by Christopher Freeburn | April 12, 2013 12:00 pm
Lower commodity costs are translating into a price cut for Starbucks (NASDAQ:SBUX) bagged coffee.
The popular chain said that it is lowering the suggested retail price of its whole and ground packaged 12-ounce coffees sold at outside retailers by $1. The company is now pricing the coffee at $8.99 a bag, the Associated Press notes.
Prices for coffee purchased at the chain’s shops are not affected. Supermarkets and other vendors that sell Starbucks packaged coffee may or may not pass the lowered price onto their customers.
Starbucks is responding to lower coffee prices from rival packaged coffee makers. The chain is also looking to boost packaged coffee sales.
In January, Starbucks CEO Howard Schultz said that the chain would open 1,500 U.S. new shops over the next five years, with a majority offering drive-thru service.
Shares of Starbucks rose about 1% in Friday morning trading.
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