Lower coffee bean costs prompted J.M. Smucker (NYSE:SJM) to announce on Tuesday that it will cut the price of its packaged coffee brands.
Consumers can expected to see prices for Folgers and Dunkin’ Donuts branded coffees fall about 6%. The price cut came less than a year after the company lowered its coffee brand prices by a similar amount, Reuters noted.
Futures for robusta coffee beans are trading more than 20% below March 2011′s record high as coffee producers have increasingly switched away from high-priced arabica beans for brewed coffees to meet rising global demand.
Rival packaged coffee maker Kraft Foods (NASDAQ:KRFT) declined to comment to Reuters about any price response to J.M. Smucker’s move.
Earlier this month, Guatemala’s president declared a state of emergency over a fungus that has infected more than 70% of country’s coffee bean crop.
Shares of J.M. Smucker fell fractionally in Tuesday trading.