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The Pumpkin Spice Tax: Retailers Charge More, Shoppers Get Less for Pumpkin-Flavored Products
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Written By
Updated on Tuesday, October 10, 2017
Cue the pumpkin spice tax rebellion.
A MagnifyMoney analysis of pumpkin spice-flavored items at several grocery stores and coffee shops found that customers often pay a premium for that perennial autumn flavor — in essence, a “pumpkin spice tax” that can be up to 133 percent higher on a per-unit (ounces) basis.
In the study, we compared the prices of the pumpkin spice and standard flavors of more than 200 food and beverage items at a half-dozen Manhattan-area retailers and restaurants in late September. We reviewed items in person at Trader Joe’s, Whole Foods, Fairway, CVS, Starbucks, Pret a Manger, Panera, Dunkin’ Donuts and McDonald’s. We supplemented our findings with a review of products at three online retailers — Walmart.com, Target.com and FreshDirect.com.
Pumpkin spice mania has reached a fever pitch in recent years, as retailers have rushed to incorporate the flavor into just about every item in our pantries — from cookies and cereals to bagels and waffle mixes.
Not only are some retailers charging significant surcharges on pumpkin spice-flavored products, but consumers are often paying more and getting less in return.
Read on for our full analysis. Or skip ahead to:
Top 10 Pumpkin Spice Tax Rates
The Pumpkin Spice Latte TaxRetailer Spotlights:
Key Findings:
The average pumpkin spice rate: Across the roughly 200 products reviewed, we found an average pumpkin spice tax rate of 7.98% (per ounce/unit). That rate could be many times higher depending on the retailer. At Trader Joe’s, for example, the average pumpkin spice tax rate was 62%.
Pumpkin spice fans often pay more for less. Many retailers don’t just charge more for seasonal items — they give shoppers less product for their money. On FreshDirect.com, for example, a 6.5-oz. Pumpkin Pie Spice version of Land O’Lakes Spreadable Butter sold for $2.99, while the 8-oz. Land O’Lakes Spreadable Butter With Canola Oil sold for about 10 cents less, or $2.89. On a price per ounce basis, the Pumpkin pie spice option sold at a 28 percent premium. We found many more examples of retailers charging more for pumpkin-flavored products but offering less product.
Trader Joe’s was the worst pumpkin spice tax offender. Some retailers are more aggressive with pumpkin spice surcharges than others.. It claimed three of the top 10 highest pumpkin spice tax rates in our study. Among 10 products analyzed at Trader Joe’s, for example, we found an average pumpkin spice tax rate of 62%. By comparison, the average pumpkin spice tax rate at Target.com was just 14% across 20 items.
Coffee drinkers’ highest pumpkin spice premium? Welcome to Starbucks. The highest tax on the seasonal coffee drink was charged by the Pumpkin Spice Latte’s originator, Starbucks. The coffee chain charged $5.25 for its 16-oz. Pumpkin Spice Latte — exactly one dollar more than its 16-oz. Caffe Latte, sold for $4.25, in Manhattan’s Chelsea neighborhood. That’s an effective pumpkin spice tax rate of 23.53%.
McDonald’s, Dunkin’ Donuts and Whole Foods don’t charge a seasonal premium on most items. MagnifyMoney observed no significant pumpkin spice premium on any of the 10 seasonal items we identified at Whole Foods Market. Nor did we observe a premium on pumpkin spice drink options at McDonald’s or Dunkin’ Donuts.
The Top 10 Pumpkin Spice Tax Rates
Across all items reviewed, millennial-centric retailer Trader Joe’s charged the highest premiums on its pumpkin-flavored products. It claimed three of the top 10 highest pumpkin spice tax rates in our study.
The retailer is also one of several in our study that not only charges more for pumpkin-spice products but often offers less product by weight as well. That means shoppers are spending more but getting much less for their money.
Take Trader Joe’s Pumpkin Pancake and Waffle Mix as one example. The national chain charged $1.99 for its 32-ounce Buttermilk Pancake and Waffle Mix and $2.99 for its 21.2-ounce Pumpkin Pancake and Waffle Mix variation — $1 more for a product with 10 fewer ounces.
Based on the sticker price alone, shoppers may think they paid 50% more for the pumpkin spice version. But on a price-per-ounce basis, they paid more than twice the price — an effective pumpkin spice tax rate of 133%.
