Archive for the ‘Business Ideas’ Category

Maxwell House Raises Prices 22%

Friday, March 18th, 2011

Here is the Reuters Article.  It is long butkmo well worth reading.  I urge you to  raise your prices for whole bean and the cup.

13:37 17Mar11 -UPDATE 1-Kraft hikes some Maxwell coffee prices by 22 pct

* Kraft ups ground coffee prices by 70 cts/lb equivalent

* Tassimo, Maxwell House International not affected

(Adds details, background)

By Marcy Nicholson

NEW ORLEANS, March 17 (Reuters) – Kraft Foods Inc <KFT.N>

said Thursday it raised its U.S. list prices for Maxwell House

and Yuban ground coffees by a whopping 22 percent and its

instant coffee by around 10 percent.

The price hikes, which were effective on Wednesday, marked

the company’s fourth coffee price hike in a year and came after

arabica coffee futures soared to a 34-year high this month.

“(The) increases are due to sustained increases in green

coffee,” Kraft spokeswoman Bridget MacConnell told Reuters on

the sidelines of the annual National Coffee Association meeting

in New Orleans.

The company raised the price for Maxwell House and Yuban

ground coffees by 70 cents per pound equivalent, and for

instant coffees by 6.25 cents per ounce.

Excluded from the increase were single-serve Tassimo items

and the Maxwell House International line of specialty soluble

beverages, MacConnell said.

Arabica coffee futures more than doubled in price by early

March in a rally that began in June 2010 on fund buying and

tight supplies, with the benchmark May contract <KCc2> reaching

a 34-year high for the second position at $2.9665 per lb.

Roasters have been forced to raise their list prices over

the past nine months as a result of the sustained rally.

Kraft most recently raised its prices in December. J.M.

Smucker Co <SJM.N>, known as the trendsetter for coffee price

changes, most recently increased its coffee prices last month,

by 10 percent.

Robusta futures <LRCc2> trading on Liffe in London have

joined in the rally, soaring to a three-year high at $2,661 per

tonne on Thursday.

(Editing by Walter Bagley)

((; +1 646 223 6043; Reuters


13:37 17Mar11 -FACTBOX-Recent history of coffee price moves

March 17 (Reuters) – Kraft Foods Inc <KFT.N>, one of the

top coffee roasters in the United States, said Thursday it

raised prices for many of its roast coffees by 22 percent,

marking its fourth and biggest price hike in a year.

The price hike went into effect March 16. [ID:nN17442469]

The company’s reason was the soaring cost of green coffee

as arabica futures <KCc2> rallied to a 34-year high earlier

this month and robusta futures <LRCc2> vaulted to a three-year

peak on Thursday.

Roasters have widely been forced to raise their prices

sporadically since June 2010 when the rally began, initially

spurred by fund buying and then sustained by tight supplies of

washed beans.

The popular beverage is still considered an affordable

luxury in the developed world. Below is some of the recent

history of its price moves in the futures market and on store


* May 1997: New York spot arabica coffee futures <KCc1>

surge to $3.18 per lb.

* 1997: The then Folgers Coffee Co raised prices for

Folgers coffee by a staggering 29 percent due to soaring green

bean prices. This was followed by another price hike of nearly

10 percent a couple months later.

* May 18, 2010: J.M. Smucker Co <SJM.N> raised list prices

for majority of its Folgers, Dunkin’ Donuts, Millstone and

Folgers Gourmet Selections coffees by about 4 percent.

* May 21: Kraft Foods <KFT.N> raises list price of some

Maxwell House and Yuban roast and ground coffee by about 4


* June 11: Arabica coffee futures <KCc1> trading on ICE

begin to rally on heavy fund buying following about five months

of sideways dealings between $1.2655 and $1.3985 per lb.

* Aug. 3: Smucker’s raises prices of Folgers and other well

known brands by average of 9 percent in biggest widespread rise

in years.

Coffee Snobbery Can Can Your Growth

Saturday, October 23rd, 2010

This is a great article on Coffee Consumption by a Passionate Person.

It is from the Daily Demittase.

My Reply:

This is a great story. And true. And the way I have approached coffee for the twenty years I’ve been in the trade. You must be flexible.
I’ve also urged all our coffee house and cafe customers to be above all else flexible and innovative. Innovation is the antithesis of tradition.
Let us all remember that coffee houses were undertaken in the country of tea drinkers. London.
And the Original London coffee houses were dens of financial wizardry well before the evaporation of values and traditions in Wall Street.
Which is a round about way to say that some traditions, like honesty, are fundamental and a foundation for an industry.

Starbucks was an innovation. They got lost along the way but they are big, smart and seem to be more flexible now.

I will always remember my first iced latte’ during the SCAA Seattle Show in ’90 or ’91. I’d been ‘off’ caffeine for a few years, but this was so good, I could not ignore its value, and with great luck and good timing, I got started in the coffee business.

And then the first Hazelnut Coffee, so bright and smooth. That morning I was taking my first baby steps into the business at a farmers market. Amazingly, my coffee supplier at the time came out at 3 AM to help me get set up. He made the first pot in my commercial launch. And it was perfect.

Notice: latte and hazelnut, not exactly the double espresso’s I drink today, with one packet of splendid, or, more to my liking, a half shot of vanilla or amaretto syrup. Down the hatch.

So no snobbery at my end, just good business. A coffee retailer must provide what the customer demands.
Bob Johnson

Would You Walk The Grand Canyon Rather Than Give Up Your Morning Coffee?

Friday, October 22nd, 2010

KMO KmoCoffee logo OL 09

This came across my twitter account.  Its a survey done for Green Mountain Coffee.  It is great reading.  Here is the link:

Sunny Cropped wo logo


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