Peet's Coffee & Tea to raise prices
September 28, 2010
EMERYVILLE, CALIF. — Peet’s Coffee & Tea on Sept. 27 said it will raise the price on most of its beverages by 10c and on beans sold in Peet’s stores an average of 8%, effective Sept. 29. The company cited an approximate 35% rise in green Arabica coffee prices since the beginning of the year as the reason behind the increase. The news follows Starbucks Corp.’s announcement on Sept. 22 that it intends to implement targeted price adjustments on certain beverages in certain markets.
“The cost of coffee has risen dramatically this year and is now close to a 13-year high,” said Patrick O’Dea, president and chief executive officer of Peet’s. “We’ve been successful in offsetting a significant portion of these costs, enabling us to delay action until now and keep the price increase to a minimum.”
Peet’s also indicated it would selectively raise prices on packaged beans in its other channels of distribution either sometime during the company’s calendar fourth quarter or early next year.