Copenhagen, Denmark, and Material in Berlin, Germany are “all-day cafés”, serving coffee in the mornings and afternoons, and switching to wines later in the day.

“We always offer a mix of reds, whites, skin contact and orange wines, and sparkling options,” says Nik, the co-owner of ELM in Sheffield, UK, a coffee and wine bar. “We’re drawn to low-intervention wines that highlight terroir and the personality of the winemaker.”

Given their shared characteristics, diversifying into wine is an effective way for coffee shops and roasters to communicate their craft-focused ethos beyond coffee. 

Natural (or low-intervention) wines, for instance, use little to no additives (such as sulphites, sugars, and acids) in the winemaking process. The lack of stabilisers often creates more fruit-forward and complex flavours – similar to natural and experimental processed coffees.

Orange and skin contact wines, meanwhile, offer more unique, interesting, and “funky” flavour profiles and mouthfeel, appealing to both wine and specialty coffee drinkers seeking new sensory experiences.

How wine can help coffee shops increase revenue

Coinciding with a focus on quality and craft, adding natural, organic, and skin contact wines to menus can be a lucrative opportunity for coffee shops.

In 2024, UK sales of orange wine were up 99% annually on online grocery retailer Ocado. Once a niche offering, orange and skin contact wines have become increasingly mainstream in recent years. This shift is primarily driven by the growing interest in minimally processed wines, as consumers seek out healthier, more “natural” alternatives to traditional wines.

For coffee shops, this means diversifying to include wine can increase profits by attracting evening and nighttime clientele while maintaining their focus on coffee during earlier operating hours.

By adding new products, coffee shops can create new revenue streams and ensure some level of future stability in case of issues with their core products. Considering how challenging it has become to operate a coffee business in recent years – with sustained high market prices and unprecedented tariffs a lasting reality – product diversification has never been important.

Focusing on wine also offers coffee shops and roasters an opportunity to extend their values into new products. Stocking high-quality, traceable, and sustainable wine can complement their approach to curating excellent coffee offerings, reinforcing strong branding across the board.

Simultaneously, coffee businesses can position themselves as one-stop shops for ethical, high-quality products, opening up avenues to stock other artisanal products such as cheeses, cured meats, breads, and preserves.

Is there a particular type of coffee shop that should serve wine?

In many countries, most cafés are open from early morning to late afternoon, closing when people typically stop drinking coffee. This means that peak business hours only account for a small portion of the day, with heavier foot traffic in the morning and around lunchtime. 

In order to bolster profits, café owners are diversifying their menus to include matcha, drinking chocolate, and other customised beverages. However, offering wine has become one of the most effective ways to diversify, also allowing businesses to extend opening hours and draw in new customers.

“During the day, ELM has a cosy, relaxed vibe. We serve specialty coffee, fresh pastries, and an all-day menu with light food options,” Nik says. “As the afternoon winds down, we dim the lights, switch the playlist, and the atmosphere becomes warmer and more intimate. 

“Our team transitions the space, bringing out wine menus, lighting candles, and preparing for evening service.”

But to execute this transition successfully, coffee shops need to focus on creating the right atmosphere and tone. Interior design plays an inherent role in this process – and it may require the “right” kind of setting.

“Business operators need to understand what their venue looks and feels like,” says Mark, a food and beverage consultant with over 30 years of experience across hospitality, luxury brands, and business development. “How can it shake the daytime café identity and become a wine bar at night? 

“This even includes the name; it needs to be adaptable so that it works for both a coffee shop and a wine bar.”

Location is another factor to consider. Neighbourhood coffee shops, often catering to a smaller, specific customer base and offering a friendly, cosy ambience, could find success. Cafés in larger cities could also thrive in this environment, taking advantage of busier areas and tourists.

But the transition from coffee to wine is easier said than done

While it may appear lucrative at first, there are many considerations to factor in when adding wine to a coffee shop menu.

