Starbucks has announced that it is planning to implement targeted price adjustments on certain beverages in certain markets due to the overall rise of its sustainable coffee prices. The company has announced that it also will continue to closely monitor green coffee prices.
As part of the plan, Starbucks will maintain or lower the price of some of its beverages, including certain espresso beverages; and, in most markets, its $1.50 tall brewed coffee; and to raise prices of labor-intensive and larger-sized beverages.
"Over the last six months a highly speculative green coffee market and dramatically increased commodity costs have completely altered the economic and financial picture of many players in the coffee industry," said Howard Schultz, chairman, president and CEO of Starbucks. "And while many, if not most, coffee roasters and retailers began raising prices months ago, we have thus far chosen to absorb the price increases ourselves and not pass them on to our customers. But the extreme nature of the cost increases has made it untenable for us to continue to do so and we have been forced to take the steps we announced today."
The company recently announced it was going to remove 12-ounce beverages from its drive-thru menus although then reneged on the announcement after receiving extensive criticism.
