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SEATTLE — Starbucks Corp. will raise the prices for many of its drinks by 5 to 20 cents. But since most of the price hikes will be on hot drinks, consumers may not start feeling the pinch until the fall.
Price hikes will take effect July 14.
According to The Associated Press, the price of a small- and large-brewed coffee will each rise by 10 cents in most regions, bringing the average price of a large coffee to $2.45 in most U.S. stores.
This price increase comes as other companies have lowered their prices for coffee products. For example, The JM Smucker Co. said it would cut costs on most of its coffee products because of declines in future prices for unroasted coffee beans.
However, Seattle-based Starbucks responded that coffee beans are not the only factor that led the company to raise prices. Rent, labor, marketing and equipment also must be factored in.
Starbucks continually evaluates pricing to "balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers,” the company told the AP.
Starbucks representative Lisa Passe added that less than 20 percent of consumers should be affected by the price increases, based upon current purchasing patterns. She added that Starbucks is not raising prices on any foodservice items.
Starbucks also raised beverage prices last year.