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Thread: Whats a fair price to pay for beans at cafe

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    Whats a fair price to pay for beans at cafe

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    Im in love with coffeesnobs gold medal winning blend...but at $30 including postage for 500 gms *- thats $15 a week for home coffee - very very worth it for such good coffee..but Im pretty skint budget wise- *so thought Id go to a renowned cafe/roaster in Sydney to see if their beans were any cheaper. They charged me $15 for 250 gms...seems a little steep as they dont have $10 postage included like Coffeesnobs...and coffee is good but nowhere near as good as Coffeesnobs ( I get my coffee from coffesnobs ground before delivery though - where as I ground these ones at home on crap grinder - so that wouldnt help their case)...Im curious if others think this is a bit pricey or is this common for a good blend . I used to get beans from coffee n things in Randwick for $4 for 100 gms - but has recently closed down

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    Re: Whats a fair price ot pay for beans at cafe

    Hi Grapsta,

    Why not buy some greens here at more like $10/kg and roast them yourself *:-?. Even a popper will do to get you started.

    Youll save stacks, have a heap of fun and get the pleasure of green beans of a quality which many of the biggies just dont buy because theyre too pricey. What you do with them from there is up to you!

    Happy browning ;)

    2mcm

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    Re: Whats a fair price ot pay for beans at cafe

    grapsta

    Specialist roasted beans - especially blends - are expensive because of all the labour involved in their production.... and when you are talking small quantities.... even more labour and packaging cost is involved.....

    If you want small amounts of quality beans... then $30 for 500grams is, IMHO, very reasonable.... as postage involves even more labour plus the cost of the actual postage....

    Quote Originally Posted by 5B4E5D4C4F485D3C0 link=1234062246/0#0 date=1234062246
    I used to get beans from coffee n things in Randwick for $4 for 100 gms - but has recently closed down *
    And that would likely be as a result of not identifying their costs correctly..... and therefore selling at an unsustainable price!

    Quote Originally Posted by 0E51495F545F535A5A5959515D523C0 link=1234062246/1#1 date=1234062495
    Why not buy some greens here at more like $10/kg and roast them yourself
    That is the best answer if you want quality at a low price.... as you provide the expensive labour!

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    Re: Whats a fair price ot pay for beans at cafe

    *
    Quote Originally Posted by 0922352201430 link=1234062246/2#2 date=1234062884
    grapsta wrote on Today at 14:04:
    I used to get beans from coffee n things in Randwick for $4 for 100 gms - but has recently closed down

    JavaB wrote on Today at 14:14:
    And that would likely be as a result of not identifying their costs correctly..... and therefore selling at an unsustainable price!
    Hi JavaB,

    $4 for 100g = $20 for 500g *if thats unsustainable then many of the sponsors here (including BeanBay) are in trouble. *
    I believe that it is more likely as a result of a well deserved retirement. *I am also told that they are donating all their equipment to the University of Technology.

    Cheers - Carrie

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    Re: Whats a fair price ot pay for beans at cafe

    Hi Carrie...

    I dont think you will find anyone selling 100g for $4.... unless it is repackaged supermarket cr@p!

    It takes quite a bit of time to package such a small amount.... and *that would be the same as the time *to package 1Kg..... or 2Kg..... and the packaging isnt that much different in price either.

    So likely "sustainable" prices (ignoring postage) would be say....

    $30 for 1KG
    $20 for 500g
    $15 for 250g
    $10 for 100g....

    Its far from a linear arrangement.... because time is money.... lots of money.

    Thats why Andy sells his green beans in 2.5Kg lots....

    Lots of people have asked for say 1Kg..... but the reality of the labour component is that his answer was that he will either charge $25 for 2.5KG.... or charge $25 for 1Kg..... and give you 1.5Kg for free!!!

    It just isnt worth a supplier dealing with small quantities if you price the labour component realistically..... and you are a fool (and bound to go out of business) if you dont...... (not necessarily saying that is what happened to coffee n things..... but lack of profit is often the reason someone abandons an otherwise great enterprise).

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    Re: Whats a fair price ot pay for beans at cafe

    Somewhere locally sells <$30/kg, same price for smaller quantities (ie, <$7.50/250gms). They have been doing it sucessfully for many years, and dont look likely to close down soon. Their coffee is also good.

