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Effective July 31, your daily caffeine fix will rise by an average of 9 cents at company-owned Starbucks. Licensed stores will likely follow. The Seattle coffee giant has said in recent months that it has seen a noticeable increase in costs, particularly in dairy products. Starbucks shares rose 1.6% to $28.14. The excuse is higher priced corn feed to cattle. Corn prices are up due to higher fuel ethanol prices. This is on top of the increase just late last year. With prices currently at $4.95, how can a cup of Coffee, pardon my English, cost more than $5 bucks. I can buy a whole gallon of milk retail for $3.50, which works out to $0.02 per cup. So even if the beans or milk or whatever DOUBLES, the raw material cost won't go up more than 2 cents. But milk is expected to rise just 30 cents per gallon., or .2 cents per cup. |