Sunday, June 23, 2013

Starbucks raising prices

Starbucks raising prices, Starbucks Corp (SBUX.O) will increase the price of some of its beverages in U.S. company-operated cafes by as much as 10 cents, the first price change in up to two years, a spokeswoman said on Friday.

The price hike will be effective June 25, Starbucks spokeswoman Lisa Passe said.

"Less than a third of beverages will be affected by the price increases," Passe said. "In most stores, the price of a Grande or Venti brewed coffee, as well as Frappuccino and Refreshers, will remain the same."

Nationally, the average beverage purchase price increase will be about 1 percent, she said.

The most a tall brewed coffee will increase by is 10 cents, while some markets will not see any increase in brewed coffee, she said.

Green arabica coffee prices dropped to a four-year low on the ICE Futures U.S. market at $1.1710 per lb on Thursday.

Coffee commodity costs make up less than 10 percent of Starbucks' overall store operating and occupancy expenses, Passe said.

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