Summary
Several American coffee companies are filing for bankruptcy due to high coffee prices and other financial challenges. Market leaders, like Starbucks, are also making adjustments to cope with these tough conditions. Some companies have issued warnings about potential financial difficulties.
Key Facts
- Coffee prices have increased about 19% in the past year, outpacing general inflation.
- Bad weather has reduced coffee crop yields in major producing countries like Vietnam and Brazil.
- New tariffs on coffee-producing countries have increased import and business costs.
- Starbucks is closing some stores and reducing staff to tackle slowing sales and inefficiencies.
- The Blend Coffee and Cocktails, operating in Florida, filed for Chapter 11 bankruptcy.
- Cuppa Austin Coffee's parent company also filed for bankruptcy in Texas due to financial strain.
- Compass Coffee might face bankruptcy due to a rental dispute and is negotiating rent reductions.
- Senators Catherine Cortez Masto and Rand Paul proposed the "No Coffee Tax Act" to remove tariffs on coffee.
