If you feel like your morning cup of coffee has gotten more bitter lately, its not a gustatory illusion: Many of America's major brands have been quietly tweaking their blends to keep their prices level.
How much would you pay for a cup of Starbucks coffee? Starbucks hopes it's a lot, because it has been hiking drink prices. Meanwhile, everybody else in the coffee biz seems to be doing the exact opposite.
Starbucks is hiking the price of its packaged coffee by 17% to compensate for a steep increase in Arabica coffee prices. Customers habituated to Starbucks coffee might keep splurging on its products, but Trefis analysts believe the passing on of its costs will affect Starbucks' top line.