Trader Joe’s certainly wasn’t the only retailer taking advantage of the pumpkin spice hype.
At first glance, a Target.com shopper might see no difference in the price of Nabisco’s Oreos vs. the pumpkin spice version. As of late September, they had the same sticker price of $2.99. But the pumpkin spice version came with just 10.7 ounces — 3.6 ounces less than the original flavor. On a price per ounce basis, that’s an effective pumpkin spice tax rate of 33%.
See some of the highest-taxed items below. Percentages may be rounded, and list prices are used for comparisons. Per-unit cost is based on per-ounce figures where available, or per unit/count):
Pumpkin Spice Tax | |||||
|---|---|---|---|---|---|
Retailer | Product | Sticker Price | Price Per Oz./Unit | Per Oz./Unit | Sticker Price |
1. Trader Joe's | Buttermilk Pancake | $1.99 | $0.06 | 133% | 50.25% |
Pumpkin Pancake and | $2.99 | $0.14 | |||
2. Trader Joe's | Joe Joe's cookies — | $2.99 | $0.15 | 87% | 0.00% |
Pumpkin Joe Joe's — | $2.99 | $0.28 | |||
3. Trader Joe's | Joes O's — | $1.99 | $0.13 | 69% | 35.18% |
Pumpkin O's — | $2.69 | $0.22 | |||
4. Walmart.com | Twinings of London | $8.11 | $0.68 | 59% | 60.17% |
Twinings Pumpkin | $12.99 | $1.08 | |||
5. Target.com | Archer Farms Dark Chocolate Almonds — 13 oz. | $5.99 | $0.46 | 59% | -33.4% |
Archer Farms Pumpkin Spice Almonds — 5.5 oz. | $3.99 | $0.73 | |||
6. Target.com | Krusteaz Honey | $1.67 | $0.11 | 36.4% | 35.9% |
Krusteaz Pumpkin | $2.27 | $0.15 | |||
7. Target.com | Oreo Original | $2.99 | $0.21 | 33% | 0.00% |
Oreo Pumpkin | $2.99 | $0.28 | |||
8. FreshDirect | Land O'Lakes | $2.89 | $0.36 | 28% | 3.46% |
Land O'Lakes | $2.99 | $0.46 | |||
9. Walmart.com | Victor Allen's | $3.25 | $0.27 | 26% | 26.8% |
Victor Allen's Coffee | $4.12 | $0.34 | |||
10. Walmart.com | Entenmann's Dark | $6.99 | $0.69 | 23.2% | 21.6% |
Entenmann's Coffee | $8.50 | $0.85 | |||
The above items were reviewed in-person at retailers in the Chelsea area of Manhattan on Sept. 22 and with online retailers on Sept. 25-26.
The Pumpkin Spice Latte Tax
Some may notice that the coveted pumpkin spice latte (PSL) — made popular by Starbucks after its debut in fall 2003 and now offered by coffee shops worldwide — typically carries a noticeable mark-up.
Starbucks’ grande-size PSL, for example, is sold at a 23.5% premium above the price of its non-pumpkiny caffe latte counterpart.
Pret a Manger and Panera also charge more for pumpkin lattes, although neither quite as high as Starbucks.
What you ultimately pay for your PSL may simply come down to how you like your coffee. You won’t pay a PSL tax at McDonald’s or Dunkin’ Donuts, but If you prefer Starbucks or Panera, paying the premium may be worth what you get.
Here’s what it will cost you to buy a 16-ounce pumpkin spice latte at some prominent national coffee chains in the Chelsea section of Manhattan.
Coffee Shop | Product | Sticker | Pumpkin Spice |
|---|---|---|---|
Starbucks | Caffe Latte | $4.25 | 23.53% |
Pumpkin Spice Latte | $5.25 | ||
Pret A Manger | Latte | $3.59 | 13.93% |
Spiced Pumpkin Latte | $4.09 | ||
Starbucks | Chai Latte | $4.45 | 11.24% |
Pumpkin Spice Chai Latte | $4.95 | ||
Panera Bread | Caffe Latte | $4.09 | 4.89% |
Pumpkin Spice Latte | $4.29 | ||
Dunkin’ Donuts | Latte | $2.99 | 0.00% |
Pumpkin Flavored Latte | $2.99 | ||
McDonald’s | Latte | $2.59 | 0.00% |
Pumpkin Spice Latte | $2.59 |
The above items were reviewed in-person at retailers in the Chelsea area of Manhattan on Sept. 22.
