The price of coffee is at its highest in almost 50 years on the stock markets. So be prepared to pay more, especially at the grocery store.
“We saw it coming and we are right in the problem. Our prices should increase by 5% in the next year,” says Jérôme Grenier-Desbiens, owner of Structure Torréfacteurs in Montreal.
His company will sell its 300 gram bag of coffee for $21 instead of $20. The slats will cost 25 cents more.
Because of the increase in prices, Jérôme Grenier-Desbiens expects to sell fewer prepared coffees and more bags of beans.
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Prices are soaring
The prices of Arabica and Robusta beans have almost doubled in one year, reaching a level not seen on the stock markets since April 1977.
This increase has an impact on small independent cafes which buy part of their beans directly from producers – and who already pay a high price – and another part at the stock market price.
However, the impact is even greater for large companies, such as Lavazza Maxwell, Van Houtte or McDonald’s, which are entirely dependent on the stock markets.
“Commercial roasters and large chains like Tim Hortons, which produce the lowest quality, are directly linked to these rising prices and will feel it as a big shock,” explains Jérôme Grenier-Desbiens.
In the Dreamy café, in Montreal, on November 29.
Photo Axel Tardieu
The reasons for the increase
If prices are increasing, it is due to global warming, which affects the quality of harvests in producing countries like Vietnam and Colombia.
Brazil, the world’s largest producer, is affected by a historic drought and weeks of fires.
Alexandre Séguin, co-owner of Cafés Pista, is roasting coffee beans on November 29.
Photo Axel Tardieu
Alexandre Séguin, co-owner of Cafés Pista, visited Espírito Santo, a state in the southeast of Brazil, in September.
“It had been more than six months since it had rained. All the producers told me that climate change was a big issue, because their production is decreasing and the quality is less good,” he explains.
In its three cafes in Montreal, prices increased by 5% in November after they had already been raised in January 2023.
“We have to say it, it’s [le café] a luxury product,” summarizes Alexandre Séguin.
