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UK coffee prices spike, flat white averages £6.50

financeJul 13, 202610273

UK coffee prices have risen sharply, with some London venues charging £6.50 for a flat white. Lavazza said costs forced price increases at its Regent Street cafe, taking takeaway flat whites from £4 to £4.40 and in‑store from £5.50 to £6.50. The company blamed a “super El Niño” forecast and extreme rainfall in Brazil, rainfall in the week ending 28 June was nearly 2,000% above the historical norm, waterlogged fields delayed harvests and worsened bean quality, alongside drought in Vietnam, where fertiliser and fuel costs are up 30% year on year and labour costs up 33%. Lavazza reported arabica prices up 230% since 2021 and robusta up 325% over the same period, and chair Giuseppe Lavazza warned of “exceptional volatility” and speculator-driven record prices. Analysts and industry figures, including Susannah Streeter of Wealth Club, said elevated commodity and operating costs are prompting companies to build price buffers; Grind founder David Abrahamovitch said he is keeping his flat white at £4.10 but that yields only an 18p profit. The sector expects prices to remain volatile and said at least two years of good harvests would be needed to calm the market, creating pressure on businesses that rely on casual walk-in trade.

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