Vail’s arrival percolates down as coffee seller loses PCMR business
November 11, 2014
The impact of Vail Resorts’ acquisition of Park City Mountain Resort has percolated down to a Park City-based coffee company.
A co-owner of Park City Coffee Roaster said in an interview PCMR informed him on Monday the resort will no longer purchase coffee from the company and Park City Coffee Roaster will no longer be allowed to sell coffee at PCMR.
Robert Hibl said Park City Coffee Roaster has sold its PCMR blend at the resort since 2001. The custom blend is organic and uses coffee beans acquired through fair-trading practices, Hibl, who co-owns the company with his brother, said. The beans are from Ethiopia and the Indonesian island of Sumatra.
"I’m kind of bummed out. I know business is business," Hibl said.
Vail Resorts, a Colorado-based firm, and Starbucks have a partnership calling for Starbucks to be the official coffee of Vail Resorts, according to an online list of Vail Resort’s partners. The Starbucks entry on the list, which is posted on the Vail Resorts website, says, in part, "world class snow deserves world class coffee."
Park City Coffee Roaster sells throughout Utah and has approximately 20 restaurants in the Park City area as clients. Hibl said the company typically sold between 8,000 pounds and 10,000 pounds of the PCMR blend to the resort annually — between $42,000 and $45,000 worth of coffee each year.
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Hibl said Park City Coffee Roaster buys coffee on the futures market. At the end of September, the company purchased enough coffee, approximately 4,500 pounds, for the anticipated sales at PCMR through the middle of January, he said. Park City Coffee Roaster will eventually sell the coffee elsewhere, Hibl predicted.
He anticipates Park City Coffee Roaster will lose between $15,000 and $20,000 in profits annually by not selling at PCMR. Hibl said coffee was sold at five locations at PCMR, including the Legacy Lodge and the Mid-Mountain Lodge. Hibl said he plans to remove the Park City Coffee Roaster equipment from the PCMR locations by the middle of next week. He said losing the PCMR business will not result in job losses.
Park City Coffee Roaster says on its website it roasts small batches of coffee beans weighing between 20 pounds and 25 pounds, advertising itself as offering "the freshest coffee in town."
A Vail Resorts representative did not immediately respond to a request for comment about the Park City Coffee Roaster situation.
Vail Resorts’ list of corporate partners includes 13 companies, including Starbucks. Others include Pepsi, Sprint, Bud Light, American Express and Hertz. The list also includes GoPro as the official camera, Nature Valley as the official snack, NetJets as the exclusive private aviation partner and E. & J. Gallo Winery as the official wine and sparkling wine.
There are five Starbucks locations in the Park City area, including on Park Avenue and inside grocery stores. Park City Coffee Roaster has one location, on Ute Boulevard at Kimball Junction.
UPDATE: Vail Resorts submitted the following prepared statement after this article went to press late Tuesday:
We have strategic partnerships with a number of companies to enhance the guest experience across our resorts and, as part of integrating Park City Mountain Resort into the Vail Resorts family, we are changing coffee suppliers at the resort to our longtime partner, Starbucks, whose products are exclusively served at all of our resorts.