| April 12
April 12 Starbucks Corp on Friday said
it would cut grocery list prices on its namesake and Seattle's
Best packaged coffee by 10 percent or more on May 10, as coffee
costs fall and it fights for more sales through supermarkets and
Competition in the coffee grocery aisle is intense and
Starbucks' move follows price reductions by rival packaged
coffee sellers earlier this year.
Starting next month, the suggested retail price on 12-ounce
packages of Starbucks coffee will fall to $8.99 from $9.99 and
Seattle's Best will go to $6.99 from $7.99.
Starbucks' price cuts apply only to packaged coffee sales
through other retailers. They do not apply to packaged coffee
and prepared drinks sold in the company's own shops, spokeswoman
Lisa Passe said.
In February, top U.S. packaged coffee maker J.M. Smucker Co
reduced suggested retail prices on poplar brands such as
Folgers and Dunkin' Donuts by an average of 6 percent.
Kraft Foods Group Inc quickly followed with a
similar price cut for its Maxwell House and Yuban brands.
Arabica coffee futures hit the lowest level in nearly
three years in mid-March at $1.3405 per lb, down more than 55
percent from the 34-year high above $3 per lb, reached in May
The price drop has been so dramatic that some makers of
instant coffee, which is often made from the typically cheaper
and more bitter-tasting robusta bean, have begun to buy arabica
beans for their blends. [ID: nL2N0CF0A3]
The benchmark July arabica coffee futures contract
trading on ICE Futures U.S. closed up 0.80 cent, or 0.6 percent,
at $1.3915 per lb on Thursday.