BEANS BUST: Costs Mount
Due to the bean unfriendly weather in Brazil... there is currently a bean shortage for the type used in instant coffee.
This of course, is GREAT NEWS to those of us selling espresso.
Just another reason for people to forget the supermarket CRUD and get a cup of something wonderful!
Maxwell House price hiked as costs rise
By Josh FinemanBloomberg News
Published October 5, 2006, 3:18 PM CDT
Kraft Foods Inc., the world's second- largest foodmaker, is raising the price on Maxwell House coffee, a day after Procter & Gamble Co. lifted the price on Folgers coffee as the cost of beans increased.
The list prices on 11-ounce and 13-ounce cans of Maxwell House roast and ground roast rose by 12 cents, spokesman Larry Baumann said. Kraft lifted prices by 3 cents an ounce on instant coffee or 48 cents a pound.
Rising costs for robusta beans, used in instant coffee, espresso and less-expensive blends, have forced coffee sellers to turn to more expensive arabica beans. That has caused prices to climb, according to coffee traders. Folgers, the best-selling U.S. coffee, and Maxwell House, use robusta and arabica beans. Robusta bean prices have jumped 70 percent in the past year.
The harvest for arabica beans in Brazil is expected to be lower next year. About two-thirds of the world's coffee comes from arabica beans.
Shares of Northfield, Illinois-based Kraft fell 17 cents to $35.44 at 4:02 p.m. in New York Stock Exchange composite trading. The stock has gained 26 percent this year.
The price of a 13-ounce can of Maxwell House ground coffee rose to $2.56 from $2.44, Baumann said. The average price of an 8-ounce can of instant coffee increased to $4 from $3.76.
The list prices on 11-ounce and 13-ounce cans of Maxwell House roast and ground roast rose by 12 cents, spokesman Larry Baumann said. Kraft lifted prices by 3 cents an ounce on instant coffee or 48 cents a pound.
Rising costs for robusta beans, used in instant coffee, espresso and less-expensive blends, have forced coffee sellers to turn to more expensive arabica beans. That has caused prices to climb, according to coffee traders. Folgers, the best-selling U.S. coffee, and Maxwell House, use robusta and arabica beans. Robusta bean prices have jumped 70 percent in the past year.
The harvest for arabica beans in Brazil is expected to be lower next year. About two-thirds of the world's coffee comes from arabica beans.
Shares of Northfield, Illinois-based Kraft fell 17 cents to $35.44 at 4:02 p.m. in New York Stock Exchange composite trading. The stock has gained 26 percent this year.
The price of a 13-ounce can of Maxwell House ground coffee rose to $2.56 from $2.44, Baumann said. The average price of an 8-ounce can of instant coffee increased to $4 from $3.76.
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