Russian Retailers Raise Coffee and Tea Prices Due to Ruble Crash

Russian consumers are facing steep price hikes on imported coffee, tea, and spirits—just the latest sign of how the collapsing ruble is rippling through everyday goods. The country’s largest retail chain is now passing along sharp increases driven by foreign exchange pressures, and some suppliers have reportedly cut off shipments in protest.

Imported coffee and tea prices are being raised by 25–30%, while imported spirits face a smaller but still significant 15–20% increase, according to a representative of Russia’s largest retailer. These changes come after months of ruble instability, which has made foreign goods far more expensive to import and distribute.

What’s Behind the Price Increases?

The price hikes are directly tied to the weakening Russian ruble. With the national currency losing value, the cost of importing goods priced in foreign currencies—such as US dollars or euros—has surged. This affects everything from coffee beans to auction-traded tea, driving up wholesale costs for retailers.

Which Products Are Most Affected?

According to X5 Retail Group, the largest retailer in Russia, the steepest increases are for imported spirits (15–20%) and imported tea and coffee (25–30%). Other categories have not yet received official price adjustment notices, but industry sources expect broader inflation across grocery items.

Supplier Pushback and Supply Disruptions

Some suppliers are pushing back against retailer resistance to price hikes. One major tea supplier told Russian media it would halt deliveries to X5 after two months of failed negotiations. Meanwhile, AHMAD TEA’s exclusive Russian distributor announced a 15–20% price rise, citing dollar-denominated international tea auctions. Another major player, Simple—the country’s largest liquor importer—has asked partners to suspend supplies temporarily to assess market conditions.

Wider Inflation Trends in Russian Retail

This spike is part of a broader inflationary trend. The Retail Trade Companies Association reports that food prices in Russian retail stores rose an average of 20–25% over the past year. Further increases are expected: prices for food and beverages are forecast to climb another 14.5–15% in January 2015 alone, as currency pressures persist.

Frequently Asked Questions

Which Russian retailer announced the coffee and tea price hikes?

X5 Retail Group, Russia’s largest retail chain, has started receiving supplier notices that will raise the prices of imported coffee and tea by 25–30%, and spirits by 15–20%.

Why are coffee and tea prices rising in Russia?

The price increases are due to the collapse of the Russian ruble, which has made imported goods more expensive to purchase and distribute. Coffee and tea are often bought in US dollars or euros, so their cost in rubles has risen sharply.

Did any tea suppliers stop selling to Russian retailers?

Yes, one major tea supplier announced it would stop supplying X5 Retail Group after failing to agree on price increases for two months. However, AHMAD TEA’s Russian distributor chose to raise prices rather than halt supply.

How much are tea prices going up in Russia?

Tea prices are set to rise by 25–30% in Russia due to the weakened ruble and dollar-based international sourcing, particularly for auction-traded teas like those distributed by AHMAD TEA.

Are other food products also becoming more expensive in Russia?

Yes. The Retail Trade Companies Association reports that food prices have already risen 20–25% over the past year, with an expected additional 14.5–15% jump in January 2015 alone.

What liquor imports are affected by the price hikes?

Imported spirits, including those handled by Russia’s largest liquor importer Simple, are subject to a 15–20% price increase due to the ruble’s decline.