Commodity Market Increased Dramatically, Latest Starbuck Coffee Prices Rising

Commodity market has increased dramatically in the last few years,” Charlie Buhler, customer service manager for Vancouver-based JJ Bean Coffee Roasters, with has 10 coffee shops, said in an interview Wednesday. “We’ve had to raise our prices twice in the last year and a half.

Starbucks coffee also stated that price increases vary depending on the type and size of beverage, as well as region, and that some prices are also decreasing or remaining the same.

Starbucks is the latest chain to succumb, lifting its prices on some items Tuesday in the face of rising global demand for coffee.

The Calgary Herald recently reported that one of the main factors driving the price of coffee worldwide is the soaring demand inChina, where Starbucks plans to open an additional 1,000 new stores.

Other coffee companies have also raised prices in recent months, although locally based roasters don’t anticipate more increases at this time.

They say sharply rising commodity prices in recent years are behind the increase. “[Green] coffee that sold for $2.50 to $3 a pound two years ago is now as high as $4.50 or $5 a pound.”

Starbucks was tight-lipped about their latest price increases and refused to provide specifics, saying only that it changes prices from time to time for a variety of reasons.

“As part of our comprehensive approach to providing value and the Starbucks experience, Starbucks carefully monitors and evaluates costs, including green coffee prices, commodity costs and competitive dynamics, and we respond with pricing adjustments that balance our need to run the business effectively while providing maximum value to our customers in Canada,” Starbucks said in a statement.

Although the company wouldn’t provide an official price breakdown, an employee at one downtown Starbucks said the increases impacted all their specialty coffees and teas, with price increases of between five and 25 cents depending on the beverage. The price of a regular coffee was not affected, he added.

Todd Pollock, vice-president of Vancouver-based Caffe Artigiano, which has 12 cafes, including nine inVancouver, said prices for their beans are not going up at the moment and “for us, we have no anticipated price increases for our customers. We’ve tried diligently to keep our prices approachable.” But Pollock said his company deals directly with smaller coffee sources, allowing long-term pricing contracts.

Category: Coffee, coffee commodity, coffee company, coffee market, coffee price, green coffee, starbucks coffee