Alcohol licensing is the first step. A business needs a premises licence from the local council, and anyone selling alcohol needs a personal licence. This process requires undergoing checks, paying fees, and completing several courses, meaning staff must be committed to obtaining their personal licences. 

Additionally, staff must be properly trained not only to serve wine, but also to understand it – similar to their knowledge of coffee production, processing, and roasting. Without the expertise to guide customers through wine tasting and help them choose wines that suit their preferences, coffee shops could struggle to implement an effective menu.

“Successfully owning or managing a coffee shop that serves wine in the evening can be a game-changer, but it takes proper business decisions and practical strategies to do it well,” Mark says. “Mastering the number of employees during the evening hours needs to be assessed against how busy the shop gets.”

Another key factor is storage. Cafés need to have adequate refrigerated and ambient storage space for a selection of wines – otherwise they could struggle to keep up with demand or risk reducing waste.

In today’s challenging coffee market, product diversification is an effective way to diversify. For some cafés, wine could be a viable option, allowing operators to extend opening hours, attract a wider consumer base, and drive new revenue streams.

But it’s a strategy that requires a nuanced approach and attention to detail that may not work for every coffee business.

“Coffee shops can be transformed, but they need to have a certain ‘feel’ to them,” Mark concludes. “To successfully shift a coffee shop to a wine bar, it takes some effort, but you can make a profit if you can get it to work.”

Enjoyed this? Then read our article on how specialty coffee can still learn more from winemaking.

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Green coffee prices reached historic highs in February 2025, prompting business owners to explore alternative funding options. Meanwhile, operating costs – from labour to rent to packaging – continue to climb, making cash flow management even more challenging.

In this tough economic climate, many roasters have shifted their buying practices, including sustainability-driven strategies and partnerships. Sustainability, once a cornerstone of specialty coffee, may have become less critical as businesses grapple with a tumultuous market.

Alternatively, price volatility may prompt some roasters to invest more in their relationships across the supply chain, thereby solidifying a commitment to collaboration and sustainability.

I spoke to Anne Djerai at Metropolis Coffee Company and Vava Angwenyi at Vava Coffee to learn more.

You may also like our article on why sustainability has become a buzzword in specialty coffee.

Rising coffee prices mean shifting strategies

Sustainability has been a core value for specialty coffee since its beginning. In addition to improving transparency and traceability, roasters advocated for higher, fairer prices paid to producers. 

Consumers also started to demand more ethically sourced coffee. In 2020, nearly half of global coffee company launches mentioned some value associated with sustainability, double from the number in 2012.

The desire for more sustainable practices was not only focused on the production end of the supply chain, but also within the café setting. Over the last few years, more roasters and coffee shops have shifted to compostable cups and straws, as well as recyclable coffee packaging and plant-based milks, to meet the growing demand.

However, against a backdrop of record-high green coffee prices and rising operational costs, business operators had to reassess their sourcing strategies and operational efficiencies. Sustainability, once a tenet of the industry, may have become less of a priority for some.

High interest rates have also made it increasingly difficult to obtain credit. Roasters rely on short-term loans to cover the costs of large coffee purchases that are paid off over time. With banks restricting credit lines, operators have been forced to seek alternative funding sources or tighten their spending, which inevitably reshapes their sourcing strategies.

A chance to double down on values

With reduced access to traditional funding and tighter margins, some roasters will focus on more cost-effective coffees as a means to keep retail prices down for consumers. In turn, these operators may have shifted away from long-term producer and trade partners in favour of short-term buying options that help manage costs more efficiently.

Market volatility has mainly presented two options for roasters. They either increase their prices to maintain quality and sustain long-term partnerships or shift to more affordable, lower-quality coffees to keep prices low.

While raising prices could deter some customers from remaining loyal, a decline in coffee quality could have more serious consequences. Roasters have an opportunity to communicate more transparently about their pricing systems, reaffirming their commitment to quality and relationships. A shift towards lower quality coffee, meanwhile, could damage brand identity and perceived value.

