NEW YORK, June 10 Dunkin' Brand Group Inc said on Tuesday it expects "modest increases in coffee prices" at its Dunkin' Donuts restaurants as the company reviews rising commodity costs with its franchises.
The statement, emailed to Reuters by a Dunkin' spokeswoman, comes after retail coffee trend setter J.M. Smucker Co raised the U.S. list price of the packaged Folgers and Dunkin' Donuts brands by an average of 9 percent last week. Kraft Food Group followed with a 10 percent increase to Maxwell House and Yuban.
The price hikes were made after arabica coffee futures on ICE Futures U.S. soared nearly 90 percent between January and April on production concerns after an unprecedented drought scorched top grower Brazil's arabica belt. Futures prices have since dropped more than 20 percent. (Reporting by Marcy Nicholson; Editing by Marguerita Choy)