(NewsNation) — Higher coffee prices could be brewing for consumers as the global coffee market smashed a 47-year record.
Arabica coffee, a type of coffee bean largely grown in Central and South America, sold for $3.44 a pound earlier this week, beating the prior record high of $3.35 set in 1977.
Brazil is the leading producer of arabica, the world's most popular variety, and extreme drought has led to smaller harvests, driving world prices up.
The price of robusta, another coffee variety, is up 80% year-to-date due to climate challenges in top-producer Vietnam.
The smaller supply comes as the demand for coffee grows, and companies may pass the cost on to consumers.
Italian coffee brand Lavazza said it has absorbed rising coffee prices for some time but will have to make changes.
"Quality is paramount for us and has always been the cornerstone of our contract of trust with consumers," the company told BBC News. "For us, this means continuing to tackle very high costs. So, we have been forced to adjust prices."
Nestlé, which owns Nescafé and Nespresso, has already increased its prices.
