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Coffee is the latest item to become more expensive due to supply shortages, recently caused by bad weather in Brazil. This week, Arabica coffee futures reached their highest price since 2014.
“The volatility in the coffee market does not impact retail pricing plans, and our pricing strategy remains unchanged,” a Starbucks spokesperson told CNN Business.
Starbucks has employed a number of tactics to make sure it can buy coffee beans at an “attractive cost,” Johnson said. Those include buying coffee ahead of time and locking in prices, Johnson said.
“Usually coffee chains are hedged well ahead, but the length of coverage” varies from company to company, said Carlos Mera, who heads up Rabobank’s agri commodities markets team and is an expert on coffee prices.
For Starbucks, short-term volatility could end up…
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