Starbucks announced Wednesday it is raising its prices to account for the increased cost of coffee.
Prices of the some of the chain’s beverages will increase incrementally to account for the cost of green arabica coffee, which is currently priced close to a 13-year high, as well as unstable prices on other key raw ingredients like dairy, sugar and cocoa.
“While many, if not most, coffee roasters and retailers began raising prices months ago, we have thus far chosen to absorb the price increases ourselves and not pass them on to our customers,” Howard Schultz, Starbucks chairman, president and CEO, said in a press release. “But the extreme nature of the cost increases has made it untenable for us to continue to do so and we have been forced to take the steps we announced today.”
Starbucks did not say specifically which drinks were going to experience an incremental increase. According to a company spokesperson, the chain will raise prices on “labor intensive and larger-sized beverages.”
While we have a feeling fans of Venti Orange Mango Vivianne smoothies may need to change their drink of choice, the company said it plans to keep the price of certain Expresso beverages and its popular $1.50 Tall coffee, which costs the same in most markets.
Prices will start to go into effect in the beginning of October.
The company says it plans to monitor the coffee market in the coming months to determine whether or not it needs to raise the price of its packaged coffee sold in external retail and grocery outlets.