The head of Lavazza Group has blamed hedge funds and other financial speculators for fuelling an “unbelievable” surge in global coffee prices, attributing roughly 80% of the recent volatility to market speculation rather than supply-side issues, according to a report by the Financial Times.

Speaking during Wimbledon, Lavazza Chair Giuseppe Lavazza said speculative activity – particularly from hedge funds – had driven London robusta futures to record highs of over $5,700 per tonne earlier this year, far above the long-term average of $1,700. Though prices have since moderated to around $3,500 per tonne, they remain elevated, and coffee consumption has dropped 3.5% over the past two years as a result.

Lavazza said his company spent €1.6bn on coffee purchases last year – up from €600m in 2018 – just to stay competitive amid soaring market costs.

While Lavazza acknowledged that poor harvests contributed to the rally, he singled out hedge funds for exacerbating market swings.

Looking ahead, Lavazza flagged potential new cost pressures from EU deforestation regulations and renewed US tariffs under President Trump, cautioning that global supply chains remain vulnerable to political and environmental shifts.