ORRVILLE, OH -- J.M. Smucker Co. has raised prices for most of its packaged coffee in U.S. by an average 9%, citing soaring green coffee costs. The price hike, announced on June 3, impacts Folgers and Dunkin' Donuts brands, but excludes Keurig K-Cups.
Arabica coffee prices have nearly doubled since the start of the year amid concerns over a severe drought in Brazil, the world's largest producer. Additionally, coffee rust fungus that has caused $1 billion in damage to Latin American crops is threatening to further drive up Arabica prices. | SEE STORY
Smucker's price hike is likely to prompt other major U.S. coffee roasters to follow suit, industry watchers say.
In February 2013 Smucker lowered retail prices on Folgers and Dunkin' Donuts brands by an average of 6%, following two earlier decreases to reflect declines in green coffee prices.
Its last price increase was in May 2011, when Arabica coffee prices hit an all-time high of $3.089 a pound.