Consumer tolerance for soaring coffee prices is at breaking point, the chief executive of Italian coffee roaster Lavazza has warned as he blamed the growing cost of the commodity on speculation in financial markets.
“When I see three, four pounds for an espresso in London, or eight for a cappuccino in New York?.?.?.?I see the limit,” said Antonio Baravalle, adding: “It’s like when you see the New York Stock Exchange market going up, up, up, up and you say sooner or later it will collapse.”
Coffee future prices have soared since the start of last year, with higher-quality arabica beans reaching a record $4.39 a tonne this February. However, they have fallen sharply this month to below $3.45 amid fears that US President Donald Trump’s tariffs will curb demand.