With the joyous festive season behind us, we have settled into the year with a bump.
And the unfortunate news that we need to give you a quick heads up about something important – the prices of our coffee will be increasing at the end of this month. We know that this might be a bit of a bummer, but we wanted to take a moment to explain why this is happening.
The main reason for the price increase is that the cost of raw materials has soared. This increase has been between 80 and 130% in 2022 alone. There are several factors behind this:
- Green coffee price has increased noticeably for commodity coffees, and for specialty, the increase has been even more dramatic.
- Logistics has been in high demand too, increasing transport costs by close to 200% and at the same time there have been delays.
- All coffee is traded in US dollars, which has also been at all-time highs. While the rand has clawed back some of its weakness, we had to pay for some of our stock before it was shipped and paid over R18 to the dollar.
- On top of these factors, delivery and courier services costs have also increased over the last year.
- Since Covid-19, all of us at Quaffee have had to survive on reduced salaries, only returning to parity of 2019 in the last 8 months. We all are suffering the effects of double-digit inflation. We need to increase employee compensation a bit due to general inflation. We want to ensure that everyone who works with us is fairly compensated for their hard work.
It’s important to note that the price increase will depend on the cost of our unroasted coffee beans. Our entry-level coffees will see a price increase of between 10 and 20%, while our specialty coffees will increase between 35 and 50%. These new prices will go live on our website (Quaffee.co.za) at the end of January 2023.
We know that these price increases can be tough, but we hope you’ll continue to support us and enjoy our coffee. We appreciate your business and look forward to serving you in the future.
Thanks for your understanding.