Retailer Spotlight: Trader Joe’s
As mentioned above, America’s favorite grocery store after Publix and Wegmans had the highest-taxed seasonal items in our analysis.
Among the highest-taxed items: Trader Joe’s Pumpkin Pancake and Waffle Mix — costing much more per ounce than TJ’s Buttermilk Pancake and Waffle Mix — and Joe Joe’s cookies.
Both the seasonal and nonseasonal Joe Joe’s are priced at $2.99 on the sticker. However, the seasonal Pumpkin Joe Joe’s cost 28 cents per ounce, while the regular Joe Joe’s cost 15 cents an ounce. In this case, customers pay almost double per ounce — something like the same price for half the cookies.
MagnifyMoney reached out to Trader Joe’s for comment but did not receive a response.
See below for a breakdown of some products.
Trader Joe's | Pumpkin Spice Tax | |||
|---|---|---|---|---|
Product | Sticker Price | Price Per Oz./Unit | Per Oz./Unit | Sticker Price |
Buttermilk pancake and | $1.99 | $0.06 | 133% | 50.25% |
Pumpkin pancake and waffle mix — 21.2 oz. | $2.99 | $0.14 | ||
Joe Joe's cookies — 20 oz. | $2.99 | $0.15 | 87% | 0.00% |
Pumpkin Joe Joe's — 10.5 oz. | $2.99 | $0.28 | ||
Joes O's — 15 oz. | $1.99 | $0.13 | 69% | 35.18% |
Pumpkin O's — 12 oz. | $2.69 | $0.22 | ||
Plain bagels — 6 ct. | $2.29 | $0.38 | 10.5% | 8.73% |
Pumpkin bagels — 6 ct. | $2.49 | $0.42 | ||
Gluten-free buttermilk | $3.99 | $0.22 | 9.1% | 12.53% |
Gluten-free pumpkin | $4.49 | $0.24 | ||
The above items were reviewed in-person at the Trader Joe’s at 675 6th Ave. in New York City on Sept. 22.
Retailer Spotlight: Target
We found the highest seasonal-item, per-unit “tax” at Target.com on chocolate-covered pumpkin spice almonds.
At first glance, the seasonal almonds look cheaper than the comparable dark chocolate-covered almonds, sold in a larger package. When you look closer, you realize the pumpkin spice almonds are sold for almost 60 percent more per ounce. However, it’s important to note the discrepancy could be due to the difference in packaging.
MagnifyMoney contacted Target for comment but did not receive a response.
See below for a breakdown of the PST applied online at Target.com.
Target.com | Pumpkin Spice Tax | |||
|---|---|---|---|---|
Product | Sticker Price | Price Per Oz./Unit | Per Oz./Unit | Sticker Price |
Archer Farms Dark Chocolate Almonds — 13 oz. | $5.99 | $0.46 | 59% | -33.4% |
Archer Farms Pumpkin Spice Almonds | $3.99 | $0.73 | ||
Krusteaz Honey Cornbread & | $1.67 | $0.11 | 36.4% | 35.9% |
Krusteaz Pumpkin Spice | $2.27 | $0.15 | ||
Oreo Original Chocolate | $2.99 | $0.21 | 33% | 0.00% |
Oreo Pumpkin Spice Creme | $2.99 | $0.28 | ||
International Delight® French | $2.64 | $0.11 | 18.2% | 20.8% |
International Delight Pumpkin | $3.19 | $0.13 | ||
Tazo Organic Tea Latte | $3.14 | $0.10 | 10% | 11.2% |
Tazo Chai Pumpkin Spice | $3.49 | $0.11 | ||
Keurig Green Mountain Breakfast | $10.99 | $0.61 | 9.8% | 9.1% |
Keurig Green Mountain Coffee | $11.99 | $0.67 | ||
KISSES Halloween Fall Harvest | $3.59 | $0.33 | 9.1% | 0.00% |
KISSES Halloween Fall Harvest | $3.59 | $0.36 | ||
Tazo Chai Black Tea — 20 ct. | $3.14 | $0.16 | 6.3% | 11.2% |
Tazo Chai Pumpkin Spice | $3.49 | $0.17 | ||
Quaker Fruit & Cream Instant | $2.59 | $0.32 | 6.25% | 5.8% |
Quaker Pumpkin Spice Instant | $2.74 | $0.34 | ||
Archer Farms Antioxidant Trail Mix — 9 oz. | $5.99 | $0.67 | -50.7% | -50.1% |
Archer Farms Trail Mix Pumpkin Spice — | $2.99 | $0.33 | ||
The above items were reviewed online, at Target.com, on Sept. 25-26.
