Starbucks plans price increases on drinks

SEATTLE Starbucks officials at the home office in Seattle say raw coffee prices have been rising, so they have to follow suit.

The world's largest coffee chain says the price increases will be focused on big, and labor intensive drinks.

Starbucks also says it may raise the price on packaged coffee, including beans sold in grocery stores.

However, company officials insist most of its basic coffee and espresso drink prices will stay the same.

Other coffee retailers have been raising prices, too.

Starbucks says it has absorbed the higher prices until now, but the "extreme nature" of the coffee price increases means it needs to raise the price for customers.

Starbucks began as a single store in Seattle in 1981. The company now has 15,000 stores in 50 countries.

The Associated Press contributed to this report.

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