Cheaper Coffee? Not at Starbucks

by Nate Wooley | November 9, 2012 10:52 am

Coffee stocks[1]People will pay for their morning cup of coffee, even if it means paying a premium. That morning jolt is too important to let anything silly like price get in the way.

That’s what Starbucks (NASDAQ:SBUX[2]) is counting on, anyway. The price retailers pay for wholesale coffee has declined approximately 30% from this time last year[3], as MarketWatch reports. But if you’re buying at a Starbucks, you aren’t seeing that savings. Earlier this year, the java chain raised the price of its drinks by 1%. With a 17% price hike in 2011, bagged coffee from Starbucks is even worse.

Not all retailers are charging a premium, though. J.M. Smucker (NYSE:SJM[4]), which sells packaged Folgers and Dunkin Donuts (NASDAQ:DNKN[5]) coffee, lowered prices in May. Of course, that followed a 23% rise in 2011.

A spokesman for Starbucks declined to comment for MarketWatch on whether the lower wholesale price would be passed along to customers.

More from the coffee world:

  1. [Image]:
  2. SBUX:
  3. has declined approximately 30% from this time last year:
  4. SJM:
  5. DNKN:
  6. Green Mountain to Make K-Cups for CostCo:
  7. Starbucks Tells Taxman, Investors Different Stories:
  8. Battle of Home Espresso Machines Is Brewing:

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