Commodities
Your Cup of Coffee Is Already Expensive. It’s About to Get Even Worse
Coffee shops around the world, pinching pennies to prevent another round of hikes, are running out of options as bean costs spike.
A shot of espresso at a coffee shop in the Union Market district in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Global coffee drinkers who’d hoped the price of their daily fix would soon stop rising are due for a bitter wake-up call: it’s about to get even worse.
Both the high-end arabica beans favored by coffee chains like Starbucks Corp. and the more budget-friendly robusta variety have spiked in price, thanks to major supply disruptions from Vietnam to Brazil. Up and down the supply chain, sellers have been raising prices and scrapping discounts to protect their margins, and many warn of more increases ahead.