Coffee prices remain high, although they are down from levels earlier this year, when they hit their highest point in decades because of climate issues, tariffs and transportation costs.
A pound of ground coffee in U.S. grocery stores has hovered around $9.30 to $9.70 recently, up from previous averages closer to $8.00–$8.50, according to economic data from the Federal Reserve.
“Shoppers are making grocery shopping decisions based on their pocketbooks,” said Wayne Pesce, president of the Connecticut Food Association. “There’s no question people are facing sticker shock when they buy coffee, but they’re not giving it up. People aren’t being as loyal to a specific brand of coffee, they’re trading down and looking for a better value.”
An example of that is Eight O’Clock brand coffee, he said. Pesce said the brand, which is now owned by Tata Consumer Products in India, has traditionally been consider a quality product that is competitively priced.
But on the shelves of two of Connecticut’s largest supermarket chains, the price of Eight O’Clock Coffee is considerably higher than a smaller, lesser know brand. A bag of ground New England Coffee is priced at 50 cents per ounce at Big Y and 54 cents per ounce at Stop & Shop, compared to 94 cents per ounce for a bag of ground Eight O’Clock Coffee at Big Y and 82 cents per ounce at Stop & Shop.
Pesce said climate problems in parts of the world where coffee is traditionally grown like South America and Africa is the primary driver for pricves for the beverage.
A projection made in July by am Italian roasting company, Luigi Lavazza SpA, is that it could take at least two years for coffee prices to come down.
Giuseppe Lavazza, chairman of the family-owned company, told the Los Angeles Times that “we need a couple of very strong crops from Brazil and Vietnam to rebuild stability” in the market.
“So maybe the first good crop is arriving,” Lavazza said of this year’s coffee bean crop.
Two thirds of Americans drink coffee, according to the National Coffee Association, with the average American consuming about three cups per day.. That figure has held steady when compared to previous years, according to officials with the trade group.
The average ground roast coffee price in the U.S.at $9.30 per pound, according to the latest data from the U.S. Bureau of Labor Statistics. But steep price hasn’t reduced the beverage in Connecticut, which remains strong.according to Pesce.
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