Starbucks lowering price of bagged coffee

Starbucks lowering price of bagged coffee to $8.99, from $9.99

Associated Press
Starbucks cuts suggested price of bagged coffee
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In this Friday, April 6, 2012 photo, a Starbucks Coffee store on the Embarcadero in San Francisco, is shown. Starbucks is lowering the list price of its bagged coffee to stay competitive as commodity costs ease across the industry, the company announced Friday, April 12, 2013. (AP Photo/Eric Risberg)

NEW YORK (AP) -- Starbucks is lowering the list price of its bagged coffee to stay competitive as commodity costs ease across the industry.

The Seattle-based chain says 12-ounce bags of its whole and ground coffee will be $8.99, down from $9.99.

The list price is a suggestion and retailers are free to charge their own prices, so customers may not see a change. Retailers will pay a lower price.

The move does not affect the price of Starbucks coffee in its cafes.

Lisa Passe, a spokeswoman, noted that competitors have been lowering their prices.

The move also comes as Starbucks looks to increase sales from its packaged goods business.

Starting next month, the company is also letting people earn points on its loyalty program from buying its bagged coffee.

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