Starbucks PH increases prices by P5 as sugar prices rise
Rustan Coffee Corp. , Starbucks’ sole licensee in the Philippines, said on Tuesday it had started implementing a P5-increase in the prices of all their beverages.
Starbucks Philippines marketing and global responsibility manager Maria Rosario Vilchez confirmed the price adjustments in a message sent to the Inquirer.
“We regularly review pricing to allow us to properly balance the experience we provide customers with our need to effectively run the business,” she said.
The company executive did not give particular reasons for the price increase, but employees from several stores said it was connected to the prevailing high prices as well as supply shortage of sugar.
“We remain committed to providing value to customers in meaningful ways through special promotions and our Starbucks Rewards loyalty program,” Vilchez said further.
Beverage industry affected
Back in August, Coca-cola Beverages Philippines Inc. suspended the operations of some of its bottling plants due to the supply shortage of bottler’s grade sugar.
The Philippine unit of the beverage giant said further that it was doing everything to minimize supply disruption and the impact to their bottling operations brought by the apparent lack in supply.
Almost a week before this announcement, Coca-cola released a joint statement with the makers of cola Pepsi Cola and RC Cola, saying they were facing a shortage in premium refined sugar, which is a key ingredient in their sweetened beverage.
Coca-Cola said there was a shortage of 600,000 metric tons in the supply for 2022, and the industry needed about 450,000 metric tons to be at 100-percent manufacturing capacity for the rest of the year.
Price increase
The Philippine Chamber of Commerce and Industry (PCCI) warned of an impending price increase on beverages and food products almost a month ago, saying their members would be forced to adjust costs if the problem persists.
“The problem is that we are short of supply, automatically, market forces, prices will increase,” PCCI President George Barcelon said, explaining that concerns about the shortage reached him as early as July.
PCCI counts among its members the biggest industry associations in the country which use sugar in their production lines including, among others, the Philippine Food Process and Exporters Organization, Inc. and the Philippine Chamber of Food Manufacturers, Inc. (PCFM).
