The region was hit by a severe drought and extremely high temperatures during the growing season. In fact, the country had its hottest January on record. Then, heavy rains and flooding hampered the harvest. This double whammy in Brazil has lead to the largest world supply deficit since the 2009-2010 season.
Already, several major chains and coffee retailers have raised prices. Starbucks will be raising the price of some of its drinks for the first time in four years.
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