Coffee prices, facing a record Brazilian crop and weakened market demand, fell 6.8 percent in the second quarter, a move that has jolted a commodity long considered recession proof, according to The Wall Street Journal. For the full story, click here.
Editor’s Insight: Vending and refreshment service operators must realize their customers are reading the news about falling coffee prices and they cannot afford to ignore it if they want to maintain good customer relations. Both Kraft Foods Inc. and J.M. Smucker Co. announced retail coffee price reductions back in May.
Vending and refreshment service operators do not necessarily have to lower their coffee prices, but they do need to communicate with customers about their costs. Operators can certainly point to a host of costs that are increasing. Customers will accept reasonable prices providing operators educate them on a continuous basis. 07-02-12 By Elliot Maras