Lavazza CEO Warns Coffee Prices Are Being Pushed To The Limit – CoffeeTalk

Italian brand Lavazza’s CEO, Antonio Baravalle, has warned that the rising cost of coffee beans and the drink itself is reaching a “limit.” The coffee bean prices have soared globally due to bad weather in major growing regions like Brazil and Vietnam, leading to a supply squeeze and a record high of $4.39 per pound in February. However, prices have recently plummeted to around $3.45 (£3.64) amid fears that US tariffs imposed by Donald Trump will curb coffee demand from American drinkers. Lavazza is among those likely to be hit by the tariffs as it ships its products to the US from the EU. The firm began roasting and packaging beans in the US in 2022, but it will take two years to expand capacity to offset the impact of tariffs. Baravalle also expects sales to fall this year, despite the company reporting a 9.1% increase in 2024.

Coffee drinkers may face even more pain as climate change is expected to continue impacting bean harvests in the future. The UN warned last month that coffee export prices might rise further this year. Lavazza has not followed suit, squeezing its profit margins by partially absorbing the cost of raw materials. This situation is similar to chocolate lovers, who have also been suffering in recent years due to rising costs of cocoa beans on global markets.

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