Reborn Coffee signs $20 million supply deal with Mighty Oak

Specialty coffee supplier Mighty Oak has entered a $20 million supply agreement with Reborn Coffee, a U.S.-based specialty roaster, the companies said on Monday.

The 10-year deal covers the annual delivery of high-grade Arabica beans, with volumes escalating over the term. Mighty Oak will supply Reborn Coffee under fixed-price terms for the first five years, followed by indexed pricing aligned to global coffee futures, the companies said in a joint statement.

The agreement provides Mighty Oak with a stable revenue stream and enhances its market position in the premium coffee segment, which has seen increased demand amid supply chain disruptions and shifting consumer preferences toward specialty products. Reborn Coffee, which operates roasting facilities in California and Texas, plans to expand its retail and wholesale distribution channels using the secured supply.

Financial terms were not disclosed beyond the $20 million aggregate value. Mighty Oak, a privately held firm, did not provide additional details on production capacity or margin impacts. The deal follows a broader trend of vertical integration in the coffee industry, as roasters seek to secure long-term supply amid volatile commodity markets.

Analysts note that fixed-price contracts can mitigate input cost risks but may limit upside if coffee prices decline. The agreement underscores the strategic importance of supply chain resilience in the specialty coffee sector, where quality and consistency drive premium pricing.