Many Russian coffee shop chains will likely raise prices this autumn, according to Konstantin Medvedev, head of product direction at the Cofix coffee chain.
Medvedev told news outlet Radiotochka NSN that businesses must increase beverage costs to recover rising expenses. He cited heavier tax burdens, growing logistics costs and higher commodity exchange prices for robusta and arabica coffee beans as the main factors driving the increases.
Management at Cofix has already decided to raise menu prices in autumn, Medvedev said. He predicted that the peak period of industry difficulties will run from September through February, during which price increases could accelerate across all chains and local cafes.
Global Coffee Commodity Prices
In July, global commodity market prices for robusta and arabica reached six-month highs. Robusta prices increased by 9.1 percent during the month to exceed $4 per kilogram, while arabica prices rose 16.5 percent to $7.91 per kilogram.
Giuseppe Lavazza, chairman of the board at Italian coffee producer Lavazza, said global coffee prices will very likely stay high over the next several years. He stated that the global market requires at least two years to recover its reserves.