Either way, record prices have forced coffee businesses to rethink their entire operations.

“We were pushed to take a hard look in the mirror at how we are sourcing, who our partners are, and how our projects will look moving forward,” says Anne Djerai, the CEO of Metropolis Coffee Company, an independent roaster in Chicago, Illinois, since 2003. 

“Roasters are becoming more creative with how we source, forcing us to become more personal with our sourcing partners again, with a more ‘boots on the ground’ approach,” she adds.

Specialty coffee has an opportunity to reaffirm its values

With the C price sitting just below US $3/lb, the price gap between specialty and commodity narrows. Therefore, maintaining a commitment to sustainable practices, although potentially more costly in the short term, may give specialty coffee roasters an advantage over their commodity-grade counterparts.

Investing in environmentally, socially, and economically sustainable strategies, especially during periods of economic volatility, reaffirms roasters’ dedication to mutually-beneficial partnerships – a bonus for more discerning consumers. 

Direct trade and relationship coffee can also offer more control over supply chains, potentially reducing costs in the long-term. 

“It’s likely that some roasters, especially those operating on tighter margins, may feel pressured to adjust their sourcing strategies, potentially moving away from higher-priced lots or scaling back on more intensive, relationship-driven sourcing models,” says Vava Angwenyi, the founder of exporter Vava Coffee in Kenya. 

“However, in my experience working in Kenya and across producer communities, the roasters who are truly values-aligned tend to view these price shifts as part of a longer-term journey rather than a short-term obstacle,” Vava adds.

To navigate market volatility successfully, the most resilient businesses will be those that prioritise transparency, consistent communication, and shared risk management. When both sides understand each other’s challenges and constraints, they can develop creative solutions that preserve business viability while maintaining quality and sustainability commitments. 

These trusted partnerships create stability in an otherwise volatile market, enabling long-term planning despite short-term fluctuations.

“Transparency and communication will be crucial,” Vava says. “Producers also face escalating costs – fertilisers, labour, climate adaptation – and it’s important for both sides to remain committed to the shared goals of quality, sustainability, and equity. Relationships built on trust and mutual investment tend to weather price volatility better than purely transactional ones.”

Adaptation strategies for roasters

Specialty coffee is therefore at a tipping point and needs to maintain its values, including sustainability, in order to retain its point of differentiation. 

“Every obstacle is an opportunity,” Anne says. “Relationships are vital, and roasters need to stay committed to their partners at origin and adapt to the changes in market conditions.”

One solution is for roasters to maintain their higher-quality offerings in addition to more accessible blends, allowing them to appeal to a wider client base across different price points. This can help maintain quality while reducing costs. 

Sourcing high-quality coffee can make up about 30% to 40% of overall expenses for a roaster, so managing this more closely is vital for the health of the business. Maintaining direct trade relationships can help reduce increased coffee costs; buying spot coffees, available immediately, can be more expensive than contracting coffee with a long-term producer partner.

Roasters may need to make other changes to differentiate themselves in the market, which may include rebranding. Creating a fresh, new look with appealing visuals and effective messaging can improve the roaster-to-consumer connection. Engaging with consumers and building customer and wholesale relationships can also be beneficial, especially through educational talks, training, and the sharing of more information.

As it navigates unprecedented market conditions, specialty coffee stands at a crossroads. While market volatility may eventually subside, the current challenges reveal a fundamental truth: it’s the strength of connections that will determine collective resilience. 

By prioritising transparency, consistent communication, and shared value creation, producers, roasters, and traders can emerge from this period with a supply chain that is not just more equitable but ultimately more stable and capable of weathering future challenges.

Enjoyed this? Then read our article on why coffee brands need to care about more than sustainability certifications.

