The Coronavirus has seemingly touched on every industry across the globe. With the pandemic spreading at a record rate, we are feeling the effects right here at home. One of the products that you may not have expected to have been walloped by the virus is our favorite bean. Coffee products & shops have been vastly affected by the conditions and regulations passed due to the spread of COVID-19.
If you weren’t overly bothered by quarantine before, the fluctuating prices of coffee might make you feel differently.
As one of the largest economies in the world, the implications of Coronavirus have spread like wildfire across China. We should note, China only accounts for around 2% of global coffee consumption. But, their presence expands exponentially in the coffee market year by year.
In response to the virus, 2 of their largest coffee chains decided to close up shop. According to the Financial Times, Starbucks closed around 2,000 stores, while another local chain, “Luckin Coffee,” shut down everything at the virus epicenter of Wuhan.
What do these closures mean for us here in the United States? Carlos Mera from Rabobank claims these closures reinforce “the bearish trend in global coffee prices.”
With the spread of this virus continuing into the unforeseen future, we have to prepare for the continued fluctuation of coffee prices.
Here at our coffee catering company Cupa Cubana, we have felt the devastating effects of the Coronavirus first-hand. With the elimination of gatherings of over 50 people, it’s no secret the event scene has taken a back seat.
As we continue to adjust to these circumstances, check back here for more information regarding COVID-19. We will keep you updated on the latest news as it pertains to our industry.