Starbucks Responds to Surging Green Coffee Prices (SBUX)

Starbucks SBUX today responded to the recent dramatic increases in the price of green arabica coffee, currently close to a 13-year high, as well as significant volatility in the price of other key raw ingredients, including dairy, sugar and cocoa. The company announced that while it has no plans to raise prices of beverages or packaged coffee sold in Starbucks' U.S. or international stores across-the-board, it does plan to implement targeted price adjustments on certain beverages in certain markets. Starbucks further announced that it will continue to closely monitor green coffee prices, and that it could not rule out the possibility of raising the price of packaged coffee in other channels, including grocery, in coming months.