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ECNS Wire

Starbucks price hike in China draws complaints

1
2016-06-22 15:39Ecns.cn Editor: Mo Hong'e

(ECNS) -- Starbucks has raised prices on some of its drinks in China by 1 to 2 yuan (15 to 30 cents), the first hike since 2012, Beijing Evening News reported.

The coffee giant announced that it's raising prices starting June 16 on some - but not all - drinks, including espresso, brewed coffee, frappuccino and teavana shaken iced teas.

Starbucks said the price hike was based on evaluation of operating costs as well as overall market dynamics in China.

It also said to further reduce the environmental impact of cups, customers will get a 3 yuan discount, up from 2 yuan, for using their own reusable cups.

On the Internet, the hike in prices generated widespread complaints. A Weibo user grumbled that his salary remained the same but coffee prices increased.

An informal survey on Weibo showed that 13 percent of respondents would continue buying Starbucks, but 14.4 percent are looking to other brands.

With a 354-ml caffe latte pricier in Beijing than in London, New York and Mumbai, some drinkers of Starbucks coffee have previously complained about its high prices in China.

The world's largest coffee chain had a 73.3 percent share of the top-end coffee chain market in China during 2015. It was followed by McCafe of McDonald's Corp (9.3 percent), Costa Coffee of Whitbread (9 percent) and Pacific Coffee of China Resources Enterprises (3.9 percent), according to Euromonitor International data.

  

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