Starbucks Corporation (SBUX): Why You’re Going to Pay More for Coffee

And if disease doesn’t kill off your supplier, a shifting climate might. Increasing temperatures are pushing coffee growers higher up into the mountains to escape the heat, which can have a detrimental effect on coffee production. The problem is that there’s a limited amount of space up in those hills, and at some point, we run out.

With all the forces pushing coffee prices up — roasting and shipping are the other major coffee production costs, and they both rely on fossil fuels — you can bet your bottom dollar that your morning cup is going to go up in price, too.

While many brands, including Starbucks Corporation (NASDAQ:SBUX) and Dunkin Brands Group Inc (NASDAQ:DNKN)’ Dunkin’ Donuts line, dropped their bagged coffee prices earlier this year, I wouldn’t be surprised to see those climb back in a year’s time. Dunkin Brands Group Inc (NASDAQ:DNKN)’ may have the longest to hold out, as its adjusted operating margin has crept up, hitting 43% last quarter. That may buy it some time, but in the end, we’re going to be paying more no matter where we get that cup.

The article Why You’re Going to Pay More for Coffee originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald’s and Starbucks.

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