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The Big Business of Coffee

Updated on December 18, 2017
cam8510 profile image

Out of personal experience, Chris writes articles about how to make items and accomplish tasks which are practical, helpful, and proven.

The magical power of that morning cup of coffee.

The magical power of that morning cup of coffee.
The magical power of that morning cup of coffee. | Source

A Small Cup of Coffee is Big Business

I enjoy a good cup of coffee in the same way that more than half of us over age 18 do. Coffee is big business. Among commodities, coffee is second only to crude oil on the world market according to businessinsider.com.

Worldwide, we drink 100 billion cups of coffee a year which is 3.1 cups for each coffee drinker per day. That's good, because according to one source, two or more cups per day will protect you against heart disease. Of course another source says that four or more cups per day will send you to an early grave. And for all of this pleasure and for the convenience of coffee shops, around the world we spend $500 billion annually.

The NYSE Began in a Coffee House. Today, Big Coffee is Housed in the NYSE

The Customers' Cost and the Cost Overhead for Coffee Shops

Which is better, home brewed coffee or what we get at our favorite coffee shop? And is it worth the cost? According to ABC News, here is the cost breakdown for a $1.85 cup of regular black coffee.

  • 64 cents for the coffee
  • 16 cents for the cup and lid
  • 4 cents for cream and sugar

That's 84 cents just for ingredients and container. There are other costs to factor in as well, such as labor, building lease, insurance, utilities, marketing, research and general administration. These could add up to more than 90 cents per cup of coffee. The combined costs for doing business are about $1.74 per 16 oz cup that costs you $1.85. Volume is the name of the coffee game it appears.

The Cost of Home Brewed Coffee

How much does it cost to make our coffee at home? After the one time expense of buying the coffee maker of your choice, I suppose the only real expense is the coffee. I can buy whole bean coffee for between $6 and $12 per 12 oz bag. At an average of $9 and 34 cups per bag, we spend about 26 cents plus the cost for cream and sugar for each cup of coffee we brew at home.

The Two Ways of Brewing Coffee: Steeping and Pour Over

So what is the best way to brew our own coffee? There really are only two ways to make a regular cup of coffee, not counting other coffee beverages such as espressos and lattes. We either steep the coffee in water or we pour the water over the coffee.

The French Press: An Example of the Steeping Method for Brewing Coffee

Wait four minutes, two or three minutes if you want less strong coffee, then slowly press the screen filter to the bottom.
Wait four minutes, two or three minutes if you want less strong coffee, then slowly press the screen filter to the bottom. | Source

The Steeping Method of Brewing Coffee

Steeping the coffee in water is the basis for french press coffee. Other ways of steeping coffee are by wrapping one or two tablespoons of coffee in a coffee filter, tying it with string and then emersing it in a cup of hot water. We can also simply put one or two tablesppons of coffee into a saucepan, add a cup of water and heat it to just short of boiling. Then pour it through a coffee filter into a cup. To properly steep coffee, let it sit in the hot water for two to four minutes, depending on how strong you like your coffee. If the grounds are mixed in with the water, such as in a french press, stir the mixture after adding the water.

Pour Over Example of Coffee Brewing

A ceramic pour over coffee system with filter.  This sits directly on top of the cup you will drink from.
A ceramic pour over coffee system with filter. This sits directly on top of the cup you will drink from. | Source

The Pour Over Method of Brewing Coffee

The second way of making coffee is by the pour over method. This is the principle behind both the electric percolator and the drip coffee maker. There are a few manual ways of making coffee by the pour over method as well. The Chemex product is fashioned in an hourglass shape. The top is flared out so that a filter can be placed in it. Coffee is put into the filter and water is then poured over it. The brewed coffee is collected in the bottom of the glass container.

There are other products that make single cups of coffee by the pour over method. These are extremely simple and effective. One involves a filter bag with a handle. That's it. Coffee is put into the filter which is then held over the cup. Pour hot water over the coffee and let it fill the cup. This makes very good tasting coffee.

