Canadians may soon be paying more for their morning cup of coffee. Executives at Tim Horton’s, Canada’s biggest coffee chain, are hinting that a price hike could be on the way, in response to the soaring cost of beans.
CCTV America’s Kristiaan Yeo reported this story from Toronto.
Canadian coffee prices may increase due to drought in BrazilCanadians may soon be paying more for their morning cup of coffee. Executives at Tim Horton's, Canada's biggest coffee chain, are hinting that a price hike could be on the way, in response to the soaring cost of beans. CCTV America's Kristiaan Yeo reported this story from Toronto.
Arabica-coffee prices could be about to spike, as a drought in Brazil, the world’s largest bean producer, has put a strain on supply.
“The coffee industry always had two challenges because it’s not totally in control of the commodity prices, so the recent increase in commodity prices have been a combination of disease and weather, and all the rest of it,” Alan Middleton of York University said.
The price of coffee rose to its highest point in two years in Oct. 2014. Canada’s biggest coffee chain, Tim Hortons, is warning that bean prices may affect the cost of a cup in store in 2015.
But what about the impact on smaller, independent stores?
Eugene and Mechea Fung opened their first coffee shop in Toronto in June. When deciding on a roaster, they opted for quality over quantity. They already paid more than the average for their beans.
“Beans are pretty high cost for us, so I think they’re already priced in a premium sort of way so they resist any sort of rises. I think it’s important to charge what the product is worth, but again we have to be competitive. In that regard we can’t bring in too good of a bean, otherwise it wouldn’t be worth pricing it that high,” Tandem coffee owner Eugene Fung said.