Search

Coffee Prices Will Rise Even Higher, Says Giuseppe Lavazza

Italian coffee company Lavazza predicts that coffee prices will remain high and unlikely to drop until mid-next year due to intense pressure on supply chains. The company’s chair, Giuseppe Lavazza, admitted that he had been wrong to predict that prices would begin to fall this year. The coffee supply chain is under significant pressure, with worsening harvest conditions in Brazil, Vietnam, and Colombia, and shipping disruption caused by the Middle East conflict exacerbated inflationary pressures. This has led to a 15% increase in the price of a 1kg bag of beans for UK consumers, and Lavazza believes this could increase by 20% to 25% over the coming year.

However, the trend of UK consumers turning to beans for fresh coffee at home has not declined, which began when cafes were closed during the pandemic. In 2023, Lavazza recorded net profits of €68m, down from €95m in 2022. The UK retail coffee market is worth £1.3bn, growing by 3.9% year on year, driven by price inflation of 3.8%. Sales volumes were up 2.9% in 2023, equivalent to 32m more cups of Lavazza coffee than two years ago.

Read More @ The Guardian

Suggested Reading