- Manufacturers have seen a 54% price increase in from concentrate orange juice
- The weakened sterling, combined with extreme weather conditions and crop disease, have led to global supply shrinking to its lowest since 2009
- Other fruits have been affected, likely to impact costs at the breakfast table
Bucks Fizz toasts over the festive season could become much more expensive, due to a huge increase in the price of orange juice and the increasing cost of fresh fruit, according to Beacon, Britain’s leading purchasing company.
Fresh juice manufacturers have reported a surge in pricing in the from concentrate orange juice market of 54% in the four months to September 2016, caused by a perfect storm of extreme weather conditions and crop disease, as well as the weakening of the pound following Brexit.
Kelley Walker, Category Manager for Drinks at Beacon, commented:
“The festive season might have a little less sparkle over the next few weeks, as manufacturers are hit with a significant increase in the cost of orange juice, a key ingredient in the classic Bucks Fizz, and the price of fresh fruits continues to fluctuate.
“Food and drink pricing by its very nature can often see peaks and troughs throughout the year, but this unique combination of a heavier than average storm season, crop disease and the weakening of the pound has severely impacted the supply and the price of orange crops. Price increases is a trend we predict will continue into 2017, especially with the full effects of Brexit yet to be realised.”
In June, Tropical Storm Colin caused massive rainfall in Florida, subsequently damaging orange crops that were already in decline due to an outbreak of citrus greening disease – this led to an estimated decline of 24% in Florida orange crops. At the same time crops in Brazil, the world’s largest orange grower and juice exporter, were also badly damaged by heavy rains and citrus greening disease, further impacting global pricing.
Earlier this year, Beacon also reported a major increase in smoked bacon pricing of up to 38% per packet and with coffee prices also on the up, as well as price fluctuations in strawberries, raspberries, pears, kiwis and pineapples, consumers could be paying much more at the breakfast table heading into 2017.