No. of Recommendations: 0
Meanwhile I assume American coffee sellers are actively looking for where in the US they can add coffee plantations, and what pay they will have to offer the workers. e.g., 46% tariffs on beans coming from Vietnam, the biggest single source of robusta for instant coffee. Kona for everyone!
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I've read that something like 5% of Starbucks operating expense consists of coffee beans. So even if the price of coffee beans goes up by 50%, that only increases their operating expenses by 2.5%, so a very small price increase (or a small reduction in margin) can cover it.
I was thinking more of Folgers and Maxwell House. And the [shudder] instant coffees.
Jim
