Coffee prices at their cafes will increase by less than 1%, while the branded ground and whole-bean coffees which are sold at a variety of retail outlets will see an 8% increase on average. The price increases will go into effect beginning June 24, 2014 at the company operated stores, and on July 21, 2014 in other retail outlets.
The coffee price increases are as follows:
- Venti Brewed Coffee: $0.10 – $0.15 increase
- Grande Brewed Coffee: $0.10 – $0.15 increase
- Grande Lattes: $0.15 – $0.20 increase
- Grande Mochas: $0.15 – $0.20 increase
- Starbucks branded coffee (12 oz bag): $1.00 increase
While Starbucks made the announcement, there’s a good chance consumers will see increases in prices from all coffee brands in the coming months. All coffee sellers are facing higher costs for their beans due to a drought in Brazil, which has greatly decrased the coffee bean yield. Coffee prices have soared more than 50% this year alone. Stockpiles have keep prices in check for the first half of 2014, but analysts have been warning since the beginning of the year that coffee prices would eventually start to rise. Those price increases should start to be reflected in many coffee retailers in the coming weeks and months.
Starbucks says that the price increase has nothing to do with the announcement last week that they will be offering college tuition help through Arizona State University’s online program to all their employees who work more than 20 hours a week.
Starbucks is the largest coffee retailer in the world with more than 11,600 stores in the US alone. Of these, approximately 7,100 are operated by the company. Starbucks actually reduced prices for their bagged coffee sold in retail outlets such as supermarkets by about 10% last year. At the same time, they reduced the price of their Seattle’s Best coffee in retail outlets by about 13%.
For coffee lovers out there, the question becomes whether or not there is anything they can do about the increases in prices. There are a couple. For those who love their their morning Starbucks, there are a number of ways you can save money at their cafes. There are also a wide variety of places you can still score free coffee if you aren’t loyal to a particular brand, and simply need the daily jolt.
(Photo courtesy of jwalsh)