Coffee price jumps 42 per cent

Press, 25 May 1977, Page 1

Coffee price jumps 42 per cent

Coffee is up in price again. At least one brand is already retailing at the new price—an increase of 42 per cent—and other brands will follow suit.

Although the world price for coffee has eased from the March peak, shipments arriving in New Zealand now were bought when prices were higher and manufacturers say they have no alternative but to pass the increase on.

Some manufacturers were uncertain of what the increase would be on their product because newly arrived shipments “had not been costed,” but agreed that between 40 and 45 per cent was a likely increase. A IOOg jar therefore would cost about $3. The New Zealand manager of Bushells, Ltd, (Mr J. M. Ewart), said from Auckland that the price rise of 42 per cent had applied to his company’s product from Monday. The increase reflected the

increased cost of coffee beans, he said. Mr T. L. Smith, the managing director of the Cashel Street coffee shop, Browne and Heaton, said he had not been told the amount of the price rise, hut he was sure that 40 per cent would be “about right.” He said there had been another substantial increase in the price of coffee beans. “New Zealand has not felt the effects of the highest increases in world prices yet,” Mr Smith said. “If prices fall on the international market, they will not be felt here.”

Mr Smith said he was unsure how the public would react to yet another increase in the price of coffee, but he was not unduly worried at the moment.

The general manager of Nestles (Mr A. McClelland) said from Auckland that he was not available for comment.