http://www.marketwatch.com/story/starbucks-raises-prices-despite-declining-coffee-costs-2015-07-06?link=sfmw_fb

Starbucks raises prices despite declining coffee costs

By Julie Jargon

Published: July 6, 2015 3:00 p.m. ET

Coffee purveyor increases average price by about 1% to cover rising wages, rent

Bloomberg

Starbucks Corp. is raising prices slightly on some of its beverages to cover rising costs including wages and rent, even as prices for raw coffee have been falling.
The Seattle company SBUX, +0.12% like other coffee purveyors, often raises prices for its products when coffee prices increase, but the latest move comes despite a decline of about 42% in Arabica futures prices from a peak late last year. The increase, which takes effect Tuesday, will increase the cost of the average customer order by about 1%, Starbucks said. Bagged coffee won’t be affected.
Starbucks said that for most beverages that are increasing, prices will go up by 5 to 20 cents. The types of drinks affected will vary by market, but in most stores, prices will increase for tall, or 12-ounce, and venti, or 20-ounce, brewed coffee, as well as grande, or 16-ounce, latte. That represents the first price increase on those items in two years. A venti-sized brewed coffee will cost $2.45 after the increase, for example. In most stores there will be no change to the more popular drinks and sizes.

An expanded version of this report appears at WSJ.com.

Starbucks raises prices despite declining coffee costs

By Julie Jargon

Published: July 6, 2015 3:00 p.m. ET

Coffee purveyor increases average price by about 1% to cover rising wages, rent

Bloomberg

Starbucks Corp. is raising prices slightly on some of its beverages to cover rising costs including wages and rent, even as prices for raw coffee have been falling.
The Seattle company SBUX, +0.12% like other coffee purveyors, often raises prices for its products when coffee prices increase, but the latest move comes despite a decline of about 42% in Arabica futures prices from a peak late last year. The increase, which takes effect Tuesday, will increase the cost of the average customer order by about 1%, Starbucks said. Bagged coffee won’t be affected.
Starbucks said that for most beverages that are increasing, prices will go up by 5 to 20 cents. The types of drinks affected will vary by market, but in most stores, prices will increase for tall, or 12-ounce, and venti, or 20-ounce, brewed coffee, as well as grande, or 16-ounce, latte. That represents the first price increase on those items in two years. A venti-sized brewed coffee will cost $2.45 after the increase, for example. In most stores there will be no change to the more popular drinks and sizes.

An expanded version of this report appears at WSJ.com.