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Java Junkies Jolted by Rising Coffee Prices

Coffee Prices On The Rise
Mario Tama/Getty Images

A surge in coffee prices due to inferior crops in Colombia has coffee lovers digging deeper in their pockets to pay for that cup or can of  java.  A one pound can of ground coffee sold for $5.10 last month compared to $3.64 in April 2010.  This is a 40 percent increase. Wow! That’s more of an increase than the price of gasoline.

Starbucks this week announced they will raise packaged coffee prices by as much as 17% this summer.  The JM Smucker Company which produces brands like Folgers and Dunkin’ Donuts coffee had previously said they’d raise their prices by 11% to offset the price of coffee beans.

Starbucks price increases go into effect July 12th at their retail locations.  This will be Starbucks first increase since September 2009.  Starbucks has no plans to raise prices on beverages sold at their Starbucks stores.

Many large coffee retailers have raised their prices 22-to-38% since May of last year. Global inventory of high quality coffee beans is at its lowest level in fifty years. 

So far US consumers have been willing to pay higher coffee prices but industry analysts say that with gas prices also on the rise, “Java Junkies” may begin to curtail their daily consumption.  Oh the price we’ll pay for automotive and human fuels!

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