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Issue Date: Vol. 52, No. 1, January 2012, Posted On: 1/6/2012

Starbucks Hikes Prices In Northeast And Sunbelt Regions

Emily Jed
coffee market, coffee prices, Starbucks, Starbucks price hike, office coffee service, refreshment services

SEATTLE -- Starbucks Corp. raised prices on some drinks by about 1% in the Northeast and Sunbelt regions of the U.S. this week.

Markets include New York State, Washington, DC, and most Southern states. Not affected are California and Florida, and major cities like New York City, Boston, Dallas and Albuquerque, NM.

The price for "tall" (12 fl.oz.) coffees will be 10ยข more, and Starbucks said it is also raising prices on a half dozen other beverages. The price for 16-fl.oz. "grande" beverages, the next size up, will remain the same.

Starbucks said the price hikes reflect competitive pressures in certain markets, along with higher costs for commodities like green coffee, milk and fuel.

The Seattle-based coffee chain's last across-the-board price increase was in 2007. Since then, it has chosen to adjust prices on a market-by-market basis.

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