Everyone has been watching the markets recently to see where the economy is going. While some think things are slowly getting better, others look at signs such as continuously high unemployment rates and cost increases to gauge our nation’s progress.
Unfortunately for those in the coffee business, green coffee prices are at an all time high. In addition, other input costs have been steadily increasing over time. Many companies, including J.M. Smucker who produces Folgers and Dunkin Donuts brand coffee, have stated that they have no choice but to pass on their cost increases to the consumer.
http://www.bloomberg.com/news/2011-02-15/earnings-preview-j-m-smucker-co-.html
http://www.marketwatch.com/story/jm-smucker-raises-coffee-prices-by-9-2010-08-03
Coffee prices already have a history of volatility, due to crop conditions, currency exchange rates, and speculation in the market. Further increases in ingredients have led many coffee companies to increase prices which ultimately affects you, the consumer. Considering all this, what impact do you think this will have on your morning coffee ritual, if any?