Latest news with #GiuseppeLavazza
Daily Mail
2 days ago
- Business
- Daily Mail
Lavazza boss blames hedge funds for rising coffee prices
The boss of coffee giant Lavazza has said hedge funds are to blame for pushing up the price of a morning brew. Giuseppe Lavazza said speculation by the big financial firms was responsible for the vast majority of the surge in prices on wholesale coffee bean markets. He said: 'Hedge funds are really big players and they make a lot of difference, especially in the volatility of the market and the uncertainty of the market.' Without their speculation, prices would simply reflect market fundamentals – such as supply and demand, he added. 'Over the last four years, where prices rose so much – [it was] 80 per cent speculation, especially hedge funds.' That has led to higher costs for consumers and a decline in consumption – down 3.5 per cent last year – Lavazza said. His firm was forced to put up prices by 20 per cent last year but costs may have stabilised. Lavazza said high global prices were 'totally unsustainable for the industry'.
Yahoo
4 days ago
- Business
- Yahoo
EU green rules will drive up price of coffee, warns Lavazza
European environmental rules will drive up coffee prices, the chairman of Lavazza has warned. Giuseppe Lavazza has called on Brussels to delay the implementation of incoming deforestation laws for another year, as he warned they could unleash a new supply crunch across the Continent and drive up prices. That will have more of an impact on coffee prices than the 10pc tariffs America is likely to impose on Europe, he added. He criticised the impending rollout of the so-called EU Deforestation Regulation (EUDR) in December, which will require companies importing goods such as beef, cocoa and coffee to prove their supply chains do not contribute to the destruction of the world's forests. Mr Lavazza said he feared that the looming legislation could prevent his company from trading with suppliers in key coffee markets such as Ethiopia and Indonesia. He said there was an uncertainty around ownership of land in these countries, which was a major obstacle to enabling Lavazza to trace the full supply chains. He said: 'For example, I don't know how Ethiopia can comply with such regulation. And Ethiopia is such an important country for coffee supplies. Indonesia is another country that could disappear from the radar.' Mr Lavazza told an event in London: 'Mr Trump is talking about tariffs, but he keeps changing his mind. They are not good, but we can manage them. 'The EUDR is very tough because it puts some very strong limits on European roasters to import good coffee. 'We have many, many concerns that the regulation will introduce a lot of distortion into the market. This is something we are hoping to avoid because otherwise, coffee will cost a whole lot more in Europe.' Asked if it will have more of an impact than tariffs, he said: 'Yes, absolutely. Compared to tariffs of 10pc, the regulation will have a huge impact. Especially because the fine you pay if you make an infraction is disproportionate. 'It can be up to 4pc of revenues, it's nonsense. The risk of a fine is enormous. 'But in the UK, you won't have that problem because you don't have EUDR. You are lucky. We are calling for that regulation to be postponed for another year.' It comes after coffee prices hit a record high of $4.01 (£2.96) per pound in April, which Mr Lavazza blamed on hedge funds speculating in the market. They have since fallen to $2.87. His comments echo similar calls made by Cadbury owner Mondelez earlier this week, which also urged Brussels to delay the legislation. Coffee prices jumped again on Thursday after Mr Trump threatened 50pc tariffs on Brazil, the world's biggest producer. Separately, Mr Lavazza also unveiled plans to accelerate the expansion of its US manufacturing plant to reduce the impact of export tariffs. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Telegraph
4 days ago
- Business
- Telegraph
EU green rules will drive up price of coffee, warns Lavazza
European environmental rules will drive up coffee prices, the chairman of Lavazza has warned. Giuseppe Lavazza has called on Brussels to delay the implementation of incoming deforestation laws for another year, as he warned they could unleash a new supply crunch across the Continent and drive up prices. That will have more of an impact on coffee prices than the 10pc tariffs America is likely to impose on Europe, he added. He criticised the impending rollout of the so-called EU Deforestation Regulation (EUDR) in December, which will require companies importing goods such as beef, cocoa and coffee to prove their supply chains do not contribute to the destruction of the world's forests. Mr Lavazza said he feared that the looming legislation could prevent his company from trading with suppliers in key coffee markets such as Ethiopia and Indonesia. He said there was an uncertainty around ownership of land in these countries, which was a major obstacle to enabling Lavazza to trace the full supply chains. He said: 'For example, I don't know how Ethiopia can comply with such regulation. And Ethiopia is such an important country for coffee supplies. Indonesia is another country that could disappear from the radar.' Mr Lavazza told an event in London: 'Mr Trump is talking about tariffs, but he keeps changing his mind. They are not good, but we can manage them. 'The EUDR is very tough because it puts some very strong limits on European roasters to import good coffee. 'We have many, many concerns that the regulation will introduce a lot of distortion into the market. This is something we are hoping to avoid because otherwise, coffee will cost a whole lot more in Europe.' Asked if it will have more of an impact than tariffs, he said: 'Yes, absolutely. Compared to tariffs of 10pc, the regulation will have a huge impact. Especially because the fine you pay if you make an infraction is disproportionate. 'It can be up to 4pc of revenues, it's nonsense. The risk of a fine is enormous. 'But in the UK, you won't have that problem because you don't have EUDR. You are lucky. We are calling for that regulation to be postponed for another year.' It comes after coffee prices hit a record high of $4.01 (£2.96) per pound in April, which Mr Lavazza blamed on hedge funds speculating in the market. They have since fallen to $2.87. His comments echo similar calls made by Cadbury owner Mondelez earlier this week, which also urged Brussels to delay the legislation. Coffee prices jumped again on Thursday after Mr Trump threatened 50pc tariffs on Brazil, the world's biggest producer. Separately, Mr Lavazza also unveiled plans to accelerate the expansion of its US manufacturing plant to reduce the impact of export tariffs.
