TORONTO — Looks like there is more bad news for the pocketbook with reports that the price of “green coffee,” — unroasted coffee beans fresh from the plant — has risen almost 30 per cent in the last 10 weeks.
The soaring prices are already being passed to the customer in many cases. According to the Toronto Star, Kraft Canada is expected to raise the prices of its Maxwell House, Nabob and Sanka coffees for the second time this year.With that in mind, the word from big coffee giants like Tim Hortons and Starbucks is more positive. “Typically, Tim Hortons books its coffee contracts for at least six months at a time,” Alexandra Cygal, manager of Public Affairs was quoted as saying by the Star. “This protects our restaurant owners and customers from jumps in worldwide markets. We’re not looking at any increase in our coffee prices at this time.”
The story is similar at Starbucks. “For many years Starbucks has diversified its coffee procurement into multiple coffee growing regions, and we remain confident in our ability to manage this dynamic effectively for our customers while continuing to build and maintain long-term value for shareholders,” reads a company statement.
Both chains did raise prices earlier this year, as will Second Cup in the coming months. In June, Stacey Mowbray, Second Cup CEO, announced that the price of a cup of java would increase by a nickel in the fall. She explained the company had not raised coffee prices in more than a year despite increases at its competitors.