Rising Coffee Prices Kickstarting The Beanless Coffee Race – CoffeeTalk

The cost of coffee is rising, with ground coffee reaching a record high of over $7 a pound in March, up from $4 in January 2020. This increase is driven by volatile climate patterns and the US’s trade war with China. Cost-conscious coffee drinkers are seeking relief, such as brewing at home, cutting back on java, switching to other caffeinated beverages, or even bringing their own oat milk to the coffee shop to save on the upcharge.

Coffee expert James Hoffmann states that countries like China are experiencing unprecedented growth in coffee consumption and a reduced supply due to disappointing growing seasons, climate change, and a reduced labor force that often leaves coffee beans unharvested. Younger coffee drinkers, including Gen-Zers, are more likely to order cold coffee, often loaded with creamer, syrups, and other modifiers, than any age group before.

Beanless coffee, made from natural ingredients like chickpeas, date seeds, and caffeine from green tea, is becoming a popular alternative to traditional coffee. Atomo, a Seattle-based company, makes beanless coffee from several upcycled and natural ingredients, including date pits, potato, carrot, guava, lemons, fenugreek, strawberry fiber, and sunflower. Co-founder and CEO Andrew Kleitsch found that date pits, when marinated in their proprietary solution and roasted, produced some of the same chemical compounds that appear in coffee when brewed.

Atomo patented this process and technology and spent $2 million to build a 30,000-square-foot date-pit upcycling facility in Coachella, California, processing 10,000 pounds of date pits daily. Partners that supply the date pits receive shares in Atomo in exchange for picking up the pits. Atomo invested $8 million to build a second factory and roastery and immediately started pitching its product to coffee shops with the hope of striking a partnership.

However, coffee companies and cafes were not eager to support a replacement product, but they were eager to lower their costs in an industry that is getting squeezed to thinner margins and potentially reduce its effects on the environment. The final application deadline for the 2025 Inc. 5000 is Friday, April 25, at 11:59 p.m. PT. Apply today.

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