// Lavazza has warned UK retailers that it needs to hike its prices in the face of soaring raw material costs
// The warning comes amid a price row between Tesco and Heinz, which has led to the brand halting supply to the supermarket
Lavazza is the latest brand to warn UK retailers that its prices will need to increase in the face of soaring inflation.
The coffee maker’s warning comes amid Tesco’s row with Heinz over the baked bean maker’s price hikes which has led the manufacturer to pause supply to the supermarket giant.
A Tesco spokesperson said: “With household budgets under increasing pressure, now more than ever we have a responsibility to ensure customers get the best possible value, and we will not pass on unjustifiable price increases to our customers.”
Lavazza’s UK general manager Pietro Mazzà said it was in talks with retailers about how to manage its soaring costs after the price of a 1kg bag of beans increased by £2 in the past 14-16 months to about £12.
Mazza told The Guardian: “We have seen an 80% average increase in the cost of green beans in a year. We are all facing tough times. The situation is troubling and will be for some time, so we need to keep the conversation [with retailers] as free and open as possible.”
A Lavazza spokesperson confirmed that the rising cost of raw materials would have “a knock-on effect of the cost of coffee for retailers, and subsequently for consumers”.
Lavazza is not alone. According to the latest ONS data, 30% of businesses expect to increase the price of goods or services they sell next months to combat rising energy prices.
Half of all businesses said their prices had increased in between May and April, with the figure rising to almost 60% for retailers and wholesalers.
In an attempt to quell rising food prices, the government has launched a review into cutting import taxes on goods not grown in the UK, such as oranges, bananas, olives and rice. It is thought the move could help reduce prices by about 10%.