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Nespresso holds coffee prices despite cost gain, sees weak office demand

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June 24, 2021

Nestle SA-owned Nespresso has not increased prices for its capsules yet, despite a big increase for arabica beans, according to a Reuters report.

Alfonso Gonzales Loeschen, the chief executive of Nespresso North America, said the company has absorbed price increases instead of passing them on to consumers.

Benchmark arabica coffee prices on the ICE exchange reached the highest level since November 2016, earlier this month, due to less production in Brazil and disruptions to the supply chain.

Loeschen said direct sales to consumers rose 20% during 2020, forcing the company to adjust to stronger online sales and logistics demand.

He said only around 20% of workers have returned to offices.