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Nestle to consider falling coffee bean costs in retail pricing

Created at 30 Jun · 5:59 PM1 source↑ Market-relevant
IN SHORT

Nestle will factor in declining coffee bean costs when setting retail prices, a senior executive said, potentially lowering costs for consumers after recent price surges. The company's pricing decisions will depend on stock levels and past purchase prices.

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Key Numbers

9 monthslag for bean price changes to reach consumers

Who's Involved

Nestle
World's largest coffee company
Axel Touzet
Head of Nestle's coffee brands strategic business unit
Nestle to consider falling coffee bean costs in retail pricing

↳ Why This Matters

This statement from Nestle, a major global coffee producer, suggests a potential decrease in coffee prices for consumers, offering some relief from recent inflation in caffeine costs. The company's pricing strategy directly impacts millions of consumers worldwide.

Key facts

  • Nestle will take falling coffee bean costs into account when setting retail prices.
  • The company owns major coffee brands including Nescafe and Nespresso.
  • Coffee prices had previously risen sharply due to adverse weather impacting supplies.
  • It takes approximately nine months for raw bean price changes to affect consumer prices.

Nestle, the world's largest coffee company, indicated that it will consider the recent decline in coffee bean costs when determining its retail prices. Axel Touzet, head of Nestle's coffee brands strategic business unit, stated that lower bean prices are beneficial for consumers and that the company will adapt its pricing based on market conditions and stock levels.

Coffee prices had previously surged, reaching record highs in 2025 due to adverse weather affecting supplies. However, bean prices have generally trended downward this year. Touzet emphasized that the final consumer prices would also be influenced by the company's existing stock and the prices paid for previously purchased beans.

Industry experts suggest that it typically takes about nine months for fluctuations in raw bean prices to be reflected in the prices consumers pay in shops and cafes. This is attributed to factors such as roasting lead times and ongoing contract negotiations.

Frequently asked questions

No, industry experts estimate a lag of at least nine months for changes in raw bean prices to reach consumers due to lead times and contract negotiations.

Nestle will consider falling coffee bean costs, market conditions, stock levels, and the prices paid for previously purchased coffee beans.

Coffee prices rose sharply and reached record highs due to adverse weather impacting supplies.

What Happens Next

01Nestle will monitor stock levels and past purchase prices to determine final retail pricing.
02Consumers may see lower coffee prices in shops and cafes within approximately nine months.

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How It Developed

Nestle executive Axel Touzet stated the company will consider falling coffee bean costs in retail pricing.
Coffee bean prices have generally trended lower this year after sharp increases and record highs in previous years.
Touzet indicated that consumer prices would depend on stock levels and Nestle's past purchase prices for beans.
Industry experts estimate a nine-month lag for raw bean price changes to reach consumers due to lead times and negotiations.

Sources

T1
Nestle could lower coffee prices as bean costs fallReuters

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