Consumers are facing a significant rise in coffee prices, with increases expected to reach up to 25% in the coming weeks. This surge is driven by a near doubling of arabica coffee prices due to adverse weather conditions affecting production. Major coffee roasters are negotiating with retailers to pass these costs onto consumers, leading to empty shelves in some supermarkets.
• Raw arabica prices have jumped over 20% this year, following a 70% increase last year.
• Grocery chains like Albert Heijn are running out of stock, but some products are returning at higher prices.
• Brazilian coffee roasters are experiencing steep price hikes, with local prices up 40% due to currency issues.
• Consumers are changing their buying habits, opting for cheaper private label brands over premium options.
This price increase matters because it reflects broader economic challenges. As coffee becomes more expensive, consumers may buy less or switch to cheaper alternatives. This shift could impact sales volumes and profits for coffee companies, affecting the entire industry landscape.
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