- Starbucks (SBUX +1.8%) CEO Howard Schultz was pretty firm in an interview on Fox Business Network that the company doesn't plan to hike coffee prices despite higher commodity cost.
- "I suspect coffee prices might go up even higher. We will anticipate that and most importantly, we can manage through it. We do not have any intention at this time to raise prices," says Schultz/
- The company is protected for at least a year against higher prices due to its forward pricing strategy.
- Schultz also says he sees a "seismic shift" in mobile payments. Starbucks remains a retail leader in the area with close to 10M customers using its app and has several new customer-friendly initiatives on tap to be released this year.
- It's crystal clear that Starbucks isn't denying or challenging the Amazon Effect, but is planning around it.
- FBN interview (video)