August 2025 was an eventful month for the world of coffee. From farms and trading floors to research labs and boardrooms, significant developments unfolded across the globe. The coffee industry’s vast reach – spanning production, markets, science, corporate moves, and policy – means that changes in one area can ripple worldwide. In this roundup, we highlight some of the most notable coffee news stories of August 2025, illustrating the global relevance and diversity of this beloved beverage’s supply chain and culture.
Notable Coffee News – August 2025
Global Arabica Prices Surge Amid U.S. Tariffs – A steep 50% import tariff imposed by the United States on Brazilian coffee starting August 6 led to a sharp spike in global arabica prices. Futures jumped over 30% on the ICE exchange through August. Brazil’s 2025 harvest also yielded about 10% less coffee than expected and was hit by frosts, adding further supply concerns. Importers scrambled to find alternative origins, and major buyers like China began sourcing more Brazilian beans via new trade routes, underscoring how geopolitics quickly reshaped coffee markets.
Record Coffee Harvest Projected, Yet Stocks Remain Tight – The U.S. Department of Agriculture projected a record-high global coffee production of 178.7 million 60-kg bags for the 2025/26 season – up 4.3 million bags from the previous year. This rebound is driven largely by recovery in Vietnam and Indonesia and a bumper crop in Ethiopia. Global consumption is also forecast at an all-time high of 169.4 million bags. Despite a surplus, the ending stocks are expected to remain tight at just 22.8 million bags, meaning supply margins are slim. Strong demand, along with sporadic weather issues in key countries, has kept prices elevated even as production hits new records.
Keurig Dr Pepper to Acquire JDE Peet’s for $18 Billion – In one of the largest coffee mergers ever, Keurig Dr Pepper (KDP) announced plans to buy JDE Peet’s – the European coffee group behind brands like Peet’s Coffee, Jacobs, and L’OR – in an all-cash deal worth $18 billion. The blockbuster acquisition will create a new global coffee giant: KDP intends to spin off its coffee business into a separate entity (provisionally called Global Coffee Co.) to focus on a massive combined portfolio of coffee brands. This move not only underscores consolidation in the industry but could reshape global coffee supply chains and competitive dynamics. (Source: Los Angeles Times)
Beloved SF Coffee Chain Philz Acquired for $145 Million – San Francisco’s iconic Philz Coffee, known for its one-cup-at-a-time pour-over brewing and famous mint mojito iced coffee, has been bought by private equity firm Freeman Spogli & Co. for $145 million. Philz operates over 70 cafés (mostly in California) and has a devoted following. Under the new ownership, the company plans to expand its footprint over the next two years while retaining its current leadership. The sale of this much-loved regional chain highlights continued investor interest in specialty coffee retail and could fuel Philz’s growth into new markets.
Panama Coffee Sets World-Record Price at Auction – Specialty coffee reached new heights when a rare Panamanian Geisha varietal broke the world record at the 2025 Best of Panama auction. A lot of Hacienda La Esmeralda’s coffee scored 98 points and sold for an astonishing US $30,204 per kilogram. (For perspective, that’s about $600 per pound green, and far above the previous record of ~$13,500/kg set in 2024.) Another top lot from the same farm fetched $23,608/kg. These eye-popping prices underscore the growing demand for ultra-premium coffees among collectors and high-end roasters. Such record auctions elevate the prestige of coffee producers and may inspire further quality experiments, though they also emphasize the widening gap between everyday coffee prices and competition-winning beans.
Morning Coffee Boosts Mood, Study Finds – New scientific research offered good news for coffee drinkers’ well-being. A study by Bielefeld University and the University of Warwick observed 236 adults and found that caffeine consumed in the morning significantly improves mood and energy levels. Participants reported feeling happier and more energetic on mornings when they had coffee, compared to mornings they hadn’t. Notably, this positive effect was consistent regardless of individuals’ habitual caffeine intake or sleep quality. In contrast, the study noted only minor changes in negative feelings like irritability. The findings (published in Scientific Reports) not only reinforce coffee’s reputation as a morning pick-me-up but also provide insight into how timing of consumption can influence its benefits.
Global Push for Coffee Sustainability Initiatives – The International Coffee Organization (ICO) launched a new Coffee Sustainability Support Database (C2SD) to bolster industry-wide environmental and social efforts. This online platform compiles 440+ sustainability projects involving over 600 organizations and 170 funding partners across coffee-growing countries. Stakeholders can use the database to identify gaps, avoid duplication, and collaborate more effectively on issues from climate change adaptation to farmer livelihoods. By providing a transparent overview of sustainability programs worldwide, the ICO aims to coordinate resources and drive inclusive growth in the coffee sector. This move reflects the increasing emphasis on making coffee’s future resilient and equitable amid challenges like climate volatility and price pressures.
Conclusion
August 2025’s coffee news highlights a dynamic global landscape shaped by both opportunities and challenges. On one hand, record production and landmark corporate mergers point to an industry that is scaling up and evolving. On the other hand, weather disruptions and trade policies remind us how vulnerable coffee can be to external shocks – and how quickly markets can shift in response. The science and sustainability stories signal that innovation and responsibility are also front and center: researchers continue to uncover how coffee affects our lives, while industry organizations and companies invest in ensuring coffee’s long-term viability for farmers and consumers alike. Looking ahead, these developments could have lasting impacts. Market volatility may persist as climate and political factors influence supply and prices, pushing coffee stakeholders to diversify sourcing and build resilience. The creation of a new coffee giant through the KDP–JDE Peet’s deal might spur further consolidation or competition in the sector, potentially affecting everything from global bean procurement to what brands fill your supermarket shelf. Meanwhile, the record auction prices and acquisitions underscore coffee’s enduring appeal and value – from the ultra-premium niche to beloved local cafes – suggesting a vibrant, if evolving, future. By learning from August’s events and trends, the coffee community can better prepare for the challenges and opportunities on the horizon, ensuring that our collective coffee journey remains sustainable, innovative, and rewarding in the years to come.
