Coffee bean

Lavazza in talks with UK retailers as coffee bean prices soar

The coffee flows into a Lavazza cup. Photo: Reuters/Max Rossi

Lavazza said on Thursday it was in “constructive and open” discussions with UK retailers after the cost of its green beans rose 80% in a year.

The Italian coffee company warned that inflationary pressures were expected to persist at least until the end of next year, but that it was working hard to absorb the costs instead of passing them on to customers.

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

“We are all going through difficult times,” Lavazza UK chief executive Pietro Mazza told the Press Association (PA).

“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.”

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

He added: “It has been very difficult in terms of supply – for the green beans and for the components of our equipment. We have seen 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.

It comes as US grocery giant Kraft Heinz had its products pulled from Tesco’s (TSCO.L) shelves in a pricing dispute.

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Tesco, which has a share of more than 27% of the UK grocery market, has apologized for the absence of popular Kraft Heinz products, such as baked beans and tomato ketchup, from its shelves, but said: “We will not pass on unjustifiable price increases to our customers. .”

A spokesperson for Kraft Heinz said it was working closely with Tesco to resolve the situation as quickly as possible.

“We are confident of a positive resolution,” they said.

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