Underwood Coffee opens in historic Board of Trade building

Jake Underwood has opened his first brick and mortar coffee shop in the historic Board of Trade building. Underwood started roasting coffee about 10 years ago and has been wholesaling his specialty brands to coffee shops and grocery stores in Duluth, the Twin Cities and beyond since 2020. (Photo by Mark Nicklawske)

A Duluth coffee roaster who found early success in local restaurants, cafés and grocery stores has opened a new brick and mortar shop in one of the city’s most iconic downtown buildings.

Underwood Coffee launched its first retail store and coffee shop in a street-level corner space at the Duluth Board of Trade Lofts, 301 W. First St., in June. The business celebrates its grand opening with music, special events and free samples Friday, July 10.

While the sunny coffee bar is new to Duluth, the drinks it serves are not.

After years of working barista jobs and roasting for other companies, owner Jake Underwood founded his own coffee business in 2020 during the COVID-19 pandemic. The company now supplies its specialty roast coffee to more than two-dozen retailers in Duluth, the Twin Cities and beyond.

Underwood said opening a new retail location continues company growth in a place where he has deep roots.

“I grew up in Duluth and wanted to do something for the community where we could showcase our coffees our way,” he said. “We felt like it was the next step for us to get a brick and mortar going.”

First Street, with its historic buildings and gritty downtown scene, held strong memories for Underwood. The neighborhood was home to Freestyle Duluth, a favorite skate shop and youth hangout.

“I spent a lot of time with my friends skating around downtown, getting kicked out of different places, just being general hoodlums,” he said. “I felt like downtown needed some attention and this place was perfect for what we were looking for and envisioning for a café space.”

Located in the former Protein Pub lunch spot, the new Underwood Coffee shop features big windows, lots of natural light and custom-made tables and benches. Walls are decorated with skateboards, old maps and vintage wildlife art, while a back room is available for private parties or live music.

Underwood said after some bank struggles, financing came together and more than $20,000 was spent on demolition, a new room design and coffee bar, not to mention basics like electrical and plumbing upgrades. “It was in pretty rough shape,” he said. “It needed a lot of love to get it to where we wanted it.”

The historic Board of Trade building opened in 1895 and was the center of North American grain trade for decades. The trading floor closed in 1972. The building has been used for general office space until owners began an office-to-housing conversion in 2020. (2026 photo at left by Mark Nicklawske; circa 1912 postcard image at right)

The seven-story, red sandstone and brick Board of Trade building was constructed in 1895 and served as the center of North American grain trade for decades. According to a 2005 National Register of Historic Places survey, the building was designed by architects Oliver Traphagen and Francis Fitzpatrick. It features arched doorways and intricate facade carvings by local mason George Thrana. Grain and commodity trading ceased at the location in 1972 and the building was leased for general office space. The Minnesota Ballet took over the historic trading floor in 1999 and used it as a dance studio before moving to its current Michigan Street location in 2018.

In 2020, owners announced an office-to-housing conversion plan promising 84 apartment units for the upper floors, according to a story the Duluth News Tribune. INH Properties, in Waite Park, Minn. manages the building and leasing operations.

The new coffee shop space is drawing a lot of office workers, downtown residents and longtime brand followers, Underwood said. A variety of different blends are roasted in a Lakeside facility and have been served in places like Back Alley Coffee, Duluth Grill and 190° Coffee and Tea for years. Underwood said 75-percent of the coffee he roasts is sold in the Twin Cities.

Voyageur Donuts in Canal Park is a recent Underwood Coffee convert. Café Manager Randi Potter said the shop used a different brand when it opened its Duluth location last year.

“We wanted to bring it a little bit closer to home so we decided to start sampling roasters in Minnesota,” she said. “We did a bunch of cuppings and testings with our teams and settled on Jake’s roast — it’s a fantastic flavor profile.”

Potter, who has been in the industry for more than a decade, said Underwood is widely respected in the coffee community and knows how to bring the best out of a bean.

Underwood Coffee founder and owner Jake Underwood stands outside the new Underwood Coffee shop at 301 W. First St. (Photo by Mark Nicklawske)

“He hits his flavor profiles right on the nose. I can smell them. I can taste them. They’re just so prominent. He just seems to know how to coax the coffee, interact with the coffee in a way I’ve not seen many roasters do before,” she said.

Studio Café owner Pete Pascente said his Superior Street shop also features Underwood Coffee. He said the blends are consistent and the flavors are complex and delicious. “We’re super lucky to have him roasting here in Duluth,” he said. “The more awesome spots like Jake’s we have downtown, the more reasons for people to come here and hang, and the faster downtown will grow.”

Pascente called Underwood Coffee the best cup of coffee in Duluth.

Not bad for someone who admittedly stumbled into the business.

“I had quit drinking in my early 20s and I was kind of looking for a new vice,” he said. “A friend gifted me a French press, whole bean coffee and a blade grinder. I didn’t know what to do with it but I figured it out, stumbled my way through and made some coffee. It was better than anything I ever had before.”

Underwood said he became obsessed with coffee and started experimenting with beans from all over the world. He begged for barista jobs, worked long hours and rose up the ranks at an independent coffee roaster in the Twin Cities. He returned to Duluth and started a business.

“I’m just trying to do the best job I can and give something back to the community I grew up in. If people connect with it, great.” he said. “We’re trying to do our thing. We’re trying to do good things. Hopefully people enjoy it.”