Cloudy with a chance of a coffee price increase!

It’s funny how everyone carries on about the supposed coming increase price of coffee. My insights over the last decade plus;



1. Every few years there is a spike in the price of coffee followed by a downswing to in some cases historical lows. The daily weighted average price is actually lower now than two years ago, but like any commodity it fluctuates in the futures markets in line with market sentiment.



2. The price of coffee came back significantly a few years ago yet no one put their prices down, yet there is talk again of taking the price up. Seriously lets be consistent. Look up price elasticity on google and find out what the real cost will be.



3. Coffee itself is about 6% of the input cost of a take away cup in Melbourne, so any increase will not be felt at the cup price, if it is the cafe owner needs to think about his/her economics.



4. The media love the hype as we love our morning Latte enema shot. Lets not let the facts get in the way etc etc.



Life is too short for bad coffee,..

Peter Christo

MNI_20110802102741

SocialTwist Tell-a-Friend

Comments are closed.