As manufacturers deal with increasing coffee bean prices, constrained supplies, and other expenditures, many coffee lovers may expect to spend extra for their cup of joe at supermarkets and cafe registers.
Retailers such as Folgers and independent coffee shops are hiking prices or plan to do so shortly, according to executives. Starbucks Corp. and Nestlé SA have indicated that they may raise prices, while other coffee retailers try to keep costs stable in order to attract new customers.
Poor harvests in major coffee-growing countries, as well as logistics snarls, have limited bean supplies, delayed shipments, and raised costs, according to executives. Companies are also increasing wages in order to attract and retain employees.
A cold spell in Brazil, the world’s largest coffee producer, is predicted to diminish next year’s production, exacerbating supply chain problems. According to Macrotrends LLC, the price of coffee futures traded on Intercontinental Exchange Inc. markets has averaged around $1.43 per pound this year, the most it has been since 2014.
In reaction to rising costs, FairWave Holdings LLC, a Kansas City firm that operates 20 cafes and distributes packaged coffee, has boosted menu pricing and restricted hiring, according to management.