Cost of caffeine: Local coffee shop raises price of drinks due to global supply shocks

Jeremy Thompson has more on how an Edmonton coffee shop is handling the rise in bean prices.

Coffee prices are at an all-time high, and one local business has already taken steps to inform customers how they will be preparing for the increased cost of operating.

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Pact Coffee on Whyte Avenue announced recently on social media they will be increasing their prices on coffee by 15 per cent, citing “severe weather and demand for arabica beans” as the causes.

Constance Wilcox of Pact Coffee said “transparency and staying connected to the community” is top of mind when making changes to the business.

“We thought it was important to show everything going on behind the scenes,” Wilcox said. “When you’re talking about a community-oriented business, you don’t want to be sneaky … you want to be upfront.

“Edmonton is already going through kind of a time with grocery prices rising ... It affects everyday people. If this is part of your everyday ritual, we don’t want that to come as a surprise or a shock to you.”

Sven Anders, a professor of resource economics at the University of Alberta, told CTV News Edmonton on Tuesday there are two factors that contribute to the global price increase.

“Many areas around the equator, including Brazil, Vietnam, Indonesia and other coffee-growing countries, have experienced severe weather events that have grown both in size and frequency … in the last few years,” Anders said.

“(What) makes the problem worse is that places that usually did not have much of a coffee culture … have caught on to all these coffee-infused drinks that many young and also older consumers like to consume here in North America and in Europe.

“Negative supply effects (and) more demand around the world – that just puts a huge strain on the coffee market, and therefore prices are going through the roof,” he said.

According to Anders, small coffee suppliers will see the rise in cost before larger companies since corporations can substitute cheaper beans into grocery store blends in lieu of a price adjustment.

Coffee lovers can expect to see price increases if climate disasters persist and more countries embrace the pick-me-up beverage.

With files from CTV News Edmonton’s Jeremy Thompson