The price of coffee has reached a historic high and we should not expect the rise to stop anytime soon, warns food industry specialist at Dalhousie University, Sylvain Charlebois.
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“I have the impression that the price of coffee will continue to increase. It is certain that we will perhaps see declines here and there, but overall, I think that we actually see an upward momentum for the coming years. So coffee risks costing more,” said the expert, in an interview on LCN.
And for the latter, the GST holiday which came into force on Saturday will not necessarily help consumers save on the price of their cup of coffee.
He expects grocery stores to raise coffee prices to make up for the 5 percent reduction due to the federal tax break.
“We could see certain chains increase the price of a cup of coffee, since we may not notice it, due to the two-month GST holiday,” explains Sylvain Charlebois.
“Food is really a part of pennies. So if we can get a penny or two, we’ll do it. And with catering, even in retail, you don’t look at prices too much, you can’t memorize everything at the grocery store or restaurant. So it can be a dangerous game,” he adds.
The latter also believes that restaurant chains that sell coffee will want to take advantage of this GST holiday to increase their prices.
“I have a feeling we might see some chains ultimately benefit from this, other than maybe McDonald’s. McDonald’s, really, for some time now, has been selling coffee at a loss,” mentions the food industry specialist.
It is also a safe bet that grocery stores and restaurants which increase the price of coffee during the GST holiday will not want to reduce it when the tax break ends on February 15, estimates Mr. Charlebois. In the long term, this would mean that the federal government’s measure will have allowed retailers and establishments to increase the cost of your cup of coffee.
To see the full interview, watch the video above.