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    Re: Whats a fair price ot pay for beans at cafe

    I sell to my regular customers for $8 250g bag, dont make much out of it more of a service so they are getting better value from me. From a commercial sense I have been in Sydney this weekend and saw prices from $10-15.

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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 5C77607754160 link=1234062246/4#4 date=1234067747
    Hi Carrie...

    I dont think you will find anyone selling 100g for $4.... unless it is repackaged supermarket cr@p!
    We charge $4 per 100g and make enough. also we DONT sell supermarket CRAP and dont like the above comment. we sell only fresh roasted (within 7 days of roast) coffee. we can also get 250g packs from the roaster and on sell for $11 per 250g, these are roasted normally on day of delivery to us. So it is possible.

    LE

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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 1B232D3C2B2031480 link=1234062246/7#7 date=1234098061
    We charge $4 per 100g and make enough. also we DONT sell supermarket CRAP and dont like the above comment.
    Well I am honestly surprised and very impressed you can sell quality coffee at that price.... and make any worthwhile profit.

    Im also in WA.... and although I roast my own - I also purchase quality pre-roasted as a reality check on my roasts....

    Everywhere that I have gone where coffee is sold it is either not sold in such small quantities... or is a LOT more expensive than you sell it.

    The exception was some of the markets here where small quantities are sold for about that price.... but out of a large hessian bag.... the same bag week after week- obviously neither protected from oxidation nor roasted within the last few weeks - probably more like months! Hence my comment about supermarket cr@p.... the blend (well I assume it is a blend) was also unknown!

    You certainly cant be making much by the time you measure the beans, pack them in a one way valved bag etc..... but good to see someone is doing it even if for just satisfaction / customer service rather than financial reward!

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    Senior Member Sketchy's Avatar
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    Re: Whats a fair price ot pay for beans at cafe

    How we look at it is that when our customers come in for there beans they normally have a cup of coffee and or lunch. as we are not a busy city cafe but a small country cafe we generally have time to chat to the customer while weighing and packing. our roaster also delivers to our warehouse in perth for free so we dont have transport fees as such. they can also add any of there other blends in with our order so again no additional postage which ables us to sell the coffee at normal retail price. yes we could make more money from the coffee but i would rather sell smaller amounts more often so the customer is not tempted to buy to much at a time to save money.

    LE

    PS One day you should come out for a drive to Goomalling.

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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 163D2A3D1E5C0 link=1234062246/2#2 date=1234062884
    grapsta


    If you want small amounts of quality beans... then $30 for 500grams is, IMHO, very reasonable.... as postage involves even more labour plus the cost of the actual postage....

    Quote Originally Posted by 5B4E5D4C4F485D3C0 link=1234062246/0#0 date=1234062246
    I used to get beans from coffee n things in Randwick for $4 for 100 gms - but has recently closed down *
    And that would likely be as a result of not identifying their costs correctly..... and therefore selling at an unsustainable price!
    what ??? $30 for 500 gms when $10 is postage is $4 per 100 grams buddy. pretty simple math there....also I went out of my way to emphasize that Im quite happy with coffeesnobs price and quality....my main point of post was to see if people thought $30 for 500 gms when its all for the coffee and none for postage from local guy was too steep - seemed like it to me !

    Will try the green bean thing one of these days for sure....working 6 days a week at the moment so not much time...plus Im concerned with having a crap grinder and not being able to afford a better one in near future

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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 392C3F2E2D2A3F5E0 link=1234062246/10#10 date=1234104262
    what ??? $30 for 500 gms when $10 is postage is $4 per 100 grams buddy. pretty simple math there
    Correct - if you buy all 500 grams....

    But if you only buy 100 grams.... most suppliers will charge for their time and materials as I said above...

    so 500g at $20 will include say $3 for that charge..... making the actual bean cost $17 per 500 grams

    if you only buy 100 grams it will be 1/5 of the $17 plus the $3 or $6.40

    Yep, pretty simple - that is once you realise you dont just divide the 1KG or 500g price but add on a "fixed" charge for service. There are obviously exceptions to that (like Sketchy above)... but most retailers will work an a sliding scale of price per 100g.... with the customer paying far more for small quantities.


