- Specialty coffee’s billion dollar industry risks losing trust as scaling trends compromise values like quality & fairness
- Two-thirds of young consumers prioritise ethics, but rapid growth often sacrifices transparency and producer welfare
- Mayorga Coffee’s 5x facility expansion shows scaling can align with fair prices and socio-economic impact
AS tough economic times hit, the core values of specialty coffee – commitment to quality, sustainability, and fair practices – seem to be getting diluted.
In recent years, a wave of scaling has swept the industry as small specialty coffee businesses seek venture capital, investments, or mergers and acquisitions (M&A) to expand their reach.
While this growth signals progress, it often comes at the expense of the values that first defined specialty coffee.
The ethical and quality trade-offs of scaling can be stark. Venture capital-backed coffee brands often prioritise rapid returns, leading to cost-cutting measures that can hurt coffee producers, reduce transparency in sourcing, or sacrifice sustainability goals.
“Ethics in coffee are highly subjective, especially in defining ‘specialty,’” says Martin Mayorga Founder and CEO of Mayorga Coffee.
“Some hyper-specialty brands, charging $8+ per cup, are stuck in a self-imposed box where they can’t grow without compromising their values. The reality is that their narrative – focused on specific processes or coffees – was never scalable or profitable. They now face a choice: prioritise profits or stick to their values.”
For example, some companies that once championed direct trade with smallholder farmers now rely on commoditised blends to maintain their profit margins, undermining their claims of ethical sourcing.
Meanwhile, mergers between small players and large multinational firms frequently result in diluted commitments to environmental or social impact as decision-making shifts to shareholders more focused on financial returns.
In contrast, the Financial Times shared a survey in 2022 that found that a substantial two-thirds of 19–24-year-olds stated that they make decisions about buying coffee based on ethical concerns, including labour practices and environmental sustainability. Being misled by brands will not sit well with these consumers.
“In my opinion, some brands perpetuate a disingenuous narrative, talking down to consumers by pushing the idea that buying their coffee ‘helps farmers’ when it doesn’t,” says Martin. “This approach fails to respect both the producer and the consumer.”
The pressure to scale quickly also trickles down to staff. Employees who once worked for mission-driven coffee roasters find themselves squeezed by corporate mandates to increase output and profitability, often at the expense of workplace well-being.
Take Blue Bottle after its acquisition by Nestlé – its baristas have been protesting against stagnant wages and rising workloads, shining a light on the human cost of scaling without careful consideration of ethics.
Between the potential harmful impact of scaling on stakeholders upstream and on staff, the question looms: Can specialty coffee maintain its noble ideals while achieving the scale needed to compete globally?
“As a business, I focus on doing incrementally better, paying fair prices to producers at scale while maintaining quality and fair pricing to consumers,” says Martin.
“Buying millions of pounds of coffee translates to real impact. Vilifying large companies while celebrating small ones oversimplifies a complex industry. For me, it’s about growing businesses in collaboration with farmers, not marketing empty promises about supporting farmers. True ethics mean running a business without ego and striving for transparency and respect at every level.”
The roots of specialty coffee ethics
Specialty coffee originated as a counterculture movement, emphasising quality over quantity and direct relationships with coffee producers.
Many small, niche players that pioneered the industry did so with agility, focus, and a strong sense of purpose. Their size often worked in their favour, allowing them to take calculated risks and prioritise ethical decision-making without the pressures of corporate shareholders.
“The notion that ‘small means ethical’ isn’t inherently true,” says Martin. “Better is better. I’ve seen many small companies make false claims or fail to pay producers on time – or at all.”
The concept of “affording to be ethical” was embedded in the DNA of early specialty coffee businesses.
Small roasters and cafés could dedicate time and resources to traceable supply chains, pay premiums to producers, and experiment with sustainable practices because they had less to lose and reputations to protect. For consumers, this ethos added intrinsic value to every cup, creating a loyal customer base willing to pay more for quality and transparency.
“Are we mistaking marketing for genuine values? Many ‘values’ sound appealing, but did anyone truly live by them?” asks Martin.
