THE price of high street coffee has risen by 20 per cent despite the price of beans falling to their lowest price for seven years.
The coffee bean market has plummeted by 67 per cent since 2011, from £2.23 per pound to a low of 74p last month, according to research by the MoS.
The cost of a ‘tall’ cappuccino from Starbucks has risen from £2.15 to £2.60 as revealed by The Mail on Sunday.
Most high street coffee shops have adopted the 20 per cent increase despite the drop in production costs, according to industry experts Allegra.
Caffe Nero have raised the cost of their regular cappuccino to £2.70 – a 40p rise since 2011, Pret a Manger is charging £2.45 compared to £2.19 seven years ago and a ‘primo’ from Costa which used to cost £2.15 will now set you back £2.35.
The coffee giants have been accused of profiting at the expense of their customers and MPs have called for prices to drop.
Tory MP Charlie Elphicke said: “It leaves a bitter taste in the mouth. It’s time the corporations passed on wholesale savings to consumers.”
Caroline Flint from the Public Accounts Committee said: “British consumers have a right to ask why they aren’t passing on the fall in price.”
The UK high street coffee market is so profitable, it is now larger than Italy’s, Allegra claims.
There are 24,000 coffee outlets and the amount being spent grows 7.3 per cent year on year.
An extreme contrast between the price of coffee beans and the cost of a high street coffee has been revealed after Coca-Cola bought Costa for £3.9 billion and German company JAB Holdings purchased Pret a Manger for £1.5 billion.
Coffee chains have profited from a global oversupply of coffee beans, which has caused its value to plummet.
Coffee Holdings, who owns Caffe Nero reported a profit of £2.6 million last year.
Meanwhile, the coffee chain has been criticised for paying less tax than expected on UK profits, as has Starbucks.
MOST READ IN NEWS
A Starbucks spokesperson said: “Many factors contribute to pricing decisions, including rents, labour, competition, distribution, commodities – and coffee.”
A Costa spokesperson said: “The price of a cup of coffee does not simply reflect the cost of the beans.”
A spokeswoman for Pret a Manger said: “Our coffee prices take into account the cost of our ingredients, as well as operational costs such as wages.”
We pay for your stories! Do you have a story for The Sun Online news team? Email us at firstname.lastname@example.org or call 0207 782 4368 . You can WhatsApp us on 07810 791 502. We pay for videos too. Click here to upload yours.