Water Temperature and Coffee Brewing

No discussion of coffee brewing would be complete without a word concerning water temperature. The Specialty Coffee Association of America says that boiling water makes bad coffee. They recommend that rather than water being at the boiling point of 212 degrees fahrenheit, it be heated to between 195 and 205 degrees. If one chooses to follow this guideline, a meat thermometer or candy thermometer could be put into the water as it heats. You may want to calibrate the thermometer to make sure it will record the boiling point for water accurately. Do this simply by bringing water to a boil and immediately checking the temperature with your thermometer. Use a permanent mark to identify the true 212 degree fahrenheit spot. For coffee, heat the water to about twelve degree marks below your boiling point mark. That will be 200 degrees, which is just right.

Fair Trade Brands of Coffee

Higher Grounds Trading Company of Traverse City, Michigan

Newman's Own is a coffee brand carried by McDonalds and is grown and produced by Nicaraguan company, Corcasan.

Many other brands of Fair Trade coffee can be found at

FairtradeUSA

Source

Fair Trade Coffee

The Fair trade social movement focuses on delivering coffee and other products from underdeveloped countries to industrialized countries who consume most of the products. Promoters of Fair Trade aim for a higher price for exporters, better working conditions and pay for workers as well as environmental sustainability. Coffee production is based mainly in underdeveloped countries and employs more than 25 million people. To learn more about Fair Trade, go to http://fairtradeusa.org/

Coffee: It's Not Just Big Business, It's There for Our Pleasure

Yes, coffee is big business, but it is only so because individuals choose to partake of the product. Whether the choice is to buy Fair Trade or from the traditoinal market, or to purchase from a coffee shop or brew our own, coffee is there for us to enjoy. Try mixing it up this week a little. Buy a Fair Trade brand if you haven't done that before. Make your own coffee or make it a different way. It's all part of the relaxation and enjoyment of drinking coffee.

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    • fpherj48 profile image

      Paula 

      8 months ago from Beautiful Upstate New York

      Hello Chris.....I swear I am personally responsible for at least one billion of the many billions of cups consumed per day! For certain, I exceed the "average 3 cups per day." I can easily be on my 3rd cup by mid-morning. It is my beverage of choice.

      The money involved, in both supply and demand does not surprise me at all. Although, speaking of cost, I will rarely spend the mega-bucks to buy a cup of coffee when I love my own home-brewed. I enjoyed your lessons in the various ways to make a great cup of coffee. There really IS a special knack to it!

      Thanks for the read, Chris...interesting information as I sip on cup number 3 this morning! Peace, Paula

    • cam8510 profile imageAUTHOR

      Chris Mills 

      8 months ago from Flagstaff, AZ

      tzwrites, I couldn't agree more. There can be a closer connection between producers and consumers where each respects the other and does their part s0 both parties win.

    • tzwrites profile image

      tzwrites 

      8 months ago

      I love coffee but I really hope they will make fair trade coffee accessible to all and encourage companies to only produce fair trade coffee products.

    • profile image

      GEMNITYA5 

      4 years ago

      Hello, Cam,

      Coffee is one of my fav. beverage and I love to sip a cup of coffee when am on deep thoughts about searching and inventing new ideas in my life.

      I liked the tips you have mentioned about Coffee Brewing. May be I'd try in chilly winter days. O, I just love winters and a coffee mug in my hand with yummy coffee in it. Just Wow.

    • cam8510 profile imageAUTHOR

      Chris Mills 

      4 years ago from Flagstaff, AZ

      Kelly, thanks for reading this hub of mine. I've thought about the Keurig a few times, but I'm so attached to my french press, I think I'd miss it. Nice to see you here.

    • Easy Exercise profile image

      Kelly A Burnett 

      4 years ago from United States

      I buy most anything from Newman's Own - great company. Wish there were more food companies like Newman's. I don't own a French Press but have heard great things. The Keurig fits my lifestyle. Love my coffee - a true life's passion!

