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Starbucks Gets Called Out By Chinese State Media Over Prices

DAVID GREENE, HOST:

And let's cross the Pacific, from Seattle to China for our last word in business today. The last word: Things aren't always cheaper in China. Take a cup of coffee, for example.

STEVE INSKEEP, HOST:

Chinese state-run media are accusing Starbucks, Starbucks - that symbol of America - of charging more for coffee in China than in other markets. According to a report, a small latte - that's a tall latte in Starbucks-speak - sells for about $4.50 in Beijing. Compare that to $3.43 for the same latte in Brooklyn.

GREENE: China is expected to become Starbuck's second-biggest market after the United States by next year. And so the world's largest coffee chain is taking these accusations seriously.

INSKEEP: Starbucks concedes that a latte in China is more expensive than in the United States. But they say, let us explain. China's got a problem here, high import duties on coffee beans.

GREENE: And also a different coffee culture. While in the United States most customers - like myself - line up and get Starbucks to go on the run, take it to work, take it wherever. The Chinese like to sit and linger over their lattes, which means Starbucks cafes have to be a lot larger.

That's the business news from MORNING EDITION on NPR News. NPR News. I'm David Greene.

INSKEEP: And I'm Steve Inskeep.

(LAUGHTER) Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.