The cost of coffee rises in Canada Tim Hortons may call for a price increase

Sipping a cup of fresh and strong coffee every morning will cost you more in the future because the cost of producing caffeine is rising rapidly, according to Chief Executive Tim Tim Hortons. Canada's largest coffee and doughnut company

Sipping a cup of fresh and strong coffee every morning will cost you more in the future because the cost of producing caffeine is rising rapidly, according to Chief Executive Tim Tim Hortons.

Don Schroeder, chief executive of Canada's largest coffee and doughnut chain, says coffee production costs are rising and are now almost double what they were in June last year. The cost of making doughnut ingredients has also risen, which needs to be passed on to chain stores.

The company raised the prices of its American chain stores by about 3% last week, and Scudder said the company is negotiating price increases with Canadian shopkeepers. "We know that price increases will affect consumers, so we have to be cautious. We expect price increases will be needed in some parts of Canada. "

The company announced its results for the fourth quarter of last year on the 23rd. The company made a profit of 300 million yuan, or 2.19 yuan per share, in the fourth quarter, mainly because the sale of shares in Maidstone Bakeries increased the company's profit. A year ago, the company earned only 91 million yuan, or 51 cents per share.

Tim Hutton sold a 50 per cent stake in Maidstone for a pre-tax gain of 361 million yuan. Maidstone is a Swiss pastry company. Tim Hutton's sales fell from 464.6 million yuan in the fourth quarter of the previous year to 437 million yuan in the fourth quarter of last year.

In addition to one-time revenue, the company's fourth-quarter profit was 51 cents per share, below analysts' average expectations of 54 cents.

In 2009, Tim Hutton and its chain stores absorbed some of the price increases, leaving product prices largely unchanged. "but the situation is very special," said Cynthia Devine, the chief financial officer. "Times have changed, the prices of raw materials have risen significantly, and we need to shift the burden out. "

The company also raised its quarterly dividend from 13 cents per share to 17 cents per share and announced that it would buy back up to 10% of its shares this year, with a market capitalization of about 445 million yuan. After the company made a lot of cash by selling Maidstone last year, it began to buy back its own shares.