Chief executive Philippe Schaillee links price pressure to weather disruption and supply risks.
Costa has warned that coffee costs may remain high: chief executive Philippe Schaillee said prices had not fallen in recent months as they often do after a sharp rise. The company is facing expensive beans as it tries to rebuild its business, RBC reported, citing The Telegraph.
According to the newspaper, a regular latte at Costa now costs £4.40, compared with £2.90 five years ago. Volatility remains high in the global coffee market amid weather disruptions. Brazil, the world’s largest producer, has been hit by drought; The Telegraph reported that arabica stocks had fallen to a 26-year low.
Costa’s management also warned that climate change could affect bean availability, quality and volume, while political and economic instability could disrupt exports and supplies. As recent disruptions in the sector, RBC cited heavy rain in Brazil that damaged the crop in August and an earthquake in Colombia that temporarily disrupted the port of Buenaventura and coffee exports.