After investing millions of dollars in new manufacturing facilities, the US coffee group is ramping up production – but now faces fresh hurdles amid rising commodity coffee costs and trade tariffs
Westrock Coffee is closing in on its goal to capture a greater share of the US single-serve and ready-to-drink (RTD) coffee markets after ramping up production at new multi-million-dollar facilities.
The Arkansas-based coffee group achieved 34.8% sales growth to $280.9m during the second quarter ended 30 June 2025, driven by higher pricing and significant production output growth.
However, underlining the high-cost operational environment the coffee group faces, gross profit was $41.4m, flat compared to the prior year period.
Westrock Co-founder and CEO Scott Ford also acknowledged that start-up costs for its new single-serve and ready-to-drink (RTD) facilities had exceeded forecasts, contributing to a $21.5m net loss during the period.
“Our startup costs exceeded our plan, and it was as difficult as our most ardent critics intimated,” he told investors during an earnings call, adding that production had “got off to a much slower volume start than we originally anticipated.”
Nevertheless, Ford said the business was now in a strong position to become “the premier integrated strategic supplier to the preeminent coffee, tea and energy beverage brands globally.”
“Our new extract and RTD facility saw a fivefold increase in sales from our main production line in the quarter and is on track for the third quarter to be up another fourfold. It has not been without its challenges,” he added.
Together, Westrock’s new Conway facilities encompass over one million square feet of production space that can produce and distribute hundreds of millions of RTD cans, glass bottles and multi-serve bottles, along with billions of single-serve cups each year.
After investing hundreds of millions of dollars in boosting production, Westrock has built a formidable multi-channel coffee business capable of making significant market gains in the US.
However, just like its competitors, Westrock now faces unpredictable market headwinds, notably the Trump administration’s 50% tariff on Brazilian coffee imports, high inflation that has dented consumer confidence and the risk of further teething problems at its new production facilities.
Speaking to investors, Westrock’s Chief Financial Officer Chris Pledger said rising commodity coffee prices had been passed on to consumers and contributed to top-line growth. “Net sales grew 60% over 2024, driven by volume growth, margin capture and higher coffee prices,” he said.
Speaking to investors, Westrock’s Chief Financial Officer Chris Pledger said rising commodity coffee prices had been passed on to consumers and contributed to top-line growth. “Net sales grew 60% over 2024, driven by volume growth, margin capture and higher coffee prices,” he said.
