Not-Quite-Devastating News

From FoxNews:

Starbucks to Raise Coffee Prices (gasp!)

Three observations:

1) Why is it news that a company is raising its prices? Doesn't that happen all the time?

2) Granting that this is an out-of-the-ordinary price hike, one might speculate that if milk weren’t the primary ingredient in most of their beverages, they wouldn’t be having this problem, would they? The moral of the story: Drink Black Coffee!

3) Read the article carefully, especially the quote from that Dan guy who put a buy rating on sbux. I’m not an economist, but how is raising prices going to help sales go forward?

Just a couple of thoughts as I keep my fingers on the pulse of the global coffee industry for you.

4 comments:

Norman Teigen said...

I prefer Caribou Coffee and Dunn Brothers. I wonder if their prices will go up.

Norman Teigen
Hopkins MN

diego alamos said...

I don't drink coffe, it damages health. You will think I'm not saying the truth, every man must love coffe if she would taste it without any remostrance. What's remostrance, I suposse it's a bad disposition to do justly what we love, coffe as well as sex at the bathrooms on summer'days. By the way, I prefer soft drinks.

chris j pluger said...

?

xeeg said...

Are you kidding me, dairy price?! I calculated it once and what they charge for frappuccino is 12 times what is actually costs me to make it myself!
no price makes any sense in America, price of materials and ingredients play no role here. we just pay for design, tech and services.