Coffee Price Rise 2025
Dear Customer,
Coffee Prices
We are sorry to inform you that we will be increasing the price of most of our coffees on the 17th of February 2025.
Following our price increase in October 2024 for Robusta-containing blends, we have seen record rises in raw Arabica coffees. You will undoubtedly have heard news reports on the crisis engulfing coffee, with the shortfall in Brazil’s (the world’s biggest producer) 2025 crop expected to be 11 million bags (equivalent to over 650,000 tonnes). This, coupled with increased demand from existing and emerging markets, has fuelled unprecedented price rises that show no sign of abating.
We are now faced with a situation where most Arabica coffees are costing us 60-70% more than a year ago and Brazilian coffees are up by around 100%. We have managed to offset some of these rises by judicious forward buying, but we are now starting to feel the full impact of increased market levels. We are now at a stage where we can no longer absorb the entirety of these rises and so have to pass on a proportion of them.
Unfortunately, industry sentiment at present indicates that it is entirely possible that volatility will persist and prices will continue to rise throughout Q1 and Q2. Indeed, given that we haven’t passed on all the impact of these levels, it is extremely likely that we will have to announce another price rise later this year unless we see significant market reversals. We will, of course, keep you closely informed about this.
We would like to take this opportunity to thank you for your business and your continued support.
Yours faithfully,
The Drury Tea & Coffee Company Ltd