Retailer Spotlight: Walmart
At Walmart.com, the most-taxed item was tea. Specifically: Twinings of London’s Pumpkin Spice Chai Tea Keurig Cups. Compared with the brand’s Winter Holiday Spiced Apple Chai flavor, the pumpkin spice variant costs about 60 percent more for the same number of cups. MagnifyMoney contacted Walmart for comment but did not yet receive a response.
See below for a breakdown of the Pumpkin Spice Tax applied online at Walmart.com.
Walmart.com | Pumpkin Spice Tax | |||
|---|---|---|---|---|
Product | Sticker Price | Price Per Oz./Unit | Per Oz./Unit | Sticker Price |
Twinings of London Winter Holiday | $8.11 | $0.68 | 59% | 60.17% |
Twinings Pumpkin Spice Chai Tea | $12.99 | $1.08 | ||
Victor Allen's Coffee Donut Shop | $3.25 | $0.27 | 26% | 26.8% |
Victor Allen's Coffee Pumpkin Spice | $4.12 | $0.34 | ||
Entenmann's Dark Roast Coffee | $6.99 | $0.69 | 23.2% | 21.6% |
Entenmann's Coffee Pumpkin | $8.50 | $0.85 | ||
Coffee-Mate Sweetened Original | $24.36 | $0.48 | 18.7% | 19% |
Coffee-Mate Liquid Creamer, Pumpkin Spice — 1.5-liter pump bottle | $28.98 | $0.57 | ||
Keurig K-Cups, Green Mountain | $10.98 | $0.61 | 8.2% | 8.74% |
Keurig K-Cups Green Mountain | $11.94 | $0.66 | ||
Nestle Professional Coffee-Mate | $15.04 | $0.30 | 6.7% | 6.3% |
Nestle Coffee-Mate Pumpkin Spice | $15.99 | $0.32 | ||
Oreo Sandwich Cookies — 14.3 oz. | $3.83 | $0.27 | 3.7% | -22.2% |
Oreo Sandwich Cookies Pumpkin | $2.98 | $0.28 | ||
Pepperidge Farm Milano Milk | $3.83 | $0.64 | -14.1% | 0.00% |
Pepperidge Farm Pumpkin Spice | $3.83 | $0.55 | ||
Lindt Lindor Hazelnut Milk | $3.78 | $0.74 | -16.2% | 16.4% |
Lindt Lindor Milk Chocolate Truffles | $3.16 | $0.62 | ||
Quaker Life Multigrain Cereal, | $3.83 | $0.21 | -19% | -21.7% |
Quaker Life Pumpkin Spice | $3.00 | $0.17 | ||
International Delight French Vanilla | $3.28 | $0.14 | -28.6% | -24.4% |
International Delight Pumpkin Pie | $2.48 | $0.10 | ||
The above items were reviewed online, at Walmart.com, on Sept. 25-26.
The future of pumpkin spice
The latest Nielsen data shows Americans’ taste for all things pumpkin spice is still going strong, but has begun to wane in recent years. Sales of pumpkin-themed consumer goods were up 6.3 percent from July 2016 – July 2017, bringing in $414 million vs. $389.5 million from July 2015 – July 2016. But that was a slower rate of growth than the year prior, when sales grew by 10.8%.
Still, that won’t stop retailers from seizing an opportunity to cash in on the trend while it’s still hot, said food industry analyst and editor of Supermarketguru.com, Phil Lempert.
“A lot of that has to do with the time of year that it is packed and the amount of money that it takes to store those products…which is why at times we are going to see higher prices on those products,” he told MagnifyMoney.
Lempert added that companies have to make up the cost of carrying and storing the additional seasonal items in a warehouse. “You want to get it out there at a fair price but you want to cover your costs otherwise you don’t have a business,” he said.
If you’re determined to get your pumpkin spice kick this year, the longer you wait to buy, the more likely you’ll be able to score a deal. Seasonal items tend to get the steepest price cuts as the season ends and retailers move to clear out their inventory.
