Nestle's Nespresso hikes prices of its single-serve coffee pods in the U.S. by 3.6% to US$0.57/pod and in Europe by 6% to €0.35/pod to offset rising unroasted coffee prices
June 6, 2011
– Nestle SA’s Nespresso boosted prices for its high-end, single-serve coffee pods by 3.6% in the U.S. to US$0.57/pod and by 6% in Europe to €0.35/pod ($0.51/pod) to offset increasing unroasted coffee prices, the unit’s CEO Richard Girardot said, Dow Jones Newswires reported June 2.
According to Dow Jones, Nespresso uses 95% arabica beans and will continue to use the variety, despite its being harder to grow and more expensive than robusta beans.
Arabica futures have increased almost twofold on InterContinentalExchange with diminished crop output from poor weather and speculative buying combined with higher demand.
Starbucks Corp. and J.M. Smucker Co. last month announced they would increase prices on some of their bagged coffees. U.S. coffee roasters and retailers like Kraft Foods Inc. and Massimo Zanetti Beverage USA hiked prices earlier this year, Dow Jones reported.
The primary source of this article is Dow Jones Newswires, New York, New York, on June 2, 2011.