Coffee Prices On The Rise

Get set for a jolt when you walk down the coffee aisle and it’s got nothing to do with caffeine.

Coffee prices are expected to rise over the next few months, possibly to the highest level since two years ago, when a frost caused major damage to crops in Brazil, the world’s largest coffee producer.

Procter & Gamble has already announced that it is raising the price of Folgers coffee. For a standard 13-ounce can, that means an additional 15 cents on the national average price of $2.86.

Kraft announced it was raising prices of its Maxwell House decaffeinated and instant coffee. A 13-ounce can of decaf will rise 55 cents to $3.56.

Even Starbucks has raised the prices of most of its coffee beverages. As of mid-March, most beverages increased 5 cents and whole-bean prices rose on average 30 cents a pound.

“We waited as long as we could to make this pricing decision, but coffee costs remained at a high level longer than expected,” said Chris Gimbl, Starbucks’ communications and public affairs coordinator. “Even though we are raising prices, we are only taking the minimal increase to offset higher (coffee) prices.”

Folgers has attributed the price hike to a more than 50 percent increase in the cost of green, or raw, coffee since the beginning of the year.

The problem is greatest with better-quality beans such as arabica. Prices will continue to rise over the next couple of months, so stock up. Store unopened cans of coffee in your freezer, if possible, or in a cool dark place.

And look for coupons in magazines and newspapers; plenty are in distribution now, but when supplies get scarce most companies don’t issue coupons.