Lavazza: the price of coffee has reached its limit for consumers

Consumer tolerance for soaring 'coffee prices is at an all-time high'. Thus Antonio Baravalle, CEO of Lavazza, in an interview with the Financial Times. The top manager pointed out that 'the rise in coffee prices was partly driven by market speculation and supply constraints due to climate change. The latter will be a problem for our industry in the medium to long term'.

"When I see three, four pounds for an espresso in London, or eight for a cappuccino in New York... I see the limit," said Antonio Baravalle. "It's like when you see the New York Stock Exchange go up, up, up and you think it's going to collapse sooner or later."

Coffee futures prices have skyrocketed since the beginning of last year, with premium Arabica beans reaching a record $4.39 per pound in February. In April, however, they plummeted below $3.45 due to fears that Donald Trump's tariffs will dampen demand.

Lavazza's CEO expects coffee sales to 'decline further in 2025', but the company has not reduced its 'workforce or its marketing and research efforts to cut costs'. On the US duty front, Baravalle emphasised that it will take 'two years to build additional production capacity in the US for growth in the North American market'.