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On the back of commodity prices rising, roasters big and small have started raising their retail prices to compensate.
J.M. Smucker Co, which produces Folgers and Cafe Bustelo, JDE Peet’s, Nestlé, and Starbucks have all raised their prices over the past year. In addition, as Charlotte Hughes-Morgan reports for Bloomberg, European grocery stores have stopped stocking some coffee brands as they look to renegotiate supply deals.
“Coffee roasters are trying to increase the prices to the supermarkets, and supermarkets are basically saying ‘No,’” said Cyrille Filott from Rabobank.
Dutch grocery chains Jumbo and Albert Heijn have stopped stocking some JDE Peet’s products. In Germany, local news outlets reported that some JDE products were missing from grocery chains like Edeka and Aldi Nord.
“Most of the retailers understand that coffee is a pass-through model,” JDE Peet’s CEO Rafael Oliveira said on a recent earnings call, referring to the practice of passing cost increases on to the buyer. “The reality is significant price increases are inevitable.”
