Coffee manufacturer Lavazza has become the latest brand to warn its retailers of price rises in a bid to deal with rising inflation.
According to Lavazza’s UK general manager Pietro Mazzà, the company has been in talks with retailers about how to manage rising costs after the price of a 1kg bag of coffee beans increased by £2 in the past 14-16 months to around £12.
Speaking to The Guardian, Mazzá said: “We have seen an 80% average increase in the cost of green beans in a year. We are all facing tough times. The situation is troubling and will be for some time, so we need to keep the conversation [with retailers] as free and open as possible.”
However, a Lavazza spokesperson confirmed that the rising cost of raw materials would have a “a knock-on effect of the cost of coffee for retailers, and subsequently for consumers”
The brand’s warning follows Heinz row with Big 4 grocer Tesco over the FMCG giant’s price hikes, which has resulted in the manufacturer pausing supply to the supermarket.
READ MORE: Tesco vs Heinz: Price rises, product shortages and empty shelves
“With household budgets under increasing pressure, now more than ever we have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers,” A Tesco spokesperson said.
This comes as the Office for National Statistics (ONS) revealed 30% of businesses expect to increase the price of good or services being sold in the next few months in a bid to combat rising energy costs.
