"Drought is threatening coffee crops in Brazil, the world's largest producer. ... The cost of the Arabica bean used by high end coffee shops like Starbucks has gone up nearly 60 percent since the beginning of the year." (Via Business News Network)
CNN reports the supply problem in Brazil will result in a 5 to 20 cent increase in cost for certain beverages at the company.
"The price of a tall or venti sized latte will go up by between 15 and 20 cents. ... The price of a grande sized latte won't change at all. The cost of a tall brewed coffee and any sized frappuccino won't change either." (Via CNN)
Gothamist notes Starbucks CEO Edward Schultz claimed Starbucks could handle the shortage without raising prices back in March, but after major competitors hiked their prices — Kraft, Folgers and Dunkin' Donuts raised prices by 10% — the popular coffee company followed suit.
But Starbucks says that increase essentially restores prices to those it held last year, when it dropped packaged coffee prices by 10% in April.
The Journal also quotes a a spokesperson, who says the increase will affect "fewer than 20% of Starbucks customers."
So while it may have seemed a Starbucks price increase meant you were going to have to take out a second mortgage on your house, it's just not that drastic.
KIRO spoke with one Starbucks customer who said he's not too worried about the price increase. "I just can't see it having a big impact on my purchasing habits."
Are you a Starbucks customer? Will the price hike have much impact on your morning cuppa joe? We want to hear your thoughts on the matter.