JDE Peet’s, the parent company of Douwe Egberts, has announced a significant price increase for coffee, raising costs by 10 to 25 percent. This move has led to backlash from retailers and smaller coffee brands. The price for a kilogram of coffee beans will now be 21.55 euros, with a half-kilo costing 10.69 euros. This marks the third price hike since January last year, totaling a 64 percent increase over 18 months. Interestingly, raw coffee prices have actually fallen this year, prompting experts to question the reasoning behind JDE Peet’s decision.
• Retailers like Jumbo and Picnic have stopped orders due to the price hikes.
• JDE Peet’s reported a profit increase of 13.4 percent for 2024 and plans for share repurchases.
• Critics argue that the pricing lacks transparency and harms coffee farmers.
• Smaller brands emphasize fair pay and direct sourcing to support farmers.
This situation highlights the ongoing struggle between large corporations and smaller businesses in the coffee industry. It raises important questions about pricing fairness and the impact on coffee farmers, many of whom live in poverty despite the rising consumer prices. The controversy calls for a reevaluation of how coffee pricing is determined and who truly benefits from the profits.
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