Coffee Price Surge: How Climate and Market Forces Are Brewing Trouble

JDE Peet's will increase coffee prices in Brazil by 30% next year following a significant rise this year, driven by weather disruptions in major coffee-producing countries such as Brazil and Vietnam. The overall market has seen an 80% price surge due to these conditions.

JDE Peet's, a global coffee giant, is set to escalate its coffee prices in Brazil by an average of 30% next year. This decision follows a nearly 100% surge in global coffee prices this year, according to traders who reviewed communications to JDE Peet's clients.

As the world's second-largest coffee-consuming country, Brazil is bracing for increases from other coffee companies as well, once long-term retail contracts conclude. JDE Peet's, known for brands like Jacobs and Douwe Egberts, has yet to provide official comments on this matter.

Unfavorable weather patterns in key coffee-growing regions such as Brazil and Vietnam have significantly impacted production, prompting global coffee prices to climb. This situation puts additional pressure on coffee companies already facing difficulties transferring rising costs to consumers amidst a global cost of living crisis.

(With inputs from agencies.)