- Roaster-retailers sit at the centre of specialty coffee
- Recent consolidation and market shifts continue to position them as dominant players
- This buyer power often comes with little to hold them accountable
ROASTERS in the specialty coffee industry hold a unique position of power and influence over both supply chains and market trends that can sometimes compromise their integrity.
Some would argue that this influence has evolved into “diva-like” behaviour – marked by stringent demands, delayed payments, and selective standards that may undercut the values they publicly uphold.
According to Janina Grabs and Stefano Ponte, recent consolidation and shifts in market organisation since 2008 continue to position roasters as dominant players within the global value chain, as they retain significant bargaining power over both retailers.
Roasters are the primary buyers, trendsetters, and often the face of specialty coffee brands. This raises questions about fairness and accountability.
“Yesterday I visited the Canadian Roasting Society, where multiple roasters work under one roof and have access to virtually everything on offer,” says Andrea Brito Núñez, Green Sales at Osito Coffee and Cacao.
“They have people like me approaching them with a variety of coffees – the cream of the crop – allowing them to pick whatever they want. This gives them a very different perspective on what a ‘relationship’ means and their role or power within the supply chain. So, while we talk about relationships, it’s often more needs-driven, shaped by the roaster’s preferences. Ultimately, they hold the final word.”
The roaster doesn’t have control of the entire supply chain, but it is a role that comes with significant influence. They make decisions on which coffees to source, what quality standards to enforce, and how to present the finished product to the market.
“Despite appearances, these small roasters are largely at the mercy of traders,” says Martin Mayorga, Founder and CEO of Mayorga Coffee. “Traders really dictate the prices and terms. Small to medium-sized specialty roasters control the narrative – and that’s even more dangerous. First, consumers are led to believe they’re supporting something impactful, when they’re not.”
Industry events like coffee festivals and competitions have amplified the roaster’s status, often creating a celebrity-like aura around certain brands and individuals. As a result, roasters have become not only buyers but also trendsetters, setting the tone for what constitutes quality coffee.
This power, however, can sometimes be wielded in ways that prioritise the roaster’s interests over the financial stability of the producers.
“You get ‘specialty’ storylines that build unrealistic expectations, like the focus on microlots, special processes, and unique varietals over the last six years,” says Martin.
“When COVID hit, and these roasters lost substantial business, many defaulted on commitments to producers. For example, in 2020, I bought 27 containers of coffee just to help producers left in the lurch by these defaults. This shows that controlling the narrative doesn’t necessarily equate to real support. Small roasters steer the storyline in a way that can lead producers down an unsustainable path.”
The reverence given to roasters at events reinforces this hierarchy, making it difficult for suppliers to negotiate terms fairly. When roasters call the shots, they may inadvertently – or deliberately – put producers in a vulnerable position.
Ego, exclusivity, and double standards
Roasters’ elevated status in the industry has fostered a culture of exclusivity and, at times, arbitrary behaviour.
The visibility and recognition that roasters receive have bred an environment where ego can flourish, and some roasters have come to see themselves as arbiters of what “authentic” coffee culture should be. This status has given rise to fan followings that celebrate particular roasters and brands, reinforcing their position within a tight-knit, somewhat exclusive network.
“It’s become this hyper-competitive scene – who’s the most boutique, the most respected, the most admired,” says Martin. “It feels like high school, with little cliques everywhere, all about who’s cool at the moment. What’s actually cool is understanding what producers and consumers need, but that seems to be lost on them.”
The pressure of maintaining an elite status has occasionally led to double standards. Many roasters champion values of sustainability, fairness, and transparency in their marketing but are not always consistent in applying these values to their business practices.
Payment delays, rejection of samples and lots, and demands for extended credit terms are not uncommon, often putting producers in precarious financial situations.
“The truth is, people claim to care about producers, but if we genuinely did, we wouldn’t tolerate this kind of behaviour,” says Martin.
“I was recently with a producer friend who told me that every year, after he agrees on a price and the market drops, this small boutique importer starts raising quality issues and tries to knock off 20 or 30 cents per pound – which is a significant hit when you’re dealing with volume. He went on to say it happens every time the market dips.”
This inconsistency can sometimes extend to the quality standards that roasters impose on others. Roasters are quick to hold producers accountable for quality, expecting them to bear the financial burden of meeting high standards, yet they occasionally fall short of the same rigour in their own conduct.
For producers, particularly those in smallholder or cooperative settings, the business relationship with roasters can make or break an entire season’s income.
Roasters can often act as gatekeepers, giving advice on everything from processing methods to how producers can improve quality to meet market expectations. With such influence, roasters effectively determine what “good” coffee should be.
“I’ve had many farmers in Colombia, especially, ask me what roasters are looking for and how they can meet their requirements,” says Andrea. “I think this reinforces the idea that roasters are the ones setting the terms, even without ever having set foot on a farm and with no background in farming or concept of how difficult it is to produce coffee. Yet they all too often dictate what farmers should do.”
“The industry tolerates this entitled behaviour because, ultimately, these are the people paying the bills. Ironically, they often demand the highest quality at the lowest possible price while publicly claiming to support fair relationships, better prices for farmers, and other marketing lines designed to make consumers feel good about their choices.”
Producers are often asked to finance parts of the production process – such as processing or packaging – without guaranteed payment. For suppliers, these demands often feel unfair, creating tension in a system that is supposed to thrive on mutual respect.
The need for balance and accountability in specialty coffee
While the role of the roaster is undeniably critical to the specialty coffee ecosystem, the current dynamics carry risks for the long-term health of the industry.
“I think what we’re seeing now is reality setting back in,” says Martin.
“The C market is climbing, interest rates are high, and people aren’t lending money like before. Investors aren’t just dabbling anymore. So, in a way, reality is starting to squeeze people out, which I think is necessary. A C market hitting $2.70, $2.80, maybe even $3, would be a great reality check. Simple economics, in the end, will keep things in check.”
If roasters continue to leverage their influence without regard for the financial or operational well-being of producers, they may alienate those very suppliers who form the backbone of the industry.
Coffee producers, especially those in regions where resources are limited, already operate on thin margins. When roasters exercise unchecked power, they risk undermining the ethical values that specialty coffee stands for.
“I think as long as we have coffee celebrities, influencers, and even actual celebrities launching coffee brands, this behaviour will remain unchecked,” says Andrea. “It’s going to stay that way because, in today’s world of social media and the way we sell and consume, people buy products to feel a certain way.”
There are ways forward that could help balance the roasters’ influence and foster a healthier, more equitable industry.
For one, industry standards around payment terms and contractual obligations could be more rigorously enforced, creating clearer expectations on both sides. Transparency in pricing and financial commitments could allow for more predictable income streams for producers and enable them to invest back into their operations, ultimately raising quality standards.
Roasters could align their practices more with the values they claim to uphold. Some stakeholders are already recognising the need for more equitable practices and working to change things.
“A lot of women from producing countries, in particular, are speaking up, sharing their experiences, and being recognised as leaders with something valuable to say,” says Andrea. “People are starting to listen, especially to those voices coming from producing countries.”
In a model where each party shares responsibility and rewards, roasters can maintain their influence without resorting to behaviour that ultimately damages relationships and compromises industry ethics.
Coffee Intelligence
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