Coffee bean prices are currently double what they were just over a year ago, according to the company. Global coffee giants such as Starbucks have taken a blow, recently reporting that surging bean costs hit its margins.
Consumers are seeking greater variety than ever before
Java Republic said it had overcome the coffee bean cost crunch last year thanks to forward-contract purchases and expanding non-coffee lines. The moves helped Java Republic improve its gross margin and record a profit of nearly €592,000 in 2024, up from a loss the previous year.
Jeffrey Long, managing director of Java Republic, said coffee culture in Ireland had undergone significant changes, with consumers seeking greater variety than ever before.
Coffee prices have risen sharply due to volatility in supply, said Long. Photo: Getty Images
“That shift continues to support strong demand across our customer base,” he said.
Long said global coffee prices had risen sharply due to volatility in supply, which had “created real cost pressures for the entire sector”.
The moves to purchase coffee on forward contracts and broaden non-coffee offerings had allowed Java Republic to protect customers from the most significant price fluctuations over the year, Long said. “Despite the challenging environment, we remain positive about the direction of the business and continue to focus on delivering exceptional quality and service to our partners nationwide.”
Sales at Java Republic grew marginally to €15.2m, with the café sector delivering positive growth. The market now represents more than one-third of the company’s total revenue.
Further price increases for beans were expected
Java Republic also recorded growth in the larger office sector as more people returned to workplaces.
With the global coffee market continuing to face significant challenges, Java Republic warned that further price increases for beans were expected.
Java Republic said strong relationships with producers and brokers were now more important than ever.
In 2019, Spanish coffee group Cafento snapped up Java Republic in a deal reportedly worth around €30m
Java Republic was founded by Dave McKernan in 1999 and has grown into one of the country’s largest coffee and tea brands. The company serves over 1,000 cafés, restaurants, hotels and offices.
In 2019, Spanish coffee group Cafento snapped up Java Republic in a deal reportedly worth around €30m after McKernan put it up for sale.
Java Republic’s offering is available across all 32 counties. Aside from coffee and teas, it also provides training, advanced equipment and service support.
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