Coffee bean prices are plunging, and the companies behind such brands as Maxwell House, Folgers, and Dunkin' Donuts are all slashing prices, passing the savings on to consumers. But one coffee giant is determined to keep its prices high: Starbucks.
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 prices on its brewed beverages. 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 some analysts believe the passing on of its costs will affect Starbucks' top line.
Be prepared to pay more for your venti-sized extra-hot half-caff soy caramel macchiato at Starbucks starting soon. As the price of green Arabica coffee greens skyrockets, the company says it will raise prices for some of its more labor-intensive beverages.
Record heat in Russia is hurting its wheat crop, sending the grain's price soaring -- potentially affecting future bread and pasta costs. But it doesn't end there. For separate reasons, coffee and cocoa prices are also up. Get ready to pay more for food.
Coffee prices jumped Monday as coffee futures hit a six-month high amid concern that coffee exports from Uganda, Africa's largest coffee producer, may come up short, putting pressure on global coffee supply.
