Starbucks Archives - Inflation Watch

Despite declining coffee prices, Starbucks ($SBUX) hiking some prices by 1%

Dr. Duru — Wed, 04 Jan 2012 02:39:35 +0000

Although agricultural prices have generally decreaed for several months, coffee included, Starbucks (SBUX) announced today that it will hike the prices of some beverages by about 1% in the Northeast and the Sunbelt regions of the U.S. SBUX cites “the prices reflect competition in certain markets and higher costs for coffee, fuel and other commodities.”

Note that Starbucks stock was actually down today while the major indices experienced strong rallies.

For more detail see “Starbucks to raise prices in certain regions”

Starbucks had a great 2011. Did today's news end the coffee run for now?

Source: FreeStockCharts.com

Coffee prices have been sliding for months and ended 2011 down from 2010

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High Commodity Prices Force Starbucks to Increase Its Prices

Dr. Duru — Thu, 23 Sep 2010 04:04:03 +0000

Coffee drinkers at Starbucks will soon be waking up to more than just caffeine. Starbucks will now greet its customers with higher coffee prices to compensate for 13-year highs in the price of green arabica coffee and what the company calls “significant volatility” in the prices of milk, sugar and cocoa.

Starbucks announced its plans in a news release titled “Starbucks Responds to Surging Green Coffee Prices” (September 22, 2010):

“Company to Implement Targeted Price Adjustments; Will Hold the Price of Tall Brewed Coffee at $1.50 in Most U.S. Markets; Retail Packaged Coffee Price Increases Possible”

Starbucks blamed “speculators” for the high prices, and lamented that it is one of the last in the industry to pass on these soaring costs to customers.

The Seattle Times highlights other past price increases at Starbucks:

“Last year, Starbucks raised prices on some drinks, including Frappuccinos, when it also dropped prices on other beverages. In 2007, it raised prices across the board an average 9 cents because of high dairy prices. That followed a nickel increase a year earlier.”

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Starbucks increases prices of some drinks

writejesse — Sat, 16 Jan 2010 12:32:05 +0000

CNN/Money: “Starbucks is raising prices on certain drinks by as much as 35 cents in large U.S. markets and in Canada as part of what the coffee chain calls its “normal course of business… The move could be a risky one for Starbucks, which has suffered declining sales for two years as consumers switched to lower priced brands like McDonald’s and Dunkin Donuts.”

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