Finns drinking coffee regardless of cost

Rising coffee prices have not dampened Finns' enthusiasm for the black brew.

A person drinking coffee.
Image: Henrietta Hassinen / Yle
  • Yle News

The price of coffee surged noticeably in just one month, rising nearly 13 percent between May and June.

The hike was due to Brazil's poor harvest, which is having an immediate effect.

"It's because of weakened global supply. The demand for coffee has not diminished. It's a commodity that is highly sensitive to price pressures, as we're seeing now," Bate Ismail, an economist at the Finnish Food and Drink Industries' Federation (ETL), told Yle.

Buying lower-quality beans is not an option, according to Ismail, who said beans failing to meet Finnish quality standards won't make it into the country. Standards are set by the EU, while roasters also have their own quality requirements.

Matti Kummu, a food and water expert at Aalto University, said climate change is one of the biggest threats to coffee cultivation. Not only do coffee plants require specific growing conditions to produce high-quality beans, but they're also sensitive to extreme weather events.

Finland's storied devotion to coffee is well-documented, with inhabitants downing an average of 9-10 kilos of light roast coffee per capita annually. Coffee is held in such high regard in Finland that it is an integral part of special occasions and family gatherings: birthday parties, weddings, confirmations and funerals.

That said, demand for the drink has remained steady, even as prices fluctuate.

In addition to global supply concerns, retailers also impact the price of coffee on shelves.

In the land of coffee drinkers, it's also used as a popular loss leader to attract customers, even if its profit margins are small.

"Consumers are very aware of coffee prices. Given the current economic climate, many households are looking for budget-friendly alternatives, including special coffee sales," said Juhani Haara, an S-Group sales manager.

Coffee prices are retailing at the S-Group some nine percent higher than during the same time last year.

Over at the K-Group, sales director Aki Erkkilä said they run coffee promotions throughout the year.

"These campaigns typically boost coffee sales, regardless of the general price level," he explained.

Professor Kummu at Aalto University meanwhile has a consoling message for coffee lovers: the brew won't run out anytime soon, even though climate change could make cultivation less predictable in the future.

For those looking to save money on coffee, Ismail of the food industry group has some tips.

"When you look at the store shelves, there's a lot of options. You can choose to buy cheaper alternatives, consume less, or even revert to the traditional approach of stockpiling," he said.

Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via this link. Our guidelines on commenting and moderation are explained here.

Latest: paketissa on 10 artikkelia

The state alcohol retail monopoly is extending Saturday evening hours at about one-third of its stores, with roughly one in 10 opening on Sundays as well.

Defence Minister Antti Häkkänen (NCP) says that the new version of Saab's RBS 70 system will ensure protection of broader areas of Finland.

The deal means MTV's channels should re-appear automatically on Elisa's Viihde platform and TV cable offerings on Friday, without customers having to do anything themselves.