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Coffee prices continued to rise into 2008 on the back of increased costs at the end of 2007, according to new figures from the International Coffee Organization (ICO). The cost of coffee rose extremely sharply in December 2007, particularly for the Arabica variety, with the monthly average ICO composite price up by about three per cent to $1.18 per lb over November, according to the ICO's World Market Report. To view the report, go to: www.ico.org.
Editor's Insight: Higher prices have been a key factor in the overall growth of the coffee market in the last five years. The coffee industry has done an outstanding job convincing consumers to pay more for better quality products. This is one of the most significant developments in the refreshment services industry.
As a result, coffee is one of the best growth opportunities. Statistics from the Beverage Marketing Corp. have shown that coffee is among the liquid refreshments that is rising in double digits while soda, the longtime market leader, is declining.
Vending and coffee service operators must realize that the coffee market is growing, and that the ready-to-drink segment of the market is leading much of the growth. This is why McDonald's recently announced plans to expand into full service coffee bars. 01-18-08 by Elliot Maras