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More Coffee Price Increases Ahead

January 14, 2022

Very challenging times for the coffee industry
 
Back in our September blog last year we described the issues causing the price of roasted coffee beans to increase.  We are sorry to report that the upward pressure on prices has continued and, unfortunately, in February, we will need to increase S&T prices once again.

Frosts last year wiped out 30 per cent of crops in Brazil, the world’s largest coffee producer and exporter, and also in Central America.  Droughts in North Africa have also reduced global supply.  And, increased shipping, labour and energy costs are also contributing significantly to the price pressures for all coffee roasters.  Yet demand for coffee around the world continues to grow, placing yet more pressure on prices.

A recent article in the Financial Times illustrates how, unlike historic coffee price patterns, the current rise in the market value of green beans shows no sign of abatement.  Indeed, these ongoing global supply and demand imbalances suggest this trend is likely to be here for the medium term, and may even increase further.

Unlike other roasters in the UK, we have chosen against downgrading the quality of our speciality coffee in order to maintain current prices.  We know that some increases will be unwelcome to most.  However, we believe Spiller & Tait customers value flavour above all else, and this means using freshly roasted coffee beans of the highest quality. The details of this price increase will follow in the coming weeks.

Buying fresh coffee beans and making the drink yourself is still a much more cost effective option than buying a coffee from high street cafes and coffee shops.  But, this is perhaps hollow consolation and we appreciate some customers may choose to shop around for lower priced coffee.  Since the whole coffee sector is facing the same pricing pressures, every roaster is having to review its charges.  So, beware those who are not implementing increases.  It is likely they have chosen instead to reduce the quality of their beans as a necessary trade-off.

We certainly regret having to raise our prices and we will continue to do all we can to reduce costs in other areas of our business to minimise the impact to you as our valued customers. 




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