Coffee bean

Lavazza in ‘open’ talks with UK retailers as coffee bean prices rise

Lavazza said it was in “constructive and open” talks with UK retailers after revealing supply costs for its green beans had risen 80% in a year.

The Italian coffee giant warned it expected inflationary pressures to persist at least until the end of 2023, but said it was working hard to absorb the costs.

The cost of a 1kg bag of Lavazza Whole Grains has risen by around £2 over the past 14-16 months in UK supermarkets.

As Heinz products disappeared from Tesco’s shelves in a pricing dispute, Lavazza’s UK chief executive Pietro Mazza told PA: ‘We are all going through tough times.

“The situation is troubling and will remain so for some time, so we need to keep the conversation (with retailers) as free and open as possible.”

Mazza pointed out that retailers set the retail price of Lavazza products rather than the company.

But he said: “It has been very difficult in terms of supply – for the green beans and for the components of our equipment.

“We saw an average 80% increase in the cost of green beans in one year.”

The company said instant coffee still made up more than 60% of the UK market, but bean sales had increased by 30% in the past three years.

Mr Mazza described this as part of the ‘premiumisation’ of the UK market as consumers seek to improve their coffee experience at home following the pandemic shutdowns.