NEWS
18 APRIL 2025 ASIAN TRADER 5
Cofee futures are
rising as roasters such
as Lavazza, Illy, Nestle
and Douwe Egberts
maker JDE Peet’s hold
talks with retailers
about passing on costs
from a near doubling of
arabica bean prices
over the past year,
according to eight
industry sources.
Raw arabica prices have
spiked due to four successive
seasons of deficit as adverse
weather makes it harder to
grow enough of the delicate
beans to meet consumer
demand.
As roasters press for price
hikes, grocery stores and
supermarkets push back,
postponing signing new
supply deals to the point
where some have run out of
cofee stock.
In the Netherlands, lead
supermarket chain
Albert Heijn ran out of
cofee products like
Douwe Egberts and
Senseo.
Global prices for
arabica, typically used in
roast and ground blends,
have gained more than
20% this year after
soaring 70% last year as
Brazil – producer of
nearly half the world’s
arabica – sufered one of its
worst droughts on record.
On average, the raw beans
account for about 40% of the
wholesale cost of a bag of
roast and ground cofee.
Bean shortages stir up 25%
hike for cofee prices
Chancellor’s statement
Chancellor’s statement
was bad for business – we
was bad for business – we
need to work together
need to work together
Nick Gillett is
Co-founder and
Managing
Director of
successful spirits
distributor
Mangrove Global,
as well as an industry expert and
commentator. In his column for
this issue, Nick takes issue with
the lack of support for the sector
from the government
Whilst the Chancellor’s Spring Statement
delivered no new unwelcome surprises
for businesses, it made clear that no
support for the spirits, hospitality, or retail
industries will be coming any time soon.
And with businesses playing a large part
in driving economic recovery in this
country, it looks as though it’s being left to
us to take care of it ourselves.
For spirits, the global landscape is
tricky right now. Not only are drinks
businesses facing the same challenges
that you are, as business owners, but
trade tarifs and expensive bureaucracy
like the Extended Producer Responsibili-
ty for Packaging (EPR) scheme are
looming. This means that independent
brands – who don’t have the deep
pockets and cash reserves of a global
corporation behind them - could
especially struggle.
In spite of everything the Govern-
ment’s done to hammer businesses,
there are glimmers of hope on the
horizon. And I firmly believe that the
resilience of our sector comes from
supporting each other.
As a distributor, we’re taking steps to
provide stability to our trade partners,
like increasing stock levels of American
products now, so that we can keep prices
level for as long as possible if tarifs come
into play. Alongside our brand partners
we’re also finding new ways to support
the on and of-trade, with activations and
innovative marketing, to help you sell
more bottles.
In return, try stocking a few of the UK’s
incredible, independent brands – if you
don’t already. Not only will you be
ofering your customers a top-notch
liquid, but you’ll also be protecting the
diversity and creativity of our sector,
which the Government has tried its
damnedest to stamp out.
C-stores have been urged to
deplete their stocks of single-use
vapes ahead of new legislation
coming into force banning their
sale.
The deadline for selling any
remaining single-use vapes was
confirmed as 1 June when
legislation was laid in parliament
last year.
“Our ban comes into force in
just a few weeks so businesses
must play their part by running
down stocks and ensuring the
remainder are collected for
recycling,” waste minister Mary
Creagh said.
Ashley Dalton, the minister
for public health and prevention,
added: “Single-use vapes are one
of the most wasteful products on
our high streets, with 13 being
thrown away every second.”
Analysis by Material Focus
found an estimated 8.2 million
vapes are now discarded every
week in the UK, which is the
equivalent of 13 each second.
However, recycling single-use
vapes is notoriously arduous,
with waste industry workers
needing to take them apart by
hand which can be a slow and
costly process. Their contents
also present a fire risk to
recycling facilities and can leak
harmful chemicals into the
environment.
With under two months until
the ban comes into force,
businesses must take action now
to ensure they are prepared for
its implementation. This
includes ensuring all remaining
stocks of single-use vapes are
sold, and only buying vapes that
follow the new regulations.
In England, any businesses
which fail to comply with the
ban could face a stop notice or a
fine of £200 and all products
seized by Trading Standards. If
further infractions occur, they
could be hit with an unlimited
fine and prosecution.
Retailers told to ditch disposables ASAP as ban looms
Ministers: sell remaining
Ministers: sell remaining
stock of single-use vapes now
stock of single-use vapes now
NEWS/COMMENT