Starbucks readily completed its coffee bean purchases late last year to accomplish the needs of current entire financial year. Starbucks, the big bull of the coffee market landed on an economic zone for eradicating the future wave of the price rise.
95% of the coffee needs are stocked with only 5% left to be unpaid for this current year. This move is strategically played by the Company to defend itself from any kind of downturn in the market due to prolonged dry weather in Brazil causing impact of leaf diseases.
Chief financial minister of Starbucks; Maw said that, over last year, Starbucks tended not to buy coffee when the price exceeds $1.90 a lb. But the prices were low to $1.64 a lb in December, more than late November $1.90 a lb.
This indicates that Starbuck a grand roaster company is preparing for relief in a sustained period of high price in Arabica coffee beans. As there are no indications of the coffee have bean supplies been disrupted but was an opportunity to buy under $1.90 a lb.
Maw also said that “Everything indicates that coffee market is still healthy in origin” There is no news or future forecast which indicates any spikes in supply.
