Posts Tagged ‘Coffee Prices’

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)

((marcy.nicholson@thomsonreuters.com; +1 646 223 6043; Reuters

Messaging: marcy.nicholson.reuters.com@reuters.net))

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

shelves.

* 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

percent.

* 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.

J.M. Smucker Raising Coffee Prices 9%

Tuesday, August 3rd, 2010

The Wall Street Journal reported today that J.M. Smucker Co. plans to increase prices on an array of products in its coffee lineup sold in the U.S., specifically a majority of those under the Folgers, Dunkin’ Donuts and Millstone brands.

On average, price tags on the affected products will see a 9% increase, the company said.

The Orrville, Ohio, food marketer pointed to higher long-term costs related to green, or unroasted, coffee beans.  Since June 1, coffee futures have surged nearly 25% as harsh weather led to two seasons of disappointing harvests in key production areas such as Central American and Colombia.

In May, the company had announced a 4% increase across the same selection of products.

To read further about the J.M. Smucker price increase at Market Watch Click Here