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Coffee Price Surge: Why Your Cup Costs More Than Ever

Wall Street Journal Markets •
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Reverie Roasters’ Boneshaker Espresso blend, once priced at $15 for a 12-ounce bag, now costs $18 after repeated hikes. This mirrors a broader trend: U.S. coffee prices have risen 15% since 2021, with artisanal brands facing mounting costs. Owner Andrew Gough cites tariffs, crop failures, and labor shortages as key drivers, but the story goes deeper.

Tariffs on imported beans and soaring rents in coffee hubs like Seattle and Portland have squeezed margins. Meanwhile, labor costs for skilled roasters have jumped 20% since 2022. Even after commodity coffee prices dipped in 2023, geopolitical tensions—like the Iran conflict—and volatile futures trading have reignited upward pressure. Analysts warn this isn’t a temporary blip; supply chain fragility and climate-driven harvest disruptions ensure prices will stay elevated.

The ripple effect is clear: Small roasters, unable to absorb costs, pass them to consumers. For brands like Reverie, this means losing margin on signature blends. Yet Gough insists quality can’t be compromised: "We’re not just selling coffee—we’re selling a craft."

Why does this matter? Coffee is a bellwether for global economic strains. From tariffs to climate shocks, the brew’s rising cost reflects vulnerabilities in interconnected markets. As one industry expert put it, "When your morning cup costs more, it’s a sign the economic coffee pot is boiling over."