Caribou raises prices to offset climbing costs

MINNEAPOLIS Caribou Coffee has increased the prices of its coffee-based beverages by an average of 2.5 percent, or roughly 8 cents per drink, to offset rising labor, dairy and coffee expenses, the company told investors Wednesday.

With the increase, the 450-unit chain’s prices are roughly on par with those of segment leader Starbucks, said Caribou chief financial officer George Mileusnic.

Seattle-based Starbucks raised its prices last July by an average of 9 cents per drink, citing similar cost pressures.

Michael Coles, Caribou’s chief executive, has said he expects the chain to grow to 500 units in the near future.