Information with VTC News , Mr. Tran Trong Trang, General Director of Chiko Food Joint Stock Company, said that his business has just sent a notice of increasing coffee prices to long-time partners. This is the first time the company has had to increase prices of retail coffee products because imported raw materials are too expensive.
“Initially, when the price of raw coffee increased, we kept the price of finished coffee unchanged because we thought it was only a temporary increase and the price would drop after a short time. However, up to now, coffee prices continue to increase, with no signs of stopping, forcing us to consider increasing the price of finished products, otherwise we will not be able to survive because the loss is too large.” Mr. Trang said.
Notice of price increase for a series of Chiko Food coffee products.
Accordingly, Chiko Food has just announced that 7 types of coffee and 1 type of cocoa powder will increase by 15,000 – 40,000 VND/kg depending on the type. The two types of coffee with the strongest price increases are 100% Espresso coffee and Nguyen Moc coffee, both increasing by 40,000 VND/kg.
The new price will apply from May 1. “We always try to balance to best benefit our customers and partners. Increasing product prices is the last solution, when there is no other choice.” Mr. Trang shared.
Not only has the price of finished coffee been adjusted to increase, but the price of each cup of coffee prepared at shops when it reaches customers is also more expensive than before.
Mr. Nguyen Phuc Thanh, Director of Gossip Vietnam Joint Stock Company, the operator of the Gossip coffee store chain, said that many Gossip partner stores have begun to increase the price of this drink. “ A cup of coffee previously sold for 20,000 – 25,000 VND/cup, but now it has increased to 25,000 – 30,000 VND. ”, Mr. Thanh said.
The price of brewed coffee at many shops has increased due to expensive ingredients.
However, according to Mr. Thanh, the store increased the retail price of coffee not only because of expensive coffee ingredients but also due to many other factors.
He analyzed: “ The selling price of a cup of coffee is made up of many factors including coffee grounds, electricity and water costs, premises, labor… Of which, coffee grounds account for more than 10%. Now the price increase of raw coffee will affect more than 10% of the cost of making that cup of coffee, estimated at several hundred dong.
In addition, electricity, water, and rental prices all increased, causing the restaurant’s total operating costs to increase, forcing the owner to increase selling prices to balance. “.
Not only in restaurants, but also the price of coffee sold on the street in Hanoi is also increasing. A coffee cart on Dai La street (Hai Ba Trung district) has increased the price of salted coffee from 15,000 VND/cup to 18,000 VND/cup.
Salted coffee sold at coffee carts increased in price from 15,000 VND to 18,000 VND/cup.
The seller said: “ We import the most delicious coffee to use in making salted coffee, but the price of this ingredient has increased, forcing us to increase the selling price to make a profit. “.
Meanwhile, the owner of another coffee cart on Lo Duc Street (Hai Ba Trung District) admitted that the cups of coffee he sells are a bit less than before.
“ Coffee raw material prices are constantly increasing. If I want to make a profit, I have to be skillful and meticulous when preparing, save money and not waste anything. I also want to increase the selling price to make mixing more comfortable and abundant for both sellers and buyers, but I’m worried about losing customers because customers are too familiar with the average coffee price of only 15,000 VND/cup. If the price increases, they will immediately switch to buying elsewhere. I had to overcome it by selling a little less, but still ensuring quality to retain customers.” he confided.
The price of raw coffee in the country is still increasing sharply. Specifically, on April 29, in Lam Dong province, 3 districts of Di Linh, Bao Loc and Lam Ha traded coffee at the same price of 133,500 VND/kg.
In Dak Lak, Cu M’gar district buys coffee at 134,000 VND/kg. Ea H’leo and Buon Ho districts are trading at 133,900 VND/kg.
In Dak Nong province, traders bought coffee for 134,200 VND. In Gia Lai province, the price of raw coffee is 134,000 VND/kg. The purchasing price of coffee in Kon Tum is 134,000 VND/kg.
This is the highest price in history. Before the season, businesses forecast that the highest coffee price would be 50,000 VND/kg. But now the price has exceeded 130,000 VND/kg.
According to experts, the main reason is that Vietnam’s coffee inventory from the old crop year is the lowest in history. In previous years, every year Vietnam had inventory of about 120,000 – 150,000 tons. However, in the 2023 crop year, inventory output is very low, only 50%.
Meanwhile, the output of the 2023 – 2024 crop year is also estimated to decrease by 10% compared to the previous crop year. Dry weather in coffee growing areas is happening not only in Vietnam but in all coffee regions globally, due to the influence of the El Nino phenomenon.
This situation has had a negative impact on coffee productivity and output, especially Robusta coffee.
