Starbucks has made the decision to raise the price on some of its drinks after its announcement that it would absorb the rising cost of coffee. The decision is due to the price of green Arabica coffee. They said Wednesday that due to the near 13 year high on the green beans along with the rise in the cost of dairy, sugar and cocoa, they must raise the price on larger sizes and hard to make drinks.
“Over the last six months, a highly speculative green coffee market and dramatically increased commodity costs have completely altered the economic and financial picture of many players in the coffee industry,” said Starbucks Chief Executive Howard Schultz, in a statement.
The prices have been rising from the roasters for months and Starbucks has resisted changing its prices up until now, but “the extreme nature of the cost increase has made it untenable for us to continue to do so.”