By Richa Naidu
VEVEY, Switzerland, June 30 (Reuters) – Nestle will take falling coffee bean costs into account when setting retail prices, a senior executive told Reuters on Tuesday, a potential boost to consumers seeking their caffeine fix that had become increasingly pricey in recent years.
Coffee prices rose sharply in 2024 and reached record highs in 2025 as adverse weather hit supplies, but bean prices have generally trended lower this year.
“Lower coffee prices are a great thing for everyone, because it will lower the cost and, you know, may lower the price,” Axel Touzet, head of Nestle’s coffee brands strategic business unit said at the company’s Vevey headquarters on Tuesday.
“We will adapt, depending on the markets and the situation, but, yes, we will take into account the decline when we decide on our coffee prices.”
The comments are the most concrete indication yet that Nestle could lower its closely-watched coffee prices after the surge in recent years.
Nestle, the world’s largest coffee company, owns brands including Nescafe and Nespresso. Touzet said consumer prices would ultimately depend on stock levels and the prices Nestle paid for the coffee it purchased.
Coffee industry experts estimate it takes at least nine months for changes in raw bean prices to reach coffee drinkers, partly because of roasting lead times and contract negotiations. As a result, coffee prices in shops and cafes remain elevated following last year’s price surge.
(Reporting by Richa Naidu. Writing by Alexander Marrow. Editing by Mark Potter)
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