How Rising Coffee Prices Will Make Your Daily Coffee Cost More
The cost of the raw coffee bean increasing is about to hit home strongly. Keurig Green Mountain has announced an increase on their popular K-cups and other coffee of up to 9% as of November 3! So what does this mean for your office coffee service and/or your current coffee prices?
Keurig Green Mountain said they needed to raise their prices because of the large increase this year in the cost of the raw coffee bean. They also cited such factors as increases in packing materials, energy, and transportation costs. So what does this all mean for you, the consumer? Well if you are buying coffee for your entire office, you will be hit the hardest vs. those companies who have contracts with coffee delivery services. Now this isn’t saying that your current price of coffee with your coffee service provider isn’t going to change, but the mark up in stores is probably going to be much higher.
Keurig Green Mountain isn’t alone in announcing price increases this year. In June, J.M. Smucker announced that it raised prices wholesale prices on most of its packaged coffee, including products sold under the Dunkin Donuts and Folgers brands.
Coffee bean prices surged this year, in part because of a fungus that swept through growing regions in Central America. A drought in Brazil has also contributed to the scarcity of quality beans. Brazil is the largest producer of coffee beans on the planet and a shortage of rain this season is wreaking havoc on Brazilian coffee growers, and as a result world prices.
So in reality how much does this affect your cup of joe? Well considering the average cup of coffee at a Starbucks will run just under $2.00 a cup (for the low grade, regular coffee) and the average cost of a k-cup runs about 55 cents you could see a 10-15% swing in your coffee expense if you are purchasing from stores. Also, consider the amount of coffee you are drinking. Some offices consume so much coffee they burn through Keurigs a few times a year. Perhaps it’s time to consider a coffee service, which would eliminate the maintenance cost of the Keurig and essentially cut down the cost of your daily brew.
Bottom line, your daily brew will cost you more!
Ready to take your daily dose of caffeine to the next level? Consider giving your Java Geniuses a call to find out how much we can save you on your cup of joe.