Are pricier lattes in your future?
Brace for more doomsday food news: Coffee is getting more expensive as supply fails to keep up with demand. According to Reuters, the global coffee market is currently witnessing its "first supply deficit in six years," with prices expected to rise as much as 30 percent over last year by the end of 2016.
Extra-dry weather has led to shrinking output in a number of coffee-growing countries, and meanwhile, the global demand for coffee is greater than ever: Traditionally tea-drinking nations such as the UK and China have witnessed a steady increase in the demand for coffee in recent years, with Starbucks expecting China to eventually be its biggest market.
So does this mean your Starbucks lattes are about to get even pricier? Not really: The coffee giant's price hikes don't necessarily reflect what's happening in the global coffee market. In mid-2015, for instance, Starbucks raised its prices just as the cost of coffee beans were falling. Despite being the linchpin of its business, coffee actually only accounts for less than 10 percent of Starbucks' costs; other expenses, such as employee wages, carry considerably more weight.
But with some warning that a serious global coffee shortage is imminent thanks to global warming, maybe learning to love green tea or mate isn't such a bad idea. After all, you'll need to stock your doomsday shelter with something caffeinated just in case a certain Cheetos-hued politician takes power.
• Why Your Morning Coffee Is About to Become Even More Expensive [Reuters via Fortune]
• Coffee Market Braces for Global Warming's Effects [E]
• Starbucks Is Raising Prices by as Much as 30 Cents on Certain Drinks [E]
No comments:
Post a Comment