Sep 28, 2010

News: Starbucks, Peets to Raise Prices

You can enjoy the coffee in the front for
the same price, but the ones in the back will
cost you a bit more than they used to.
Citing 13-year highs in prices of green (unroasted) Arabica beans, coffee chains Starbucks and Peet's are posed to raise drink and bean prices. Prices for the beans have risen approximately 35% since the beginning of the year.

Starbucks announced that prices will increase on "larger, labor-intensive" drinks (i.e. Frappuccinos) while maintaining or cutting prices of its most popular products, including certain espresso-based drinks and its $1.50 Tall brewed coffee.

Starting September 29, 2010, most Peet's drinks will increase by 10 to 15 cents in price, while beans sold in store will increase by an average of 8% in price.

On the plus side, if McDonald's coffee is your caffeine of choice, the fast food powerhouse with a bigger portfolio of food items, is better poised to absorb the costs increases and will continue business as usual.

Relief might come at the tail end of the year, when Columbian harvests are expected to "reduce supply bottlenecks." Whether or not, this will spell any relief at the check stand remains to be seen.

1 comment:

  1. yeah because they were barely squeezing out a profit on $4.75 Lattes.


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