Globally, more than two billion cups of coffee are consumed every single day, and that first sip of java is a morning ritual for many of our guests. In honor of International Coffee Day, we’re all abuzz about the steps HSM takes to source sustainably grown, ethically farmed and price-protected coffee products for our partnering properties around the world. From Rainforest Alliance-vetted suppliers to participation in the coffee futures market, HSM is raising a mug to our F&B team for their extensive efforts to keep guests caffeinated and hotel budgets protected.

To help us make good on our mission to negotiate the lowest possible prices for the best-in-class products we source, HSM’s F&B team closely monitors certain high-volume products on the commodities market, including butter, eggs, corn, and of course, coffee. And because even a slight price increase on staple foods can mean a dramatic hit for F&B budgets, HSM participates in the futures market to establish stable pricing our customers can count on. By advising our suppliers on when and how many coffee futures to buy, HSM obtains fixed-price contracts that position us to protect customers from potential price hikes resulting from unforeseen circumstances, such as drought, disease or disproportionate demand. While futures markets exist for products ranging from oil to precious metals and produce, HSM primarily participates in the agricultural futures market, as it helps us secure prices for items like food and fabrics.

Agricultural futures markets are primarily driven by supply and demand, and HSM secures pricing through green coffee contracts bought by our suppliers based on our F&B team’s carefully calculated direction. A per-property coffee price is then determined using the coffee futures contract rate, rather than market pricing. The end result is consistent delivery of a high-quality product that meets or exceeds HSM’s roasting, blending and grinding specifications. In an average year, HSM’s suppliers purchase coffee contracts for approximately 6 million pounds of coffee, securing both the inventory and pricing our customers need and expect to meet their property’s ongoing coffee requirements.

As for our rich, exhilarating coffee itself, HSM’s partner in coffee procurement, Royal Cup Coffee and Tea, has been a reputed quality roaster since 1896. All Royal Cup coffee is Rainforest Alliance Certified ensuring its sustainably grown to benefit farm families, wildlife and the environment. Royal Cup roasts two coffees specifically for Hilton hotels. The Volcan Bold blend is full-bodied and balanced and Royal Cup roasts this blend in six different regional roasteries, including Hawaii, to ensure the freshest coffee is delivered directly to our hotels. Meanwhile, Royal Cup’s Taraza roast is farmed in South America, Central America and Asia, offering guests a more mellow, sweet and chocolatey finish to treat their tastebuds any hour of the day.

Properties interested in enhancing their coffee offerings can brew up a customized coffee program through HSM’s trusted coffee suppliers. When developing a tailored program for any property, HSM factors in coffee blend, roast profile, ethical sourcing, sustainability, equipment needs and target price point to curate a package with the perfect flavor and fiscal profile. To take advantage of HSM’s influential market knowledge, sustainable sourcing practices and delivery of stable, dependable supply chain solutions for our customers, connect with us at HSMx@hilton.com or contact your Strategic Accounts advisor.