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According to a new UN FAO report, it will take almost a year for consumers to feel the effects of price spikes, most of which will impact cheaper coffee sold in supermarkets and convenience stores.

Specialty coffee operates outside the C market, but it is heavily influenced by broader market movements. While the price of commercial-grade coffee remains high, comparable to that of specialty coffee, could this create an opportunity for specialty coffee roasters to capture the attention of more customers? 

Or conversely, will more consumers opt for cheaper alternatives, curb their consumption, or stop buying coffee altogether?

I spoke to Albert Scalla at StoneX Group, Friso Miguel Spoor at Koffie Lente, and Sam Klein at Partners Coffee to learn more.

You may also like our article on why it’s never been more important to invest in coffee quality.

Understanding the volatility of coffee prices

The global coffee industry has recently navigated an extended period of high market prices. Over the last two years, green coffee costs have almost doubled, reaching an all-time high of US $4.41/lb in February 2025.

The situation is the result of a number of complex factors, but is primarily driven by ongoing supply shortages in Brazil and Vietnam, the world’s two largest coffee producers. Compounded by historically low global stockpiles, these disruptions in major producing countries have resulted in significant price hikes.

Sensing opportunity in this scarcity, commodity brokers and speculative investors have increasingly bet on continued price appreciation, which has further accelerated market volatility.

In recent weeks, following news of improved weather in Brazil and higher-than-expected harvest forecasts, coffee prices have stabilised just below US $3/lb. Although this is a sharp drop from the record highs seen earlier this year, it’s likely that the C price will remain at these levels – and could rise again.

Tensions in the Middle East remain high, which could impact key shipping routes through the Strait of Hormuz, driving up logistics costs. 

Additionally, the recent risk of frost in some of Brazil’s key coffee-growing regions could drive up prices, as traders and investors fuel a bullish market.

How the C price is affecting consumers

As the C price settles just below US $3/lb, it marks a significant increase on prices seen in July 2024, which reached a 52-week low of US $2.21/lb.

While many assert that this signifies a long overdue change, as coffee has historically been an undervalued commodity, price volatility affects all levels of the supply chain in various ways. For roasters and coffee brands, it means raising retail prices, and their customers feel the pinch.

The UN FAO report found that up to 80% of these price rises will be passed on to EU consumers within the next 11 months and to US consumers in just eight months. The residual effects of these price rises are expected to last for four years.

Brands like JM Smucker, which owns Folgers, Dunkin’ at Home and Café Bustelo, are warning of further retail coffee price increases in August, following earlier hikes in May, June, and October last year.

Some supermarkets and grocery retailers have pushed back, signalling that prices are reaching the limits of what consumers will tolerate. JDE Peet’s also faced backlash from European retailers for its price hikes, with some chains even refusing to stock its products during negotiations.

As major brands pass on costs to maintain their margins, we can expect to see a widespread shift in consumer behaviour.

Following trends in other markets that have experienced similar price shocks, consumers initially absorb increases. However, as prices remain high or continue to rise, they inevitably adjust their behaviour to cope with the elevated costs. This could include buying less of the brands they typically purchase, switching to cheaper alternatives or private label products, or stopping the purchase of these goods altogether.

Eggs in the US market are a prime example. Average prices for a carton of eggs have soared from US $1.49 in 2018 to US $5.18 in 2025. In response, over a third of US consumers said they have stopped buying eggs, and won’t begin to purchase them again until the price comes down to US $5 or less.

Specialty coffee also feels the effects

As the C market remains high, prices for commodity coffee have approached those of specialty coffee – potentially reshaping market dynamics.

Specialty coffee has consistently maintained a point of differentiation from commodity coffee. Quality, traceability, supply chain transparency, attention to detail, and craftsmanship have defined the specialty coffee industry since its inception, justifying the higher prices it commands.

Although specialty coffee operates outside the C market, with roasters and importers paying premiums for higher-quality lots, it is heavily influenced by broader market trends.

