World coffee prices have local impact

LAFAYETTE, Ind. (WLFI) - September 29th is National Coffee Day, and while some are celebrated with their favorite beverage, others were worried about where the increased cost is leading the industry.

Coffee is a part of our culture. According to an industry survey, 400,000 people count on their cup of coffee to get them going every day. The owner of a Lafayette coffee shop says it is scary to think what would happen if the caffeine concoction wasn't around.

"Nothing would get done,” K. Dees Coffee owner Jerry Kalal said. “We would grind to a halt for a week."

Kalal said the industry has taken a financial hit, thanks to a price hike in some ingredients like beans, sugar and milk.

"I have had one price increase since we opened,” said Kalal. “November will be three years."

Along with selling coffee by the cup, K. Dees also sells beans by the bag. There is one brand, the Kenya Double A, that is no longer on store shelves. It is too expensive to keep around.

"It does not really hurt until it gets ridiculously high,” said coffee drinker Eric Juhn.

Eric Juhn has been drinking coffee for 18 years. He buys and grinds his own beans. Juhn and his wife have a new baby, and he is going back to school. Juhn said if prices continue to climb it may give him incentive to put down the mug for good.

"You know, I have considered weaning myself off just for health reasons,” Juhn said. “The cost might be an additional factor that helps it happen."

Kalal said he now has to toe the line of increasing prices, but not raising them too much. He wants to keep keeping customers like Juhn coming back.

Kalal said the price of a cup of coffee might go up a dime, an espresso up a quarter. Kalal said he will not make any changes until early 2011, since the holiday season is right around the corner.