Greek consumers are feeling the pinch as coffee prices soar, with cappuccino freddos now costing as much as €5.50 in cafes. International coffee prices have surged to their highest levels in nearly 50 years, leading to significant price hikes in supermarkets and cafes across Greece.
Global Factors Behind the Price Surge
The main drivers of this price increase are global challenges such as poor harvests and ongoing supply chain disruptions. Arabica coffee beans, in particular, have seen their prices double since the start of 2023. This sharp rise in coffee bean prices has been passed on to Greek consumers, resulting in price hikes of between 15% and 30% across coffee products.
In supermarkets, items like espresso capsules have increased in price from €5.10 to €6.60, a jump of up to 30%. Retailers are also grappling with shrinking stock and rising costs for new deliveries, with prices for fresh stock increasing by as much as 8%.
Impact on Cafes and Restaurants
Cafes and restaurants have been forced to raise their prices in response to the increased cost of coffee beans. Popular drinks, such as the cappuccino freddo, have risen by 31%, from €4.20 to €5.50. A simple espresso has also seen a notable increase, climbing from €3 to nearly €4 in many establishments.
Calls for Tax Reform
The Hellenic Coffee Association has urged the government to consider removing or reducing the Special Consumption Tax (SCT) on coffee, which they argue is exacerbating the problem.
Tasos Yiagoglou, president of the association, expressed concern about the tax burden, stating that it has inflated coffee prices even further. “We’ve seen Arabica coffee prices double, and while businesses have absorbed the costs until now, the situation is becoming unsustainable,” Yiagoglou told MEGA. He called the excise tax an “unbearable burden” and advocated for its reduction or complete abolition, arguing that without it, price increases would be much more manageable.
Coffee Becomes a Luxury Item
Coffee, long considered an essential part of Greek daily life, is quickly becoming a luxury item for many Greeks. This shift is particularly noticeable for those living abroad or for Greeks with close ties to the country, as coffee culture—once an affordable staple—is now a growing financial burden.
Industry leaders are pushing for tax reform, hoping that the government will provide relief to consumers and businesses alike. For now, many Greek coffee lovers are left watching closely to see whether any changes are on the horizon.
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