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Coffee: lower bean prices no relief for caffeine addicts

Britons can blame a long and complicated value chain for the cost of a cappuccino
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{"text":[[{"start":11.93,"text":"Coffee bean prices are falling. "},{"start":14.372,"text":"Futures for high-end arabica beans, used in espressos, briefly touched $1.88 a pound this week, a one-year low. "},{"start":22.326999999999998,"text":"But that does not mean caffeine addicts will get a break on the cost of their morning brew. "},{"start":26.582,"text":"Already the price of a premium takeaway coffee in Britain has climbed 7.9 per cent since January alone, according to ONS data. "}],[{"start":35.41,"text":"Britons can blame a long and complicated value chain for the sticker shock. "},{"start":39.81399999999999,"text":"In a £2.90 cappuccino, the coffee itself only accounts for 5 per cent of the cost, or about 14.5p, says consultancy Allegra. "},{"start":49.093999999999994,"text":"Rent, labour, administrative overhead and taxes make up 78 per cent of the overall price. "},{"start":54.949,"text":"Staff costs make up the largest portion, well over a quarter. "},{"start":58.653999999999996,"text":"Average UK earnings are already up 5 per cent in the last year. "}],[{"start":63.019999999999996,"text":"Any let-up in coffee bean prices is also being offset by higher milk prices. "},{"start":68.08699999999999,"text":"These, which make up 5 per cent of the input cost, averaged 62p a pint in September, according to the ONS. "},{"start":75.36699999999999,"text":"That is up by more than a third this year and is the highest since records began in 1971. "}],[{"start":null,"text":"

"}],[{"start":81.55,"text":"So far, consumers are not cutting back on their daily stimulants, though. "},{"start":86.342,"text":"Britons drink 98mn cups of coffee a day. "},{"start":89.572,"text":"The UK café and coffee shop market is worth $5.6bn, a 36 per cent increase from a year ago, according to consumer research group IbisWorld. "},{"start":98.622,"text":"IbisWorld. "}],[{"start":100.21,"text":"Starbucks said revenue in the most recent quarter rose 9 per cent to $8.1bn thanks to price increases and demand in its key North America market. "},{"start":109.077,"text":"The gains came despite a steep sales drop in China — its second most important market — as a result of the country’s zero-Covid restrictions. "}],[{"start":117.72999999999999,"text":"Like lipsticks, £4 flat whites are small indulgences that people will allow themselves during a time of belt-tightening. "},{"start":124.847,"text":"It is just a shame that only a fraction of the 14.5p spent on coffee beans ends up with the farmer. "}],[{"start":130.73,"text":""}]],"url":"https://creatives.ftacademy.cn/album/87503-1666505335.mp3"}

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