Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Columnists


Our network sites seattletimes.com | Advanced

Originally published May 14, 2008 at 12:00 AM | Page modified May 14, 2008 at 7:32 PM

E-mail article     Print view

Retail Report Digest

Starbucks paid more for coffee in 2007

Starbucks paid an average $1.43 a pound for the 352 million pounds of coffee it bought in fiscal 2007. The commodity price for coffee on the New York Board of Trade during Starbucks' last fiscal year, which ended Sept. 30, was $1 to $1.35 a pound.

Seattle Times business reporter

Starbucks paid an average price of $1.43 a pound for coffee in fiscal 2007, according to its corporate social responsibility report released today.

That's a penny higher than the year before and 15 cents above its average price in 2005, according to reports from earlier years. From 2002 through 2004, it paid $1.20 a pound.

Although coffee prices have risen, the cost of milk and whipped cream have had a bigger financial impact on Starbucks. Last summer, skyrocketing dairy costs led the company to raise prices an average of nine cents a cup, which followed a nickel increase the year before.

Most coffee trades in the commodities markets, but Starbucks pays higher prices mostly through contracts it negotiates for higher quality beans.

The commodity price for coffee on the New York Board of Trade during Starbucks' last fiscal year, which ended Sept. 30, was $1 to $1.35 a pound. In September, prices surged because of bad weather that led to concerns about the harvest in Brazil, the world's largest producer of arabica coffee.

Starbucks said in a securities filing last year that if the commodity price for coffee continued to rise this year, that would probably increase the amount it pays for coffee.

Starbucks bought 352 million pounds of coffee in fiscal 2007, according to its report. That's up from 294 million pounds in 2006.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com

Copyright © 2008 The Seattle Times Company

More Retail Report headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

Retail Report: Energy use becomes part of TV-buying equation

Advertising

Video

Real Salt Lake wins MLS Cup
Real Salt Lake defeated the Los Angeles Galaxy with penalty kicks after 120 minutes of play at Qwest Field in Seattle.

Raw Video | Real Salt Lake receives the MLS Cup trophy
Raw Video | Real Salt Lake fans celebrate
Real Salt Lake fans enter Qwest Field
Raw Video | MLS Cup Opening Ceremony
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle
Chittenden Locks Inspection
Full interview with New Moon actors

Marketplace

Open Houses

Find this weekend's open house listings.
Or search by location:

nwautos

Less is more: Group rides, good gas mileage have led to a scooter swarm in Seattlenew
Local riders say they've seen a surge in scooter interest in recent years, mostly from people wanting another commuting option. Seattle now ranks as o...
Post a comment

Advertising