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With Small Coffee Brands Reeling, Nestle, Starbucks Set to Grow

  • Big producers gain advantage as virus hits out-of-home market
  • Specialty producers struggle to survive through the closures
A pedestrian wearing a protective mask walks past a temporarily closed Starbucks location.
A pedestrian wearing a protective mask walks past a temporarily closed Starbucks location.Photographer: Gabby Jones/Bloomberg
Updated on

Starbucks Corp. and Nestle SA, the maker of Nescafe and Nespresso coffee, could see their brands grab a bigger share of the market as the virus lockdowns end, limiting consumer choices.

Futures prices for arabica coffee, the kind used by Starbucks, have fallen 26% in New York this year. The drop comes as the pandemic has curbed demand at coffee shops, restaurants and offices, and as global supply has surged.