ORRVILLE, OH -- J.M. Smucker Co. cut prices on its Folgers and Dunkin' Donuts coffees by an average of 6%, citing lower green coffee costs.
Smucker appears to be the first major coffee roaster to slash prices after a year of steady price hikes to offset pressures from soaring commodity costs. The company raised prices four times over the past year. Its last increase, in May, raised prices 11%.
Kraft, Starbucks and Green Mountain have imposed similar price increases and industry observers are watching to see if Smucker's price cut will put pressure on its rival roasters to follow suit.
The Dunkin' Donuts brand is licensed to Smucker for packaged coffee products sold by grocery stores, mass merchandisers, club stores and drugstores. The price change does not include Dunkin' Donuts coffee or other products sold in Dunkin' Donuts restaurants, Smucker said.