Pull out your budget books and prepare yourselves, coffee drinkers. Starbucks is set to hike some of its prices starting Tuesday. (Via Keith Williamson, Rudolf Schuba)
"Drought is threatening coffee crops in Brazil, the world's largest producer ... The cost of the Arabica bean used by high-end coffee shops like Starbucks has gone up nearly 60 percent since the beginning of the year." (Via Business News Network)
CNN reports the supply problem in Brazil will result in a 5 to 20 cent increase in cost for certain beverages at the company.
"The price of a tall or vent-sized latte will go up between 15 and 20 cents ... The price of a grande-sized latte won't change at all. The cost of a tall brewed coffee and any sized frappuccino won't change either." (Via CNN)
Gothamist notes Starbucks CEO Edward Schultz claimed Starbucks could handle the shortage without raising prices back in March, but after major competitors hiked their prices — Kraft, Folgers and Dunkin' Donuts raised prices by 10% — the popular coffee company followed suit.
The priciest change will come in grocery stores, where The Wall Street Journal reports packaged coffee will increase by "around $1 a bag." (Via Flickr / Randy Robertson)
The Journal also quotes a a spokesperson, who says the increase will affect "fewer than 20 percent of Starbucks' customers."
KIRO spoke with one Starbucks customer who said he's not too worried about the price increase. "I just can't see it having a big impact on my purchasing habits."
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