Global Coffee Price Surge: Impact and Reactions

Brazil's leading coffee roasters are preparing to increase domestic prices following a significant rise in raw bean costs due to adverse weather. Global prices have escalated by 80% this year, impacting consumers worldwide. JDE Peet's plans a 30% price hike, with other companies following similar trends.

In a move expected to reverberate across consumer markets, Brazil's prominent coffee roasters are gearing up to raise domestic prices starting early next year. This decision comes in response to a dramatic surge in raw bean prices, prompted by adverse weather conditions affecting crop outputs in key growing regions such as Brazil and Vietnam.

The global market for raw coffee has seen prices soar to unprecedented levels, climbing by approximately 80% this year alone. As one of the world's largest coffee entities, JDE Peet's, known for brands like Jacobs and Douwe Egberts, plans to implement a 30% price increase in Brazil. This move, reported by traders familiar with the company's documents, highlights the broader trend of price adjustments anticipated internationally by March.

Despite the challenges, some global entities, including Nestle, are also grappling with consumer pushbacks over price hikes, contributing to a decline in share values. This squeeze comes amid a global economic backdrop of rising living costs, as coffee companies look to navigate evolving market dynamics.

(With inputs from agencies.)