Lavazza have announced yet another price increase their 3rd in 12 months.
Unprecedented demand and both logistical and bean costs have forced a further increase in coffee beans. Lavazza are pushing through a further price increase in February 2025.
London robusta futures reached a new record high on Tuesday of $4,866 a tonne, surging 60% so far this year.
“We’ve never seen something like that in the history of our industry,” Lavazza said. “And what is very special is the long-lasting effect of this.”
A prolonged heatwave in Vietnam, one of the world’s largest producers of robusta beans, has led to poor harvests, with no sign of improvement in the country for the next crop at the end of the year.
Lavazza said coffee prices were going to stay “very high” as a result. “The coffee supply chain is dramatically under pressure,” he added.
Speculators have piled into the market as supplies have dried up, driving up costs further, with a strong dollar and conflict in the Red Sea creating “the perfect storm” for the industry.