Mainebiz

W W W. M A I N E B I Z . B I Z 19 O C T O B E R 2 0 , 2 0 2 5 M A N U FA C T U R I N G / I N T E R N AT I O N A L T R A D E I t's always been expensive to roast high-quality coffee. It's a complex process, involving a global sup- ply chain, importers and distributors, costly specialized equipment, roast- ers with highly trained palates and an extraordinary amount of time to bring a premium brew from bean to cup. But with recent tariff hikes imposed by the Trump administration on several countries where coffees are grown — 50% on India and Brazil, which is the world's largest coffee grower — costs have escalated to the point where U.S. roasters find price increases impossible to avoid. "We're doing everything we can to not raise prices," says Mary Allen Lindemann, who owns Portland-based Coffee By Design. "We're crunching numbers all the time. I probably should have [raised] prices a month ago." She is adamant that "the quality and integrity of our product cannot change. Once you give that away, you can't buy it back." All costs have gone up Lindemann sources half a million pounds a year from over 23 countries in addition to Brazil, including Uganda, Rwanda, India, Burundi, Guatemala, Honduras, Sumatra, Papua New Guinea, Colombia and Costa Rica — making Coffee By Design the most comprehensive roaster in the country, by her estimate. "I'm excited about a coffee you can't necessarily find easily," Lindemann says. "But for every country we're working with, there's a tariff." ere are domestic growers in Hawaii and Puerto Rico, but supply is limited and labor costs are high. Only 1% of the coffee consumed in the U.S. is grown here. Bean prices are only part of the squeeze on roasters; costs for cups and other supplies are up, too, including recyclable bags, which are manufac- tured in Asia, though Lindemann buys from U.S. companies. e cost of an espresso machine, she says, "is now practically the price of a car." Lead times on orders in many countries can be six months or longer, further complicating costs. "In India, where we're getting some incredible coffees, the price we com- mitted to was considerably lower than the price we paid when the coffee landed here, after tariffs were levied in August," Lindemann says. Commitments to growers are binding for Lindemann; supporting farmers is a huge part of the com- pany's mission. Delivery times have been extended, too, starting in 2023 when rebel attacks in the Red Sea complicated access to the Suez Canal. Shippers now reroute around the tip of Africa. Lindemann is also seeing a slow- down in payment times from wholesale accounts, which total close to 700. e largest share of the business is located in New England, but she's recently picked up accounts in New Jersey and sees expansion opportunities in New York. Coffee By Design was founded by Lindemann and Alan Spear in 1994, and opened its first coffeehouse, on Congress Street. In the past several years, Coffee By Design closed five cafes, including the Congress Street location, to focus more on roasting and the wholesale business. "Doing retail is very expensive," she says. And like many businesses, Coffee By Design is still recovering from the pandemic. "Prior to COVID, we were a $9 million business, then we dropped to $2.5 million," she says. "We hope to be back up to $7.5 million this year." Non-negotiable expenses Despite economic pressures, Lindemann pays her staff of 35 above-market wages. Baristas, who recently union- ized, earn more than double the hourly state "tipped wage" of $7.33. With tips, Lindemann says they average $25 an hour. "In New York City, baristas make much less. We were stunned at how lit- tle they're paid," she says. "And no ben- efits, which was even more shocking." Production staffers, who are not unionized, start at $20 per hour. All employees who clock 30 hours weekly also get benefits, including health insurance. e company covers 70% of premiums, matched 401(k) contribu- tions and life insurance. C O N T I N U E D O N F O L L OW I N G PA G E » We're doing everything we can to not raise prices. We're crunching numbers all the time. — Mary Allen Lindemann Coffee By Design P H O T O / T I M G R E E N WAY F O C U S Tariffs, inflation and property tax hikes spell higher prices B y T i n a F i s c h e r Phil Hurley, left, head roaster and green buyer; Alina Lindemann Spears, production roaster; and Mary Allen Lindemann, owner of Coffee By Design, in the roastery in Portland.

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