Image via WikipediaYou may soon find yourself paying more for your morning coffee...if you aren't already. A trifecta of bad news has sent coffee futures soaring 44% since June, and companies like Dunkin' Donuts, Green Mountain and Maxwell House are passing on those costs.
Bad weather in South America is threatening crops. Brazil and top exporter Vietnam are talking about hoarding their stocks. And U.S. stockpiles are reportedly at 10-year lows. That means higher prices for U.S. coffee companies, which, in turn may mean higher prices for consumers.
Bagged coffee from Folgers, Dunkin' Donuts and Millstone already cost 10% more. Parent company J.M. Smucker, which announced the price hike last month, cited "sustained increases in green coffee costs."
Kraft Foods raised prices of Maxwell House Coffee and Yuban coffee products by about 9% last month as well. That translates into a price hike of 5 cents to 30 cents per pound of ground coffee and an increase of 2.5 cents per ounce for instant coffee.
And single-serve K-cups, sold at Tully's Coffee, Timothy's Coffee, Newman's Own Organics, Caribou Coffee, and other Green Mountain Coffee brands will see prices rise 10% to 15%, starting Oct. 11. Sales of the brewing system and K-cups make up about 86% of Green Mountain Coffee Roasters Inc.'s business. More...
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