Coffee Makers Were Betting on Lower Prices — They Were Wrong
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Coffee roasters that were betting on lower prices opted out of hedging. Now consumers will pay the price.
Companies that typically take positions in the futures market to protect themselves from price fluctuations changed course when prices began rising last year, betting they could secure a better deal later. But supply shortages persisted and prices kept climbing, leaving companies from JDE Peet’s NV to Starbucks Corp. no option but to raise costs for consumers.