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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 40554657545346270 link=1234062246/10#10 date=1234104262
    main point of post was to see if people thought $30 for 500 gms when its all for the coffee and none for postage from local guy was too steep - seemed like it to me !
    Not to me.
    I started off paying $35-$40kg from a respected roaster and I consider it a fair price for the quality.
    I home roast now but still buy some from that roaster occasionally to compare mine to.

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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 4B60776043010 link=1234062246/11#11 date=1234129912
    Quote Originally Posted by 392C3F2E2D2A3F5E0 link=1234062246/10#10 date=1234104262
    what ??? $30 for 500 gms when $10 is postage is $4 per 100 grams buddy. pretty simple math there
    Correct - if you buy all 500 grams....

    But if you only buy 100 grams.... most suppliers will charge for their time and materials as I said above...

    so 500g at $20 will include say $3 for that charge..... making the actual bean cost $17 per 500 grams

    if you only buy 100 grams it will be 1/5 of the $17 plus the $3 or $6.40

    Yep, pretty simple - that is once you realise you dont just divide the 1KG or 500g price but add on a "fixed" charge for service. There are obviously exceptions to that (like Sketchy above)... but most retailers will work an a sliding scale of price per 100g.... with the customer paying far more for small quantities.

    Really..cant say Ive ever seen that. Any place Ive been too either have a straight price by the gram/kilo ...or they sell bags in 2 sizes .

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    Re: Whats a fair price ot pay for beans at cafe

    Quote Originally Posted by 764A574C464750454D46220 link=1234062246/12#12 date=1234130047
    Quote Originally Posted by 40554657545346270 link=1234062246/10#10 date=1234104262
    main point of post was to see if people thought $30 for 500 gms when its all for the coffee and none for postage from local guy was too steep - seemed like it to me !
    Not to me.
    I started off paying $35-$40kg from a respected roaster and I consider it a fair price for the quality.
    I home roast now but still buy some from that roaster occasionally to compare mine to.

    yeah but isnt $35-$40 a kilo a fair bit cheaper than $30 for 500 grams ????. ...I guess I should buy bigger bags but obviously that defeats the purpose of having fresh coffee. ...and this place only had 250 gm and 500 gm bags for sale that I could see..

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    Re: Whats a fair price to pay for beans at cafe

    Quote Originally Posted by 687D6E7F7C7B6E0F0 link=1234062246/14#14 date=1234143373
    yeah but isnt $35-$40 a kilo a fair bit cheaper than $30 for 500 grams ????....I guess I should buy bigger bags but obviously that defeats the purpose of having fresh coffee. ...and this place only had 250 gm and 500 gm bags for sale that I could see.. *
    Postage should be taken out of the equation to start with so you can compare the price of the coffee alone and decide if the quality is worth the price.
    Adding postage is an unfortunate circumstance related to distance and/or time needed to pick it up yourself otherwise.
    You are paying for the convenience of not having to make the trip.

    The $40kg I was paying was by the 250gm bag.
    Buying 500gm or 1kg bags was cheaper per kg.
    I dont buy less than 250gms so thats what it costs me and as I said, Im satisfied with that price.

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    Re: Whats a fair price ot pay for beans at cafe

    Much the same here, I buy from The Coffee Barun at around $10 per 250gm, and about the same from another specialty roaster. Certain beans will be cheaper or more expensive, but I figure $35/kilo for brown, and $40/kilo if ordering less than a whole kilo is pretty reasonable.

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    Re: Whats a fair price to pay for beans at cafe

    I noticed when I went to Veneziano in Melb for the first time this year that they have changed their pricing and now charge more for 250g than just half the 500g price.

    I think their most expensive is the Estate Blend which is $20 for 500g.

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    Re: Whats a fair price to pay for beans at cafe




    Sorry I should have said $15 for 250 gm in my last post...not $30 for 500 - which is coffeesnobs price...which i do count as $20 for 500 gm plus postage - which I am very happy with. *what Im not happy with is $15 for 250 at Single Origin.....thats $60 a kilo folks.

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    Re: Whats a fair price to pay for beans at cafe

    Quote Originally Posted by 5D485B4A494E5B3A0 link=1234062246/18#18 date=1234149727
    what Im not happy with is $15 for 250 at Single Origin.....thats $60 a kilo folks
    But what is it?

