Coffee beans, the world's largest supplier, coffee beans are in short supply. Coffee prices rise. How does Starbucks cope with the rise in coffee bean prices?

The impact of supply chain disruptions is fuelling inflation.

Due to the disruption of supply, the rise in coffee futures prices continues to attract market attention. Arabica coffee futures have risen more than 50% since the beginning of this year, and Arabica coffee prices have soared to a decade high this week, according to ICE. Caribou Coffee (Caribou Coffee Co.), the second-largest coffee shop chain in the United States, said it was hoarding coffee beans because of concerns about a growing shortage of coffee beans and the impact of a shortage of coffee beans, the Financial Associated Press reported. John Butcher, chief executive of Caribou, pointed out that it will continue to increase its safety inventory of key categories, and in addition to coffee beans, the company is also buying large quantities of cups, lids, packaging, chocolates and anything imaginable. According to public information, reindeer Coffee, founded in Atlanta in 1992, is a famous coffee chain brand in the United States and is known as the second largest coffee chain. Reindeer Coffee, which has about 450 stores in the United States, says it expects to expand its franchise plan in 2022. Starbucks, the world's largest coffee chain, has also responded to the rise in coffee prices. Kevin Johnson, president and CEO of Starbucks, previously said that in response to the rising cost of coffee beans, Starbucks has adopted strategies such as buying coffee beans in advance and locking in prices to buy coffee beans at attractive cost prices to avoid raising prices. People in the industry pointed out that the global shortage of Arabica coffee beans and the disruption of the global logistics network caused by the shortage of containers and port congestion will continue to push up coffee prices for a longer period of time.

Part of the supply shortage is also due to the influence of the weather.

Brazil, the world's largest coffee producer and exporter, has seen a massive reduction in coffee production due to the worst drought in nearly a century and two extreme frosts, coupled with high transportation costs and a shortage of containers. the global price of coffee beans rose from 104 cents per pound last year to 152 cents per pound in July this year. Not long ago, Marex Spectron, an international investment banking institution, released a report showing that due to a sharp drop in coffee production in Brazil, there is an estimated global coffee supply shortage of 10.7 million bags in 2021.

Vietnam, the world's second largest coffee exporter, has also made global coffee supply worse due to epidemic restrictions. under pressure on transportation, it is difficult for traders to transport coffee beans to ports and export them overseas. as a result, the price of all Vietnamese exported coffee has risen, and a number of multinational companies have pointed out that they are facing supply difficulties. Global supply shortages have pushed up price costs, which have also put pressure on retailers after German coffee retailer Tchibo and Japan's UCC Coffee announced higher prices. In addition, the rise in coffee prices has led to the non-delivery of Colombian coffee and coffee farmers have breached previously signed delivery contracts. Industry insiders believe that due to the shortage of coffee beans, coupled with a shortage of containers and port congestion and many other factors, coffee prices may rise further. * Photo Source: for more information about coffee beans on the Internet, please follow the coffee workshop (Wechat official account cafe_style) for professional coffee knowledge exchange. Please add Wechat account kaixinguoguo0925.

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