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NEW YORK, June 3 J.M. Smucker Co said on
Tuesday that it had raised list prices on most of its U.S.
packaged coffee, primarily the well-known Folgers and Dunkin'
Donuts brands, for the first time since 2011 because of soaring
green coffee costs.
Smucker increased prices by an average of 9 percent due to
rallying bean prices, the company said.
Price increases by large U.S. roasters have been largely
expected after arabica coffee futures prices jumped
nearly 90 percent within three months to a 26-month high in
April on concerns that Brazil's worst drought in decades would
damage crops in the world's biggest producer. The market has
since dropped around 20 percent.
The move by Smucker, which is considered a trendsetter, is
likely to trigger price hikes by other major U.S. coffee
roasters as they seek to protect profits from rising bean prices
that took the industry by surprise.
The price increase does not include K-Cup packs, Smucker
said in a statement.
This is Smucker's first price move since February 2013. At
that time, the company lowered retail prices on Folgers and
Dunkin' Donuts brands by an average of 6 percent, its third
straight cut as the futures market made a steady decline.
Smucker last raised prices in May 2011 as arabica futures
more than doubled to a 34-year high above $3 per lb.
(Reporting by Josephine Mason and Marcy Nicholson, Editing by
Franklin Paul and Lisa Von Ahn)