The increase will occur across all sales channels and will be effective beginning 11 October 2010. Consumers could expect to see a purchase price increase of approximately 10-15% over the next several months as a result.
The increase is in response to several factors affecting the coffee industry, including a sustained increase in the price of green coffee, differentials for premium quality coffees, increases in prices of other raw materials, as well as higher packaging and transportation costs.
Over the past three months, green coffee prices have increased from $1.45 per pound to $1.90 per pound, or approximately 31%.
“Like others in the coffee industry, we’ve been closely monitoring rising green coffee costs and increases in other input costs like cocoa and packaging for several months,” said Scott McCreary, president of GMCR’s specialty coffee business unit. “While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we’ve experienced over the past three months led us to conclude [that] it’s necessary to adjust our pricing.”
Source: Green Mountain Coffee Roasters
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