6. Distribution

The roasters distribute their products differently. Larger roasters distribute the blends usually through wholesale channels and supply the coffee for restaurants, hotels, airplanes, and supermarkets. Specialty coffee is sold in both whole bean and ground forms to wholesale and retail channels (“Overview of Supply Chain”). The five largest coffee shop chains on Earth are: McCafe, Tim Hortons, Costa Coffee, Dunkin Donuts, and Starbucks (“The Five Largest Coffee Shop Chains on Earth”).

Tim Horton pot of coffee animated

Everyone knows of the famous Starbucks Coffee chain. They have 9 regional distribution centers, and 48 central distribution centers. They make 2.7 million deliveries per year.The total net revenue of the company is $9.7 billion.

(Cooke, “From Bean to Cup: How Starbucks Transformed Its Supply Chain”)

The amount of coffee available is dwindling. This is due to the climate change. The climate change and hotter temperatures causes long droughts punctuated with extreme painful. The cafes are getting the biggest hit from this. An increase in the number of extreme and unseasonal rainfall events has contributed to lower crop yields. Because of this brands such as Maxwell House, Yuban, and Folgers have increased their retail prices of many grinds by 25%.This is bad for the people, because higher prices for coffee, as well as the brands and companies getting lower amounts of coffee to distribute (“Coffee and Climate Change: What’s brewing with Climate Change?”).

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