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.
Walgreens, the nation's largest pharmacy chain unveiled a new flagship store in Chicago that re-imagines the drugstore experience. Among the "unexpected" new offerings: fresh sushi, salon services, more than 700 fine wines and a juice bar. But will we really buy wine with our aspirin?
Just a few months ago, coffee-related companies were as hot as a steaming cup of joe. Buoyant coffee bean prices, a growing consumer appetite for premium coffee, and a few company-specific events fueled a rally in the niche. But the hype has lost it caffeine buzz, and prices are way down.
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.
The U.S. economy is still sputtering, and household budgets are still under pressure. So where are we cutting: Fancy coffee? Check. Eating out? You bet. But there are a few things that once would have been considered luxuries the recent poll shows Americans just aren't willing to do without.