American global coffee company Starbucks, said on April 12, 2013, that it would cut its grocery list prices. The company will be cutting the prices of its Starbucks and Seattle’s Best packaged coffee by over 10 percent on May 10, 2013.
The coffee segment is facing tough competition and the move by Starbucks has been taken after rival coffee sellers reduced their prices. From next month, the retail price of the 12 ounce package of coffee will fall to $8.99 from $9.99 and Seattle’s Best will reduce to $6.99 from $7.99. The price cut by Starbucks only applies to packaged coffee sales through other retailers. It does not affect packaged coffee and drinks which are sold in the company’s shops.
Earlier, in the month of February 2013, the top US packaged coffee maker J M Smucker Co. reduced the suggested retail prices on popular brands like Folgers and Dunkin Donuts, with an average of a 6 percent reduction.
A similar price cut was observed for the Maxwell House and Yuban brands, belonging to the Kraft Foods Group. Arabica coffee had also hit its lowest figures for nearly three years in mid March 2013, at $1.34per lb. Coffee lovers around the world will be delighted to hear this news as well.