Not only do the negative impacts on the economy, market experts note that Brexit will make the coffee consumption market of the “fog country” really feel “bitter taste”. The depreciation of the pound over the past time is increasing the import cost of this coffee, which may push the price of a cup of coffee significantly.
Coffee auction activities in Africa and South America are made in USD. Therefore, it is unavoidable for the pound to fall sharply to increase the cost of importing raw coffee.
Jose Aguilar, a customer of London-based Monmouth Coffee coffee roaster, said his company often imports coffee from countries like Ethiopia and Kenya, so exchange rate fluctuations will inevitably affect. to import costs.
Mr Aguilar estimates that in the context of a strong depreciation of the pound, the cost of importing coffee may increase by 10-15% in the coming time and his company will surely have to consider adjusting the selling price.
Prices of some types of coffee may rise to the threshold of 3 pounds per cup. However, coffee experts are optimistic that despite rising costs, even if they are billionaires or homeless people, they cannot give up their coffee drinking habits.
From another perspective, the depreciation of the pound will benefit companies exporting coffee products to the European market. James Dickson, Executive Director of Coffee processing company and Workshop coffee chain business, said the pound dropped against the euro, providing an opportunity to promote the export of finished coffee, especially Special coffee, for loyal customers in Europe.
London is currently the world’s leading market for specialty coffee. The coffee business has grown rapidly in the UK in the last few years. Francisco Nogueira, CEO of Nespresso coffee brand in the UK, said the company’s long-term ambition is that every British consumer can reach Nespresso’s retail outlets within an hour.