    • cam8510 profile imageAUTHOR

      Chris Mills 

      4 years ago from Flagstaff, AZ

      Michael, Thanks for reading. Happy coffee drinking my friend.

    • Michael-Milec profile image

      Michael-Milec 

      4 years ago

      Hi Chris.

      Very impressive hub, providing new, not know to me this-far 'secret' why one cup of coffee just taste better then the other. Experimenting ,following your tips, now - hmm- tastes better.

      Up, useful, interesting.

    • cam8510 profile imageAUTHOR

      Chris Mills 

      4 years ago from Flagstaff, AZ

      I can't believe I'm using a bulk mailing to answer my hubs, but.....

      My Cook Book,

      Randi

      Ann

      Eddy

      Ruby

      Deb

      I hate to answer this way, but I've been without my laptop for two weeks. I've been writing hubs with my smart phone and a bluetooth keyboard. yuk! Anyway, I've fallen a bit behind on answering comments. Sorry. I appreciate all of your support, reading and taking time to comment. I'll get back on top of this now that my beloved MacPro Air is back in my lap.

    • aviannovice profile image

      Deb Hirt 

      4 years ago from Stillwater, OK

      I like a morning cup or two, maybe a flavored tea in the afternoon, or perhaps a hot cocoa made from scratch.

    • always exploring profile image

      Ruby Jean Richert 

      4 years ago from Southern Illinois

      My day is always started with a good cup of black coffee. I also have a cup when i have something sweet. I use the drip coffee maker and i use cold water. Amazing how much we spend on coffee...Interesting topic...

    • Eiddwen profile image

      Eiddwen 

      4 years ago from Wales

      A wonderful read and voting up plus sharing. Here's to wishing you a wonderful New Year ahead.

      Eddy.

    • annart profile image

      Ann Carr 

      4 years ago from SW England

      I've just finished reading a hub about tea & scones; this is much closer to my heart as I hate tea and love coffee!

      I was told a long time ago by a French friend, 'Never put boiling water on coffee as it brings out a bitterness.' I've found that to be true. I use a coffee filter machine; the water does not boil and the heated plate keeps the temperature at a perfect level for me.

      When I drink instant coffee (no comparison!), I add a little cold water before I mix in the hot water from the kettle; that takes away any bitterness. That's if you drink it black of course. If the milk is put in first you obviously don't need the cold water.

      I'm not set up for the day if I haven't had a mug of black coffee at breakfast time.

      Happy New Year to you and yours! Ann

    • btrbell profile image

      Randi Benlulu 

      4 years ago from Mesa, AZ

      A great hub about one of my favorite things! I just got my first press last year and it is the best coffee I've ever made! Thank you, Chris! UP+ Happy New Year!

    • My Cook Book profile image

      Dil Vil 

      4 years ago from India

      So cool... coffee hub is nice :)

    • cam8510 profile imageAUTHOR

      Chris Mills 

      4 years ago from Flagstaff, AZ

      Drpennypincher, Yes, 60 cents is probably more realistic than my 26 cents when you count those additional things. Good coffee is worth it though. When I was growing up on the farm, Dad would drink instant coffee when he milked the cows. I'd go in and sip on it as well to stay warm in the winter. That was my intro to coffee. I'm surprised I ever continued after that.

    • drpennypincher profile image

      Dr Penny Pincher 

      4 years ago from Iowa, USA

      I pinch pennies on most things, but I am willing to spend what it takes to get a good cup of coffee. I spend about 60 cents to make 16 oz of really great coffee. Most of the cost is the whole coffee beans plus a few cents for the filter, electricity, and cost of the coffee maker.

    • cam8510 profile imageAUTHOR

      Chris Mills 

      4 years ago from Flagstaff, AZ

      Thanks Bill, what integrity I had left may still be intact. Thanks for visiting.

    • billybuc profile image

      Bill Holland 

      4 years ago from Olympia, WA

      Well you didn't lie....that was interesting. :)

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