Starbucks To Hike Prices As Coffee Costs Increases

(RTTNews) - Coffee retailing giant Starbucks Corp. (SBUX), Friday said it plans to raise prices of some packaged coffee and other products, as costs of raw coffee continues to rise reflecting a severe drought in Brazil, the largest producer of coffee.

Starbucks said it will be raising prices on some drinks offered by its US shops by 1 percent from Tuesday, and will charge about 8 percent more for packaged ground coffee sold in supermarkets and grocery stores from July 21.

Starbucks, like almost all other big coffee makers, have been affected by the rising costs of coffee beans, with many major coffee retailers having hiked their prices in response. Coffee prices have spiked this year reflecting the severe drought in Brazil's coffee cultivating region.

Starbucks plans to raise the price of certain coffee drinks in its U.S. shops by 5 to 20 cents, while the price for whole bean and ground coffee sold in supermarkets will go up by about $1.

The company will not change prices on K-cups, Starbucks Via instant coffee and Seattle's Best Coffee.

SBUX closed Friday's trading at $76.60, down $0.63 or 0.82%, on the Nasdaq. The stock, however, gained $0.63 or 0.82%, in after-hours trade.