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Issue Date: Vol. 53, No. 7, July 2013, Posted On: 6/28/2013

Starbucks Raises Drink Prices

Emily Jed
TAGS: coffee news, retail coffee prices, Starbucks price increase, coffee service

SEATTLE -- Starbucks Corp. has raised prices for select beverages at all of its U.S. company-operated coffeehouses. As of June 25, prices on many brewed coffee, tea, latte and espresso drinks are 1% higher on average, but vary slightly in different regions. In some areas, the price increase is the first in two years.

Less than one-third of beverages are impacted by the price increases, according to Starbucks. In most stores, the price of Starbucks’s larger "grande" and "venti" brewed coffee and signature Frappuccino and Refreshers drinks remain the same.

Starbucks blamed the hike on the rising cost of labor, raw materials and rent.

In May, the Seattle coffee giant reduced the price of its packaged coffee sold in U.S. retail outlets by an average of 10% to reflect lower green coffee costs.

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