“When the C market rises, everything goes up, including the specialty market,” says Albert Scalla, the Senior Vice President of Trading at StoneX Group Inc. “The robusta market exploded last year because of a drop in production, which led to an increase in arabica prices, revealing how markets are interconnected.

“Coffee has been volatile in the past five years due to a number of variables, including Covid, climate change, high interest rates, freight challenges, consumption shifts, and inflation,” he adds. “Commodity prices are now where specialty prices once were two years ago.”

The implications of C price fluctuations can also vary between producing countries.

“The impact from a commodity price hike is always noticeable in specialty coffee,” says Friso Miguel Spoor, the founder of Koffie Lente. “Ethiopia set a uniform cherry price at the beginning of the season, for instance, which allows exporters to offer a relatively lower price compared to the price hike in the commodities. 

“However, in Central America, there are differences between the pricing approaches by exporters and coops and producers, depending on how steady their domestic markets are,” he adds. 

Could more people switch to specialty coffee as prices stay high?

The economic gap between commercial and specialty-grade coffees has narrowed, presenting an opportunity for specialty coffee roasters and brands to capture a larger market share. 

“When the market is high, all coffee starts to look expensive,” says Sam Klein, a green coffee buyer at Partners Coffee. “Why spend a lot of money on bad coffee when you could spend a little more on great coffee?

“If a coffee roasting company mostly buys commercial grades, they have fewer avenues to reduce costs than another company that mostly buys high-quality, differentiated coffees,” he adds. “And if your only value proposition is that your coffee is inexpensive, it could be difficult to compete when the market raises your costs.”

In late March 2025, Reuters reported that supermarket coffee prices could increase by 25% within weeks. Some supermarket chains, including Albert Heijn in the Netherlands, promised to absorb some of the additional costs, while others restocked coffee products at higher prices.

Shortly after two quick consecutive hikes, major Brazilian roaster 3 Coracoes raised its prices by over 14% in early March. According to ABIC, Brazilian supermarket coffee prices have already increased by 40% this year, with further increases anticipated.

With smaller, incremental hikes, such as US $0.25 or US $0.50 per cup, or by downsizing retail coffee bags to keep total purchase prices more manageable, specialty coffee roasters and shops could offer more value for money.

Offering accessible blends or cost-effective single origins could steer more commodity coffee drinkers towards specialty-grade products. With a smaller price margin than ever before, roasters can now effectively showcase a clear value proposition of quality and artisanal excellence.

But to maintain this point of differentiation and manage tight margins, many specialty coffee roasters are also increasing their prices, potentially discouraging consumers from making the switch.

Simultaneously, when the C price is high, there’s less incentive for producers to grow specialty coffee.

“When prices are high, it reduces the financial incentive for coffee producers to deliver high quality,” Sam tells me. “If you could do less work and still profit, why not do that? Cash flow also becomes a major challenge, particularly for exporters who need to pay producers but don’t have committed buyers for the coffee yet.”

Which direction will consumers go in?

Even as the C price dips, retailers are likely to keep passing costs on, and consumer behaviour will pivot.

“I don’t think higher commodity prices will necessarily drive more consumers toward specialty coffee, but I don’t think higher prices will destroy existing demand either,” Sam says. “Some consumers will react to higher prices and either switch to less expensive products or reduce consumption; others might look at how expensive more commercial coffee brands have gotten and decide the extra cost for specialty coffee is negligible.”

Examining other industries that have faced similar economic conditions, consumers are likely to seek out more affordable alternatives. 

A UC Berkeley study found that soda taxes drove down consumption in five major US cities. The research found that the retail prices of sugar-sweetened beverages increased by 33% over the two years following the implementation of the tax in each of the studied cities. During the same timeframe, there was a corresponding 33% decrease in purchases of these drinks, as consumers likely sought out cheaper alternatives.

