Starbucks pays approximately $1.20 per pound for their coffee beans.
Starbucks' Investment in Coffee Beans
Starbucks, a global leader in the coffee industry, makes substantial annual investments to procure the vast quantities of coffee beans required for its worldwide operations. Understanding these costs provides insight into one of the company's primary expenditures.
Cost Per Pound
The company's direct cost for raw coffee beans is roughly $1.20 per pound. This figure represents the baseline cost for the beans before any additional processing, roasting, or distribution expenses are incurred.
Annual Procurement Overview
Each year, Starbucks purchases an immense volume of coffee beans, translating into a significant financial outlay. This large-scale procurement ensures a consistent supply chain for their diverse product offerings.
Key figures related to Starbucks' coffee bean purchases include:
| Metric | Value |
|---|---|
| Approximate Cost Per Pound | $1.20 |
| Annual Volume Purchased | 800 million pounds |
| Total Annual Spend | Approximately $960 million |
This substantial annual expenditure highlights the scale of Starbucks' global demand and its commitment to securing a consistent supply of coffee.
Global Sourcing Strategy
Starbucks sources its coffee beans from various renowned coffee-growing regions around the world. This diversified sourcing strategy helps maintain a steady supply and allows for the selection of beans with specific flavor profiles. Their primary sourcing regions include:
- Latin America
- Africa
- Asia
- The Pacific
