| June 20
June 20 Starbucks Corp on Friday said
it will raise prices on some drinks offered by its U.S. shops
and also boost list prices on its own brand of packaged coffee
sold in supermarkets and other retail outlets.
The action comes just weeks after J.M. Smucker Co
raised list prices of its well-known Folgers and Dunkin' Donuts
brands, for the first time since 2011 because of soaring green
Dunkin' Brand Group Inc also has said it expects
"modest increases in coffee prices" at its Dunkin' Donuts
Starbucks' more than 7,100 company-owned U.S. stores will
raise the price of some drinks by 5 to 20 cents on June 24. For
example, the cost of grande (16 oz) and venti (24 oz) brewed
coffee will increase 10 to 15 cents in most markets.
The coffee chain characterized the drink price increases as
limited, saying they would affect fewer than 20 percent of
The price increase for some drinks, including grande brewed
coffees, are the first in almost 4 years.
Prices of Starbucks' most popular drinks, the grande latte,
tall (12 oz) brewed coffee and Frappuccino, will not go up in
most stores. There also will be no price increases on food at
this time, the company said.
Separately, the Seattle-based chain is boosting the price of
Starbucks-brand whole bean and ground coffee sold in
supermarkets and other stores by an average of 8 percent on July
That means that shoppers likely will see prices go up about
$1, to $9.99 for a 12-oz bag and $13.99 for a 20-oz bag.
Starbucks had lowered prices on packaged coffee by about 10
percent in April 2013.
Prices will not change on K-cups, Starbucks Via instant
coffee and Seattle's Best Coffee. Further, the change does not
apply to bags of coffee sold in Starbucks' stores.
Arabica coffee prices on ICE Futures U.S. soared
nearly 90 percent between January and April on concern about
crop damage in top grower Brazil, where an unprecedented drought
in its growing region took place while the beans were developing
on the trees.
The drought surprised the entire coffee industry and caused
speculators to pour into the futures market, lifting the
benchmark price to $2.19 per lb by late April, the highest in
more than two years. The futures price has since fallen more
than 20 percent, to a four-month low at $1.6655 per lb on
Thursday, as Brazil's harvest got under way.
Starbucks repeatedly has stated that it bought plenty of
coffee when prices were low in 2013, and had secured coffee for
the current fiscal year and 40 percent for next fiscal year.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Steve