Green Price

At Redemption Roasters, the green coffee price is set through various pricing methods that reflect our commitment to quality and ethical sourcing.

Farm Gate Pricing

This method involves purchasing coffee directly from the farmer at their farm, ensuring they receive a fair price. This approach fosters direct relationships, providing transparency and enabling us to understand the conditions under which the coffee is grown.

FOB (Free on Board)

This pricing method includes the cost of the coffee at the port of origin, covering expenses such as transportation to the port and loading onto the shipping vessel. FOB pricing allows us to factor in shipping and logistics, providing a clear understanding of the costs involved up to the point of shipment.

EXW (Ex Works)

Under this method, the price covers the cost of the coffee at the producer's location, with the buyer responsible for all transportation costs and risks from that point onwards. While this can be advantageous for producers, as they receive payment upfront, it requires us to manage logistics and shipping arrangements.

Spot Purchasing

This involves buying coffee on the market at current prices, often for immediate delivery. Spot purchasing allows us to be agile and responsive to market trends, enabling us to secure high-quality beans when they become available, albeit often at fluctuating prices.

By using these pricing methods, we ensure that we fairly compensate coffee producers while maintaining the highest standards of quality and sustainability in our sourcing practices. This approach aligns with our mission at Redemption Roasters to support farmers and foster a more equitable coffee supply chain.

Transport Costs

Transporting green coffee from origin to a roastery involves several key costs:

Export Costs at Origin

- Local Transport: Moving green coffee from farms to the port for export incurs transport fees.

- Export Fees: Some countries impose export taxes and documentation fees.

- Packaging: Coffee is packed in protective bags, adding to costs.

International Shipping

- Freight Costs: Green coffee is shipped by sea, with costs depending on distance and freight rates, which can fluctuate.

- Insurance: Shipping insurance covers losses or damage in transit.

Import and Customs

- Import Tariffs and Fees: Some countries impose import duties, while customs fees cover inspections and handling.

Domestic Transport to Roastery

- Port to Roastery: Coffee is moved from the port to a warehouse or directly to the roastery by road or rail, adding final transport costs.

Each of these steps adds to the overall cost, with fluctuations in freight and fuel prices significantly impacting the final pricing for roasters.

Production Costs

There are many factors that go into the production of coffee. To calculate this we total all the below and divide this by the quantity of kilos we roast, giving us a production cost per kilo. These figures are based on our previous financial year. 

Fixed Costs

Running a roastery involves a range of fixed costs, covering everything from rent—both for our roastery space and our HQ in Kings Cross, London, where our support teams are based—to utilities such as gas for the roaster, electricity, internet, and phones. Other essential costs include insurance, business rates, legal fees, and general maintenance, all of which contribute to our operational stability.

Packaging

Every bag of coffee we send out requires carefully selected packaging to ensure safe delivery to customers. This includes coffee bags, labels, shipping boxes, packing materials, tape, and promotional inserts. Wherever possible, we use recyclable or recycled materials in this process. Additionally, to reduce waste, 40% of our roasted coffee is delivered to wholesale clients in reusable buckets, saving over 65,000 single-use bags annually.

Labour

Our roastery team operates in the unique environment of a category C prison, where they work with exceptional dedication. We provide fair salaries, cover travel costs outside of London, and offer regular pay reviews to reward commitment. Our HQ team, based in London, includes Marketing, Finance, Operations, Sales, and Impact departments, each playing an essential role in ensuring our products meet our high standards and reach customers smoothly.

Roasting

During roasting, green coffee loses 10–15% of its weight due to water loss, meaning that for every 100 kg of green coffee, we end up with around 85 kg of roasted coffee, which increases the coffee’s cost per kilo. Additional wastage occurs occasionally when roasts don’t pass our quality control (we cup every batch) or when we test-roast to perfect profiles for new coffees. We also develop brewing recipes for each coffee and retain samples from every batch for future quality reference.

C-Market

At Redemption Roasters, we closely monitor the C-market, or Coffee Commodity Market, which significantly influences the landscape of coffee pricing. The C-market sets prices based on supply, demand, and speculation, with fluctuations driven by factors like crop yields, weather conditions, and geopolitical events. Unfortunately, these prices often fail to cover the true production costs for many farmers, particularly small-scale producers, leading to financial instability in the industry.

