April 2, 2025

Coffee Prices Hit Record High Amid Supply Crunch

Image of woman at desk with a take-out coffee cup in front of her

%Coffee prices are at an all-time high amid a global supply crunch, putting upward pressure on consumer prices.

The average price for a pound of ground roast coffee just hit a record $7.25 U.S., according to the U.S. Bureau of Labor Statistics.

Coffee prices have surged in recent months as a drought has devastated crops in Brazil, the world’s top producer of coffee beans.

The current situation is forcing coffee wholesales, distributors, and retailers to raise prices for consumers who were already paying high prices for their daily jolt of caffeine.

Companies impacted by the record coffee prices include everyone from retailers %Starbucks (NASDAQ: $SBUX) and %McDonalds (NYSE: $MCD) to distributor %FarmerBrosCo (NASDAQ: $FARM) and food company %KraftHeinz (NASDAQ: $KHC), which owns the Maxwell House coffee brand that’s sold in grocery stores.

Starbucks Chief Financial Officer Rachel Ruggeri said recently that the company’s products sold in supermarkets will be affected “in a more meaningful way” due to rising coffee prices.

With prices at record levels, companies are reducing their inventories of coffee beans and making purchases in very small amounts.

The record prices are negatively impacting the entire supply chain for coffee, with cash-strapped companies struggling to finance the transportation of beans from where they’re produced.

Coffee beans aren’t the only commodity to see elevated prices after supplies were wiped out by extreme weather. Prices for cocoa, the key ingredient in chocolate, are also near record highs.

Article link: http://www.yolowire.com/latestarticles/15650/coffee-prices-hit-record-high-amid-supply-crunch