Australia Canberra Arabica Coffee Bean
Canberra coffee price rise brewing
BY FRANCES STEWART
While global demand has also doubled, bean stocks have fallen to a record low of less than half the average level.
Meanwhile, roasters around the world have lifted prices by as much as 20 per cent to try to claw back costs, which have also jumped significantly for sugar, cocoa and milk powder.
With wage rises set to hit the Australian hospitality sector in July, many Canberra coffee shops that previously absorbed price rises said they would be forced to lift prices.
Canberra coffee wholesaler Cosmorex operations manager Michael Sloggett said price rises in the ACT would probably be between 10c and 30c per cup.
”The price of raw ingredients has gone up by a huge amount,” he said.
”We’ve put up our prices already and so have some of our cafes so we know a small price rise won’t change people’s habits.
”We think somewhere between $3.50 and $4 for a cup of coffee is about right for Canberra.” But it’s an increase of up to 63c a cup on coffee distribution company Gilkatho Coffee’s Cappuccino Price Index average price of $3.37 for Canberra in December last year.
Gilkatho managing director Wayne Fowler warned cafe owners had to keep in mind that coffee was a price-sensitive luxury for all but the most die-hard caffeine fiends.
”It can’t go up too dramatically or people will drink something else,” he said.
”If prices go up by 4c, people won’t notice but if prices go up by 50c, people will notice.”
According to the Gilkatho research, the price of a cappuccino has risen by 2.5 per cent in the past year on a national average basis. Canberra coffee sits in the middle of coffee prices nationally.
Perth’s latte lovers pay the highest price for their daily fix at an average $3.70 a cup, while Sydneysiders pay the least at an average $3.11.
Mr Fowler said coffee lovers would pay more for a quality cup, ahead of cheaper alternatives.