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Starbucks is raising prices even though coffee beans are at a three-year low

Starbucks just announced that it will be raising the price of some beverages in the United States by as much as 10 cents.

The company won’t say which drinks are getting more expensive. In most stores, the prices of grande (medium) and venti (large) brewed coffee will remain the same, Starbucks spokeswoman Jaime Riley told Quartz, implying that tall (small) coffees will be going up. Frappuccinos, the company’s signature blends of espresso, milk, and ice, will be spared from the increase, Riley said.

Starbucks is raising prices even though coffee beans are at their cheapest levels in three years:

ICE-coffee-futures_chart

JM Smucker and Kraft recently cut prices on their Maxwell House and Folgers brands of coffee beans in response to the global market trends. Even Starbucks lowered the price of its pre-packaged coffee last month.

But Starbucks spokeswoman Lisa Passe said coffee bean prices don’t have a major impact on the company’s beverage pricing:

Coffee commodity prices are only part of our value equation, historically comprising less than 10% of our overall store operating and occupancy expenses (which also include rent, labor, marketing, equipment, materials, distribution, and other commodities associated with beverages, foods, materials and operations).

The price increase will take effect on June 25.

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