Why Starbucks Could Emerge From the Coffee Shortage Even Stronger

A surprise frost hit the coffee crop in Brazil last week, sending coffee futures prices soaring, just as Starbucks (NASDAQ: SBUX) has been experiencing a menu item shortage because of a worsening transportation and supply chain squeeze. Rising coffee prices could force it to pass additional costs on to its customers while already under pressure from another factor. The latest source of added costs and potential disruption to Starbucks' business is a confirmed frost in one of Brazil's main arabica coffee-producing regions and possible frost in two others.