In the coffee industry, more cost-effective private label brands may emerge as the top performers. A recent US study reveals that over the past four years, private brand sales have increased by nearly a quarter each year. 

Further price hikes could accelerate this trend. Coffee consumers could downgrade from roast and ground to instant, buy more blends and supermarket own-brand products, or simply drink less coffee.

Despite high coffee prices, consumption remains steady. Specialty coffee roasters could offer cost-effective, high-quality blends as a way for commodity drinkers to transition to specialty coffee without facing a significant economic hit. 

But consumers are likely to be hesitant to pay more for coffee, so specialty coffee brands will need to find a point of differentiation to communicate their value.

“It’s an interesting moment for specialty coffee. The specialty sector has often relied on low prices to make its value proposition: delivering better coffee to consumers in exchange for fairer prices to producers,” Sam concludes. “That still applies, even in the current commodity market, but the question to me becomes: will specialty coffee companies continue to believe in this mission when the cheap coffee is no longer available?”

Enjoyed this? Then read our article on how roasters can make high-quality lots stand out.

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Everyone across the supply chain is feeling the effects. While roasters and traders grapple with tighter margins and cash flow crises, producers face difficult decisions about where to sell their coffee. Some are declining long-term contracts to sell at higher prices, hoping to reinvest in their farms. Traditional trade dynamics are shifting, and everyone needs to adapt.

For producers specifically, there’s a narrative that higher prices mean higher profits, but the reality is more complex. Unpredictable weather, rising fertiliser costs, and labour shortages all add pressure to farmers’ operations. Additionally, buyers are more cagey, so more options don’t necessarily equate to a better position for producers.

I spoke to Bram de Hoog, the founder of Paso Paso Coffee, and Judith Ganes, president of J. Ganes Consulting, to find out more.

You may also like our article on why record coffee prices signal a new era for the industry.

Trade dynamics are changing for the long term

The C market relies on coffee futures, or contracts purchased previously, whereby producers honour a set price to sell their coffee to an importer or another intermediary. 

This builds the baseline price for arabica and determines the current price for physical coffee. Buyers and sellers negotiate contracts through price discovery – agreements made prior to harvests or through long-term relationships.

But other factors are also at play. Coffee prices are at their highest levels since the late 1970s, driven by the climate crisis, supply shortages in Brazil and Vietnam, and longstanding logistical challenges.

US President Trump’s recent sweeping global tariffs on over 180 countries, including many producing countries, are exacerbating volatility. Shortly after “Liberation Day”, when Trump announced between 10% and 46% on imports from 15 of the world’s top 20 coffee-producing countries, the C price fell sharply from US $3.88/lb to US $3.66/lb, as bearish speculators anticipated shifts in demand.

While the C price remains high, close to US $3.6/lb, Trump’s tariffs will have a major impact on producers. Those in countries which have been hit with higher levies may experience a significant drop in demand as roasters and importers shift to other origins to cope with a surge in costs. This is likely to cause unprecedented uncertainty and make it difficult for producers to plan ahead.

Producers have more choice than ever

Traditionally, producers have been at the mercy of the C market, forced to accept historically low prices that undervalue coffee, while buyers act as the “price makers”. This effectively puts importers and roasters in positions of power and can trap producers, especially smallholders, in cycles of poverty.

However, sustained high coffee prices are shifting these dynamics. Roasters and traders are under more pressure than ever as they struggle with cash flow management. This exacerbates the trend of market consolidation that has been a hallmark of the global coffee sector over the last five years.

Higher arabica futures mean producers have greater leverage than ever. As such, they can choose from a wider range of buyers. For many, the option to sell locally for a higher price is more appealing than honouring less lucrative contracts.

Their intentions may be good, for instance, to reinvest later in their farms. Buying new equipment and replacing ageing coffee plants are necessary to improve quality and yields, which many producers have been unable to do after receiving consistently low prices for so long.

However, although lucrative in some cases, defaulting on contracts can create a number of problems for producers.

