Major Coffee Traders Compete More Aggressively For Coffee

The Wall Street Journal recently reported that coffee prices have increased so much that big trading houses such as Nestlé SA to pay cash immediately and at prices above what cooperatives had been offering.

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Editor’s Insight: All coffee retailers have struggled with rising coffee prices in recent months. Based on the information in this Wall Street Journal story, it doesn’t look like there will be any significant change in coffee prices in the near future.

The increases have actually enabled coffee retailers – including refreshment service operators – to increase their sales even though their unit sales have not increased. Resellers have been able to pass on price increases without experiencing too much resistance from customers. This is because the coffee industry has taught consumers to appreciate a good cup of coffee. 07-19-11 by Elliot Maras

 

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