Will Coffee Cravers Ignore a Bean Price Surge?
While many large coffee sellers like Starbucks have a year or more supply of coffee beans stockpiled away, there is concern consumers will soon see a price hike for their favorite morning ritual because of the current drought situation in Brazil. But will that stop them from buying? According to Bloomberg, probably not. Seems U.S. coffee drinkers are "very ritualistic." Says Paul Christopher, the St. Louis-based chief international strategist at Wells Fargo Advisors, “There’s very low price-elasticity-of-demand for coffee. Would people who like coffee regularly substitute tea, or soda, if prices rise? The answer is ‘No.’” One coffee lover equates grabbing a Cup of Joe
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