Tags: starbucks | price | hike | 10 | cents

Starbucks Price Hike Adds About 10 Cents to Some Coffee Drinks

Image: Starbucks Price Hike Adds About 10 Cents to Some Coffee Drinks

Tuesday, 25 Jun 2013 01:48 PM

By Clyde Hughes

A new Starbucks price hike that started Tuesday for many U.S. stores will have customers digging a little deeper in their pockets to pay for many of the small-sized brewed coffees.

Starbucks officials said the price hikes at its 11,000 cafes work out to an average 1 percent nationally, The Associated Press reported. Customers will find the new prices mainly on its small coffee drinks, which will cost roughly 10 cents more.

Urgent: Should the NSA Spy on Americans? Vote Here Now.

The Seattle-based company told the AP that many of its medium and large coffees and Frappuccinos will not change.

"Less than a third of beverages will see a small increase in most stores," Starbucks spokeswoman Lisa Passe told the AP. She added that the price upticks will vary from region to region.

Starbucks spokesman Jim Olson told CNNMoney last week that this was the first price increase in nearly two years for the coffee chain, blaming the rising cost of labor, raw materials and rent.

Because of declining coffee cost and intensive competition with its rivals, Starbucks reduced the price of its packaged coffee sold in U.S. retail outlets by an average of 10 percent in May.

The AP said that earlier this month, a Janney Montgomery Scott analyst issued a note to investors saying Starbucks is likely to benefit from lower coffee costs for the next few years. Based on the price of a coffee contract at the time, Mark Kalinowski estimated that Starbucks would pay about half the $1.4 billion it paid for coffee in 2012.

The Wall Street Journal wrote that in the March quarter, Starbucks reported a profit of $390.4 million, up from $309.9 million a year earlier. Revenue jumped 11 percent to $3.56 billion.

Starbucks, which opened its first store in Seattle in 1971, has nearly 18,000 stores in 60 countries, according to the company's website.

Editor's Note: Get the Navy SEALs Cap – Celebrate Our Heroes

Related stories:

Starbucks Tip Jar: Court To Decide Who Gets To Share Gratuities

Starbucks Calorie Counts to Be Displayed in All US Stores

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

The 2016 'Book Race': GOP Candidates Like Ben Carson, Huckabee Sell Like Hotcakes

Friday, 30 Jan 2015 20:50 PM

If potential Republican presidential candidates' recent book sales are a strong indication of their electability, then B . . .

Smoke on Boston Train Scares Passengers Who Bust Out Windows to Escape

Friday, 30 Jan 2015 19:37 PM

A commute on Boston's Red Line Thursday morning turned into chaos as smoke filled the train and passengers broke out win . . .

Seth Jackson Sentence: Foster Dad Gets 32 Months in Hot Car Death

Friday, 30 Jan 2015 18:50 PM

Kansas foster dad Seth Jackson was sentenced to 32 months in prison Friday for the July death of a 10-month-old girl who . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved