In the heart of London’s bustling financial district, a young Stephen Hurst embarked on a journey that would transform him from a trainee in an old-school merchant firm to the founder and Managing Director of Mercanta, a company at the forefront of the specialty coffee movement.
“My career in the coffee industry started in the mid 80s,” Hurst reminisces. His initiation into the world of commodities began at Wilson Smithett and Cope, part of the Guinness Peat Banking Group, where he learned the ropes from the logistical and shipping side of the business.
As the City of London underwent the seismic shifts of deregulation, Hurst found himself amidst the giants of American banking. It was a time of third-party contacts and serendipitous opportunities that led him to J Aron & Company, Goldman Sachs’ commodity trading division. There, Hurst transitioned from cocoa to coffee, eventually overseeing accounts for major roasters like Nestle and Kraft.
The 80s were a time when capital was king, and firms like Goldman Sachs dominated the trade without owning origin assets. However, Hurst observed a nascent trend emerging from North America – the specialty coffee business. Artisan companies sought small quantities of high-quality beans, a stark contrast to the large-scale operations of the time. “These were independent owner-operator type guys, people genuinely looking for the best of the harvest type of coffees,” Hurst explains.
Quality and Authenticity
In 1996, sensing the winds of change, Hurst established Mercanta to bring the specialty coffee movement to Europe and the UK. It was a challenging endeavour, as the market was initially resistant to paying a premium for quality. Yet, Hurst persevered, finding allies in businesses like Monmouth Coffee, who shared his vision for excellence in small quantities.
Over time, Mercanta flourished, riding the wave of the specialty coffee sector’s growth, bolstered by Britain’s success in the World Barista Championships. Hurst’s vision extended beyond trading; he realised the importance of education in the industry. This led to the founding of the London School of Coffee in 2005, a training, consultancy, and education business that remains a key source of knowledge and influence.
Today, Mercanta’s global footprint extends to 50 countries, with a head office in London and offices in strategic locations like Glasgow, Seattle, Singapore, Berlin, and Dubai. The company caters to hundreds of specialty coffee roasters, from large corporations to craft and artisan businesses. “We sell about £10 million worth of specialty coffee beans a year,” Hurst states proudly.
Hurst’s story is not just about coffee beans; it’s about the journey, the education, and the passion for a product that has become an integral part of people’s lives worldwide. From the remote regions of Colombia to the highlands of Scotland, each bag of coffee tells a story – a story that Stephen Hurst has been a pivotal part of writing.
Creating Positive Change
Hurst has a unique perspective on market trends, drawing parallels between the growth of the coffee industry and the boom experienced by the craft beer movement. He observes, “There’s probably about 8 to 10 styles of beer… but they eventually coagulate into about 10 broad categories.” This insight reflects the diversity within the coffee sector and the importance of standout qualities in a saturated market.
Hurst’s approach to coffee is holistic; it’s not just about the bean but the entire experience. “It’s always about the delivery or the place you’re drinking it,” he asserts, emphasising the significance of the setting in which coffee is consumed. He appreciates the global journey of coffee bags from remote regions, recognising that the origins of these beans are often overlooked.
Mercanta’s commitment to quality and direct trade is evident in their business practices. Hurst proudly states, “We still own the farm gate to the roaster door, the chain of custody.” Hurst’s dedication to positive social impact is evident in Mercanta’s practices. He instituted a minimum price for Arabica coffee, ensuring fair compensation for producers regardless of market fluctuations. This price commitment, along with Mercanta’s transparent and authentic storytelling, sets the company apart in an industry often shrouded in mystery and marketing narratives.
Envisioning Mercanta’s Legacy
Mercanta’s success lies in its ability to provide market access for small, unrepresented producers and deliver high-quality coffee with provenance and traceability. Through this, Hurst and his company have crafted a legacy that intertwines ethical commitment with the specialty coffee revolution. The Managing Director’s approach has not only shaped the specialty coffee landscape in the UK and Europe but has also created a positive impact at the origin, championing the cause of small-scale farmers and the authenticity of their products. In his own words, Hurst describes the essence of Mercanta’s impact: “It’s not just about having that provision of specialist brew, but it’s also creating a positive social impact.”
As consumer behaviour evolves towards a desire for greater definition in their purchases, Mercanta stands as a testament to this trend, offering transparency and provenance in coffee. “People are moving towards wanting greater definition on all the things they buy… And we do it for coffee,” Hurst asserts, emphasising the alignment of Mercanta’s values with consumer expectations.
In a world where many businesses remain theoretical exercises, Mercanta operates in the tangible realm of moving physical coffee, connecting remote areas of production with equally remote areas of consumption. This hands-on approach to business is what sets Mercanta apart, as Hurst proudly declares, “It works. I’ve got physical coffee moving… We’re carrying out a physical, visceral sort of business.”
Ultimately, Mercanta’s legacy is one of authenticity, quality, and a positive social impact that resonates from the origins to the cup. It’s a legacy that Hurst and Mercanta continue to build, one pallet of coffee at a time.
