While in recent years major coffee roasters have been able to absorb price hikes to keep customers happy and maintain market share, it looks like that’s about to change, according to Vinh Nguyen, the chief executive of Vinh Nguyen Tuan Loc Commodities.
“Brands like JDE Peet (the owner of the Douwe Egberts brand), Nestlé and all that, have [previously] taken the hit from higher raw material prices to themselves,” he said.
“But right now they are almost at a tipping point. A lot of them are mulling a price increase in supermarkets in [the first quarter] of 2025.”
At an event for investors in November, a top Nestlé executive said the coffee industry was facing “tough times”, admitting his company would have to adjust its prices and pack sizes.
“We are not immune to the price of coffee, far from it,” said David Rennie, Nestlé’s head of coffee brands.
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