Starbucks and Maxim raise coffee prices one after another… ‘White flag’ on soaring bean prices and rising global logistics costs

News 1

Starbucks Korea and Dongsuh Foods decided to raise coffee prices for the first time in 7 years and 6 months.

Soaring coffee bean prices and the rise in logistics costs due to the novel coronavirus infection (COVID-19) eventually raised a white flag.

According to News 1 and Starbucks Korea on the 7th, among the 53 beverages currently sold at Starbucks, the prices of 46 beverages, including Cafe Americano and Cafe Latte, will increase by 100 to 400 won each.

Accordingly, from the 13th, ΔCafé Americano/Cafe Latte/Cappuccino for 23 beverages will cost 400 won ΔCaramel Macchiato and Starbucks Dolce Latte/Double Shot for 15 beverages will be 300 won One Δ Dolce Black Milk Tea goes up by 100 won.

Regarding the use of mobile coupons, for coupons purchased before the price increase, if you do not change the drink, you do not have to pay extra. When purchasing other drinks with coupons, you only have to pay the difference.

For example, if you purchase an Americano after the price increase with the Cafe Americano mobile coupon purchased before the price increase, you do not need to pay an additional fee.

A Starbucks official explained, “(If you use a mobile coupon), you can use the same drink at the old price.”

Dongsuh Foods will also raise the factory price of coffee products by an average of 7.3% from the 14th.

By product, the ΔMaxim Original 170g refill product increased from 5,680 won to 6090 won, 7.2% ΔMaxim Mocha Gold Coffee Mix 1.2kg, 7.3% from 11,310 won to 12,140 won ΔMaxim Kanu Americano 90g, 14,650 7.3% from KRW to 15,720 won

An official from Dongseo Food said, “The price increase was inevitably decided due to the continuous rise in the price of major raw materials, including international coffee prices.”

Other franchise coffee shops, such as Ediya, A Twosome Place, and Holly’s, are also closely watching this trend, but they say that there are no plans to raise prices at this time. However, the common view of the industry is that the pressure to raise prices has continued since last year.

International coffee prices began to rise sharply from April last year. In particular, the price of international Arabica beans rose 103.5% from 113 cents per pound in 2020 to 230 cents per pound in December 2021. During the same period, the price of palm oil, used as a raw material for coffee mix, rose 54.8%, and the price of sugar rose 16.7%.

Arabica is a representative variety that accounts for 60% of the world’s coffee bean production, and prices are rising due to drought and cold damage in Brazil, the largest coffee producing country.

Brazil suffered a water shortage for the first time in 100 years due to a severe drought at the beginning of last year, followed by a sudden cold wave when the temperature dropped below freezing in July.

Ethiopia, the representative producer of Arabica beans, is also in a situation where coffee farms and local logistics are not operating properly as civil war has spread since last August. As the global logistics crisis overlaps, the upward trend in raw material prices is expected to continue.

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Source: 경제 by www.segye.com.

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