TORONTO — The value of coffee beans has nearly doubled this year, partly due to concerns that lack of rain in Brazil could affect exports, reports CTV News.
In October, the price of Arabica beans rose to a two-and-a-half year high, as weather forecasts for the region suggested that next year’s crop could be dramatically impacted.
Some coffee prices have already increased in anticipation of future supply levels. Seattle-based Coffee chain Starbucks increased prices during the summer and other suppliers have followed suit, including Keurig K-Cup maker Keurig Green Mountain, Inc. based in Waterbury, Vt., and Orrville, Ohio-based J.M. Smucker, which makes the Folgers brand.
According to CTV, most of Oakville, Ont.-based Tim Hortons’ key coffee deals were negotiated more than a year ago, which has allowed executives to navigate through one of the most volatile periods for coffee prices in recent memory. But CFO, Cynthia Devine, said the increased cost of beans will be taken into consideration as the company prepares for 2015. [ctvnews.ca]