J.M. Smucker Hikes Coffee Prices for 1st Time in 3 Years
Wed, 06/04/2014 - 06:40 EDT - MSNBC - Business
J.M. Smucker Co said on Tuesday that it had raised list prices on most of its U.S. packaged coffee, primarily the well-known Folgers and Dunkin' Donuts brands, for the first time since 2011 because of soaring green coffee costs.
Starbucks Corporation (SBUX) announced yesterday that it will be raising the prices for its packaged whole bean and grounded coffee bags, as well as for some of the beverages that it offers in the US. The disappointing news for caffeine aficionados comes amid rising costs for coffee and other commodities.
If you’re cruising for a pick-me-up in store aisles soon, you might notice that certain brands are a bit cheaper than before: because the price of coffee beans has fallen lately, the parent company of Folgers and Dunkin’ Donuts brand packaged coffees has decided to pass on the savings to consumers.
If you’re the kind of person who can’t handle interacting with other humans — much less leaving the house — before you’ve had your first cup of coffee in the morning, brace yourself: the price of some packaged java products will likely be going up soon as a result of a spike in the price of raw coffee.
By Dividend Monk:
Seven Year Average Revenue Growth Rate: 15.4%
Seven Year Average EPS Growth Rate: 10.7%
Seven Year Average Dividend Growth Rate: 9.5%
Current Dividend Yield: 2.29%
Balance Sheet Strength: Strong
For solid if not impressive risk-adjusted returns, J.M. Smucker seems well-positioned and fairly valued.