Starbucks set to raise prices of some beverages
The largest U.S. coffee chain said Wednesday it will adjust the various coffees prices to catch up with the surge in green coffee bean costs. The plan calls for a grande- or venti-sized coffee prices to go up, along with some specialty drinks. It is not yet estimated how much prices would climb or in which markets.
Starbucks said it expects to maintain or lower the price of its more popular beverages.
The Seattle-based company buys most of its green coffee directly from local farmers around the world, with the price of coffee futures contracts ultimately playing a major factor in the final delivery price.
The price of green coffee is trading at a 13-year high right now, while sugar prices traded in New York have jumped 43% since June.
Starbucks is considering raising prices for its bagged coffee sold in supermarkets and through warehouse retailers. Maxwell House maker Kraft Foods also upped prices in August.
In the coming months, food companies will have to navigate a recent surge in everything from corn to coffee to sugar. Most are planning to pay more for agricultural commodities over the next year. Raising retail prices is still a sensitive issue due to the continued recession and post-recession mindset of consumers. But a year ago, Starbucks fine-tuned its drink prices when the economy was doing worse.
[...] Starbucks set to raise prices of some beverages – Dubai Chronicle The largest US coffee chain said Wednesday it will adjust the various coffees prices to catch up with the surge in green coffee bean costs. [...]
Starbucks Set…
[...] will have to navigate a recent surge in everything from corn to coffee to sugar. [...]…