Thought that would grab your attention! What a great headline eh? Especially if you are one of the seemingly growing band of merry consumerists, who do not flinch at spending upwards of £700 per year, on a gourmet cappuccino as part of a daily commuting ritual!
The facts are correct too…! The market is easily down 25% since the beginning of the year and an amazing 15% lower just since the beginning of this month… aligned to the disappearance, for the time being, of the dreaded specs and funds and due to market expectations around a bumper Brazil crop….
So when can we expect a commensurate decrease in the price of our daily caffeine fix?
The answer is never…..not at least as long as the likes of Starbucks, Nero and Kraft et al can keep the ‘smoke and mirrors’ going for!
Stateside, where so many of the coffee chain operators have floated, it was interesting to see how share prices reacted to the steadily falling NYC – Starbucks was +3.1% Dunkin’ Donuts +3.4%, Peets Coffee +3.2% and Caribou 2.6%
Great news if you happen to be one of the lucky Starbucks shareholders…with shares now at $55 a pop! The news that your commodity purchases will be $100m less this year than last, certainly has delivered the performance ‘tail wind’ the market loves to talk about!
The sad reality is that gourmet coffee shops have become an ingrained feature of our lives
Something almost akin to smoking the deadly ‘Lucky Strike’ and ‘Marlboro’ in the 1950s and 60s, coffee shops have become an addictive must have accessory…
Hence, last year, despite the ‘gnashing and wailing of teeth’ about lower profits, not one major gourmet chain changed their expansion plans…only this year when a gigantic profits turbo charge is apparent, from a steadily lower market, do we start to really understand just how massively we, the consumer, are being ripped off by these corporate ‘drug peddlers’ … a little strong, I know, but forgive the hyperbole – I love it!
Cost of goods for your gourmet coffee is 12p or so…..
So think on and spare a thought, as we hear that Dunkin Donuts franchisees ’are experiencing some relief’ all the way to the bank I suspect, as coffee prices ease lower still!
Puts accredited ethical coffees into perspective doesn’t it?
Guru ( Andy Grelak) writes for Aromo Coffee – They are coffee experts focussed on providing convenient and tasty ways for the caffeine addict to take their medicine. Aromo supplies excellent ESE Coffee pods and superlative Senseo pods, both of which offer the espresso and filter connoisseur a no mess, no fuss, super fresh and environmentally conscious method to make stunning coffee… the guys at Aromo also have a range of Dualit branded capsules which make a brilliant and economic alternative to nespresso capsules