Coffee price today August 4: Robusta turns down

Coffee prices today (August 4) on the world market decreased. Of which, robusta coffee prices decreased by 1.08% to 2,645 USD/ton.

Update world coffee prices

According to records, coffee prices on the world market have decreased. Specifically, the online price of robusta coffee in London for delivery in September 2023 was recorded at 2,645 USD/ton after decreasing by 1.08% (equivalent to 29 USD).

The price of Arabica coffee for September 2023 delivery in New York was at 164.75 US cents/pound after decreasing 1.32% (equivalent to 2.2 US cents) at the time of survey at 6:35 (Vietnam time).

European packaged consumer goods sales fell 13% last year as at-home coffee consumption declined in the wake of the pandemic. The company’s packaged coffee brands were temporarily removed from some European supermarket chains last year amid a price dispute. Dutch coffee seller JDE Peet’s NV is still working to rebuild its lost distribution.

In April, the company announced its intention to combine its European Out-Of-Home and CPG segments into one European segment to adopt a “true omnichannel approach” and “leverage its brands more effectively.” The segment accounts for more than 55% of the company’s revenue.

Reports emerged earlier this summer that coffee producers, including JDE Peet's, were delaying purchases of beans from Brazil, the top coffee growing country, as they waited for prices to fall after bad weather limited supply for two years, rather than use up stockpiles built up during the pandemic.

Coffee producers expect a larger crop this year, leading to lower prices. According to the USDA, Brazil’s Arabica coffee production in 2023-24 will increase by 12% compared to the previous crop due to favorable weather conditions.

Despite falling from its peak, robusta coffee prices remain at a 12-year high and are expected to remain volatile, according to BNN Bloomberg.

The company recently announced plans to acquire Maratá's coffee and tea businesses in Brazil from JAV Group, bolstering its focus on emerging markets.

Analysts say the company’s future growth opportunities lie in entering new markets, opening the door to more M&A activity. Just seven core markets account for two-thirds of its sales, according to Bloomberg Intelligence, so expanding into new areas of exposure makes sense in the long run.

Earlier this year, analysts at Barclays Plc made the case for investing in the brand on ESG grounds, ranking it ahead of any other pure-play coffee company. They said coffee offers “the lowest greenhouse gas emissions profile in the beverage business and the industry continues to take innovative steps to reduce its carbon footprint.”

The company has announced plans to launch a fully compostable coffee capsule and a new paper pack that will “create the lowest carbon footprint of its current product range”.

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