“There will always be some producers that try to renegotiate long-term contracts or abandon them in favour of short-term gains,” says Judith Ganes, the president of J. Ganes Consulting.

This can result in blacklisting and make it difficult for producers to secure future contracts. Additionally, defaulting can damage long-term relationships with roasters and traders built over years.

How is the specialty coffee market adapting?

Although it operates outside of the C market, specialty coffee is still impacted by record arabica futures. When the C price exceeds US $2/lb, roasters often panic, as it directly impacts their ability to maintain margins without raising consumer prices. 

“The current market shifts are more related to conventional coffee than specialty, which is sold for a premium,” Judith explains. “If this differential remains firm at high prices, buyers might try to negotiate and lower the baseline as they hit their ceiling for what they can pay. They may seek out alternatives, which ultimately hurts the producer.

“There are other ways to negotiate contracts which include clauses that, in the event of an upside price swing, the buyer can secure positions as a form of protective insurance to lock in higher prices,” she adds.

Many roasters have expressed their shock at a US $4/lb C price, as it forces them to rethink sourcing strategies and pricing models. Some of the ways they can achieve this are by offering more blends and sourcing from more cost-effective origins, as well as preserving their green coffee beans in optimal conditions to maintain quality and freshness.

Specialty coffee importers also struggle with this shift in the market. Some have filed for bankruptcy, while others have been absorbed by larger players, who can then establish their own specialty divisions for a fraction of the cost.

This inversion of trade dynamics has created tension in the supply chain. If producers default on contracts in favour of higher returns, they can undercut long-term roaster and importer partners. At the same time, many view the price rally as an overdue win for producers who have long struggled with inequity in the value chain.

“Long-term contracts tend to be switched for short-term gains, but this is most common in supply chains without much transparency and trust,” says Bram de Hoog, the founder of producer-owned roasting collective Paso Paso Coffee. “Stronger supply chains with more transparency tend to be more resilient since the benefits are reaped over multiple years.

“There has been a mixed response from producers. Some raise their prices along with the C market, while others make smaller adjustments in order to maintain clients,” he adds. “In general, producers will seek to establish a new ‘base price’ which they can also return to in the future if the market does drop again.” 

Relationships are now more important than ever

As the C price remains high, the gap between commodity and specialty coffee continues to narrow. 

According to a new UN FAO report, it will take almost a year for consumers to feel the effects of price spikes, most of which will impact cheaper coffee sold in supermarkets and convenience stores, for example. The report states that up to 80% of these price rises will trickle down to EU consumers within the next 11 months – and to US consumers in just eight months. It also estimates that the residual effects of these price rises will last for four years.

Bram explains that within the specialty market, coffees scoring 82 to 84 points will be impacted the most, whereas prices for high-end micro lots are likely to stay relatively stable.

This spells a difficult period for roasters, who may transition to more cost-effective coffees to avoid raising their retail prices. It will also affect producers, many of whom grow coffees in the same range.

The specialty and commercial markets have always been somewhat interconnected. So, for the specialty market to continue on its upward trajectory, roasters need to practice what they preach.

“We will see more consolidation in the market than ever, and companies with deep pockets will come out on top,” Bram says. “Coping can only be done by adopting a long-term vision that stays close to your mission.”

In order to survive, specialty coffee brands need to leverage their values and relationships. Maintaining close connections with producers and other origin partners reduces risk and provides stability in a volatile market, which has never been more critical.

The coffee industry is at a turning point, and every supply chain actor needs to adjust accordingly. Volatility has never been more apparent, which means producers, roasters, and traders need to collaborate to mitigate higher levels of risk.

Prices will eventually come down, but these recent weeks have exposed how vulnerable the supply chain is. Looking ahead, those who invest in strong, valuable partnerships will be in the best position to cope.

Enjoyed this? Then read our article on how high coffee prices could go.

Photo credits: Paso Paso Coffee

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