Starbucks Corp. and Dunkin’ Brands Group Inc., both heavy sellers of dairy products, are likely to benefit from a plunge in milk prices.
The retail price of fresh, whole milk was just $3.30 a gallon in November, the least since 2010, according to data from the U.S. Bureau of Labor Statistics. Prices have been falling in recent months amid signs of ample supply and as increasingly health-conscious Americans turn to vegan alternatives such as almond, soy and coconut beverages. The decline is a reversal from 2014, when the coffee chains coped with rising dairy costs.
Starbucks sells a number of milk-based drinks, including cappuccinos and lattes. Its new latte macchiato is a blend of espresso and steamed whole milk. Dunkin’ also sells milk-and-coffee beverages at its Dunkin’ Donuts shops and owns the Baskin-Robbins ice-cream brand.