May 24 J M Smucker Co (SJM.N), the top U.S.
packaged coffee maker, raised prices for its flagship brand
Folgers and most of its other coffee products by 11 percent due
to steep green bean costs, the company said on Tuesday.
This marks its fourth increase in a year as arabica coffee
futures KCc2 on ICE more than doubled since June 2010,
reaching a 34-year peak earlier this month at $3.0890 per lb.
The market has since dropped about 14 percent.
Robusta coffee futures LRCc2 trading on Liffe climbed
about 95 percent in the same time, reaching a three-year peak
at $2,672 per tonne in March.
Roasters around the world have raised their listed prices
sporadically throughout the year as the combination of tight
global supplies of washed arabica beans and speculative buying
have left many wondering how high prices will go.
The popular beverage is still considered an affordable
luxury in the developed world.
Below is some of the recent history of its price moves in
the futures market and on store shelves.
* May 1997: New York spot arabica coffee futures KCc1
surge to $3.18 per lb.
* 1997: The then Folgers Coffee Co raised prices for
Folgers coffee by a staggering 29 percent due to soaring green
bean prices. This was followed by another price hike of nearly
10 percent a couple months later.
* May 18, 2010: J.M. Smucker Co (SJM.N) raised list prices
for majority of its Folgers, Dunkin' Donuts, Millstone and
Folgers Gourmet Selections coffees by about 4 percent.
* May 21: Kraft Foods KFT.N raises list price of some
Maxwell House and Yuban roast and ground coffee by about 4
* June 11: Arabica coffee futures KCc1 trading on ICE
begin to rally on heavy fund buying following about five months
of sideways dealings between $1.2655 and $1.3985 per lb.
* Aug. 3: Smucker's raises prices of Folgers and other well
known brands by average of 9 percent in biggest widespread rise
* Aug. 6: Kraft becomes second major coffee roaster to hike
prices, raising list prices on select Maxwell House and Yuban
ground by more than 10 percent. Instant coffee prices were also
* Sept. 22: Starbucks Corp (SBUX.O) said it may raise the
price of packaged coffee and raise the cost for its large-sized
and labor-intensive drinks due to surging prices in coffee and
* Nov. 10: Arabica futures continue to soar well above $2
per lb and reach $2.1870, the highest since June 1997, as tight
supplies of washed arabica beans are seen as the driving force
behind the rally, in addition to speculators. This follows two
years of significantly smaller-than-average crops in Colombia
while supplies were also tight in Central America.
* Dec. 1: Starbucks CEO Howard Schultz blasts financial
speculators for the "tragic" 50 percent surge in coffee
* Dec. 9: Green Mountain Coffee Roasters Inc GMCR.O gives
weak first-quarter profit outlook, in part due to expected
volatility in coffee costs.
* Dec. 15: Kraft raises prices of its roast and ground
Maxwell House and Yuban coffees by about 12 percent.
* Dec. 31: Coffee futures finish 2010 up 77 percent at
$2.4050 per lb, their strongest annual percentage increase in
* Jan. 26, 2011: Starbucks says it expects rising coffee
prices to hit profits more than previously thought but said it
would not raise prices to cover the extra expense.
* Feb. 3: Spot arabica coffee futures KCc1 hit a
13-1/2-year high at $2.5360 per lb, up 85 percent from June
2010, when the rally began.
* Feb. 8: Smucker's raises its coffee prices by about 10
* March 9: Benchmark May arabica KCc2 futures on ICE hit
a 34-year high at $2.9665 per lb.
* March 17: Kraft raises prices of Maxwell House and Yuban
ground coffees by 22 percent and instant coffee by 10 percent.
Tassimo and the Maxwell House International line were not
* March 17: May robusta futures LRCc2 soar to five-year
high at $2,661 per tonne, lifting the contract to a huge
intraday $200 premium over July LRCc3 on heightened concern
about the availability of supplies.
* March 18: Starbucks says will raise price of its packaged
coffee by an average of 12 percent, also affecting its
Seattle's Best Coffee brands.
* March 18: Liffe robusta coffee futures LRCc2 trading on
Liffe climbed hit three-year peak at $2,672 per tonne, up about
95 percent from June 2010.
* May 3: ICE arabica futures KCc2 hit a 34-year peak at
$3.0890 per lb.
* May 13: Nestle's NESN.VX premium portioned coffee brand
Nespresso announces plans to raise prices for its coffee
capsules by 6 percent.
* May 24: Smucker's raises prices for Folgers and the
majority of its other coffee product by 11 percent.
(Compiled by Marcy Nicholson; Editing by Marguerita Choy)