The price of coffee at the bar could reach 2 euros: here’s why
Coffee at the bar could cost up to 2 euros in the next few months: to explain why, in an interview withAdnKronosis Cristina Scocchia, CEO of illycaffè.
The origin of the probable increase is the ever-increasing cost of the raw material: “We are always in a storm, the market continues to be characterized by a price of green coffee that is very volatile and by an unprecedented upward trend. Today green coffee costs 245 cents per pound, 66% more than last year, more than double compared to 3 years ago. And this explains why in three years the cost of the cup of coffee we drink at the bar has increased by 15%, and now costs an average of one and a half euros in Italy. And it is estimated that it will increase further, and that it could reach 2 euros in the coming months if these upward pressures on the cost of green coffee, the raw material, continue”.
Among the problems is also the one related to the blockage of the Suez Canal: “The reasons why green coffee continues to cost more and more are many and do not have an easy solution. The first is certainly climate change, which could halve the cultivated land by 2050. Just think of what is happening in recent months: from torrential rains in Brazil to drought in Vietnam. But in the short and medium term, the supply chain is also under pressure due to the problem related to the Suez Canal, which has increased costs and lengthened times, and due to speculations that concern soft commodities more generally”.
“In the two-year period 2022/2023 – concludes Cristina Scocchia – they increased by 17% for our company, but we have only passed on to consumers a third of this increase in costs (3% in January 2022 and 3% in January 2023). For the moment we do not intend to increase the price of our products to help our end customers, both B2B and B2C, but evidently we will have to review this decision if the upward trend were to persist”.
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