Brazil's drought might make your coffee habit a lot more expensive

CC by: Rudolf Schuba

Brazil's drought might make your coffee habit a lot more expensive
(Image credit: CC by: Rudolf Schuba)

There are a lot of articles out saying that the price of coffee beans is rising too fast for even Starbucks, and that the Seattle coffee giant has simply stopped buying beans. That's not quite true. The source of these articles is a Wall Street Journal interview with Starbucks' chief coffee officer, Craig Russell, who said that Starbucks has very sharply reduced its coffee purchases in the past few weeks as the price of green (unroasted) beans rose over concerns about a drought in Brazil, the world's largest coffee producer.

But of course Starbucks is still buying coffee beans — as Russell explains, the company has locked in prices and bean supplies until Oct. 1, then 40 percent of prices for the next year. Starbucks isn't going shopping for new sources of beans right now because prices are up almost 90 percent this year, and why would it? Quartz's Matt Phillips has this nice chart showing just how crazy coffee's price trajectory has been this year:

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More
Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.