May 24 (Reuters) - 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 percent.
* 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 in years.
* 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 raised.
* 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 other commodities.
* 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 futures.
* 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 16 years.
* 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 percent.
* 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 affected.
* 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)