Whether you refer to them as rare, exclusive, or ultra-premium, limited-edition lots are synonymous with specialty coffee. For years now, roasters have marketed these coffees to offer a premium product to consumers who are looking for a more unique flavour experience, as well as increased traceability.
Against a backdrop of high market prices and rising inflation over the past two years, however, it seems more and more roasters have shifted to higher-volume specialty lots. These coffees allow businesses to better manage costs while also staying competitive in a market that still demands exclusivity – albeit on an increasingly smaller scale.
So what does the future hold for limited-edition coffees? To find out more, I spoke to Matt Chitharanjan, co-founder of Blue Tokai Coffee Roasters, Rahul Reddy, founder of Subko Coffee Roasters, David Lalonde, founder of Rabbit Hole Roasters, and Pranoy Thipaiah, a producer at Kerehaklu Plantations.
You may also like our article on how ultra-rare varieties rise and fall.
Why the market for exclusive coffees will always remain small
Since the beginning of specialty coffee, micro lots have been popular among high-end roasters. The term usually refers to smaller, higher-quality lots that are sold separately to other coffees from the same farm, or lots sold by smaller-scale and smallholder producers.
To market these coffees effectively, roasters highlight their unique and desirable characteristics, which in turn, allows them to differentiate their brand from other competitors. Moreover, given the small size of micro lots, roasters can emphasise that these coffees are available for limited time only or until stocks last – which only adds to their perceived value and exclusivity.
Matt Chitharanjan is a co-founder of Blue Tokai Coffee Roasters – a prominent specialty coffee chain in India.
“The market for these coffees was only recently established and we have barely scratched the surface,” he says. “The availability of ultra-premium lots is still limited – in India alone it totals just a couple of tonnes – but the market has huge potential.”
Premiumisation has been a huge driver of this growth. This is the process by which roasters sell more exclusive, rare, and superior quality coffee to drive brand appeal and increase prices – typically in more mature markets. Ultimately, this adds a greater sense of value for the buyer, and makes them more willing to pay higher prices.
Affordability is more important than ever
In the late 2010s, as the market price for coffee reached the lowest levels in over a decade, micro lots and rare coffees became a more popular option for roasters to leverage low prices and stand out. Fast forward to a post-pandemic world, however, and the situation is the opposite – with record C prices, inflationary pressures, and economic uncertainty all impacting roasters’ margins and consumer preferences.
Rahul Reddy is the founder of Subko Coffee Roasters – another established specialty coffee company which operates in India. He explains how roasters have to pay more for limited-edition coffees, and that many aren’t willing to take the higher risk-to-reward ratio in current economic circumstances.
“While there is growing interest in ultra-premium coffees, there is also an education gap to fill,” he says. “Roasters have to absorb a much higher cost per kg for these coffees, so they have become some sort of litmus test to assess whether the price is justifiable to the consumer.”
David Lalonde is the founder of Rabbit Hole Roasters in Delson, Quebec, which received Roast Magazine’s 2023 Micro Roaster of the Year award.
“Quite often, we won’t break even on these lots,” he says. “But it’s part of the game – our ultra-premium coffees help draw attention to our ‘regular’ menu offerings as well.”
The challenges of producing limited-edition coffees
To sell micro and limited-edition lots for a higher price, roasters have to strategically market these coffees to showcase their desirable attributes. These can range from highlighting the specific plot of land the coffee was grown on to using experimental and innovative processing techniques.
Although the novelty and scarcity of these coffees is a unique selling point, this poses a significant risk to farmers in particular – one which they may not always be able to absorb.
Pranoy Thipaiah is a producer at Kerehaklu Plantations – a biodynamic coffee farm in India that was established in 1953.
“It’s always our aim to receive a higher cup score, but when planning to produce a micro lot, it’s our intention to highlight uniqueness in the cup first,” he says. “Hypothetically, if we have three piles of harvested cherries that more ripe than the others on the same day and from the same block, we will separate them for exclusive processing.
“Marketing these coffees as limited releases isn’t the ultimate goal, however,” he adds. “Sometimes we just want to experiment and see how we can improve the cup – this also comes with a lot of risk but the rewards can be massive, too.”
Balancing the cost-to-risk ratio
Pranoy mentions how erratic climate conditions pose significant challenges for producers to achieve consistent results with experimental processing methods, while extended fermentation periods can increase the likelihood of creating undesirable flavours.
For some producers, the risk is worth taking, as selling to high-end specialty roasters is a dependable revenue stream. But for others, it understandably adds too much pressure to manage practices sustainably.
“Premium lots showcase amazing coffees, but they also create this trend of demanding more from farmers,” David says. “Key industry players advocate for higher and higher cup scores, which leaves behind millions of smallholder farmers who can’t produce those coffees on a regular basis.”
Demand for exclusivity will continue to grow – but at a slower pace
It’s an overstatement to say the market for premium and limited-edition coffees has disappeared, but demand has notably dropped following a string of logistical issues in the supply chain over the last few years.
Unless prices significantly fall again, it’s unlikely that more roasters will start to stock up on micro lots to the extent seen in years prior. However, many will still remain a preference for the more niche specialty consumers.
“Some people only want to drink IPAs and craft beer,” Rahul points out. “This has driven the beer industry forward, and I think ultra-premium lots will do the same in specialty coffee.”
David agrees, saying: “I think we will see crazier and crazier fermentations in the future, which is intimidating, but also fun. I also hope we see a shift in mindset where both flavour and social impact will determine coffee prices.”
There will always be demand for novel and unique coffees in the specialty market. But as roasters grapple with rising costs, many have shifted away from micro lots and limited-edition releases.
These coffees still have an important place in the market, but if roasters and producers want to find viable ways to remain competitive, sourcing more affordable specialty lots is the answer – at least for the meantime.
Enjoyed this? Then read our article on why some roasters are willing to pay record prices for Gesha.
Photo credits: Blue Tokai Coffee Roasters, Subko Coffee Roasters
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