Why Premium Coffee Costs More for Canadian Offices

Like all commodities, coffee prices are a function of supply and demand. Weather volatility is perhaps the most critical short-term factor underpinning coffee supply and prices, since coffee cultivation and yield are highly sensitive to its environment. A severe drought during Brazil’s last summer season devasted the harvest. Brazil is the world’s top coffee producer, supplying about 40% of the global volume. Vietnam, the world’s No. 2 supplier, was hit by a drought that caused coffee production to fall by 20% in 2024. That was followed by heavy rainstorms that also crimped production in 2025. This dynamic precipitation whiplash reduces crop yield. Drought stresses the coffee plants, then you get way too much water, and it affects the quality and quantity of the coffee berries.

As coffee prices have risen, large roasters have chosen to draw down their existing coffee inventories instead of buying expensive beans on the open market. While the market can weather a shortfall relatively well when inventories are high, low levels can lead to sharp price spikes if there’s a new demand or supply shock. Over the long term, consumers should brace for higher-than-average prices. Extreme weather that negatively impacts coffee harvests is expected to be more common, and coffee consumption worldwide continues to increase and bolster demand. Canadians paid 28% more for coffee at the grocery store than they did a year earlier.

Since world coffee pricing has taken a significant upward turn, office coffee service providers have for the most part absorbed these cost increases. Coupled with the introduction of hybrid attendance practices (triggered by the pandemic) and tempered “return to office” mandating from Canadian government and business, predictability and profitability have diminished. As inflation has become much more evident to Canadians across food and beverage, office coffee service companies have now adjusted coffee pricing, and will continue to do so into 2026.

Another contributing factor is the Brazil tariff impact. Office coffee service companies work closely with importers and roasters to predict purchase volume. The tariff adds a whopping 25% to the cost of beans, ground and capsule products. How long will this tariff be in effect? For the foreseeable future, no change is in sight. These coffee futures contracts (37,500 pounds) also involve currency exchange, yet another disadvantage experienced by Canadian companies in this service industry.

The cost of coffee brewing technology has also been impacted by the tariff. Recent shipments of bean-to-cup, super-automatic equipment originating in the U.S. was subject to a 25% tariff. In practical terms, this additional cost requires a 25% faster return on investment for the realization of some profitability. Fortunately, leading companies with medium-to-large office contingents understand these nuances and complexities and are willing participants. Senior procurement managers, office managers, human resource managers and business owners that make decisions to welcome “white glove” service providers understand the importance of having great coffee and tea and are prepared to include those additional costs as part of a Team Building initiative.

Workplace productivity is the measure of how efficiently employees use resources – including time, money and effort – to produce desired outcomes for the business such as finished products, leads or sales. At a basic level, productivity is calculated by dividing outputs by inputs to determine how effectively employee complete tasks using their resources.

To increase productivity, organizations often promote a collaborative work environment, innovation and continuous learning. Employers that invest in training programs provide access to cutting edge technology and encourage open communication empower employees to work more productively.

To attract top talent, foster a positive workplace culture and enhance company reputation, office coffee has become more important than ever. Especially considering the growing Return to Office (RTO) mandate by private and public organizations, and government here in Canada. Mister Coffee Group (Mister Coffee & Services, Bodecker Brewed & Beans & Grind) have created new programs with competitive advantages. These include one-stop-shop buying convenience with one monthly statement for all employee refreshments, Canadian manufactured products that avoid or mitigate impact of tariffs, relationships with farm-to-cup coffee producers, daily and weekly scheduled service by our own professional servers with food handling certification, and regular maintenance of coffee, water and food merchandising systems.

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