Price of coffee will deteriorate over time: Fmr. McDonald’s USA CEO
Former McDonald’s USA CEO Ed Rensi discusses how the weather in Brazil has significantly impacted the coffee industry.
The price of coffee has been on the rise due to the climate in Brazil and transportation blockages — and, on Wednesday, former McDonald’s USA CEO Ed Rensi explained to "Cavuto: Coast to Coast" this will cause the cost to "deteriorate" over time.
Ed Rensi: The biggest single reason we've had a disruption in the coffee bean industry and cost is the weather in Brazil. Brazil is the largest coffee bean producer in the world. There are specialty coffees coming out of Colombia that aren't hit quite so bad. But when there's a shortage, demand goes up, and that means the price is going to follow. And I hope it's going to abate soon.
But you still have the transportation problem because there's coffee beans you've got to get from Brazil, Colombia to the United States. And, you know, I don't know how many containers are sitting out in the ocean right now full of coffee. They can't get unloaded and the cost of getting it here is going up. So I don't think it's going to abate any time soon. It's tragic because coffee is really an enjoyable luxury that it feels like a necessity and it's going to deteriorate over time, cost-wise.
WATCH THE FULL INTERVIEW HERE:
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