Coffee Drinking Becoming An Expensive Habit

A photo of a cup of coffee.

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Coffee prices have been ticking upward for over a year with no end in sight. The price of a pound of raw coffee beans has almost doubled in 12 months. Now consumers are cutting back, roasters are struggling and retailers are scrambling to cover costs. With rising food and fuel prices, coffee drinkers are left to make tough choices about their caffeine habits. Kraft Foods Inc., makers of Maxwell House, raised prices 22 percent in March. Other price increases came from J.M. Smucker Co., the maker of Folgers, and Starbucks Corp.

Even discount stores have raised prices. Costco‘s wholesale coffee costs increased about 25 percent over the past year. Retail prices have gone up 10 percent as a result. Price increases are the result of higher demand worldwide. Coffee imports have increased by 23 percent over the last decade, according to data from the International Coffee Organization. Meanwhile, coffee futures rose more than 50 percent in the past year. Coffee prices are up because of rising demand, higher fuel costs. High coffee prices has roasters, retailers struggling to cover costs and there seems to be no end in sight. For more information check out the full article here. Also visit our homepage today at http://www.kimberleyvassal.com for a free insurance quote!

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