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2023 Impact Report

2023 Impact Report

Every time we sit down to produce this report, our pride grows - both in the work that we do, and in the relationships that we nurture. At the end of the day, true sustainability is as much about economic factors as it is about our environment. If the coffee industry works for all parties in the supply chain, it has a sustainable future - one where producers can look after their families and community, and baristas making the coffee are being paid fairly to do the same. To achieve real sustainability, everyone in the supply chain needs to be both considered and involved.

 

WHY PRODUCE AN IMPACT REPORT?

This Impact Report is a transparent, holistic way of documenting our work in these areas. It’s Rumble’s way of being open about what we do and challenging others to do the same. Far from creating competition, we’re seeking only to challenge ourselves to be better, publishing real data that can be openly scrutinised by both our team, and others. Importantly, we do this not only for special lots and single origins, but all blend components as well.

In a world rife with greenwashing, producing an Impact Report could well be perceived as a small act of rebellion. For us, it’s about something far more simple: truth. Helping us reflect meaningfully on 12 months of work, this Impact Report lays the foundations for impact-conscious goal-setting, cultivating real hope for both our business and the future of our industry.

 

GLOSSARY

Whether you’re engaging with our data for the very first time or enjoying your annual deep dive, Transparency is for everyone. Get informed with our handy list of key terms.

C-MARKET OR “COMMODITY” PRICE

A term describing the global trade of coffee as an undifferentiated, baseline quality
commodity (like standard wheat or sugar). The C-market price (a global price paid
for coffee) is dictated by the stock exchange meaning many producers risk
being underpaid (as well as having the diversity of their crop go unrecognised).

FAIR TRADE PRICE

Fair Trade pays a premium to member producers with the aim of staying above the
C-market price and bettering the livelihoods of its producer members. What Fair Trade doesn’t do, however, is attempt to improve coffee quality and obtain better outcomes for coffee farmers via quality-informed education.

In 2023, the Fair Trade floor price was raised to USD$1.80 - which, for many
countries, is still less than both the cost of production and the money needed to
bring coffee-producing communities out of poverty.

FARM GATE PRICE

Farm gate price describes the net value of the product as it leaves the farm. When paired with an understanding of RTO, it provides a fuller picture of impact - both
internally (for producers) and externally (for buyers).

RTO PRICE (AKA FOB PRICE)

At Rumble, we now refer to FOB (“free on board”) price as RTO (“return to origin”) price, as this more carefully articulates the amount of money being received by all who took part in getting the coffee to port.
Data surrounding RTO price is important to share because it offers a clear snapshot of what the farmer received from the sale (less freight, insurance, finance, and other costs sometimes added by other roasters to the published “price paid”).
For clarity, and as we transition to using “RTO price” terminology throughout our
operations, you’ll notice we’ve included both RTO and FOB terms in our data.

TRANSPARENCY

Throughout our Impact Report, you’ll notice our reference to the concept of “Transparency”. At Rumble, Transparency is both a philosophy and a way of life.
When we use the word Transparency in this report, we refer to the concept/act of placing real value on the production of coffee via Rumble’s three key pillars:


1. Paying producers fairly


2. Publishing information about the prices we pay for coffee


3. Asking the big questions and having the tough conversations, both of which are necessary for bettering the industry as a whole

 

2023 AT A GLANCE

 

FROM B CORP CERTIFICATION TO THE FLOURISHING OF OUR BEAUTIFUL LITTLE BAKERY DOUBLE DUTCH, 2023 WAS A YEAR OF BIG WINS FOR OUR LITTLE TEAM.


RUMBLE GETS B CORP CERTIFIED

After a decade of wanting it so badly, Rumble is now officially B Corp Certified!

What exactly does that mean? Certified B Corporations are businesses that meet high standards of social and environmental performance, accountability, and transparency. B Corps envision a better economic system where businesses
can benefit people, communities and the planet. They choose long-term investments over quick wins, and measure their success based on the positive impact they create.

 

From application to full certification, becoming a B Corp took 18 months of extraordinarily hard work. Small companie like us don’t normally allocate the kind of resources needed to move through the rigorous certification process - but for us, it was a no-brainer. We learnt so much doing the audit, and it’s allowed us to show the world that as a business, we’re true to our word.

$25,000 DONATED TO 1% FOR THE PLANET

At Rumble, we’ve been enriching our approach to sustainability by joining 1% for the Planet. This special, global network incorporates thousands of businesses and environmental organisations who work together to support both people and the planet. Our commitment involves donating 1% of our total gross turnover to impressive not-for-profit (NFP) groups.

In 2022-23, we completed our first full tax year of 1% for the Planet donations, offering up just under $25,000 to brilliant Australian NFPs doing great work for the environment (see “Organisations we support” later in this report).

If there’s one thing our work has taught us, it’s that a well-run business giving to well-run charities is a far more effective giving model than businesses beginning their own. When everyone owns their specialised space in the chain, we can achieve amazing things.

