“And those lower coffee costs are expected to continue padding its bottom line,” according to the AP report in June.
Although coffee prices have dropped to four-year lows in commodity markets, it isn’t reflected in cafes, writes Kyle Stock for Bloomberg Businessweek.
“Odds are good the discounts won’t trickle down to the retail level,” according to the article. Stock pointed to factors such as hedging by Starbucks and competitors, government intervention to boost coffee prices, and retail spending habits.
Starbucks
iPath Dow Jones-UBS Coffee Subindex Total Return ETN
