Our Business Plan (3/5)
What has been termed as the “waves of coffee”, is in reference to the distinct shifts in industry technology, consumption patterns, and consumer attitudes within coffee’s recent to modern history.
While we look ahead with some of our own ideas of what the ‘fourth wave’ could look like as we launch this business, it is equally important to us to also look back on our industry’s history with a critical eye.
SOURCE: Craft Beverage Jobs. “The History of First, Second, and Third Wave Coffee.”
Live Text:
The Waves of the Coffee Industry
A brief synopsis of the history of coffee and the three waves:
• 1800’s - 1924, First Wave: Exponential growth of coffee consumption
- Hills Bros. Coffee invents vacuum packaging for fresher coffee. WW I & II introduce instant coffee.
- Big brands (Foldgers, Maxwell House, Nestlé) move into America’s kitchen with Mr. Coffee.
Criticized for sacrificing quality to promote convenience and mass production.
• 1970’s - 2000’s, Second Wave: The defining of enjoyment of specialty coffee
- A reaction to the “bad coffee”. The desire to know the origin of coffee and understand unique roasting styles now called “specialty coffee” begins.
- Coffee vocabulary expands: espresso, lattes, French Press become second nature.
- Starbucks opened its doors in 1971 and had over 3,000 locations by the year 2000. The social experience of drinking coffee became more important than the artisanal process of producing coffee.
Criticized for losing its way, forsaking the source of beans for the social experience of drinking coffee.
• 2002 - present, Third Wave: Coffee lovers interested in the character of coffee itself- Relatively new, “third wave” becomes the mainstream term by comparing the former two waves.
- The majority of roasters and coffee shops are small businesses, independently owned and operated. Represents entrepreneurs who love great coffee and their business is to share it.
- Coffee education takes a significant role in their respective business models (similar to wineries).
- The Big Three include Intelligentsia Coffee, Counter Culture Coffee, and Stumptown Coffee Roasters.
Criticized for knowledge gaps in supply chain/farming practices, overly focused on the ‘art’ of coffee.
• Future, fourth wave: Focus on advancing farmers to the forefront of the coffee industry
- Structured from the bottom up.
- Focuses on the relationships with farmers, improving their working and living conditions.
- Building sustainable practices at the farm level.
- Values are deeply rooted in community support, sustainability, and engaging in policy.