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Prices of some Starbucks drinks and packaged coffee will rise

By Associated Press

POSTED:


NEW YORK » Starbucks is raising prices on some of its drinks by 5 to 20 cents starting next week, and customers can also soon expect to pay $1 more for the packaged coffee it sells in supermarkets.

The Seattle-based chain also raised prices on some of the drinks sold in its cafes a year ago. The latest hikes don't seem to be driven purely by the surging bean costs that have pressured other coffee sellers to raise prices, however, since Starbucks has said it already locked in its coffee contracts for the rest of this fiscal year and much of the next.

In March, CEO Howard Schultz said during an interview with Fox Business that Starbucks had no intentions of raising its prices.

"We can manage this. We have over a year's worth of protection," Schultz said at the time. "I suspect that most of our competitors are short, and we are in a much better position than they are."

In an email Friday, Starbucks spokes­man Jim Olson said many factors go into pricing decisions, including "competitive dynamics" and the company's "cost structure," which he said includes costs for a variety of ingredients, as well as materials, labor and occupancy costs.

Starbucks Corp. said the price increases in its cafes will kick in Tuesday and vary depending on the region.

Prices for medium and large brewed coffees, which are known as Grande and Venti, respectively, will go up between 10 and 15 cents in most U.S. markets, the company said.

Certain drinks, such as tall brewed coffees and Frappuccinos, won't see higher prices in most places, the company said. Tall brewed coffees were among the drinks that were hit by Starbucks' price hikes a year ago.

The $1 price boost on packaged coffee sold in supermarkets and other retail outlets will kick in July 21 and follow J.M. Smucker's recent decision to raise prices on its coffees, which include Folgers.

Starbucks noted that it cut prices in April 2013. It said the packaged coffee sold in its cafes won't be affected.






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Wazdat wrote:
its so overrated, crazy. I make my own coffee at home and save da cash for more important things.
on June 21,2014 | 03:07AM
cojef wrote:
You and me both! In fact, buy green coffee beans from local wholesaler/retailer(Placentia, California) and roast my own, once every 3 weeks. Grind only enough roasted beans every morning for 2 mugs of freshly brewed coffee. This morning just received email from dealer that he received a shipment of 3 different types of Columbian green coffee beans and selling them at $5.95 a pound.
on June 21,2014 | 08:07AM
bekwell wrote:
Just more customers for Jamba Juice and Coffee Bean.
on June 21,2014 | 02:21PM
steveoctober wrote:
Who are they trying to fool? It's obvious the price increase is to fund the new free college tuition program.
on June 21,2014 | 03:22PM
HD36 wrote:
Commodities like coffee, soybeans, corn, cattle, oil, etc all go up when chased by an infinite amount of fiat currencies. The money supply has been increased by over 400% since 2010, so we have a long way to go.
on June 21,2014 | 05:19PM
jomama wrote:
Starbucks = Charbucks
on June 21,2014 | 07:41PM
HD36 wrote:
Everything is going up.
on June 21,2014 | 08:41PM
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