MAKING (GREEN) MOVES

Here in Kensington, the outlook is getting sunnier! In September 2023, we installed beautiful, new solar panels on our warehouse rooftop. The effect was immediate. We started producing more power than we use, cutting our fast-rising electricity bill in half. We also continue offsetting our gas usage, which is 100% necessary for coffee roasting.

As many Impact Report readers will know, the responsible recycling of soft plastics has been a major challenge for our business. The well-publicised closure of the REDcycle program saw companies like us go into overdrive trying to find an alternative. Bag manufacturers were launching all sorts of new products that, in theory, were going to save us all - and yet, nothing emerged as a viable solution.

All the while, local legends Reground were beavering away, creating their own local recycling program. After years of their incredible work, we now have the ability to recycle our soft plastics here in Melbourne. Rumble has a drop spot here at the warehouse, and we pick up used bags from our wholesale customers with their weekly orders, sending it all off to Reground for recycling in our very own city.

DOUBLE DUTCH GETS BUSY

Haven’t twigged? Double Dutch is our gorgeous, new bakery located just around the corner from our roastery in Kensington. The aim? Create a warm, welcoming and down-to-earth haven where the Kensington community can gather to enjoy the harmony of fresh-baked bread, delicious sandwiches, and the best specialty coffee (*ahem* Rumble) that Melbourne has to offer.

Since opening, surrounding construction projects have turned our sleepy corner of Kensington into a bustling hive of activity. With Luke Whitworth out the front and Jacob Dekker on the tools in the kitchen (helped by our other amazing staff), Double Dutch has fast become a local favourite.

Haven’t been? Pop down for a visit!

THE RUMBLE TEAM GROWS

We’re proud to extend a huge Rumble welcome to both Matt Lynch (Warehouse Manager) and Ash Milla-Carpenter (Partner Support).

Having worked in coffee for most of his career, Matt hails from Edinburgh, Scotland and brings his many incredible years of roasting experience to the Rumble warehouse.

As a barista, cafe manager and coffee machine technician, Ash’s vast expertise across the board has her out-and-about in the Rumble van, servicing machines and helping upskill our cafe partners.

Together, both Matt and Ash offer their trademark warmth and skill to the Rumble team. We can’t wait for you to meet them.

TRIPS TO ORIGIN

In 2023, we were thrilled to be back visiting some of our longest-standing suppliers.

Our trips included travel to Brazil (Matt Hampton) to visit Pedro Gabarra at Santo Antonio farm, an incredible holding that produces some of the very best coffee Brazil has to offer. Alex also had his first trip to origin, heading out to see the lovely folks at Cofinet and some of the most skilled and interesting producers Colombia has seen.

As the years roll on, we’re proud to continue Rumble’s long-held tradition of maintaining excellent face-to-face relationships with our special producers, an approach that ensures not only great quality coffee but vastly improved quality of life for farmers too.

CONTRACT ROASTING: A NEW VENTURE

In 2023, we expanded our warehouse to nearly double the existing floor space. This gave us the opportunity to take on contract roasting clients.

Contract roasting is a special service that offers customised roasting, allowing clients to brand their own coffee blends for various applications and purposes. Whether you’re a current cafe owner or new brand seeking to stand out, our service
provides tailored solutions - from small batch customisation to large-scale commercial roasting and branding - ensuring. Rumble’s trademark quality, consistency, and support every step of the way. We absolutely love coming up with new blends for our contract clients too!

While specific pricing information re: our contract roasting is not ours to share, we do consult heavily on these purchases and do everything we can to make arrangements as sustainable as possible.

Keen to learn more? Drop us a line!

 

A WORD ON MURKY MESSAGING

Before we get stuck into our 2023 prices, we’d like to ask a question. What connotations does the term “specialty coffee” have for you?

To most, it will conjure images of prestige, passionate baristas and teams of enthusiastic coffee-lovers gathering over freshly roasted microlots. But when it comes to messaging and transparency of data, often the information available is anything but superior.

Put simply, specialty coffee is, by nature, supposed to be a higher-quality product - and priced accordingly. In today’s coffee industry, it's still the case that many coffee importers, roasters and cafes market their coffee as 'specialty' even when it's actually purchased for C-market prices.

Is it really okay to claim a coffee as 'specialty' if the only available information is cup score? What good is a specialty coffee if the people who produce it can barely make a living? 

At the end of the day, we believe that the only thing that can truly stop greenwashing is the choice to take meaningful action. That's why we put our money where our mouth is. 

 

ORGANISATIONS WE SUPPORT

Some years ago, we started making donations to World Coffee Research, an incredible organisation running education programs all over the coffee-growing world. The focus of these programs includes everything from conducting genetic tests on plants and identifying varietals to assistance with climate mitigation and Improving farmer profitability. Our annual membership donation is USD$500.

Beginning its life in 1996, Grounds for Health is an NFP focusing on the prevention and treatment of cervical cancer in coffee-growing communities throughout the world. The program runs community-based health screening programs, upskilling local healthcare workers and partnering with co-ops/in-country NGOs in order to provide further education and treatment.

