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Coffee prices expected to jump as supply struggles worsen | Honolulu Star-Advertiser

  • Roasters like Lavazza, Illy, Nestle, and JDE Peet's are negotiating with retailers to transfer costs resulting from the near doubling of arabica coffee prices.
  • Raw arabica prices have spiked due to four consecutive seasons of deficits and adverse weather conditions that impact Brazil, which produces nearly half of the world's arabica.
  • As roasters press for price hikes, some grocery stores and supermarkets are pushing back, postponing new supply deals, and in some instances, running out of coffee stock, such as Albert Heijn in the Netherlands.
  • With global arabica prices up over 20% this year and raw bean prices in Brazil rising 170% last year, ABIC, the Brazilian coffee roasters association, reports Brazilian shop shelf prices have already surged 40% and expects further increases.
  • Market research indicates a 3.8% drop in roast and ground coffee sales volume in North America and Europe last year despite a 4.6% price increase, with J M Smucker, maker of Folgers, and Dutch Bank ING anticipating further price hikes of 15%-25% and a decline in sales volumes as consumers ration, change habits, and trade down to private label brands.
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The Straits Times broke the news in Singapore on Thursday, March 27, 2025.
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