Instant coffee prices have begun to rise as the effects of a raw material shortfall begin to kick in.
The Grocer 33 price survey shows that the in-store price of Nescafé instant coffee 200g has risen from £3.24 to £3.58 in the big four.
Last month, The Grocer revealed that prices were poised to soar following poor growing conditions in Brazil, Colombia and Vietnam and a surge in demand in the developing world that led to a depletion of stocks (April 16, p9).
The 10.5% rise in retail prices has come a month earlier than many traders expected. They had anticipated that retailers would
hold out for as long as possible before increasing prices. One trader said: “Prices for Robusta, which is very much a Nescafé bean, have risen quite dramatically over the last month, which has moved things along more quickly.”
Last week, the price of Robusta on the commodity market was $1,145/tonne, compared with $750/tonne in December.
A Nestlé spokesman said :“The cost price increase reflects a combination of higher prices among the component parts making up the price of a jar of Nescafé coffee.
“These include ingredients, transportation, packaging, energy and production costs.”