Consumers paying more as prices of coffee beans, sugar, milk go up
Chia Yan Min, Straits Times, 25 Mar 08
ENJOYING a regular kopi at neighbourhood coffee shops has become a bit pricier in recent months, with the prices of some brews shooting up by as much as a third.
Supermarket shoppers have not been spared either, with prices of some 3-in-1 brands up 15 to 20 per cent. Upmarket cafes have hiked some prices as well.
Reality hit customers of Ya Kun Kaya Toast recently when prices rose by 10 cents across the board. Its regular coffee now costs $1.30.
A check by The Straits Times on heartland coffee shops shows that they have upped prices, with one in Toa Payoh charging 20 cents more for a regular kopi - a rise of 33 per cent - bringing the price to 80 cents.
The increases are partly due to local suppliers passing on the costs of pricier beans. Mr Tan Kok Hui, who supplies neighbourhood shops, raised the price of a 9kg barrel of beans by $3 to $5 last December. A barrel costs about $55.
'I believe the coffee shops are probably thinking of raising prices again soon,' Mr Tan said in Mandarin.
Mr Hong Poh Hin, chairman of the Foochow Coffee Restaurant and Bar Merchants Association, said coffee shops and smaller retailers may raise prices within the next six months, although other factors, such as pricier electricity, will also play a part.
'Utility prices have gone up almost 100 per cent in the past year,' said Mr Hong. 'The prices of sugar and milk are also increasing, and all of these will probably have a greater impact on coffee prices than the beans.'
He said any price increase would likely be between 10 and 20 cents a cup 'because coffee shops have to remain affordable for the masses'.
Supermarket chains have been gradually hiking prices.
In the past six months, the price of a 40-sachet bag of Nescafe 3-in-1 Regular Coffeemix has risen by 14 to 19 per cent across most major supermarkets. It costs $5.20 at Cold Storage and NTUC FairPrice. Super 3-in-1 Coffeemix is up 5 to 9 per cent, and now costs $4.95 at Cold Storage and $4.80 at NTUC FairPrice.
A spokesman for a major coffee supplier, who declined to be named, said his firm increased supply prices to supermarkets by 6 to 7 per cent last year, primarily due to the rising cost of coffee.
However, hikes at high-end cafes have been minimal. A latte at Spinelli has edged up 4 per cent to $4.50. But Gloria Jean's and Coffee Club have both held fire so far.
'Coffee is only one ingredient in a brew,' said Gloria Jean's spokesman James Donald. 'Unless we see a major increase in the price of all ingredients, we should not need to raise the price.'
Coffee drinkers, of course, will not give up their cuppa. Housewife Ang Poh Choo, 52, said: 'I still have to have my coffee regardless of the price hikes. Coffee drinking is a habit for me.'
Mrs Ang had just bought a packet of Gold Roast Instant Coffee at NTUC FairPrice for $3.50, a product that used to cost under $3.
Regular Starbucks patron Eric Leong, 35, a manager who spends about $350 a month on coffee, said his latte has increased by about 20 to 30 cents recently.
But as Mr Leong admits: 'Coffee drinking is a habit for me; if all the coffee chains increase prices, I guess I'll just have to pay more.'
chiaym@sph.com.sg
ADDITIONAL REPORTING BY ONG BI HUI
