As Coffee Prices Decline Worldwide, Starbucks Bucks the Trend
Coffeehouse chain Starbucks (SBUX) reported its most profitable quarter ever last month, and do you know whom they have to thank for it? Consumer ignorance ... and you.
That's right, you. Across the country and around the globe, coffee bean prices are plunging. Arabica bean prices are now down 55 percent from their highs set in May 2011. In response, the companies behind such big-name grocery store packaged coffee brands as Maxwell House, Folgers, and Dunkin' Donuts are all slashing prices regularly, and passing the savings on to consumers.
In fact, just earlier this week, J.M. Smucker (SJM) announced it is cutting the cost of most of its packaged coffee brands by 6 percent -- its third such price cut in the last three years. If historic patterns hold, then in the coming days we should see Kraft Foods (KRFT) follow suit with a price cut of its own. Dunkin' Brands (DNKN), which licenses its coffee brand name to Smucker for retail sale in grocery stores, says it lets its doughnut shop franchisees set prices as they see fit.Continue reading As Coffee Prices Decline Worldwide, Starbucks Bucks the TrendAs Coffee Prices Decline Worldwide, Starbucks Bucks the Trend originally appeared on Walletpop Canada on Tue, 26 Feb 2013 13:21:00 EST. Please see our terms for use of feeds.Permalink | Email this | Comments