As major grocery brands lowered their coffee prices due to falling commodity costs Seattle-based Starbucks Corp. announced a selective price increase on several beverages.
The increase of 5 to 20 cents is to defray the rising cost of wages and rent, according to the company.
Arabica futures peaked late last year and are currently 42 percent lower and stable. The increase will raise the average cost of coffee by 1 percent for customers, excluding bagged coffee which will remain unchanged. Actual prices vary by market but a 20-oz. beverage will increase to $2.45. There is no change planned in the more popular drinks and sizes.
This is the first price increase for prepared coffee beverages in two years