The price of a cup of coffee, or your future savings: know where your money’s going

Posted on Posted in Pact Partners

When you tip at a restaurant, you assume that money is going to the waiting staff and kitchen porters. And while that’s partly because you feel they deserve it (or need it, given the struggles of zero hour contracts and minimum wage pay), it’s also because you deserve to know where your money is going.

And that’s why some restaurants will even tell you – via a note on their menu, or a sign on the wall – that 100% of gratuities go to the staff. 

We think you should expect that transparency with every service you use – from coffee supplier, to investment service. And that’s why we’ve partnered with Nutmeg: the UK’s leading digital wealth management service. 

Pact Coffee and transparency

We maintain transparency by ensuring traceability, through Direct Trade. While other roasteries buy green beans once they’ve hit the UK’s shores – with varying levels of visibility on where they’ve come from, and how much was paid for them – we source coffee ourselves. And not only that, we buy direct from individual farmers and farming groups. 

That means you, our customers, know the farmers are getting paid as much as possible – and always 25-125% above the rates Fairtrade promise. We also make our buying practices crystal clear in our yearly CSR – read 2019’s edition here

Why do we do this? Both because it’s the right thing to do, and because you deserve to know where your cash is going – in all areas of your life.

Nutmeg: for ethical investing 

They’re the UK’s largest and fastest growing digital wealth management service. But if that’s not your area, don’t worry – it’s definitely what they do best! They make investing easier, less pricey, and more ethical. And that’s why we’re a fan. 

Growing your wealth doesn’t have to be at the expense of someone else. They know that, and they know their customers do too – which is why they endeavoured to make ethical investing a cornerstone of what they do:

We believe that most people would choose to apply their personal values to their investments if they could, but with no way to truly understand how ‘ethical’ an investment is, most people simply can’t invest this way
– Shaun Port, Chief Investment Officer at Nutmeg

How Nutmeg show you where your money’s going

If you invest in a socially responsible portfolio with Nutmeg, they won’t invest your money in any old company – so you won’t find out you’ve been inadvertently funding anything dodgy while saving up to pay off your mortgage! Instead, they select businesses who conform to a certain set of standards – environmental, social and governance criteria, or ESG.

Together with MSCI, a world-leading data and analytics company, they score everyone they’re considering investing your cash with. So you know whoever you’re investing in is good for the planet, good to people, and good at business. And that sounds good to us!

Know you’ve made the right choices

Investing in a bag of coffee and knowing the farmer got paid well for it is a nice feeling. So is investing your money, waiting to see a return, and knowing you’ll have earned it through honest means. Whatever you’re doing with your cash – be it £7 or £7000 – you should feel good about it. And we think businesses like Pact and Nutmeg are two ways to help you do that. 

10 thoughts on “The price of a cup of coffee, or your future savings: know where your money’s going

  1. I just wanted to say how much I appreciate your blog. You have very useful and interesting information! Also, have you heard of the IBEX Tumbler? I think a lot of your followers would like to check out what is by FAR the best way to drink coffee on the move. It is actually made using the same materials as NASA, and it only $43! See what you think! – http://bit.ly/32MAvHH-TheBestWayToDrink

  2. I’ve enjoyed your beans on a regular basis for some time and glad to see the breakdown of the cost. I think that there’s more to price transparency and paying higher price amount (compared to, say, commodity coffee) than just self righteous feeling about doing the right thing.

    I believe it makes financial sense. We get a better quality coffee and farmers are financially encouraged to keep growing better quality coffee. Win-win. The best way to ensure higher standard is via direct trade or, even better, close relationships with the farmer.

    The only point I am fuzzy about is the logistics overhead – how much lower is the cost of direct trade, compared to a high volume merch hitting UK’s shores? Based on the figures in this post, the difference is not that big?

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