Leader Live
6 days ago
- Business
- Leader Live
Soaring coffee bean prices may have peaked, says Lavazza
The Italian coffee giant said the sector had faced 'exceptional volatility', with Arabica coffee prices increasing by 70% in 2024 and another 20% in the first two months of 2025 to reach a record high of 4.20 US dollars per pound on February 10. Between early 2023 and the end of 2024, Arabica prices increased by 190%, while cheaper Robusta beans increased by 263% over the same period. Lavazza said the price volatility was driven by a 'perfect storm' of droughts in Brazil and Vietnam significantly impacting coffee production and ongoing geopolitical disruption increasing transportation costs and delivery times. However Lavazza chairman Giuseppe Lavazza said UK consumers may have seen prices peak following a 20% increase in the cost of beans at the supermarket last year. Meanwhile, a flat white at the firm's flagship cafe off Regent Street in central London is holding steady at an albeit inflated £4 to take away or £5.50 to have in, reflecting current costs. Mr Lavazza said: 'We think that the market reached a peak at the beginning of this year. 'It is our hope that the price for the consumer has peaked.' High prices have not dented the 'strong trend' of UK consumers turning to beans to make fresh coffee at home, which began when the pandemic closed cafes but has showed no sign of slowing even now. The UK retail coffee market, valued at £1.7 billion, has seen at-home consumption rise by 5.7% on the year to date as consumers shift from cafe to kitchen, Lavazza said. According to its figures, UK households drink 13 million cups of Lavazza coffee each week and use 1.4 million Lavazza capsules, leading to £10 million in sales for the brand's best-selling Qualita Rossa beans over the year to May. Mr Lavazza said its new Tabli home coffee system, which uses coffee tabs that are individually completely free of packaging, will launch in the UK next year. Designed to address concerns over the sustainability of aluminium and plastic packaging, Mr Lavazza described the new system as 'the best Lavazza has designed in history'. 'I call it a small miracle,' he added. Lavazza said UK sales were up 5.4% to £123 million compared with the year before.
South Wales Guardian
6 days ago
- Business
- South Wales Guardian
Soaring coffee bean prices may have peaked, says Lavazza
The Italian coffee giant said the sector had faced 'exceptional volatility', with Arabica coffee prices increasing by 70% in 2024 and another 20% in the first two months of 2025 to reach a record high of 4.20 US dollars per pound on February 10. Between early 2023 and the end of 2024, Arabica prices increased by 190%, while cheaper Robusta beans increased by 263% over the same period. Lavazza said the price volatility was driven by a 'perfect storm' of droughts in Brazil and Vietnam significantly impacting coffee production and ongoing geopolitical disruption increasing transportation costs and delivery times. However Lavazza chairman Giuseppe Lavazza said UK consumers may have seen prices peak following a 20% increase in the cost of beans at the supermarket last year. Meanwhile, a flat white at the firm's flagship cafe off Regent Street in central London is holding steady at an albeit inflated £4 to take away or £5.50 to have in, reflecting current costs. Mr Lavazza said: 'We think that the market reached a peak at the beginning of this year. 'It is our hope that the price for the consumer has peaked.' High prices have not dented the 'strong trend' of UK consumers turning to beans to make fresh coffee at home, which began when the pandemic closed cafes but has showed no sign of slowing even now. The UK retail coffee market, valued at £1.7 billion, has seen at-home consumption rise by 5.7% on the year to date as consumers shift from cafe to kitchen, Lavazza said. According to its figures, UK households drink 13 million cups of Lavazza coffee each week and use 1.4 million Lavazza capsules, leading to £10 million in sales for the brand's best-selling Qualita Rossa beans over the year to May. Mr Lavazza said its new Tabli home coffee system, which uses coffee tabs that are individually completely free of packaging, will launch in the UK next year. Designed to address concerns over the sustainability of aluminium and plastic packaging, Mr Lavazza described the new system as 'the best Lavazza has designed in history'. 'I call it a small miracle,' he added. Lavazza said UK sales were up 5.4% to £123 million compared with the year before.
