Wednesday, August 04, 2004

The Insider: Starbucks' prices won't be cheaper for much longer

THE COST OF COFFEE: Starbucks Corp. announced last month it might raise prices at its U.S. cafes next year.

The potential move likely is intended to improve the company's margins, which have taken a hit recently from higher milk and green coffee bean prices. Another possible reason for the price increase: Its competitors are charging more.

Turns out that some of Starbucks prices are lower -- albeit in some cases not by much -- than its rivals, according to a recent survey conducted by CIBC World Markets analyst John Glass.

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