Coffee prices could continue to rise, warned British chain Costa Coffee. The company cites climate change, extreme weather and supply chain instability as factors that are increasing costs and limiting access to quality beans.
Costa CEO Philip Scheile notes that prices often fall sharply after a period of price increases, but this has not happened in recent months. The company thus finds itself facing persistently high raw material costs at a time when it is trying to rebuild its business and attract customers back to its outlets.
In the UK, a regular latte at Costa now costs 4.40 British pounds, or about 494.5 rubles at the exchange rate indicated by RBC, compared to 2.90 pounds five years ago. The chain has about 2,800 stores in the UK and Ireland.
Climate risks for major producers
Brazil, the world's largest coffee producer, has been hit by drought and heavy rains. According to information cited by RBC, arabica stocks have fallen to their lowest level in 26 years. The rains have delayed the harvest and worsened the quality of some beans.
Additional pressure on supplies was created by the earthquake in Colombia in August. It disrupted the work of the port of Buenaventura and blocked roads used for coffee exports. Gustavo Gomez, head of the Colombian Coffee Exporters Association, said: „Coffee exports are currently suspended. There is no official word yet on when the road will be fully open.“
Costa management has warned that global warming could affect both the quality and quantity of coffee available. Political and economic turmoil could further slow exports and supplies of the raw material.
Costa is expanding its business beyond traditional coffee
The warning comes as Costa tries to improve its financial results. In 2025, the company reported an operating profit of 20.4 million pounds, after an operating loss of 13.5 million pounds a year earlier. Sales rose 5% to £1.29bn, while pre-tax profits rose from £65m to £69.3m.
The chain is trying to reduce its reliance on traditional hot drinks. Cold drinks now account for 30% of sales, up from 20% three years earlier, and the company is expanding its offerings with matcha, decaffeinated and low-calorie products. Costa also operates more than 12,000 vending machines and self-service outlets in supermarkets, petrol stations and shops.
The company plans to open a new global headquarters in St Albans in January 2027, which will employ around 300 staff. Costa was bought by Coca-Cola for 3.9 billion British pounds in 2018. According to its management, no new buyer is currently being sought, and investment and business expansion remain the priority.
Sources: rbc.ru, finance.yahoo.com