Why inflation could be your biggest opportunity

Lately, the world is focused on Donald Trump’s inauguration as the 47th President of the United States.

Regardless of political opinions, it’s impossible to ignore the significant ripple effects this event is having on global markets.

His protectionist economic policies—such as heavy tariffs on imports from Europe and China—pose challenges for exporters.

However, his promises to drive innovation in artificial intelligence and cryptocurrencies are creating a palpable buzz in the markets.

Personally, I believe this administration will bring general bullish momentum this year, particularly in commodities. While we may witness fluctuations, I predict that 2025 will again end with a “+" sign for the coffee exchanges. That said, rising costs are here to stay.

This is not the time to lower your guard but the moment to adapt and innovate.

And here’s the critical point:

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"whether or not you agree with Trump’s policies or personality, the technological leap he's advocating is undeniable. As entrepreneurs, we can no longer afford to stand by as spectators."

Mastering and leveraging these advancements is not optional—it’s essential for safeguarding your business and ensuring long-term growth. Staying ahead means taking control and using these tools to your advantage.

[If you are interested in this matter, you'll find useful my blog article: "Trump, Change, and the power of business innovation"]

Inflation remains a pressing concern. Rising operational costs are squeezing margins tighter, and the coffee industry is no exception. The increasing prices of green coffee and energy have made it challenging for many entrepreneurs to stay afloat.

When costs rise, the instinct often is to compromise on quality or engage in price wars. But at what cost?

Losing customers and margins is a very real danger. Reacting without a clear value-driven strategy can lead to a downward spiral: cutting product quality to save costs might damage your reputation, while raising prices without effectively communicating value risks alienating your customers.

This is not the time for defensive maneuvers. It’s an opportunity to embrace innovation and position yourself as an evolved coffee entrepreneur.

Here’s a concrete example.

Last year, we also faced significant challenges at La Genovese. Rising green coffee costs in 2024 put immense pressure on our margins. Instead of succumbing to reactive decisions, we took a bold and innovative approach:

Consistent client communication: We launched a weekly newsletter designed to keep our clients updated on market dynamics, offering them practical strategies and insights to navigate the challenges. Topics ranged from how to manage rising costs to tips on leveraging customer experience marketing.

Exclusive support for foreign clients: We created a dedicated WhatsApp group for our international customers, providing real-time updates, market insights, and previews of the strategies we were implementing. This level of involvement fostered a sense of collaboration and trust.

Transparency and education: We openly communicated the reasons behind price adjustments, helping our clients understand the value behind our products. This empowered them to convey this message to their own customers, ensuring continuity in the value chain.

"Most of our clients also reported increased sales, reinforcing that a proactive, collaborative approach benefits not just the supplier but also the entire value chain."

Moreover, these actions helped us protect our margins while strengthening our relationships with clients. By actively involving them in the conversation, we turned inflation into an opportunity to demonstrate value and build loyalty.

For instance, when the price of Robusta coffee skyrocketed last year, I wrote this article for my customers, “Winning Strategies to Overcome the Robusta Coffee Crisis”, which delves deeper into these approaches and provides actionable insights for addressing today’s coffee market challenges.

This article is available in my blog too.

To end, I can say with conviction that by sharing knowledge and strategies in the right way, we can strengthen our sector and foster innovation.

Together, it’s really possible to transform challenges into opportunities.

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The results speak for themselves:

also in 2024, despite rising costs, La Genovese achieved a 17% increase in export revenue and a 15% growth in sales volumes. But the impact didn’t stop there.