While our focus is on specialty coffee, the effects of the C-market ripple through our coffee buying programme. When C-market prices decline, it can push commodity-grade coffee prices below sustainable levels, creating pressure on farmers. To ensure fair compensation for quality and sustainable practices, we pay a premium above the C-market rate. This approach is essential to uphold our commitment to direct trade, allowing us to foster meaningful relationships with producers and guarantee that they receive fair wages.

Conversely, rising C-market prices can increase competition for high-quality beans, impacting our sourcing strategies. We must navigate these price increases carefully, as they affect not just our costs but also the availability of the exceptional coffee we seek to provide. Moreover, if low C-market prices persist, farmers may abandon coffee cultivation altogether, reducing the long-term supply of specialty coffee.

To sustain our commitment to ethical sourcing, we incorporate these dynamics into our buying programme. We prioritise transparency and invest in long-term relationships with coffee producers, ensuring that our customers enjoy high-quality coffee while supporting a fair, stable supply chain that benefits both farmers and consumers.

The cost we show here is the C-Market price at the time we purchased this particular coffee so you can see the comparison.

Redemption Cost

This is the final cost, factoring in the green coffee price, the transport costs, and the costs of production. Combining these elements allows us to determine the actual cost per kilo of coffee, ensuring we maintain high standards of quality while supporting sustainable and ethical practices throughout our supply chain. Each cup of coffee reflects the dedication and care that goes into its sourcing and production.

Fairtrade

At Redemption Roasters, we recognise the complexities of the coffee market, including the Fairtrade system, and how it contrasts with both the C-market and our focus on specialty coffee. While Fairtrade certification aims to ensure that farmers receive a fair price above the C-market rate, it often falls short in providing the quality and direct relationships we value in our sourcing practices.

The C-market, which sets prices based on supply and demand dynamics, frequently leads to volatility that can leave farmers vulnerable. Fairtrade attempts to mitigate this by guaranteeing a minimum price, but the quality of Fairtrade coffee can vary significantly. Many Fairtrade coffees do not meet the high standards of specialty coffee, which prioritises unique flavours and quality profiles. At Redemption Roasters, we are dedicated to sourcing only specialty coffee that reflects exceptional quality and distinct characteristics.

Our sourcing principles focus on direct trade relationships, allowing us to connect with farmers and producers who prioritise quality and sustainability. This approach enables us to pay a premium for coffee that not only meets our high standards but also supports the livelihoods of the farmers we work with. Unlike Fairtrade, which can sometimes lead to a one-size-fits-all approach, our direct sourcing allows us to engage deeply with coffee producers, ensuring that they are fairly compensated for their efforts and that we receive the highest-quality beans.

While we appreciate the intention behind Fairtrade, our commitment at Redemption Roasters lies in fostering personal relationships and promoting transparency in our supply chain. By prioritising specialty coffee, we ensure that our customers enjoy an exceptional product while supporting ethical and sustainable practices that benefit both producers and consumers. We believe that great coffee should not only taste good but also embody a story of quality and care from farm to cup.

Lot Size

At Redemption Roasters, understanding lot size is crucial in our specialty coffee sourcing. While terms like "micro-lot" and "macro-lot" can be confusing, lot size primarily indicates quantity rather than quality.

We categorize coffee in several ways. First, coffee is often divided by region, reflecting the unique flavour profiles of specific areas, which can enhance transparency and fair pricing. Second, we source from individual farms or cooperatives, creating offerings that can be classified as “micro-lots.” These lots consist of harvested coffee blended from specific parts of a farm or a few nearby farms, ensuring quality through careful cupping and profiling.

Additionally, the quantity we buy is closely related to our offerings. We forecast the amount needed for each blend or single-origin coffee over time. For blend components, these quantities are often larger, while our seasonal single-origin coffees cycle through more quickly, allowing us to showcase a diverse range of coffees throughout the year. Each cup tells a story of quality and craftsmanship.

Sourcing Principles

At Redemption Roasters, we focus on three key principles to empower disadvantaged coffee producers through intentional sourcing decisions. Last year, 94% of our coffee sales adhered to these principles, with a goal of 100% by 2025.

Those three key are:

1. Rehabilitation
2. Sustainable Initiatives
3. Female Economic Empowerment

 

For each coffee we source we will score them based on how many of these sourcing principals they meet.