Coffee, milk, water - isn’t all coffee the same whether it’s iced or not?
However, iced coffee routinely costs $1 or $2 more than your typical hot espresso coffee such as a flat
Why is iced coffee more expensive: Does it actually cost more, or are we being taken advantage of?
RNZ
5 mins to read
Subscribe to listen
Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber? Sign in here
Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
Iced coffee in a glass on table in coffee shop.
AdvertisementAdvertise with NZME.
AdvertisementAdvertise with NZME.
The method
If your iced drink is espresso-based then the method isn’t a price culprit. However, if you’re into cold brews or nitro brews then the method can add more to the cost of your drink, according to Bryn Lloyd, who co-owns Motueka-based coffee roaster Rabbit Island Coffee with his wife Carley.
The company sells beans wholesale to cafes and its store mostly focuses on coffee accessories while also serving cold brew and high-end hot filtered coffee. The hot coffee costs $5 in a 240ml cup with unlimited refills. Cold brew costs $7 for 360ml, but 70g of that is ice.
Cold brew is made in concentrated form by allowing coffee to permeate the water for about 24 hours creating a rich flavour. Nitro brew is cold brew infused with nitrogen that comes out of a tap like beer.
AdvertisementAdvertise with NZME.
At Rabbit Island Coffee, Lloyd encourages customers to try the cold brew black to get the full experience.
“For cold brew, where you want a really good flavour, you want a really good bean,” he said. “You can’t hide behind the milk or the alternative milk or sugar and syrup.”
Lloyd is planning to install a kegerator so he can also serve nitro brew, something that has proved popular in the US but is yet to take off in New Zealand. The nitrogen-infused cold coffee comes out with a crema similar to a Guinness beer.
“It’s just a different experience - fluffier, richer type flavour versus the clean taste you get from the cold brew.”
Lloyd hasn’t landed on a price for the nitro brew but suspects it will be around the $7 mark, but the size will likely be smaller because of the drink’s richness.
The milk
The espresso-based iced coffees at Sabio Coffee in Whangārei are also around $7 with most people having theirs white rather than black. Milk that goes in is flat rather than steamed meaning more milk, said Craig Campbell, the owner of Sabio.
“... when you steam milk, it stretches. It is less dense if you like.”
Milk alternatives like almond, soy or oat milk will likely add to the cost of your iced coffee, a similar scenario to your flat white or latte.
The ice
Ice is a dilemma for many coffee shops. An ice machine can cost hundreds of dollars while taking up valuable space in a tightly fitted shop.
“The ice machine has kept costs down but then you have your capital costs and if you don’t have the space,” said the owner of a coffee shop in Auckland. He did not want his name used because of the financial turmoil the industry is experiencing brought on by wholesale price increases butting up against a shrinking economy.
AdvertisementAdvertise with NZME.
He said coffee shops can sometimes price-gouge with iced coffee but often there are legitimate reasons why cold drinks cost more. The espresso-based iced coffees at his shop start at $6.50 for a 500ml size versus a 280ml cup for a flat white that starts at about $5.
Most cafes buy ice bags from a supermarket or supplier. Lloyd at Rabbit Island Coffee has found that ice made from unfiltered water messes with the flavour of his cold brew. He has a deal with a local café that has an ice machine that supplies him with ice made from filtered water.
The cup
Even in the summer, only about 10% of Sabio’s coffee sales are on ice. This means that the volume of sales can impact the price, Campbell said.
This is especially true for coffee cups. Paper cups are often bought by cafes in huge numbers. Plastic cups for iced coffees are bought in lower quantities raising the per cup price.
Lloyd tried serving his cold brew coffees in paper cups to reduce costs, but it didn’t provide the same experience.
“You can’t see the golden goodness of the colour with the ice and it didn’t look as presentable. Visuals as well as the smell add to the flavour and the experience. Hiding behind the paper cup wasn’t an option for us.”
AdvertisementAdvertise with NZME.
Straws are another annoying expense that cafes must add to the price of their iced coffee that is not a factor in hot coffees.
