Cup of coffee set to cost $7 in the next six months, warns Single O’s Mike Brabant
An Australian coffee roasting pioneer has warned consumers could soon be paying $7 for their favourite hit of caffeine.
It comes as cafes around the country get hit with price inflation from virtually every direction to push the cost of coffee higher. More recently, the cost of coffee beans hit 50-year record highs.
Consumers are already forking out an average of $5.50 for a cup of coffee at their local cafes. Now the boss of independent coffee company Single O is tipping that figure to hit $7 very quickly.
“We think between $6 to $7 for a regular coffee is where it’s going to be and I think you’ll see that price increase quickly over the next six months towards July,” Mike Brabant said in Melbourne on Friday.
“I think if it’s a large, strong oat flat white . . . you might be paying up to $8.
“We certainly believe consumers will continue to pay for well-sourced, well-made coffee. We don’t see at the moment that slowing down, we see continued growth and opening of cafes.”
Mr Brabant told The Australian’s Global Food Forum there was a silver lining, with specialty producers in developing countries benefiting from the higher prices.
“What’s not being discussed is the fact that producers are the ones winning in the value chain,” he said.
“They’ve often been left behind in the supply chain, and at the moment with the $4 coffee market, they are actually getting a greater share of that global coffee industry.”
The Sydney-founded Single O supplies coffee beans to hundreds of cafes around the county and has three cafes in Japan.
Last month, kitchen appliance maker Breville told the market it had profited from surging sales of espresso machines globally as consumers increasingly favour brewing at home.
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