Elana Rosenfeld, CEO of Kicking Horse Coffee, discusses the marketplace
As told to Ruth E. Dávila
Coffee prices are at record highs, particularly for the “green” bean. Historically, we absorbed rising costs by narrowing our margins, to protect our customers from market fluctuations, but the current environment has made it impossible for our business to move forward without an increase. Recently, we raised prices for the first time in 15 years. It was tough from a personal standpoint, but business hasn’t declined, since cost-conscious shoppers tend to buy more in bulk when we run promotions.
In general, rising costs are due to increasing demand coupled with supply and logistics issues. There are shortages in Indonesia and certain other regions. There has been speculation in the coffee commodities market. And gas prices have been up. All of these factors have caused a ripple effect.
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