NEW YORK (Reuters) - J.M. Smucker Co cut prices for most of its Folgers and Dunkin' Donuts coffee brands sold in the United States by 6 percent, the biggest U.S. roaster said on Wednesday, partially reversing last year's price hikes to woo back customers.
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.
Every year, half of all Americans drink some 400 million cups of coffee. And, despite rising coffee bean prices pushing retail prices higher, coffee drinkers remain loyal to their favorite beverage - a fact not lost on J. M. Smucker & Company (SJM), which gets 40% of its revenue from coffee sales.
With the World Cup just over a week away, hordes of revelers are about to descend upon Brazil. The party is about to get started, but Brazilian farmers may be more excited about rain than incoming soccer fans. After a drought in Brazil and a devastating fungus known as rust swept Central American ravaging the coffee crop, there are concerns that the coffee supply will not keep up with international demand this year, causing a spike in prices. On Tuesday some of those fears were realized as J. M.
It took the Fed long enough but finally even it succumbed to the reality of surging food prices when, as we reported previously, it hiked cafeteria prices at ground zero: the cafeteria of the Chicago Fed, stating that "prices continue to rise between 3% and 33%." So with input costs rising across the board not just for the Fed, but certainly for food manufacturers everywhere, it was only a matter of time before the latter also oo threw in t