The five million Timmies coffees sold every day just got a little pricier.
Driving the news: Tim Hortons is raising its coffee prices for the first time in three years, pointing to the fact that the cost of coffee beans has more than doubled since the last time it increased prices.
- The price hike will work out to about a 1.5% per cup, which Tims says is “more than reasonable” compared to inflation.
Why it matters: Canadians aren’t just paying a little bit more at Timmies or their local cafe — even making a cup of joe at home has gotten more expensive. Coffee prices at grocery stores in August climbed almost 28% compared to last year.
Why it’s happening: Droughts in growing hubs like Brazil and Colombia are still a factor, but lately, U.S. trade policy has also been a culprit. The U.S. is Canada’s third-largest source of coffee imports, and grocers say Ottawa’s retaliatory tariffs on American-manufactured coffee drove up prices.
- Loblaw also says that the U.S. slapping 50% tariffs on Brazil, the biggest coffee exporter in the world, have affected prices in Canada.
Bottom line: For a while, roasters, grocery stores and coffee shops have mostly held off on price hikes, but as bean supplies dwindle and prices increase, customers are going to start footing more of the bill for those added costs.—LA