Article: Fun Facts!

Written by Cafe Campesino on Sep 7, 2010 in Article, NEWSLETTER |
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COFFEE NOTES – YOU DO THE MATH

About a week ago, we saw a local chain grocery store advertising some coffee on sale.  Maxwell House’s 34.5 oz can for $5.  That’s more than 2 lbs of coffee for the amazingly low price of $5.  Quite a bargain, right? How do they sell it so cheap, you might ask???  Well, let’s consider some numbers for a moment.  While we don’t know how much Maxwell House paid for this coffee that they roasted, packaged, and sold to a reseller, we do know that 34.5 oz equals 2.16 lbs.  And $5 for 2.16 lbs equals $2.31 per lb of roasted coffee.  $2.31 for a pound of coffee.  Wow, that’s cheap.  And don’t forget that the $2.31 price tag is the retail, end-consumer price for said pound of coffee.  Logic tells us that by the time it reaches the shelf at the grocery store and is available for purchase at the cheap price, Maxwell House has already taken their monetary cut.  And the grocery store has calculated its regular mark up/profit margin.  I mean, a business has to profit to survive, right?  We all understand and expect that.  Also, the folks that handled the coffee in between (trucking, storage, etc.) have had their hand in the “cost” of this pound of coffee.  Hard to say what those numbers add up to but it sure does make us wonder where that leaves the farmer(s) who toiled to grow the beans that make up this “bargain” can of coffee?  How does he/she figure into the $2.31 equation? You do the math on that one.

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