Instant coffee going up

Press, 3 August 1976, Page 1

Instant coffee going up

Instant coffee will cost more after this week. The price of one brand rose 30c for a IOOg pack yesterday and the other two manufacturers’ prices are likely to rise even more than that tomorrow.

The rises come after higher prices for raw coffee beans and increased transport costs, but should not be passed on to shoppers until old, cheaper stock has been exhausted. Like the prices of many

other products, instant coffee prices are regulated, and can be increased only six-monthly unless specific approval is obtained from the Department of Industry and Commerce. It is almost exactly six months since the last price increase, and it is thought that one of the big packers had had permission to increase its price, but was reluctant to do so for fear of losing sales.

The firm with the smallest share of the market— Bushells—has just increased its price of the IOOg pack from $1.21 to $1.51. The present price of the market leaders—-Greggs and Nestles—is $1.29 for the IOOg pack, but this could rise 30c or even 35c within the next few days. Although the present retail prices have been in force for six months, many shoppers will have benefited from lower prices offered by grocery groups, some of which have been selling IOOg packs as low as 99c, which is below cost price.

Faggs products — beans and ground coffee—rose in price early in July because of the increase in the price of the raw beans after disastrous crop failures in Brazil, and the consequent buying pressure. It was certain that prices would never return to the level of even eight months ago, said the firm.