A number of American coffee companies have filed for bankruptcy in recent weeks, as the sector grapples with near record-high prices and other significant headwinds.

Why It Matters

According to the Labor Department’s latest inflation reading, coffee prices are up around 19 percent over the past year, significantly outpacing inflation . Adverse weather has hurt crop yields and limited supply from major producers like Vietnam and Brazil , while new tariffs on producing nations have raised costs for importers and businesses.

Significant players in the industry have already highlighted the challenges facing even the nation’s largest coffee chains.

Starbucks is in the midst of a restructuring plan that involves closing underperforming stores and cutting staff to address slowing sale

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