How do I check a coffee roaster’s green bean suppliers before buying?

Green beans are the roaster’s main cost, so the supply line deserves real attention. Ask to see invoices and order history that show how often the roaster buys, how consistent the quality has been and whether prices have moved around. Compare these to the cost of goods in the financial statements and ask the seller to explain any gap.

Find out how dependent the business is on one source. If a single importer supplies most of the beans, ask what the backup is and whether the roaster has ever had a shortage. Ask also whether the roaster holds any standing orders, deposits or credit with a supplier, since those may not move to a new owner automatically. Once the seller agrees, speak to the key suppliers directly. Ask whether they will keep selling on the same terms to a new owner and whether the roaster’s account is in good standing. Make any promise the seller has made about supplier continuity part of the purchase agreement discussion, and ask your lawyer to review it. Ask too how the roaster tests samples before accepting a lot, and who makes that call, since quality control often sits with one person.

Key takeaways

• Get a full supplier list with order history and the terms on each account.
• Check how much of the supply comes from one source and what the backup is.
• Speak to key suppliers, with permission, before you commit.
• Keep a list of questions for each supplier call.