Dairy Costs Force Starbucks To Raises Prices Again

US - This week, caffeine addicts will pay an average 9 cents more for a cup of coffee at Starbucks, partly because of the rising price of the milk and whipped cream.
calendar icon 30 July 2007
clock icon 1 minute read
The increase was unexpected, given how infrequently the Seattle chain has raised prices. The last increase, which averaged a nickel, came less than 10 months ago.

Before that, Starbucks hadn’t raised prices since an 11-cent increase in 2004.

The company cited rising prices “inside the supply chain,” including higher dairy, fuel and energy expenses.

Dairy costs, in particular, have hurt several of the nation’s largest food companies in recent months.

Starbucks said last month it would have trouble reaching the high end of an 87 to 89-cent-per-share profit range for fiscal 2007, largely because of rising milk costs.

Source: Bloomington Pantagraph
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