The company did not specify exactly which drinks will be impacted because it charges different prices in different regions of the country.
Advertisement
The Seattle based coffee company explained that the price hike varies by product and market.
Starbucks announced starting June 7, 2015, prices on select beverages will be increasing, some as high as twenty cents. Food, packaged coffee, or and some drinks such as a Frappuccinos and Grande-sized brewed coffees will not be affected.
Coffee companies will often increase their products’ prices when coffee costs jump, but Starbucks’ decision comes amid a 42% decline in Arabica futures, The Journal noted. The only surprise is that Starbucks did not think it could raise the price of its bagged coffee.
ABN Ambro believes that future costs could come fall to $1.15 a pound by the end of the calendar year. Starbucks has been making a push to sell more food items in their stores and hopes stable pricing will draw more attraction to their selections.
Now that market prices have stabilised and regressed to a more “normal” level, J.M Smucker have dropped the price of a cup of coffee. The increase will bring the price of a large coffee to $2.45 in most USA stores.
Starbucks said coffee costs are only part of its expenses, which also include rent, labor, marketing and equipment.
The stock price of Starbucks slightly climbed to $54.31 per share on Monday.
Advertisement
A Starbucks spokeswoman confirms they’ve increased prices for at least the past three years.
