Costa Coffee warns of rising global coffee prices
The CEO of the chain said that while coffee prices often fall sharply after increases, this has not happened in the past few months - prices remain at an elevated level
British coffee chain Costa Coffe has warned of rising coffee prices as climate change threatens to raise costs.
Philippe Schaile, CEO of the chain, said that while coffee prices often fall sharply after increases, this has not happened in the past few months - prices remain elevated. Costa has run into expensive coffee beans as the company tries to rebuild its business.
The Telegraph notes that today the cost of a latte in Costa is £4.4 (494.5 rubles) compared to £2.9 (325.9 rubles) five years ago. At the same time, the entire global coffee market is experiencing increased volatility caused by bad weather.
Brazil, the world’s largest coffee producer, has been particularly hard hit by the recent drought. As a result, stocks of Arabica grains fell to their lowest level in 26 years, leaving the market vulnerable to further disruption.
Costa said it was struggling with high wholesale prices. The company warned that climate change could reduce the availability of the grains it needs.
Global warming could affect both the quality and quantity of coffee available, while political and economic instability could disrupt exports and supplies.
At the end of August, Bloomberg wrote that in Brazil, with heavy rains, the coffee harvest suffered, which makes it harder for premium coffee producers and their customers to get good Arabica beans. Precipitation not only delayed the harvest, but also worsened its quality, which led to a reduction in the availability of grains.
In the same month, an earthquake struck Colombia, which disrupted the main port of the republic, Buenaventura, and also led to the closure of roads. Colombian coffee exports have been largely halted.
