The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App

Starbucks lowering price of bagged coffee

LONDON, ENGLAND - OCTOBER 16: The signage on a branch of Starbucks Coffee on October 16, 2012 in London, England. It has been reveled that Starbucks, the world's second largest coffee chain, has paid no tax in the UK for the past three years despite sales exceeding 1 billion GBP. Since first trading in the UK in 1998 Starbucks has paid 8.6 million GBP in income tax with total sales of over 3 billion GBP in the same period. (Photo by Oli Scarff/Getty Images)
Oli Scarff

NEW YORK Starbucks (SBUX) is lowering the list price of its bagged coffee to stay competitive as commodity costs ease across the industry.

The Seattle-based chain says 12-ounce bags of its whole and ground coffee will be $8.99, down from $9.99.

The list price is a suggestion and retailers are free to charge their own prices, so customers may not see a change. Retailers will pay a lower price.

The move does not affect the price of Starbucks coffee in its cafes.

Lisa Passe, a spokeswoman, noted that competitors have been lowering their prices.

The move also comes as Starbucks looks to increase sales from its packaged goods business.

Starting next month, the company is also letting people earn points on its loyalty program from buying its bagged coffee.