August 5, 2025

What do coffee grades mean?

Mike Ward
Mike Ward
Trader, Purchase & Sales

If you read a green coffee offering sheet and find yourself swimming in acronyms like SHG, HG, AA, or Grade 1, you’re not alone! Coffee grades can sometimes feel like a confusing mix of marketing terms and local standards. However, understanding them can help you make smarter sourcing decisions and communicate more effectively with customers. This guide breaks down the most common coffee grading systems, what they actually mean, and how to apply that knowledge to your buying process.

To learn more about sourcing, check out our post on coffee varieties.

Altitude-Based Coffee Grades

In Central and South America, many coffees are graded based on the altitudes at which they’re grown. Higher elevation leads to slower cherry development, resulting in denser beans with more complexity and acidity in the cup.

altitude-based coffee grades

SHG/SHB

SHG stands for Strictly High Grown, and SHB stands for Strictly Hard Bean. These are often used interchangeably, depending on country of origin. Both terms typically refer to coffee grown at 1200masl or higher. Coffees with these grades tend to have the structure and brightness associated with higher-quality lots.

HG/HB

HG means High Grown, and HB means Hard Bean. These refer to coffees grown between 900 and 1200masl. While they’re still considered good quality, they are slightly less dense and may not present as much complexity in the cup as SHGs & SHBs.

Size-Based Coffee Grades

In East Africa, particularly in Kenya, Tanzania, and Uganda, coffee is sorted by screen size after milling.

size-based coffee grades

AA/AB

AA is the largest size and is typically associated with more structured and intense cups. AB is slightly smaller but can still be excellent.

PB

PB refers to peaberries, a natural mutation where only one bean forms inside a cherry instead of two. Peaberries are denser and sometimes described as having a more concentrated flavor, though opinions vary on whether they roast or taste differently enough to justify the distinction.

Size-based grades are more about uniformity than quality. For example, Kenya AA lots often command higher prices due to how the auction system is structured. That being said, great cups can come from AB or PB grades just as easily.

Defect-Based Coffee Grades

In Ethiopia and other parts of Africa, coffee is often graded by the number of physical defects found in a 300 gram sample.

defect-based coffee grades

Grade 1 is the highest level. It applies to washed and natural coffees with very few physical defects. Grade 2 still qualifies as specialty grade and can taste incredible, even if it technically allows for a few more defects. The same logic applies for Grades 3 & 4.

This system helps separate clean, exportable coffees from those used for domestic or low-grade markets. But once again, grading is only part of the story. Many Grade 2 Ethiopians rival Grade 1s on the table.

Regional Differences in Coffee Grading

Each country has its own grading system. Colombia, for instance, uses Excelso and Supremo to indicate bean size. Supremo beans are larger, though they’re not necessarily better. Brazil tends to use classifications like NY 2/3 and SSFC (Strictly Soft Fine Cup), which combine size and cup quality. Indonesia, particularly with wet-hulled coffees, uses Grade 1 to describe coffees with no primary defects.

So, what grade should you look for?

While coffee grades are a helpful starting point, they should not be your only consideration when evaluating a coffee. These systems give you a rough idea of bean size, defect count, and altitude, but they don’t guarantee anything when it comes to flavor. The most important thing you can do is taste the coffee. Use the grade to understand what basic characteristics you might expect, then confirm your expectations on the cupping table.

Shop All Coffee