Nestlé To Raise Coffee Prices And Reduce Bag Sizes As Cost Of Beans Continue To Rise – CoffeeTalk

Nestle, the world’s largest coffee maker, plans to raise prices and make packs smaller to mitigate the impact of higher bean prices on its bottom line. The company will also focus on soluble and capsule coffees, which make up a lower proportion of the overall price in that segment. Nestle has experienced two price increases since 2022, leveraging its product portfolio that includes instant coffee and is less dependent on roast and ground coffee than some competitors. The company aims to attract more consumers by offering a range of pack sizes and using new extraction technology to extract more coffee from each bean without affecting quality. Coffee prices have surged this year due to harsh weather for top suppliers Brazil and Vietnam, with futures for the arabica variety and robusta used in instant coffee gaining about 50% and 65% respectively. Nestle is aiming to invest more in its brands while cutting costs to protect profitability, with a further $2.5 billion Swiss francs cut in costs by 2027.

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