Tea and coffee producers will raise selling prices for retailers by 9%

Starting from September, tea and coffee producer May (brands Maisky, Lisma, Curtis, Richard, Coffesso) will increase selling prices for retailers by 6-9%. About it writes Kommersant with reference to the company’s letter sent to retailers.

In the letter, the manufacturer refers to the “difficult situation”, pointing to the high volatility of the ruble and the increase in the cost of importing raw materials. The company confirmed that the notice had been sent. They noted that the share of imported raw materials and materials in the cost exceeds 80%. The manufacturer added that it would raise prices gradually to avoid a “surge”.

Similar notices were sent to retailers by JDE (brands Jacobs, L`OR, Tassimo, Pickwick) and Orimi (Greenfield, Tess, Jardin), the newspaper writes. The latter plans to increase the cost of its products by 4-5%. The company noted that this is “much below the inflation rate.” In the letter, the reason for the increase in prices, JDE calls the rise in price of raw materials on the world market by about 20% since the beginning of 2023.

The Madeo coffee producer also plans to smoothly raise prices, Kommersant reports with reference to the company.

According to the newspaper’s source in the market, the stocks of coffee and tea grains, purchased at the dollar rate of 75 rubles, are almost exhausted. The interlocutor admitted that by winter such products could rise in price by 20%.

On August 8, the cost of futures for coffee beans on the New York Mercantile Exchange (NYMEX) was $1,650 per ton. The maximum values ​​this year were recorded in April – $1900 per ton. Quotes for tea since the beginning of 2023 have increased by almost 1.5 times, to $3,280 per ton. Kommersant explains that the cost of tea is affected by the drought in Asia, which is why the collection of tea, according to the tea manufactory In Pursuit of Tea, has already decreased by 30-40% in India, and by 20% in China.

Confectionery companies also plan to raise prices from September 1, Kommersant writes. The networks have already received letters from Lotte KF Rus (brands Xylitol, Joo Chef`s, Chic Choc) and Shtork (Merci, Toffifee, Mamba). The latter promises an increase in the cost of production by 5-16%. The newspaper notes that producers are also dependent on imports of raw materials – from 30% to 70%. The problem is aggravated by the reduction in the collection of cocoa beans due to drought in West Africa.