Expanding Jamaica Blue Mountain Coffee in the EU

Jamaica and the Coffee Market

Expanding Jamaica Blue Mountain coffee in the EU Windward Commodities 30th June 2022

3.3. Why the World Price Does and Does Not Matter The branding, rarity, taste profile, heritage and careful distribution of JBMhas effectively decoupled it almost completely from the world market for coffee. The average price for JBM green beans over the last 15 years has been consistent at USD29.61/kg FOB or over 20 times that of the world market (‘C’) price for coffee. Declines in production have helped here – scarcity helps maintain unit prices as volumes decline, but it is also testament to the strength of the JBM brand and the loyalty of its consumer base. When the world price goes over USD2/kg it causes a frenzy in commodity trading circles where sales are price and value based but barely a whisper when it comes to ultra-premium speciality coffees such as JBM that charge more than ten times this. None of this is to say that price does not matter. It very much does and the fact that other origins with better cupping scores and higher media profiles are starting to compete directly with JBM is a huge competitive risk, as is the fact that a higher C-price means higher specialty prices and a greater focus on innovation and quality rather than heritage and branding.

JBM green price USD per kg vs World C-price USD per kg

$60.00

$50.00

$40.00

$30.00

USD29.61/kg average JBM green bean price 20.5x multiple of average world green bean price

$20.00

$10.00

$-

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

JBM$ per KG

C-price $ per KG

Time to Wake Up and ‘Cup’ the Coffee | 11