2023-06-05 12:32:36
Coffee is one of the products that have been largely penalized by inflation in recent months. In one year, the price of coffee has thus increased by 12.85%. Over the first four months of 2023, the increase even reached 15%, according to figures from panelist Circana. All packaging is concerned: capsules, soluble or in grains, reports Capital.
This increase is explained by the increase in the world price of coffee, which has doubled (or even more) since 2022. “The harvests have been poor for two years, the dollar has increased, demand has remained strong…”, lists the CEO of the Café Royal brand, interviewed by Capital. Producers also faced rising energy and packaging prices.
Contained increases for some
Lavazza communicated on its situation. The brand said it bought its beans between 500 and 600 million euros a year in the past. Today it spends 1 billion euros for the same quantity of raw material. The price of packages therefore increased by 8 to 10%, a measured increase because the Italian group preferred to cut back on its margins. Result: Lavazza’s sales stabilized at +0.5% in 2022 while the overall market fell by 1.9% over the year.
For several months, the price of coffee has remained stable. The variables that continue to influence its price are energy, packaging and freight rates. A drop in prices has been considered at the request of distributors but “at the moment, we believe we are at the level we should be”, indicated the general manager of Café Royal.
Consumers should therefore not expect lower prices in the coming months. Before making a decision, producers will be attentive to the next coffee harvests, on which the world price will depend. Adverse weather conditions might cause prices to rise once more in 2023.
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