Lavazza in ‘open’ talks with UK retailers as coffee bean costs surge

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Lavazza has said it is in “constructive and open” talks with UK retailers after revealing that supply costs for its green beans have risen 80% in a year.

The Italian coffee giant warned that it expected inflationary pressures to remain until at least the end of 2023 but said it was working hard to absorb costs.

The cost of a 1kg bag of Lavazza whole beans has risen by around £2 over the last 14 to 16 months in UK supermarkets.

“The situation is troubling and will be for some time, so we need to keep the conversation (with retailers) as free and open as possible.”

Mr Mazza stressed that it was retailers who set the retail price of Lavazza products rather than the company.

But he said: “It has been very tough in terms of supply – for green beans and for the components of our equipment.

“We have seen an 80% average increase in the cost of green beans in a year.”

The firm said instant coffee still made up more than 60% of the UK market, but sales of beans had grown 30% over the last three years.

Mr Mazza described this as part of the “premiumisation” of the UK market as consumers sought to enhance their at-home coffee experience as a result of pandemic lockdowns.

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