Gilkatho Cappuccino Price Index™ - 2012: March Release
The March Quarter Gilkatho Cappuccino Price Index (CPI) reveals a significant change of coffee prices in most Australian cities over the past six months.
This quarter’s Gilkatho CPI has shown a steady increase in Australian consumer coffee prices. However while the latest report shows a rise in takeaway coffee prices for Sydney and Melbourne, Brisbane shows no change in prices for both takeaway and dine-in coffee. [See Table 1- 2012 Q1]
The Gilkatho CPI is a measure based on the average price of a cup of coffee. For the past 10 years, researchers have been sent to visit cafes around their local city to collect and record the selling price of a number of standard coffee drinks including takeaway and dine-in cappuccino, latte, long black and espresso.
Takeaway
|
City |
Adelaide |
Brisbane |
Canberra |
Melbourne |
Perth |
Sydney |
|
Q3 2011 |
S3.37 |
$3.43 |
$3.41 |
$3.21 |
$3.72 |
$3.11 |
|
Q1 2012 |
$3.43 |
$3.43 |
$3.37 |
$3.35 |
$3.75 |
$3.19 |
|
Change |
↑.06 |
-- |
↓.04 |
↑.14 |
↑.03 |
↑.08 |
Dine-in
|
City |
Adelaide |
Brisbane |
Canberra |
Melbourne |
Perth |
Sydney |
|
Q3 2011 |
$3.37 |
$3.48 |
$3.41 |
$3.23 |
$3.70 |
$3.46 |
|
Q1 2012 |
$3.45 |
$3.48 |
$.3.43 |
$3.37 |
$3.74 |
$3.51 |
|
Change |
↑.08 |
-- |
↑.02 |
↑.14 |
↑.04 |
↑.05 |
Table 1
The March Quarter Gilkatho CPI shows cities such as Sydney and Melbourne experiencing an increase in coffee prices whereas Perth and Canberra show a modest increase and Brisbane prices remain stable. [See Table 1- 2012 Q1]
Gilkatho Managing Director Wayne Fowler said the March quarter results largely reflect the correlation of coffee prices to economic inflation.
Mr Fowler said “the relief of the price pressure on the Food and Nonalcoholic Beverages sector has provided some respite to business operators allowing them to moderate any price increases as a result of other rising costs.”
The ABS Consumer Price Index released last week showed a 2.1% decrease in the Food and Nonalcoholic Beverages sector over the same period.
“The March Gilkatho CPI portrays a continuing trend of steady price increase reflecting the healthiness of the Australian coffee market as consumers appear willing to pay the increased costs.” He said. [See Table 2- 2012 Q1]
Gilkatho Managing Director Wayne Fowler said the March quarter results largely reflect the correlation of coffee prices to economic inflation.
Mr Fowler said “the relief of the price pressure on the Food and Nonalcoholic Beverages sector has provided some respite to business operators allowing them to moderate any price increases as a result of other rising costs.”
The ABS Consumer Price Index released last week showed a 2.1% decrease in the Food and Nonalcoholic Beverages sector over the same period.
“The March Gilkatho CPI portrays a continuing trend of steady price increase reflecting the healthiness of the Australian coffee market as consumers appear willing to pay the increased costs.” He said. [See Table 2- 2012 Q1]
Takeaway Average Price Trend
|
Year |
2012 Q1 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2009 Avg. |
2008 Avg. |
2007 Avg. |
2006 Avg. |
2005 Avg. |
2004 Avg. |
|
Price |
S3.40 |
$3.35 |
$3.33 |
$3.30 |
$3.30 |
$3.20 |
$3.10 | $2.97 | $2.85 | $2.80 | $2.67 | $2.54 |
Dine-in Average Price Trend
|
Year |
2012 Q1 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2009 Avg. |
2008 Avg. |
2007 Avg. |
2006 Avg. |
2005 Avg. |
2004 Avg. |
|
Price |
S3.48 |
$3.42 |
$3.42 |
$3.38 |
$3.37 |
$3.25 |
$3.17 | $3.14 | $3.24 | $3.12 | $2.86 | $2.86 |
Table 2
Raw coffee prices have been a record high in the last quarter of 2011. Record production in Brazil has sent a clear message to the market that prices are going to decrease in the future.
This has already been evident with countries such as Kenya producing a high quality bean selling at lower prices into the international market.
Australian buyers of green coffee beans can be expected to renew supply contracts at lower prices going forward in 2012.
QUICK FACTS
• The Gilkatho Cappuccino Price Index (CPI) has been conducted for the past ten years by Gilkatho, an Australian coffee supply company that provides automatic coffee equipment, coffee beans and technical services.
• The CPI surveys more than 200 cafés (more than 900 in total) in Melbourne, Brisbane, Perth, Sydney, Adelaide and Canberra.
• Gilkatho aggregates these figures to understand how the selling price of a cup of coffee is changing over time.
• According to international figures Australians will this year consume 2.95kg per person up from 2.7kg per person in 2009.
• Total imports of coffee into Australia have increased by 18% since 2008/09.
• The Gilkatho Cappuccino Price Index encapsulates all of the factors affecting the market, including rising international coffee prices, rising shop rents, labour costs and consumer spending habits.
• Apart from the cost of coffee beans, directs costs to cafés include rents, milk, staff wages and furniture/fittings. Other costs also include GST, takeaway cups and lids, milk, sugar and stirrers.
This has already been evident with countries such as Kenya producing a high quality bean selling at lower prices into the international market.
Australian buyers of green coffee beans can be expected to renew supply contracts at lower prices going forward in 2012.
QUICK FACTS
• The Gilkatho Cappuccino Price Index (CPI) has been conducted for the past ten years by Gilkatho, an Australian coffee supply company that provides automatic coffee equipment, coffee beans and technical services.
• The CPI surveys more than 200 cafés (more than 900 in total) in Melbourne, Brisbane, Perth, Sydney, Adelaide and Canberra.
• Gilkatho aggregates these figures to understand how the selling price of a cup of coffee is changing over time.
• According to international figures Australians will this year consume 2.95kg per person up from 2.7kg per person in 2009.
• Total imports of coffee into Australia have increased by 18% since 2008/09.
• The Gilkatho Cappuccino Price Index encapsulates all of the factors affecting the market, including rising international coffee prices, rising shop rents, labour costs and consumer spending habits.
• Apart from the cost of coffee beans, directs costs to cafés include rents, milk, staff wages and furniture/fittings. Other costs also include GST, takeaway cups and lids, milk, sugar and stirrers.
