A 17% price hike for Starbucks beans
New price increases for packaged coffee are driving the cost of a cup out of sight. Here's how to survive this national disaster.
This post comes from Lynn Mucken at MSN Money.
Focus! We have a problem here. Coffee prices are going up, faster than your eyelids after a cup of Starbucks French Roast at 6 a.m.
J.M. Smucker, which makes that American classic, Folgers, as well as the Millstone and Dunkin' Donuts brands, says it's increasing prices by 11%. At the same time, high-end Starbucks announced a 17% price hike for bagged coffee sold at its stores.
According to the Department of Labor, a 1-pound can of ground coffee already sold for $5.10 in April, up 40% in a year. By comparison, the average cost of a gallon of regular gasoline today is $3.81, up just 37% from a year earlier.
Yes, I know, the suffering is not comparable. We can always walk, or bike, or carpool. We cannot do without our coffee.
Just look at the numbers:
Americans of coffee-drinking age average 416 eight-ounce cups of coffee a year, with 60- to 69-year-olds being the biggest consumers and those 25 to 29 drinking the least (they'll get off the Red Bull soon). They drink it at home (82% of their consumption) and work (17%) and on the way between home and work (9%).
What's more, coffee is good for you. Post continues after video.
The Harvard School of Public Health announced recently that heavy coffee drinkers -- six or more cups a day -- had a 20% lower chance of getting prostate cancer than non-drinkers. That figure jumped to 60% for the most-lethal forms of prostate cancer. (It was still 27% if you drank just one to three cups a day.)
Previous medical studies showed that coffee reduces the chances of getting type 2 diabetes, gallstones, colon cancer, liver damage and Parkinson's disease. It also improves cognitive function and increases endurance in long-duration physical activities.
With benefits like that, coffee should, like fluoride, be distributed free, though probably not through the same water system.
OK, there is a tiny downside to coffee. Caffeine, coffee's main ingredient, is considered mildly addictive. I guess that something that gives you a screaming headache if you go without it for 24 hours is a bit addictive. But just have another cup and be more careful next time.
The other negatives -- increased heart rate and increased blood pressure -- look like pretty good tradeoffs considering the benefits.
And those hyper types who jabber away after a couple of cups? Seems like they were more than a little weird even without the coffee.
Almost forgot; this is a personal-finance blog post (three cups by 8:36 this morning -- scary). OK, here's the advice:
Wait it out. This is usual supply-and-demand factor. Harvests of high-grade arabica beans were bad in Colombia, Indonesia, Mexico and Vietnam. At the same time, there is a growing taste for upmarket coffee in China, Brazil, India and Indonesia.
In the meantime, if you can't handle paying $16.24 for a pound bag of Starbucks' finest, you can go back to Folgers. Here's a better idea: Give up all those vegetables.
More from MSN Money:
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Oh yeah - - when times are tough turn to starbucks so they can reach deeper into our pockets.
their coffee is far to expensive in the first place and most of it tastes like crap.
So who is this the fault for this one?
3) Wall Street
I never liked starbucks. Frankly I really liked speedway gas station coffee. However I no longer drink coffee. I am saving money, losing weight and no longer have headaches. You don't need coffee to function.
A friend took me to Starbucks for my first and last time ever. I saw all the g o o k they put in it was like a soda shop back in the 50's. I ordered mine black. I like it black and you'd think I asked for a martini shaken. It tasted terrible black so no wonder they cram all the g o o k in it. My black coffee I make on an open fire while camping well now THAT IS GOOD coffee. About 30 cents a cup.
People who pay for starbucks must have money to burn.
Beans, beans, they're good for your heart,
The more you eat, the more you fart,
The more you fart, the better you'll feel,
So eat some beans at every meal!
??? somewhat rambling and incoherent story. Headline leads me to believe it will focus on cost, supply/demand and other issues pertaining to the price of coffee...two thirds of it is devoted to health effects associated with coffee. Two blurbs in the intro and one in the conclusion discuss actual pricing issues. It is difficult to pull out the whimsy!
One more reason to make your coffee at home.
$2.50 per cup per day per 5 day work week = $650 savings per year in after tax dollars.
While we're at it why not look into how much smoking, and Mcdonalds take from your after tax dollars.
$5.00 pack of smokes per day = $1825 per year in aftre tax dollars.
$7.00 at Mcdonalds per day per work week = $1825 in after tax dollars.
bottom line: Give yourself a raise. Make your own coffee, quit smoking, and brownbag your healthier lunch to save $4300 per year in after tax dollars!
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One online calculator tells a reader he's on track, and another tells him he'll need to save half his salary from now until he retires. Which one are you supposed to believe?
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