If you’re a serious coffee drinker, you may have heard about the alarming rise in the price of coffee bean futures as a result of a horrible drought that has been affecting Brazil throughout most of the year. The cost of Arabica beans – the type used most often in gourmet coffees – has risen 95 percent this year.
But if you’re a serious coffee drinker, you may also have noticed that your morning cup hasn’t risen in price at all. During the four weeks that ended March 23, the average price of ground coffee in the U.S. actually fell by 30 cents from a year ago to $6.26, according to IRI, a Chicago-based market research firm.
The reason: Big coffee wholesalers generally have bought their beans long before they make it to your local Starbucks or grocery store. So there’s typically at least a month’s lag between the rise in the wholesale cost of beans and an increase for the end user. And even then, experts say it won’t be that 95 percent jump tacked on to the retail price – but don’t surprised if the cost of a cuppa joe goes up by 25 to 30 percent in the coming months.