    Is it "fair trade"? Organic coffee? or some "special" blend.... or all of these?

    The price of coffee varies considerably depending on the origin, the quality, any endorsements it might have etc.... etc....

    It will also vary depending on where it is purchased.... a boutique restaurant/coffee shop will often charge far more than the roaster!

    Its like purchasing a bottle of fine wine at the Hilton compared to direct from the producer at the cellar door..... *a bit hard to justify the price difference - but who says they have to!

    They are offering to sell you a product at a certain price... it is you, the customer, who decides if that price is acceptable - or not.

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    Re: Whats a fair price to pay for beans at cafe

    House blend...Cafe that do their own roasting ( not on site ) ....but yeah they have a big rep so guess they can charge more....Im really not moaning about it...just wondered if others considered it exxy. Will I buy again from then....nope - can get better coffee same price on this site.

    will i drink coffee there again...hell yeah ! best coffee in Sydney ( imo)

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    Re: Whats a fair price to pay for beans at cafe

    One of Venezianos blends was $7.50 for 250g. The premium blend was $10 for 250g. The pricing structure has changed now....costing more to buy less.

    so....$4 per 100g sounds okay to me....linearly extrapolates to $40/kg.

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    Re: Whats a fair price to pay for beans at cafe

    If the coffees good then the price justifies the purchase but imho you cant beat home roast because a) you control all of the variables, b) the price is right, and c) if you dont like it you have no one to blame but yourself!

    Also, you can be sure with home roast that you are in theory at least always drinking a fresh product say 4 to 10 days post roast, which sure as hell beats the hit and miss aproach of many cafe coffees (sponsors not included) ! ;D

    Pat

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    Re: Whats a fair price to pay for beans at cafe

    Interesting discussion... great different points of view..... excellent topic raised.....

    www.coffeecentral.com.au one of the great online FRESH Roasted Coffee websites to visit

    .... all in coffee know that it is sustainable to sell coffee at reasonable prices (yes $4 per 100gram or $8.50 for 250grm etc etc)...but what is reasonable is up to the individual paying and what everyone chooses to sell for is up to them...

    CONSUMERS.... vote with your tastebuds and ultimately your feet.... if the price is not worth what you get in your cup...(for your tastebuds) then do not rebuy.....

    What do i think..... $40 per kg and under is very fair........ $30 per kg and under is very cheap.... $25 per kg and under must start to ask questions about quality of coffee being sold....

    As for smaller packaging... everyone has a different strategy and of course different overheads......


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    Re: Whats a fair price to pay for beans at cafe

    Ill second doug81. Adelaide prices are $8 to $10 /250g from the roaster for good brown ($35 to $40 /kg).

    Reseller prices seem to be about 50% more, so $60/kg wouldnt surprise me at all. Thats why I went straight to the roaster.

    I now pay $10 /kg plus roasting costs.

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    Re: Whats a fair price to pay for beans at cafe

    I think that considering how everything else around us has gone up in price, coffee itself has been set at remarkably stable price-points for the consumer over the past 8 years so were quite lucky in that respect. If you like what you like, pay what they ask. But the comment that the coffee came from the best cafe in Sydney and that they had a high charge for the coffee, it sounds like it probably had some initiatives behind it such as organic, or fair trade or rainforest alliance, direct trade etc etc.. these always add a bit more to the end cost.

  27. #27
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    Re: Whats a fair price to pay for beans at cafe

    Ive always considered that coffee is one of those get what you pay for type of products. If its good in the cup and I get value out of the experience, chances are the price I have paid in the store is fair.

    At times, Ive found myself short on cash and beans, so I can understand the focus on costs. Sponsors such as cuppacoffee provide great beans at excellent prices IMO.

    Sure, some small boutique cafe roasters charge a bit more, but on the whole I find that there is value in the product they deliver.

    Considering how much the prices of products I deal with have gone up, I am very surprised that coffee hasnt suffered the same magnitude of increase. Mind you, Im dealing with horrible foreign exchange rates of Yen against US dollar, and the AUS dollar against US dollar to its basically a double whammy.

    Whats a fair price to pay for beans in a cafe? If the price I am charged is reflected in the cup and my enjoyment of the product, then the price is fair. Whether its $10 for a 250g bag of a blend, $50 for a 1kg bag of a blend or $20 for espresso wow from beanbay.



