28 Apr '11, 2am

Coffee price rally not sustainable -Starbucks CEO

* Starbucks plans to double S.Korea outlets in 5 yrs - Schultz * Company plans to pursue organic growth in Asia SEOUL, April 28 (Reuters) - The rally in coffee prices will not continue for long, Starbucks Corp Chief Executive Howard Schultz told a press conference in Seoul on Thursday. "[The coffee prices] we see today are not sustainable," Schultz said. July Arabica coffee futures hit a 34-year high last week on a shortage of high-quality beans, bullish charts and a broad commodities rally fueled by a weaker dollar. Schultz added that Starbucks planned to double the number of its outlets in South Korea to 700 in the next five years. The expansion plan comes as the price of coffee beans has soared, and coffee chains globally have raised prices. The 40-year old coffee chain opened its first outlet in South Korea in a college district of northern Seoul in 1999. The company n...

Full article: http://sg.news.yahoo.com/coffee-price-rally-not-sustainab...

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