Starbucks raising prices as coffee becomes more expensiveThe high price of a cup of coffee at Starbucks has been a punchline for years - but now, your favorite drink from the Seattle-based company could cost even more.

The company has announced that it is planning "targeted" price increases for certain beverages, based on the soaring price of green coffee beans. Drinks that are "labor-intensive" as well as the larger sizes are the most likely to see price increases, while Starbucks hopes to maintain its regular prices on its most popular drinks.

"Over the last six months a highly speculative green coffee market and dramatically increased commodity costs have completely altered the economic and financial picture of many players in the coffee industry," said Starbucks chairman and CEO Howard Schultz. "And while many, if not most, coffee roasters and retailers began raising prices months ago, we have thus far chosen to absorb the price increases ourselves and not pass them on to our customers. But the extreme nature of the cost increases has made it untenable for us to continue to do so and we have been forced to take the steps we announced today."

Coffee is one of the most traded commodities in the world, second only to crude oil. The price of green Arabic coffee beans - more popular than the stronger Robusta variety - reached a 13-year high earlier this month.
Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours