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Buy Coffee From Small Shops Or The Grocery? Expect A Price Hike

MINNEAPOLIS (WCCO) -- Your morning cup of coffee could soon get more expensive.

Wholesale coffee prices have shot up to a two-year high. A drought in Brazil is partly to blame, as a third of the world's coffee is grown there.

That's expected to result in a shortage of 11 million bags of coffee beans this season. Analysts say prices are expected to start going up in grocery stores next month.

"I think we're likely to see coffee prices move upward anywhere to 20, 25 percent in mainstream grocery channels," said Ross Colbert, a Rabobank Group global strategist.

Experts say the big coffee chains buy their beans way in advance, so prices at Starbucks and other major retailers are not expected to go up this year.

But smaller coffee shops could be forced to raise prices.

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