Coffee prices in Israel about to rise
Bad news for caffeine addicts: Café chain to charge NIS 1-3 more for cup of coffee; increase also expected in prices of instant black coffee sold in supermarkets
Some café chains are planning to charge an additional NIS 1-3 (about 28-83 cents) for a cup of coffee, and an NIS 1-2 increase is expected in the prices of instant black coffee sold in supermarkets.
At the moment, a cup of espresso costs NIS 8-10 ($2.10-2.75) in most café chains. A small cappuccino costs NIS 11-13 ($3-3.60), and a large cappuccino costs NIS 13-16 ($3.60-4.40).
The reasons for the expected price hike are intertwined. The recent price update in the retail market took place in May 2008. The consumer price has not been updated since them, despite the big increase in the price of raw coffee beans. Financial reports released in recent weeks have caused international speculators to declare that all types of crops will become significantly more expensive, including coffee.
'There's no escape'
"Increasing coffee consumer prices is inevitable," says Yair Shapira, VP Marketing of Landwer, which sells roasted, granulated, black and filter coffee to supermarkets, cafés and restaurants. "A year ago coffee was sold for 135 cents per pound, and today it costs more than 200 cents per pound, without mentioning the premium.
"Everyone buys the beans at the mercantile exchange, so this price affects everyone, even companies which currently say they will not raise prices. Each company has its own considerations according to its supplies, but I believe everyone will end up raising prices. There's no escape. Everyone is waiting for the market's leading players to announce a price hike first."
The Aroma Israel chain confirmed that it would be raising its prices soon. "Coffee prices in Aroma will go up by one shekel (about 28 cents)," a chain official said. Yet even after the price increase, Aroma's coffee products will still be cheaper compared to almost all other café chains.
Arcaffe said it had yet to "look into the issue". A Café Café official said the chain has been discussing the option of updating its process. Gilad Almog, one of the owners of Greg Café said the chain's policy was not to increase coffee prices in the near future in a bid to preserve its customers.
Haim Malka, one of the owners of CafeNeto, told Ynet: "There is a dramatic increase in coffee prices, and we should have raised prices several times a long time ago, but we will raise them in accordance with the chain's plans, not according to speculators playing with options and causing a lot of the fluctuations."
Osem, which markets Nestle's Taster's Choice, and Staruss, which markets Elite Coffee, have yet to decide on a price hike. According to an Osem official, the matter is still being looked into and prices will remain unchanged for now.
A Strauss official confirmed that there has been a sharp increase in the prices of green coffee, which is used as a raw material for the coffee beverage. "We are considering a price increase, but have yet to make a decision on the matter."
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