With coffee prices crashing worldwide after having surged for more than a year, nationwide vendors have begun slashing prices of America’s best-known brands. However, one local coffee company says the trend is not likely to immediately lower prices or erase struggles that smaller brands face.
Coffee futures have dropped nearly 9% since May. Lowered prices and news that South and Central American growers are recording their largest bean harvest in three years have caused some companies to cut their java price. Kraft has dropped the price of Maxwell House 6%; and Smuckers cut its various brands, such as Folgers and Dunkin’ Doughnuts, by an average of 11%.
For one local coffee brand, however, such news is outweighed by the complexities involved in pricing. John Melancon, founder of River Road Coffee, says the drop is most likely temporary and that supplies still command a premium. “The raw coffee price is higher than it was last month,” he says. “We’re paying more than ever for green coffee.” Melancon says the best-case scenario is that the recent decline will allow companies like his to regroup. “We’re just catching our breath. We don’t know what’s next,” he says. —Ian McGibboney
