The prices of coffee in the world's commodity markets are dropping, but that hasn't stopped Nespresso Israel from raising the prices of its coffee capsules.
According to a company customer, Nespresso informed its clients recently of its plan to raise the price of 10-capsule package by NIS 1 (about $0.26).
"This price hike is surprising in light of the fact that coffee prices in the world, which are duty free, plummeted by some 30% in the past year, " the customer told Ynet. "It is even more surprising in light of the fact that Nespresso's capsule patents expired last month and now any company can produce and market competing capsules."
Nespresso is joining other companies in Israel's food industry, which have raised prices recently, including Unilever (about 5%), Osem (up to 5.8%), Strauss (up to 5%), Tnuva (up to 4.8%) and Tara (about 4%).
Nespresso Israel offered the following statement in response: "In the past four years, coffee prices have gone up by 42%, and yet Nespresso has not raised its prices so far.
"The recent years have seen price hikes in various fields related to the production and marketing of Nespresso capsules, including the price of green coffee, fluctuations in exchange rates, production costs and global transportation costs.
"After four years of maintain the price of coffee, Nespresso is updating the price of capsules by about 13 agorot (3.33 cents) per capsule, allowing the company to continue brining top-quality coffee to its customers."