Brussels (Brussels Morning Newspaper) – Colruyt, one of the country’s leading supermarket chains, is halting its purchases of coffee from Douwe Egberts and Jacqmotte because of “excessive” price increases. That will affect where customers can buy the brands since when those items are sold out. The stores will not reorder.
Supermarket giant Colruyt announced that it would temporarily stop purchasing from Douwe Egberts and Jacqmotte. The reason: “excessive” price hikes. Until a new pricing agreement is reached, no new stock will be procured. Current supplies are still in stores, but when the supplies run out, the coffee lovers will have to change their preferences for purchases.
The rising prices reflect broader challenges in the coffee market, with costs escalating for both the premium Arabica beans and the more affordable Robusta variety. Typically, supermarkets balance prices by blending the two, says Wouter Helsen, a coffee expert and manager of OR Coffee Roastery.
“If Arabica becomes too costly, more Robusta is added to the mix,”
Helsen told De Wereld Vandaag on Radio 1.
Still, the price of Robusta also has increased significantly, partly on account of climate-induced disruption.
“Brazil, the world’s largest coffee producer, has reported a smaller harvest than expected, exacerbating supply issues,”
Helsen noted.
This not only affects prices but also the quality of coffee available to consumers.
“Supermarkets will likely purchase and blend lower-grade coffee to manage costs, resulting in less flavorful coffee on store shelves,”
Helsen warned.
This also means that consumers outside supermarket shelves will have to pay more at coffee shops. Climate change, pressure on the economy, and difficulties in supply chains change the world of coffee, leaving aficionados preparing for a pricier, maybe less satisfying cup.
Colruyt’s price disputes with major brands
Colruyt had multiple pricing disputes with big distributors such as Mondelez, Douwe Egberts, AB InBev, Unilever, Nestlé, and Mars. The supplier often presents price increase demands that Colruyt rejects because of maintaining low prices in the market. Some items, such as coffee, chocolates, beers, and snacks, are out of stock in stores at some point during these discussions.
Some disputes have been settled in recent times, including ones with AB InBev and NestlĂ©. For example, there is the coffee dispute that continues to impact shelves with JDE Peet’s, a consequence of the challenges between being affordable and the supplier.
