Already one of the more expensive cuts of joe in this country, Starbucks travelled price on beverages coffee-infused in the Midwest, Northwest Pacific, California and Hawaii last November. Then it increased prices in the Northeast and Sunbelt regions in January.
During this time, all the world but Starbucks, seems, does exactly the opposite.
Take the example of J.M. Smucker (SJM). The food conglomerate is more famous for its jams, but Smucker also owns Folgers and grinding wheel mill and control distribution retail coffee Dunkin rights ' Brands (DNKN). Last week, Smucker announced that "sustained declines" in the cost of roasted coffee beans have helped to reduce the cost of coffee - and it's just what it does, greatly reducing packaged coffee prices by approximately 6%.
Fast forward to three days, and Friday, owner of Maxwell House Kraft Foods (KFT) followed by agree and even does Smucker one better. While that Kraft Maxwell House and Yuban marks will see prices fall 6%, premium Gevalia society mark will drop full 10%. According to the companies, it is the second series of reductions in prices since August 2011 Smucker and Kraft.And at Starbucks? Just costs continue.
So, what is the deal, Starbucks? According to Kraft, coffee big retailers all see "a reduction in the cost of the green coffee. Then, the logical conclusion is that is Starbucks is a terrible haggler when it comes to negotiate the cost of its beans, or other... Starbucks it clings to the consumer. How is - for a bitter aftertaste?
Contributor Motley Fool Rich Smith holds no position in any company mentioned. The Motley Fool is owner of shares of services Bulletin of Starbucks.Motley Fool have recommended buying shares of Starbucks and writing covered calls on Starbucks.
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