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We are so excited to share our second transparency report!This year we focused deeply on providing as much transparency about ourselves as we demand from our growers and importers. We have taken more protective measures to not provide specifics about each lot or grower. It is important to act ethically, and part of that is to not release information that another doesn’t want shared due to concerns for their safety. That said, we eliminated working with cloudy supply chains in order to have the cleanest and healthiest coffee menu possible.

Like many introverted roasters, I spend much of the entire year inside my own head, listening to audio books as I scoop batches and sniff the trier. I thrive in this environment where I can be doing something I love (sourcing & roasting coffee) while doing other things I also love (listening to books about psychology, behavior, history, & data). In preparing for this report over the past year, the two themes I keep returning to are “actions speak louder than words” and “increasing the visibility and accessibility of context.”In a world that can feel very performative and hollow, we have solace with the data of this report. We have been to many farms over the years, had many visits with growers, and countless cups on

the cupping tables. The coffees in this report are the ones that lived. This report is the result of the antifragility of our buying practices and a real world reflection of our actions. Our company has benefited from the stressors of constantly striving for more excellent, more meaningful. Our actions within this report are clandestine from a distant perspective, but very nuanced and convoluted when we get into the details. This is the entry point of increasing the visibility of context. This report is an invitation on a personal and global level to begin some deep and impactful conversations about ethics of buying and

selling coffee, about real world decision making. It is rather foolish to work in coffee and not consider how one’s actions within this industry affect factors outside of this industry. Coffee is a binder for the entire globe, and each decision we make in the buying and selling of it can has significant consequences.This report is truly a simplified version of the very complicated, intentional, antifragile actions of our past year. The nuance of why we buy these coffees, how we roast them, and how we love for our partners to express them in their shops, is the work we do every day. - Adam

We’re so often asked “why is the company named Unity?”. Honestly, had trouble answering this for a long time, and offered meaningful and well-intended, yet ultimately halfhearted replies about the idea of connection to the supply chain. It became crystal clear in 2023 that with what we had been through in the last four years, our partnerships have remained unified. It was noteworthy when our first producer-partnership turned five years old several harvests back. Now we have at least one five year partnership in four different countries of origin. And this number ticks upwards each year.

The ability to support our partners in whatever way we can - such as investing in farm-level sustainability, sending medical supplies, hosting farmers here in LA, and receive their support in the form of providing us exclusive, rare varieties, hosting us on farm visits, and indulging us in our experimental requests - this is it, this is the unity.In a year of desired growth, we reigned things in. Cuts were made on all things from software and shipping (good!) to marketing and labor (bad), costs were forced upwards, and sales plateaued. However, in the end we did what was necessary to survive, and by some metrics I would call it a successful year.

We did achieve several noteworthy forms of growth, like our first ever booth at the Specialty Coffee Association Expo and sending every member of our team on a trip to origin. We’re looking forward to a very positive 2024 all around!- Tyler

We contractedpounds of green coffeeand roastedpounds

We are so excited to share our second transparency report!This year we focused deeply on providing as much transparency about ourselves as we demand from our growers and importers. We have taken more protective measures to not provide specifics about each lot or grower. It is important to act ethically, and part of that is to not release information that another doesn’t want shared due to concerns for their safety. That said, we eliminated working with cloudy supply chains in order to have the cleanest and healthiest coffee menu possible. Let’s dive right into some numbers!

Total amount of coffee contracted in poundsthe cupping tables. The coffees in this report are the ones that lived. This report is the result of the antifragility of our buying practices and a real world reflection of our actions. Our company has benefited from the stressors of constantly striving for more excellent, more meaningful. Our actions within this report are clandestine from a distant perspective, but very nuanced and convoluted when we get into the details. This is the entry point of increasing the visibility of context. This report is an invitation on a personal and global level to begin some deep and impactful conversations about ethics of buying and

$4.52$4.66DRC$6.57El Salvador$5.62Ethiopia$4.71Guatemala$3.50Honduras$5.94KenyaColombiaselling coffee, about real world decision making. It is rather foolish to work in coffee and not consider how one’s actions within this industry affect factors outside of this industry. Coffee is a binder for the entire globe, and each decision we make in the buying and selling of it can has significant consequences.This report is truly a simplified version of the very complicated, intentional, antifragile actions of our past year. The nuance of why we buy these coffees, how we roast them, and how we love for our partners to express them in their shops, is the work we do every day. - Adam

CONTRACTSFOT: “Free on Truck” - This is the cost after the exporter, but before trucking to port. FOB: “Free on Board” - this is the price at the port of origin. It does not include importing costs.EXW USA: “Ex Works, USA”, this is what we pay to an importer, not including financing or freighting to our roastery. This is how we chose to reflect our report, in order to show our costs and respect the request for privacy of some of our supply chains. Forward Contract: Commiting to a coffee before it arrives to USA. This allows us to secure the best lots from producers we love, and lowers risk for all.

