We first tasted Hacienda la Esmeralda in 2006. It had just won the Best of Panama auction for the third straight year. It was so different and tasty it could only be categorized as an epiphany of what coffee could be. At that year's auction, the going price was $51/lb (which meant $102/lb from our roaster). We bought three half-pound bags and served it up for $5.00 a cup. It had a lot of buzz and deservedly so. Most everyone who tried it remembered it as something different and exceptional.
We tasted exactly one cup of it 2007. We didn't buy any as the auction price more than doubled to $130/lb. It wasn't 2.6x better than it was in 2006. We couldn't justify it.
In 2008, a special auction was held just for Esmeralda. There were eight different lots based on quality. We had the opportunity to cup some and decided that we would go for one of four lots. As the auction evolved, we were priced out of seven of the lots, ending up with 100 lbs of what was affectionately called "the budget lot" by Tom at SweetMaria's. The coffee had many of the elements of the better Esmeraldas, but muted. It was accessible and affordable. And it made a great espresso when blended with Brazil Cerrado.
As we mentioned back in May, we sat out the auction this year. The least expensive lots were purchased for $24/lb. We barely sold what we bought at last year's auction when our price was $6.45 ($8.25 landed). There was simply no point to us participating.
And as it's now become available from various roasters, we've decided to simply not offer any Esmeralda at all. Intelligentsia is offering it for $100/lb (lot 3-04, bought at $35.75/lb).
There have been so many exceptional coffees we've had the privilege of tasting this year that it simply doesn't make any sense to invest that amount of money in a coffee that, in our opinion, has been equaled or surpassed by coffees from other origins in Central America and Kenya. Which is not to say it isn't a wonderful coffee. But at what price compared to everything else that's out there?
Feel free to experience Esmeralda someplace else.
To us, knowing that Esmeralda's Gesha varietal is now being planted in other countries, it's a sign that perhaps this will be the peak year for the Esmeralda "brand" as it relates to price.
It's wonderful that the Petersons (owners of Hacienda Esmeralda) are reaping the profits as they are the kind of responsible ownership that will plow that money back into their plantations and workforce in order to continue to improve what they've built.
But is any coffee really worth that price? Or is the success of Esmeralda just the result of industry hype?
Personally, I'm really looking forward to a cup of Kenya Thiriku.
The market determines the price, therefore the price must be right. As the price rises various bidders drop out because they consider the goods on offer are not worth that price for their purposes, or they are simply unable to afford the goods. At the same time people start considering ways to increase the supply, just as you described above. This is a perfect example of how free markets should operate.
Posted by: Reiss | October 25, 2009 at 04:16 AM