Smuckers Cuts Folgers, Dunkin’ Coffee Prices

by Christopher Freeburn | February 19, 2013 4:46 pm

Coffee 300x240 Smuckers Cuts Folgers, Dunkin' Coffee Prices[1]Lower coffee bean costs prompted J.M. Smucker (NYSE:SJM[2]) to announce on Tuesday that it will cut the price of its packaged coffee brands[3].

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[4]) 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[5].

Shares of J.M. Smucker fell fractionally in Tuesday trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/Coffee.jpg
  2. SJM: http://studio-5.financialcontent.com/investplace/quote?Symbol=SJM
  3. it will cut the price of its packaged coffee brands: http://www.mercurynews.com/business/ci_22620443/dunkin-donuts-folgers-coffee-prices-cut-by-6
  4. KRFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=KRFT
  5. infected more than 70% of country’s coffee bean crop: http://investorplace.com/2013/02/coffee-fungus-forces-guatemala-to-declare-state-of-emergency/

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