Roastmaster John is in the News

Bad weather causes coffee prices to hit a 13-year high in commodities

Steve Butera Updated: 8/25/2010 6:43:38 PM Posted: 8/25/2010 6:35:06 PM

Sisters Marga Hinsley and Maureen Willis are making it a tradition to meet at Javerde, a West Knoxville coffee shop.

"This coffee shop happens to be equal distance from my house and my sister's house. So we can have a cup of coffee," said Hinsley.

However, getting that cup of coffee could soon cost more. Prices for a cup of java have gone up more than 30% in recent weeks, to about $1.89/pound. Experts said bad weather in coffee-growing countries in Central and South America is to blame. That in turn has some coffee shop owners keeping a careful eye on the markets.

"Across the board, coffee shops, it has made an impact," said Javerde co-owner Paul Grady. "If you look around, coffee beans are a commodity."

The caffeinated commodity has also affected local roasters. Maryville-based Vienna Coffee Company roaster John Clark, said he's made some changes to keep costs as low as possible for customers.

"We are modifying some blending so we can accommodate the same character in the end result by using different coffee beans," said Clark. Clark said three blends were affected, but coffee connoisseurs should not notice.

However, while costs stay low, customer said they will continue to come back.

"(Coffee shops) want to serve you, and they know that they're not going to be here unless we're here," Hinsley said. "So we're going to support that."

So far, only some store-bought coffee like Folgers and Maxwell House report that they will see a price increase over the coming weeks.

Maxwell House and other corporate coffee prices rise

Just in case you need another reason to buy Vienna Coffee Company coffee...

NEW YORK Aug 6 - Reuters announced on August 6th the following information...

"Kraft Foods raised the list price on select Maxwell House and Yuban ground and instant coffees in the United States, a spokeswoman said on Friday.

The increases are 30 cents per lb equivalent on ground coffees and 2-1/2 cents per ounce on instant, said Bridget MacConnell, Kraft spokeswoman.

The price hike comes three days after trendsetter J.M. Smucker Co raised list prices 9 percent for most of its Folgers, Dunkin' Donuts, Millstone and Folgers Gourmet Selections coffees sold in the U.S. retail market.

The Maxwell House Cafe line of specialty soluble items is not included in the price change, Kraft said.

"Increases are due to sustained increases in the cost of green coffee," MacConnell told Reuters in an email.

Arabica futures KCc1 trading on ICE have surged 35 percent over the past two months, reaching a 12-1/2 year high on Aug. 2 at $1.8150 per lb. There are steep premiums on the physical market as top washed-arabica producer Colombia and Central America continue to face tight supplies. "

(Reporting by Marcy Nicholson - http://blogs.reuters.com/search/journalist.php?edition=us&n=marcy.nicholson&> )