We’d also like to wish a big “happy five years” to Emory University’s Transparent Trade project. With the aim of helping grow the global Transparency in coffee movement, we’ve been proudly donating our coffee pricing data to the project since its inception. By utilising this data to observe specific trends throughout the regions, we’re empowered to begin negotiations with producers that are, importantly, based on figures that stand alone from the commodity market, offering a better solution for all.

Finally, Rumble has been proud to continue our association with Food Bank, the largest hunger relief charity in Australia. Across the nation, Food Bank provides food and grocery relief to 2,844 front-line charities and 3,379 school breakfast programs to help feed people in need. Last year alone, Food Bank sourced enough food for 92 million meals. While we strive to produce as little surplus as possible from test roasts, anything that surfaces goes straight to the legends at Food
Bank. Thank you!

 

HOW WE BUY COFFEE

“Direct trade” is a term that gets thrown around by lots of roasters these days. As such, its definition can change.

For us, “direct trade” means that we’ve directly negotiated - with producers specifically - both the price and amount of coffee purchased. Once this is done, we then make arrangements with both exporters and importers in order to bring the coffee to Australia.

Why “direct trade” then? For us at Rumble, it ensures greater transparency surrounding the entire trade. Where direct trade isn’t possible, we love working with trusted importers - something made possible by our purchase of small lots.

In 2023, Rumble purchased coffee from 10 countries. Most of the lots were purchased directly from importers either when they were in the country (SPOT) or from samples offered before shipment (PSS).

 

UNDERSTANDING COFFEE PRICING IN 2023

At Rumble, we’ve been publishing RTO pricing data since 2018. Why? To be as open and clear as possible, demonstrating that we’re unafraid to compare ourselves to market standards - not just for single origin lots, but for all blend components as well.

Unfortunately, it’s become more commonplace for roasters to buy low-quality, C-market coffee for their blends, which are the bread-and-butter of any roasting business. For these businesses, the purchase of higher-end microlots can serve as somewhat of a distraction to what’s really going on beneath the surface.

It’s one thing to talk about the cost of exotic, single-origin coffee but in order to be truly transparent, roasters need to do this for the full range of coffees sold. Put simply, if you’re a discerning coffee-drinker, it really does pay to have an understanding of how coffee is priced.

In 2023, C-market prices were lower than the year before on the commodity exchange. This is due, in part, to the settling down of some costs raised by COVID. Still, some elements - like the cost of fertiliser - remain high, which is why profits for producers remain tight (if they exist at all).

Each origin has its unique characteristics - from too much rain, to not enough rain, to not being able to find enough staff. Ultimately, farming is hard - and it seems to be getting harder. The most frustrating element of all for producers is they have
zero control over the prices expected for their coffee.

Like most commodities, these prices are dictated by both trade and speculation.  Some of this, of course, is due to supply and demand. However, the market can also be driven purely by profit when it comes to business conducted by the big trading houses.

As of 2022, all Rumble Coffees are now fully transparent with data available for everything - no matter whether single origin or blend. With only a relatively small number of roasters in Australia publishing their prices openly, true comparison
is difficult.

Still, we know that producing this report is likely to encourage others to do the same. If you’re ready to jump onboard, we’re more than ready to greet you.

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ORIGINS PURCHASED FROM THIS YEAR

   

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HOW LONG WE'VE BEEN PURCHASING FROM EACH COUNTRY

WHAT WE PAID IN 2023

The table below lists all of the coffees purchased by Rumble in 2023. Note that some of the coffees roasted in 2023 were bought in 2022, and therefore included
on the 2022 Impact Report. Unsure where to find your coffee? Feel free to get in touch with us and we’ll be more than happy to help.

As per previous years, we’ve shown the price paid in both USD per pound (as is the international trade standard) plus the equivalent price in AUD (Australian dollars) per kilo. This is so we offer you the most well-rounded, contextualised
picture of prices paid.

The RTO price quoted is for coffee that’s milled and at the country’s port, ready to ship. This money is paid to the exporter. The price Rumble pays includes extra costs like shipping, insurance, importer fees. Of course, these costs differ quite a
lot from coffee to coffee and can range anywhere from 12% to 35% of the final figure. Note that once we have the coffee in the warehouse, we also need to factor in moisture loss when the coffee is roasted. This increases the cost again by roughly 18%.

Why all the numbers? Remember our aim: a transparent, well-rounded picture of how the needs of everyone within the supply chain are met - and, hopefully, exceeded.

 

5 STEPS TOWARDS TRANSPARENCY

Hooked on Transparency and keen to learn - or do - more? Here are 5 easy actions you can take today:

  1. Learn more about our Impact Report and mission of Transparency.
  2. Keen to enjoy Rumble’s great-tasing, feel-good coffee at home? Jump online and buy a bag, or visit one of the cafes we supply - you can find them on our website suppliers page.
  3. Got an office with average coffee? Talk to your boss about changing it up. Grab yourself a delicious, ethical coffee that makes the team feel warm and fuzzy!
  4. Wish your local cafe was making our coffee so you can feel even better about supporting local businesses? Let them know about Rumble and what we do.
  5. If you own a cafe, get in touch with us about partnering. We focus our work in Melbourne but offer our great-tasting coffee and beautifully transparent services all over Australia!

 

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