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Home Coffee News

Coffee Supreme CEO on the rising cost of coffee

by Staff Writer
September 19, 2024
in Coffee News, Features, Industry issues
Reading Time: 3 mins read
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Andrew Low of Coffee Supreme

Andrew Low, CEO of Coffee Supreme. Image: Coffee Supreme

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As the cost of a cup of coffee continues to make headlines, Coffee Supreme CEO Andrew Low weighs in on the value of coffee culture and why it’s time for consumers to rethink what their cup of coffee is really worth.

In mid-September, the price of Arabica coffee hit its highest point since 2011. The rising cost of coffee continues to impact the hospitality industry in Australia, yet Andrew Low of Coffee Supreme believes one thing is becoming increasingly clear: coffee is worth much more than the price of its ingredients.

“We seem to be at that time in the news cycle where media agencies scare us with headlines claiming an $8 coffee,” says Andrew.

“Café owners are afraid of raising their prices for fear of losing customers, while consumers complain about the cost of their daily ritual, comparing it to making coffee at home.”

Andrew believes there is more to the issue than inflation and rising costs and says there is an emotional and cultural value tied to coffee, especially in countries like Australia and New Zealand that are known for their world-leading cafe culture.

“Coffee isn’t just about the cost of green beans, milk, and labour,” he says.

“It’s about the service, the craftsmanship, and the sense of community that cafés create. Yet, many café owners are stuck in a hand-to-mouth survival cycle, fearing that customers won’t pay more for better quality. This has to change.”

The CEO acknowledges costs have risen, including green beans, rent, wages, and freight. Yet, beyond the raw materials, he highlights the human element that goes into every cup of specialty coffee.

“A latte served by a café owner who woke up at 5am to have their store ready for your commute is an experience. It’s not a mass-produced product sitting on a shelf,” Andrew says.

He calls on the coffee industry to shift the conversation away from justifying costs through ingredient breakdowns and instead emphasise the experience, emotion, and connection that cafes provide.

“Ask yourself, ‘What does my local café mean to me, and what am I willing to pay to protect it?’, he says. 

“I believe the answer lies not in lowering quality to meet lower prices but in valuing the integral role that cafes play in communities.”

Coffee Supreme’s mission has always been to foster connection, collaboration, and creativity through coffee. Andrew hopes that by raising awareness about the true value of coffee, consumers will be more willing to support the independent cafés that are vital to the fabric of local communities.

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