J.M. Smucker cuts Folgers coffee price by 6 percent in U.S

NEW YORK Tue Feb 19, 2013 11:57am EST

File photo of Chairman of The J.M. Smucker Company, Tim (L) and CEO Richard (R) both greatgrandsons of the company's founder Jerome M. Smucker, celebrating the 100th anniversary of the company by hosting a breakfast for the entire town of Orrville, Ohio at the high school in Orrville October 24, 1997. ncl/Photo by Neal C.

File photo of Chairman of The J.M. Smucker Company, Tim (L) and CEO Richard (R) both greatgrandsons of the company's founder Jerome M. Smucker, celebrating the 100th anniversary of the company by hosting a breakfast for the entire town of Orrville, Ohio at the high school in Orrville October 24, 1997. ncl/Photo by Neal C.

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NEW YORK (Reuters) - Major U.S. coffee roaster J.M. Smucker Co cut retail prices on its flagship brand, Folgers, and most of its packaged coffee, including Dunkin' Donuts, by about 6 percent, effective Tuesday, due to a sustained decline in green bean costs, the company said.

Smucker, based in Orrville, Ohio, is often the trendsetter for coffee prices in the United States. Its last price change came in May 2012, when it cut retail prices by 6 percent.

A spokesman for Kraft Foods, maker of Maxwell House coffee, told Reuters in an email that it had "no news to share at this time" when asked about coffee price changes.

Arabica futures on the ICE Futures U.S. market have dropped more that 50 percent since May 2011. On Friday, the benchmark contract hit the lowest level in more than two and a half years at $1.3965 per pound.

Robusta futures trading on the Liffe market are down roughly 22 percent from a high of $2,661 per metric ton reached in March 2011, sitting at around $2,056 per metric ton intraday on Tuesday.

While arabica coffee has traditionally been used in roast and ground blends, global demand for the lower-cost robusta bean has risen as many roasters are reported to have increased its use in brewed blends. Traditionally, robusta beans were processed into instant coffee.

(Reporting By Marcy Nicholson; editing by John Wallace)

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