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    Re: Whats a fair price to pay for beans at cafe

    To address the OPs situation, next time that you mail order, pick up an extra bag and throw it straight in the freezer. The day before you run out of coffee, whip out the bag from the freezer to come up to room temperature and try that for your next lot of coffee. Worst-case scenario, you sacrifice a bag of coffee. Best-case scenario, you just halved your postage costs.

    To answer the question, Ill jump on the price reflective of quality bandwagon. I have no problem with $60/kg coffee and Ill spend much higher than that on occasion for the chance of a truly exceptional coffee experience. The simple fact is that coffee isnt really all that expensive. Thats why coffee consumption increases in recessions (see Moshes article in the latest cafe culture). Brewed coffee is the easiest to illustrate, seeing as it has little, if any waste. At 65g/L, your 250g bag gets you something like 3.8L of brewed coffee for a cost of, say, $10 if its $40/kg coffee. Thats the same volume as about five bottles of wine. Looking at it another way, lets say you use 25g of coffee for 10 serves; thats still like $1 per serve. Even if you pay $80/kg, its still pretty manageable. To draw a comparison with wine - sorry for those who are sick of it - a $15 bottle of wine at the nominal 100mL serving gives you a cost of $2 per serve, so in line with a $80/kg price for coffee. Then consider this: something like a Henscke Hill of Grace might set you back $60 per serve; 30 times as much. By comparison, you can get some of the best coffee on earth delivered to your door for the equivalent of $3 per serve! (The numbers are harder to work out for espresso because of wastage.)

    Personally, what really, really, really irritates me is the fact that every roaster seems to advertise their coffee in the same way; with buzzword-laden and fanciful descriptions that seldom match up to what you actually get in the cup. I can pay $50/kg to buy coffee selected out of many, many garbage lots and subjected to multiple test roasts by a person with heaps of expertise, resulting in a sublime experience, or I can spend that same $50/kg for the first, experimental roast of a lot that hasnt even been cupped by a self-proclaimed master roaster who uses me as the guinea pig for what turns out to be a dud lot that someone thought that that roaster would be indiscriminate enough to accept ... yet both will probably come up with pretty similar descriptions of what they are selling me! I would - and have - gladly pay a premium for the security. $11 rather than $10 for a 250g bag that is always drinkable strikes me as a much better deal than $10 for a bag of coffee that might be undrinkable a third of the time! (I say a third of the time because I think thats about where Im at with coffee that I have bought pseudonymously.)

    Cheers,

    Luca

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    Re: Whats a fair price to pay for beans at cafe

    I hate to be the bearer of bad news.. but
    All please check out the current crop year productions and sell prices of green beans. There are a number of mass producing countries that are going through a hard year due to unfortunate weather conditions. The sell price of coffee is due to go up as a result of supply and demand etc and all will result in its unfortunate burden on the hip pocket.

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    Re: Whats a fair price to pay for beans at cafe

    Quote Originally Posted by 576E756F4351434B7373781C0 link=1234062246/28#28 date=1235048816
    All please check out the current crop year productions and sell prices of green beans.
    A link would be nice.

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    Re: Whats a fair price to pay for beans at cafe

    Behmor Brazen - $249 - Free Freight
    I agree with Kris ..... we should be aware of current world events... ie weather, us dollar, current stocks (or lack of) green beans etc...

    this has impacted on green bean prices rising dramatically over the last 6 months and will continue to rise this year....

    however lets also be realistic...... a price rise of $2 per kg green should not give someone the right to lift roasted prices up by $8 per kg which is what is happening by some roasters around Australia.....

    what people do in their own business is their own business.... however when they have consumers complain or choose another company due to a dramatic price rise, they should realise that making a decision to attempt to over capitalise on a price rise may affect their business.....

    at times we see business owners in many industries use a little shift in market price of anything... ie. fuel, milk, bread, greenbeans etc to go nuts and lift prices..... funny how prices always go up and never come down......

    if cafe owners put prices up everytime that there was a shift in prices a cup of coffee could well and truly be costing $5 per cup in an average cafe or espresso bar....

    commonsense must prevail...... there are times when prices must go up and times that there is a cost in doing business.... everyone should know there business best, so making smart decisions is ultimately in their hands..... :)



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