Coffee Jolt Gets Pricier as Costs of Beans, Labor, Transport Rise

Many coffee drinkers can expect to pay more for their cup of joe at supermarkets and cafe registers, as producers grapple with higher coffee bean prices, constrained supplies and other costs.

Retail brands like Folgers, as well as independent coffee chains, are raising prices or plan to soon, executives said. Starbucks Corp. and Nestlé SA have said they could increase prices, while other coffee sellers try to hold prices steady, aiming to capture more business.

Coffee roasters and cafe operators are responding to poor harvests in major coffee-growing regions and logistics snarls that executives said have constrained bean supplies, delayed shipments and boosted costs. Companies are also raising wages to recruit and retain workers.

The supply chain issues are likely to worsen as a cold snap in Brazil, the world’s biggest coffee producer, is expected to reduce next year’s crop. The price of coffee futures traded on Intercontinental Exchange Inc. markets this year has averaged about $1.43 per pound, the highest it has been since 2014, according to Macrotrends LLC.

FairWave Holdings LLC, a Kansas City company that operates 20 cafes and sells packaged coffee, has raised menu prices and slowed hiring in response to escalating costs, executives said.