GROWER VS. PRODUCERWe are very intentional about the language we use. One point of contention is the interchangeability of the terms “grower”, “partner”, “producer”, and “farmer”.Grower or Farmer: Someone who grows coffee cherries. The product they sell is in cherry form.Producer: Anyone who utilizes coffee cherries to create a product. They may or may not grow cherry, they may or may not buy cherry, but they process cherry. Their product is fully dried parchment that they may or may not be in control of marketing.

INSIGHT INTO OUR BUSINESSAs more demand increases for transparency from origin side, and more roasters release transparency reports, there is an increasing pressure on roasters to do better about “showing their numbers”. We agree it is only fair.We lamented a lot about what to share, as to an extent, releasing this info is an invitation for negative criticism at best, and annhilation by our competition a worst. We hope by giving insights into our volumes and costs, this data is sustainable.

NEW ETHICAL CONSIDERATIONSIn the past, we have received criticism, from producers to importers, for revealing certain prices and volumes. While we thought we were acting on the avant-garde of ethics by showing 100% transparency, we failed to consider the privacy, security, and well being of our supply chain. We thought a lot about whether to show all lots and redacted requested info, or make a more general report. We opted for the latter.We wanted to show more farmgate pricing and give specifics on lots you may have purchased from us, but chose to reflect this report in EXW USA in order to show our true costs.

EXW USA TRANSPARENCY PRICINGEach supply chain is different, with a unique challenge of costs to get to our roastery. Some origins require a longer trip, therefore higher transport costs. Some importers may charge more of a margin, yet provide services not explored on this report. ORIGIN 1 FOT: $5.26IMPORTING: $1.31EXW USA: SHIPPING: $0.15PRICE TO ROASTERY: $6.72ORIGIN 2 FOB: $4.60IMPORTING: $1.36EXW USA:SHIPPING: $0.44PRICE TO ROASTERY:$6.40

ORIGIN 2 FOB: $4.60IMPORTING: $1.36EXW USA:SHIPPING: $0.44PRICE TO ROASTERY:$6.40PRICING STRUCTURESHere is how we price some of our single origin offerings. In 2022 we moved to a flat fee (opposed to a percentage mark up) . We found this to be more ethical. We wanted to incentivize, not punish, our customers to buy pricier green coffees.Single Origin 1EXW USA Average Green: $4.90Wholesale Price: $73.75 for 5 pound bagRetail List Price 250g: $23Single Origin 2EXW USA Green: $6.55Wholesale Price: $85 for 5 pound bagRetail List Price 250g: $25

PRICING STRUCTURESOur most popular offering is Serious Black. This is a pre-blend (blend before roasting), generally with Guatemalan and Colombian components. It is an omni-roast, designed for intensity, and works well for new and seasoned baristas alike. We reduce our margin on this coffee in order to further incentivize price sensitive customers to choose it. This allows us to scale sustainably with growers we love.Serious BlackEXW USA avg estimated green: $4.50Wholesale Price: $60 for 5 pound bagRetail List Price 250g: $20

PROFITABILITYIn an effort to keep this report just as much about us as our partners, here is some self reflection.A sad truth is that many specialty coffee businesses are not profitable, and therefore, not sustainable. Historically, we have been included in this pool of small companies that do not post positive returns. We don’t run Unity to make a profit, we do it because we feel strongly about our values and our impact with our producers. But to keep it alive, we must reverse the trend of losing money. We made a lot of tough decisions, such as raising prices to match inflation, cutting labor costs, and saying no to all digital advertising.2023 was our first year of (slight) profitability!

CONTRACTSFOT: “Free on Truck” - This is the cost after the exporter, but before trucking to port. FOB: “Free on Board” - this is the price at the port of origin. It does not include importing costs.EXW USA: “Ex Works, USA”, this is what we pay to an importer, not including financing or freighting to our roastery. This is how we chose to reflect our report, in order to show our costs and respect the request for privacy of some of our supply chains. Forward Contract: Commiting to a coffee before it arrives to USA. This allows us to secure the best lots from producers we love, and lowers risk for all. 86% of our coffees are “forward”, meaning we committed to them before they arrived to the USA.We are proud of sourcing this much forward coffee, as it is generally considered more ethical. It takes the weight off of the producer & secures a commitment for the importer, and guarantees our customers will not run out of the coffee they love.

