The price of arabica beans has soared to a record $3.44 per pound, reflecting an increase of over 80% since the start of the year. This surge is driven by significant supply concerns due to severe droughts and weather extremes affecting the leading coffee producers, Brazil and Vietnam. Consequently, the mounting pressure on profit margins has forced coffee brands to reconsider their pricing strategies as they prepare to pass these costs along to consumers.
According to David Rennie, head of coffee brands at Nestlé, the firm plans to raise prices and possibly adjust package sizes due to the volatility in raw material costs. He referred to the current climate as 'tough times' for the entire coffee industry, highlighting the pressure from soaring bean prices and low inventories, which leave companies with little choice but to increase costs for their customers.
Collection
[
|
...
]