(Article on Starbucks raising coffee prices updated with additional information.)
SEATTLE (TheStreet) -- Starbucks (SBUX) announced a 17% price hike in bagged coffee, underscoring the pressure coffee retailers are facing as Arabica coffee bean futures continue to trade near decades-long highs.
Coffee futures hit a three-decade high of $3.0615 per pound on May 3 but have come down somewhat from that price in recent trading sessions. The commodity most recently traded at $2.6400 per pound.
For Starbucks, the move to raise prices comes as somewhat of a surprise since the coffee shop chain said earlier this month it had already contracted its coffee purchases for the remainder of fiscal 2011, locking in its costs. Starbucks said the price hikes will be applied to bagged coffee sold at its cafes in the U.S., effective July 12. It was the first price increase on café-sold bagged coffee in two years. In March Starbucks hiked the price of bagged coffee sold at supermarkets by 12%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV