Starbucks Boosts Prices on Beverages and Bagged Coffee

Consumers will pay more on some Starbucks drinks starting this week.

June 23, 2014

NEW YORK – Beginning Tuesday, Starbucks is raising prices on some of its drinks by 5 to 20 cents and consumers can soon expect to pay $1 or more on bagged coffee sold in supermarkets, the Associated Press reports.

Starbucks CEO Howard Schultz said during an interview with Fox Business in March that the coffeehouse chain had no intentions of raising its prices in reaction to the potential supply issues stemming from poor weather conditions and a disease affecting Arabica coffee plants, notes the AP. "We can manage this, we have over a year's worth of protection,” said, adding, “I suspect that most of our competitors are short, and we are in a much better position than they are."

Medium and large-sized drink prices will go up between 10 cents and 15 cents in most U.S. markets, the company said, while certain drinks, such as tall-brewed coffees and Frappuccinos, won't see higher prices in most places. The $1 price increase on bagged coffees sold in supermarkets and other retail outlets will kick in July 21.

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