Starbucks Korea to adjust prices on higher costs

SEOUL, Jan. 20 (Yonhap) -- Starbucks Korea said Monday it will adjust dozens of its beverage prices to reflect a weaker won and increased prices of raw materials.

Starting Friday, the prices of 22 kinds of coffee and other beverages will be raised by a range of 100 won and 300 won (US$0.07-$0.21), the company said in a text message.

A tall-sized (355 milliliters) Americano will be available for 200 won more at 4,700 won, and a tall-sized brewed coffee, called "Today's Coffee" in South Korea, will be 300 won higher at 4,500 won, it said.

"The company has made efforts to pass less burden onto customers despite consistently rising costs but the price adjustments are inevitable due to higher exchange rates and raw material costs," the message said.

The company said it will keep the current prices for 10 kinds of beverages, including Dolce Cold Brew and some tea bag-based drinks, while lowering the prices of grande- and venti-sized iced brewed coffee by 200 won to 5,100 won and 5,900 won, respectively.

In November, Starbucks Korea raised the prices of 11 kinds of tall-sized iced beverages by 200 won.

The Seattle-based coffee giant introduced its first store in front of Ewha Womans University in Seoul in 1999 in partnership with Shinsegae Group, a Korean retail group.

Starbucks mostly focused on the Seoul metropolitan area in the early stage and expanded its business territory across the nation to cater to growing appetite for its coffee.

The number of Starbucks outlets across the country reached 1,980 as of end-October.

Shinsegae's discount store chain E-Mart Inc. holds a 67.5 percent stake in the coffee chain here and the Government of Singapore Investment Corp. (GIC) owns the remaining 32.5 percent stake.

kyongae.choi@yna.co.kr
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