Although Tim Hortons charges less for a coffee than some of its competitors, such as Starbucks and Second Cup, the coffee chain that
maintains 76 percent of the baked goods and coffee market in Canada will increase its prices, according to the
Toronto Sun.
Tim Hortons executives said the price increase will take into effect on Apr. 11, but noted that it will only be a “small price increase.” The company, though, would not specify which items will cost more or by how much.
City News reports that a large coffee is expected to go up by seven cents.
The boost in prices was forewarned in February when Tim Hortons CEO Don Schroeder said the increase in costs for ingredients of baked goods and coffee would be passed to the consumers. Tim Hortons customers in the United States already experienced a three percent price increase in February, reports
CP24.
One of the primary reasons for this move is because the wholesale price of coffee has surged 81 percent. Fungus caused by unpredictable rainfall and higher temperatures has severely hurt the coffee supply in Colombia.
Bloomberg News reports that Colombia will harvest a “very small” crop in the first six months due to the high amount of precipitation. Member of the National Federation of Coffee Growers, Jose Sierra, said due to the storms there won’t be a “mitaca,” which is an early harvest.
