J.M. Smucker Co hiked the list price for most of its Folgers, Dunkin’ Donuts, Millstone and Folgers Gourmet Selections coffees sold in the U.S. retail market, effective immediately, the company said Tuesday.
Folgers is considered the trendsetter in coffee price changes and major U.S. roasters like Kraft, which owns Maxwell coffee, typically follow suit.
Prices will rise an average of 9 percent, due to sustained increases in green coffee costs, the Orrville, Ohio-based company said.
Smuckers most recently raised its prices for the same coffee brands by an average of 4 percent in May.
Arabica coffee futures trading on ICE began to climb sharply in mid-June. Over the past eight weeks the market has climbed nearly 50 cents or 35 percent as funds and speculators poured into the market, reaching a 12-1/2-year top at $1.8150 per lb by Monday.
(Graphic: http://link.reuters.com/kyv37m)
ICE certified arabica stocks continue to steadily fall to lows dating back more than 10 years, amounting to 2,100,637 bags by Aug. 2, down 6,426 bags from the previous day.
The physical market for washed arabica beans, high-quality coffee typically used for brewed coffee, is in tight supply and fetching steep premiums, according to traders.
Robusta coffee trading on Liffe hit a 21-month high Monday, with the November futures contract peaking at $1,843 per tonne. Robusta beans are typically processed into instant coffee or used as a cheaper alternative as part of a brewed blend.