“Producers prioritise continuity and building something sustainable, but marketing has twisted this into rigid definitions that don’t reflect reality, gaslighting consumers and exposing producers. Were specialty varieties and processes ever sustainable for farmers at scale?”
“Blends, once frowned upon, are now trending. Mayorga Coffee has always embraced blends, roasted dark, and focused on culture and identity. Now others are adopting these approaches as trends. Mayorga was ahead of its time because it came from deep, informed experience – I learned the trade from the ground up over 25 years by being in Latin America with producers. Today, consumers are being misled by voices that often lack that same authenticity or engagement.”
The growing popularity of specialty coffee transformed its landscape. What was once an industry dominated by passionate artisans became a competitive global market worth $87-88 billion in 2018, according to the latest Coffee Market Overview from the Specialty Coffee Association.
With larger players entering the fray, many small businesses faced the choice of staying niche or pursuing scale to survive. This shift raises an important question: Does scaling inherently mean abandoning the values that built the specialty coffee movement?
Growth without compromise
The answer to whether scaling and ethics can coexist lies in the example set by businesses like Mayorga Coffee, which has defied the odds, proving that it is possible to grow a business while staying true to its moral compass.
With a commitment to sustainable sourcing, living incomes for farmers, and employee well-being, Mayorga Coffee exemplifies how to balance profits and principles.
Mayorga’s approach to scaling is deliberate. The company recently acquired a new industrial warehouse to expand operations, a move that could have easily been accompanied by cost-cutting measures elsewhere.
Instead, the investment aligns with the company’s ethos of reinvesting in the community. The expanded operations enable Mayorga to source more coffee directly from smallholder farmers, ensuring they receive premium prices for their crops while maintaining transparency throughout the supply chain.
“My ethical commitments are what drive my desire to scale, not the other way around,” says Martin. “We’ve been promoting regenerative agriculture for over 25 years, and I believe scale is the solution to rewriting the coffee industry narrative. The warehouse, new equipment, and expanded operations aren’t reactions – they’re the foundation for achieving real socio-economic impact for our people.”
The company’s growth strategy also includes hiring new staff and creating meaningful opportunities for its workforce.
By prioritising employee well-being and offering competitive wages, Mayorga sets itself apart in an industry where staff are often undervalued. This approach not only fosters loyalty but also enhances the company’s ability to innovate and maintain quality as it scales.
From the start, the company has worked closely with coffee farmers to implement dynamic agroforestry systems, promoting biodiversity and long-term soil health. This focus on environmental stewardship ensures the longevity and economic resilience of coffee farming through crop and income diversification – critical considerations in the face of climate change and inflation.
“The next phase of growth for Mayorga maintains our focus on creating value across the entire supply chain,” says Martin. “We believe that when farmers, employees, and customers are all valued and supported, the business thrives as a whole.”
Mayorga Coffee’s success offers valuable lessons for the broader specialty coffee industry. First, it demonstrates that ethical practices and profitability are not mutually exclusive.
On the contrary, companies that prioritise transparency, sustainability, and social impact often build stronger brands and foster deeper consumer trust – critical advantages in an increasingly competitive market.
Second, the model underscores the importance of long-term thinking. In an industry plagued by volatile coffee prices and climate challenges, sustainable sourcing and fair treatment of farmers create resilience, ensuring a steady supply of high-quality coffee even in difficult years.
“I’ve taken risks, borrowed money, and invested heavily because I’ve always known this work requires ambition and scale,” says Martin.
“I’m now growing my facility, not for points or accolades, but because I see real change – houses being built, producers thriving, and lives improving. That’s what matters, and it’s all happening at scale.”
This approach stands in stark contrast to businesses that prioritise short-term gains, often at the expense of long-term viability.
As specialty coffee continues to evolve, the choices made by its leaders will shape its future. Will the industry succumb to the pressures of rapid growth and profit maximisation, or will it embrace models like Mayorga’s that prove scaling can be achieved without sacrificing morals?
The answer lies in the willingness of businesses to prioritise integrity, not just as a marketing tool but as a foundation for lasting success.
Mayorga Coffee is a sponsor of Coffee Intelligence.
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