the fluctuation of coffee

July 1, 2022

Grain de Sail's artisanal coffees are rigorously selected by our teams according to taste, provenance, traceability and, last but not least, price. We strive to offer quality products that respect the environment, at prices consumers can afford. It's a balance that's not always easy, and sometimes means making certain choices.

our 2 coffee ranges

A range of specialty coffees (various origins depending on arrivals) for sale in our Morlaix boutiques and on our online site, with exceptional coffees at lower production volumes and higher prices.

The mass-market coffee range (Honduras, Mexico, Peru, Ethiopia, Colombia) for supermarket distribution, with larger production volumes and greater price accessibility constraints.

Historically, we have also sold our consumer coffees in our Morlaix stores, alongside our range of specialty coffees. It was a choice on our part that enabled us to showcase all our coffees with their different origins and taste qualities, and above all with different price ranges.

Our response to the current coffee market

1

In less than a year, the price of Arabica coffee has risen significantly (+40% compared with May 2021, with a peak in February 2022 of almost 75%). This surge in coffee prices is linked above all to supply difficulties following climatic hazards (particularly in Brazil), which is causing volatility and forcing us to preserve our sources of supply and limit the quantities ordered.

Source: Les Echos Investir

2

We have to respect our commitments with our distribution partners and avoid stock-outs on our coffee references as much as possible. In view of the difficulties with coffee growing explained above, we have concentrated the distribution of our consumer coffees exclusively in supermarkets, and have not wished to exacerbate the situation by continuing to sell our coffees through our own sales channels (stores and online).

3

Our coffees are very popular and have enjoyed strong growth for several years. In fact, we are beginning to reach the limit of our current roasting capacity, and have to manage our production capacity while awaiting an expansion of our workshop. It’s also with this in mind that we’ve decided to reduce the sales channels for our mass-market coffees, and that for the time being we prefer to sell our specialty coffees in our boutiques and on our website. Since we withdrew our consumer coffee references from our boutiques and website, we’ve been constantly looking for solutions. We will now be able to reintroduce and maintain the sale of our Colombian-origin consumer coffee through our own sales channels. If the situation evolves favorably, we will also consider expanding our range of consumer coffees in our boutiques and on our website.

continue our efforts

We understand and share the frustrations this situation may cause our consumers. Please know that we continue to offer only the very best products, and that even in our specialty coffee range we try to find exceptional coffees at affordable prices by reducing our margins on certain references. It’s an important part of our sustainable development philosophy to be able to offer good organic products that are accessible to as many people as possible. We are aware that the global coffee crisis has had the direct effect of raising prices and making certain coffees less accessible. We regret this, and work hard every day to find the best solutions despite the difficulties we face.

We thank you for your support and understanding.