Dear Valued Partner,

As global trade dynamics continue to shift, I want to personally share how Gourmet Beverage Service  is navigating the recent changes to U.S. import tariffs – and, more importantly, how we are protecting your business. On April 5, 2025, the U.S. government enacted a new 10% baseline tariff on imported goods from all countries, including every coffee and tea-growing country.

Certain categories – including some food additives/flavors, agricultural derivatives, and specialty ingredients – are subject to additional tariffs ranging from 11% to 50%, depending on their classification. We understand this news may raise concerns, and we want to be fully transparent about what it means for your partnership with Gourmet Beverage Service.

We are working hard to absorb as much of these increased costs as possible and to minimize any price increases to our customers. However, we may need to adjust our prices to reflect these new realities.

No Impact to Pricing as of today

The good news: Our suppliers have already completed a full inventory analysis, and we are pleased to confirm that they have sufficient stock of all key green coffee and bulk iced tea to maintain uninterrupted production, at current consumption levels.

My Commitment to You

While we support initiatives that strengthen U.S. manufacturing, 99.9% of commercially grown green coffee and tea are imported and cannot be grown domestically, except for the islands of Hawaii and Puerto Rico. We understand that price increases can be frustrating, and we want to assure you that we are doing everything we can to mitigate the impact of these tariffs. Here are some of the steps we are taking:

• Diversifying our sourcing: We are exploring alternative sources for our coffee and tea to reduce our reliance on countries affected by the higher tariffs.

• Negotiating with suppliers: We are working closely with our suppliers to negotiate the best possible prices.

• Improving efficiency: We constantly look for ways to improve our operations and reduce costs.

We remain committed to providing you with the same high-quality coffee and tea that you have come to expect from us. We will continue to monitor the situation closely and keep you informed of any further developments.

What Happens After May 30th?

Starting with production batches roasted and packaged after June 1, 2025, our pricing will begin to reflect the impact of these new tariffs, depending on the product category and country of origin.

Here’s what you can expect:

Only the actual tariff cost will be passed through at the separate line item level. There will be no blanket price increases. We are building invoice transparency so you can clearly see any adjustments.

The Souring Market and Wholesalers

Gourmet Beverage Service is not the only distributor facing these issues, every coffee and tea distributor is facing the same challenges of product cost increases. Lucky with our diversity of products and supplier partners, there are almost always lower cost alternatives available. 

Sincerely,

Gourmet Beverage Service

Gary Martin

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September 2024 - Julius Meinl Coffee

Dear customer,

Since the beginning of 2023, the course of global markets and logistics have been disrupted. The US and EU have seen drastic economic challenges and changes. This applies also to coffee since the cost of premium packaged coffee delivered to the US has reached unprecedented levels. Over the past 6 months only the prices of green beans, Robusta and Arabica, following the global shortage, jumped more than 30%, reaching 11 years historical highs.

In 2023, the United States experienced a notable inflation rate for consumer goods and services.

We have mitigated the impact for our customers as much as possible, stressing our commitment to delivering our customers the highest standard of quality and service.

It has become necessary to revise our product price.

This is a necessity caused by factors beyond our control, which we have tried to absorb as much as possible internally. Please take note of the new prices reserved for you through your trusted sales representative.

We sincerely appreciate your understanding and ongoing collaboration during these challenging times.

Please rest assured that we remain unwavering in our commitment to upholding the highest standards of quality across our products and services.

Thank you for your continued partnership.

Sincerely,

Razvan Talpau - Julius Meinl