Climate Impact: Global Coffee Price Surge

Major coffee roasters in Brazil, including JDE Peet's, plan to increase prices due to adverse weather boosting raw bean costs. The global coffee prices have surged 80% this year. Retail prices in Brazil will see hikes of up to 30%. Issues include drought and economic instability.

Brazil's leading coffee roasters, such as JDE Peet's—among the largest globally—are preparing to raise domestic prices early next year after poor weather conditions sent raw bean prices soaring. This week, global coffee prices reached record highs, having surged by approximately 80% this year due to adverse weather in Brazil and Vietnam, the top coffee producers worldwide. Consumers could start feeling the price impacts as soon as March.

Brands like Jacobs, L'Or, and Douwe Egberts will see a 30% price increase in Brazil next year, as noted in documents sent to clients and revealed by Reuters. Although JDE Peet's was not immediately available for comment, other brands like 3 Coracoes and Melitta have already implemented substantial hikes due to ongoing climate issues and rising demand.

These price adjustments reflect broader global impacts of climate-induced droughts in Brazil and Vietnam this year. With raw coffee prices jumping by 30% in international markets recently, retail prices are set to rise further. Coffee companies have struggled with narrowing margins amidst consumer pushback, and industry experts predict that mounting costs could prompt some consumers, particularly in developing nations, to cut back on coffee intake.

(With inputs from agencies.)