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The History of the Coffee
Industry in the United States
Coffee arrived in the New World in the 1600's in New Amsterdam, later
known as New York. Tea was the preferred drink in the colonies, much
as it was in Britain, however coffee houses did start to appear by the
1700's. In 1773, when King George imposed a tea tax on the colonies,
colonists revolted in the well known, Boston Tea Party. The protest
against the tea tax was the beginning of the popularity of coffee in the
American colonies.
At first coffee was very expensive and was consumed mainly by the
wealthy for medicinal purposes. Soon it became a popular in homes as
a breakfast beverage. Many of the early coffee houses that were
popping up in New York and Boston were used as gathering places for
trials and civic meetings. Eventually coffee became more affordable
and accessible to the masses.
By 1881, there was so many coffee businesses and so much coffee
being imported, much of which was inferior quality, that the trade
collapsed. Many of the coffee houses went out of business. As a result,
the New York Coffee Exchange was formed to monitor and regulate
prices, standards, quality, and trade for the coffee industry.
In 1886, Maxwell House coffee became the country’s first blended
coffee brand. It was named after a hotel where many notable guests
stayed, including Teddy Roosevelt. Maxwell House’s famous slogan
“Good to the last drop” was actually a quote from Roosevelt remarking
on the taste of the coffee he was served at the Maxwell House hotel.
As shipping, storage, and communication technologies improved, so
did the quality of coffee, until after World War II when the poor quality
Robusto coffee bean entered the market as companies tried to reduce
expenses. The introduction of this lesser quality bean affected
popularity. The solution was the creation of the Pan-American Coffee
Bureau in the 1950's, which was formed to encourage Central America
to produce more coffee and promote coffee drinking. Since Central
American coffee is of higher quality than the Robusto bean, popularity
of coffee returned.
In the 1970's, Mr. Coffee automatic home coffee makers also were
introduced. Also in the 1970's Starbucks opened its doors in Seattle.
Starbucks and other specialty coffee houses have grown in popularity.
The coffee industry has been part of American history since this
country’s beginnings and will certainly continue to be part of our
country’s culture for centuries to come.
Jonah Engler is a Financial Expert based in New York City. A full time
stock broker, franchise owner, coffee lover and investor; Engler helps
startup businesses and franchise’s grow through smart financial
planning.

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Coffee Industry in the United States by Jonah Engler

  • 1. The History of the Coffee Industry in the United States
  • 2. Coffee arrived in the New World in the 1600's in New Amsterdam, later known as New York. Tea was the preferred drink in the colonies, much as it was in Britain, however coffee houses did start to appear by the 1700's. In 1773, when King George imposed a tea tax on the colonies, colonists revolted in the well known, Boston Tea Party. The protest against the tea tax was the beginning of the popularity of coffee in the American colonies.
  • 3. At first coffee was very expensive and was consumed mainly by the wealthy for medicinal purposes. Soon it became a popular in homes as a breakfast beverage. Many of the early coffee houses that were popping up in New York and Boston were used as gathering places for trials and civic meetings. Eventually coffee became more affordable and accessible to the masses.
  • 4. By 1881, there was so many coffee businesses and so much coffee being imported, much of which was inferior quality, that the trade collapsed. Many of the coffee houses went out of business. As a result, the New York Coffee Exchange was formed to monitor and regulate prices, standards, quality, and trade for the coffee industry.
  • 5. In 1886, Maxwell House coffee became the country’s first blended coffee brand. It was named after a hotel where many notable guests stayed, including Teddy Roosevelt. Maxwell House’s famous slogan “Good to the last drop” was actually a quote from Roosevelt remarking on the taste of the coffee he was served at the Maxwell House hotel.
  • 6. As shipping, storage, and communication technologies improved, so did the quality of coffee, until after World War II when the poor quality Robusto coffee bean entered the market as companies tried to reduce expenses. The introduction of this lesser quality bean affected popularity. The solution was the creation of the Pan-American Coffee Bureau in the 1950's, which was formed to encourage Central America to produce more coffee and promote coffee drinking. Since Central American coffee is of higher quality than the Robusto bean, popularity of coffee returned.
  • 7. In the 1970's, Mr. Coffee automatic home coffee makers also were introduced. Also in the 1970's Starbucks opened its doors in Seattle. Starbucks and other specialty coffee houses have grown in popularity. The coffee industry has been part of American history since this country’s beginnings and will certainly continue to be part of our country’s culture for centuries to come.
  • 8. Jonah Engler is a Financial Expert based in New York City. A full time stock broker, franchise owner, coffee lover and investor; Engler helps startup businesses and franchise’s grow through smart financial planning.