The price of coffee beans is reduced by 29%. Starbucks coffee may raise prices.

Beijing time on November 13 morning news, so far this year, the wholesale price of coffee beans has fallen by 29%, but industry experts predict that Starbucks (SBUX) coffee retail prices will not fall, but may increase.

Arabica coffee futures for December delivery fell nearly 2 percent to $1.1050 a pound on ICE Futures, the lowest close for a major contract since Sept. 14, 2006, The Wall Street Journal reported last week. In fact, Arabica bean prices have fallen 29 percent so far this year because of abundant supplies in Colombia and Central America.

But while coffee companies, cafes and street food outlets often raise coffee prices, they almost never lower them. Starbucks raised the price of a third of its drinks by an average of 1% in June 2013, compared with roughly 1% in 2012 for many drinks in most stores in the Northeast and South, including New York, Boston, Atlanta and Dallas. Earlier in 2011, Starbucks raised the price of bagged coffee by 17%.

Starbucks has not cut prices at its stores this year despite the drop in wholesale prices. But in May, Starbucks said it had cut grocery store retail prices for 12-ounce Starbucks bags and Seattle Best bags by 10 percent or more.

As for whether Starbucks is considering lowering coffee prices in the chain in the future, Zack Hutson, a company spokesman, said Starbucks would not discuss future pricing plans for competitive reasons. Of course, there are other reasons Starbucks can still maintain its popularity, such as customers who come to Starbucks stores not only to buy coffee, but also to enjoy jazz and free WiFi.

(Responsible Editor: )

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