Business     

Starbucks raises prices today

Shanghai Daily, January 31, 2012

• A Starbucks cafe in Tianjin. [CFP]

  
  Starbucks Corp raises price on certain coffee products in China from today to offset higher cost.

  The price increase, ranging from one yuan (16 US cents) to two yuan, will mainly cover "several" coffee drinks including espresso-based beverages and fresh-brewed coffees, the company said.

  Price of food items, tea drinks and blended beverages such as hot chocolate and juice would remain unchanged, it added.

  Seattle-based Starbucks, which runs about 500 stores in China's mainland, said the decision was made on the consideration of higher operational cost as well as changing market competition and customers' experiences.

  "The price for major raw materials such as coffee beans and milks has been increasing while the price adjustment was also affected by logistics cost and store rentals," said Li Jing, public relations manager of Starbucks China. She said around 10 espresso-based beverages would be affected by the price increase.

  In early January, Starbucks also started charging more for selected drinks in Northeast and Sunbelt regions in the United States as it face more competition and higher ingredient costs.

  Starbucks sold coffee beverages and other drinks such as juices, milks and hot chocolate in its stores in China, pricing from around 24 yuan.

  It is on track to accelerate its opening of 1,500 outlets in China by 2015, with many of them located in second-tier cities.

  Starbucks China last adjusted the prices of some espresso-based beverages in 2007.

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