With most of the world harvestingNovember to March and arriving June to October, this means we had quite a bit of lots secured, but had not done their initial roast. As of Jan ‘24, we had yet to do a single roast of 27% of our contracted coffee

We walk the delicate line of contracting per our customers’ requests, contracting for projected growth, contracting enough lots to keep our spot offerings interesting, and not over-contracting in general.An ideal way for your cafe to work sustainably with us is to find out what has yet to be released, and secure that as an exclusive.We anticipate a trend of top-tier cafes aligning their coffee commitments with the purchasing ethics of sustainable sourcer/roasters.

We roasted pounds of green coffeeNEW ETHICAL CONSIDERATIONSIn the past, we have received criticism, from producers to importers, for revealing certain prices and volumes. While we thought we were acting on the avant-garde of ethics by showing 100% transparency, we failed to consider the privacy, security, and well being of our supply chain. We thought a lot about whether to show all lots and redacted requested info, or make a more general report. We opted for the latter.We wanted to show more farmgate pricing and give specifics on lots you may have purchased from us, but chose to reflect this report in EXW USA in order to show our true costs.

ORIGIN 1 FOT: $5.26IMPORTING: $1.31EXW USA: SHIPPING: $0.15PRICE TO ROASTERY: $6.72We roasted some coffees much heavier this year due to consistent customer desires. While our preference is screaming light roasted coffees, we are grateful to have cafe partners who want to work with us, who love our sourcing ethos, and who simply want their roasts a bit heavier.Most of our menu, and pretty much all of our public menu, is still very light to medium light.Roasting away our ego, we are here for cafe partners who want those deeper notes.

THE FORGOTTEN YEARWe bought 75% less Ethiopian coffee this year than last year - here are a few reasons why:• Prices too high for our customers• Quality too low for us• Many of our diehard Ethiopian customers are preferring different coffees• We have been overcommitting for years and it caught up with us this year• The promise of traceability and transparency projects seemed to dwindle• We bought significantly more Kenyan coffee, which offset Ethiopian coffee• We didn’t grow too much this year so less over all growth in purchases

PRICING STRUCTURESOur most popular offering is Serious Black. This is a pre-blend (blend before roasting), generally with Guatemalan and Colombian components. It is an omni-roast, designed for intensity, and works well for new and seasoned baristas alike. We reduce our margin on this coffee in order to further incentivize price sensitive customers to choose it. This allows us to scale sustainably with growers we love.Serious BlackEXW USA avg estimated green: $4.50Wholesale Price: $60 for 5 pound bagRetail List Price 250g: $20THE FORGOTTEN YEARLet’s discuss some wins from Ethiopia in ‘23:• Kossa Geshe: Arrival quality improved from forward sample• Gemdaa Waqoo: A high-quality lot from an individual grower on a small farm from a brand new supply chain• Musa Abalulesa (brother of Guguu and Mustefa) produced a beautiful washed coffee from an individual farm that wasn’t approvable in the past

In 2022, we worked on several new packaging lines. The “Tabula Rasa”, or clean slate, is a custom cut letterpressed box handmade in Los Angeles. We wanted to work with a local manufacturer, and are pleased at the elegance of this product line. This one only features top-tier limited nanolots.

We also released our first run of printed bags. The “Sky’s the Limit” line features recyclable bags made from post-consumer materials that come with their own impact report. We printed big and bold on the sides, and are fun yet minimal.We aren’t finished evolving our brand and coming up with creative ways to release coffees with the same care and respect our producers have.

We were very excited to release window boxes as a home for microlots to create a clean & modern aesthetic look. However, after honest feedback from some of our wholesale partners, as well as the added labor cost of the slightly-too-small boxes, we decided to stop using them.

We hope to keep creativity and inclusivity alive for the next year. Here are our top goals:• Check in with producers from all supply chains to understand their costs versus their prices• Grow the business through strategic and intentional partnerships• Have a retail presence for the coffees we are most excited about sharing• Bring in a few exciting new origins to keep our customers engaged• Develop at least one new packaging conceptWe walk the delicate line of contracting per our customers’ requests, contracting for projected growth, contracting enough lots to keep our spot offerings interesting, and not over-contracting in general.An ideal way for your cafe to work sustainably with us is to find out what has yet to be released, and secure that as an exclusive.We anticipate a trend of top-tier cafes aligning their coffee commitments with the purchasing ethics of sustainable sourcer/roasters.

This report is just the beginning of our long, complex, and complicated journey to source & roast the most ethical and vibrant coffee in the world. There is so much more we wanted to say that wouldn’t fit.Many of the terms, ideas, justifications, and numbers probably require deeper analysis, challenge, and attention. We would love to continue the conversation and hear from you.roasting@unity.coffeeinstagram.com/unity.coffee