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LOS ANGELES, USA - Starbucks Corp plans to charge more for large-sized and labor-intensive drinks in some markets because of surging prices for coffee and other commodities.
The world's biggest coffee chain, which expects to maintain or lower the price of certain espresso drinks and its "tall" 12-ounce brewed coffee, said it might raise the price of packaged coffee sold through grocery stores and other channels.
While many coffee roasters and retailers have boosted prices, Starbucks had been absorbing the higher costs.
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"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," Chief Executive Howard Schultz said in a statement.
Starbucks stood by its forecast for fiscal 2011 earnings of US$1.36 ($1.80) to US$1.41 per share.
Shares in Starbucks, which on Aug 17 said it did not plan to raise prices despite the surging popularity of green coffee, were unchanged at US$25.93.
The world's biggest coffee chain, which expects to maintain or lower the price of certain espresso drinks and its "tall" 12-ounce brewed coffee, said it might raise the price of packaged coffee sold through grocery stores and other channels.
While many coffee roasters and retailers have boosted prices, Starbucks had been absorbing the higher costs.
Click here to find out more!
"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," Chief Executive Howard Schultz said in a statement.
Starbucks stood by its forecast for fiscal 2011 earnings of US$1.36 ($1.80) to US$1.41 per share.
Shares in Starbucks, which on Aug 17 said it did not plan to raise prices despite the surging popularity of green coffee, were unchanged at US$25.93.
