Company News

Kraft hikes 100 pct Colombian Maxwell coffee price

NEW YORK, April 8 (Reuters) - Kraft Foods Inc KFT.N raised its prices on Maxwell House 100 percent Colombian ground coffees by about 19 percent, the company said.

The price hike, which went into effect on Tuesday, was due to “supply issues driven by poor crop yield,” a Kraft official said in an email to Reuters late Tuesday.

Maxwell House 100 percent Colombian one-lb equivalent vacuum bags and cans increased by 50 cents, marking increases of about 19 percent and 18.5 percent, respectively.

The Maxwell House 100 percent Colombian three-lb equivalent can was raised by $1.50 or about 19.4 percent, the company said.

The price hike followed J.M. Smucker Co's SJM.N raising on April 3 the list price of Folgers 100 percent roasted Colombian coffee by an average of 19 percent.

The increase was due to tight supplies in Colombia and the consequent higher cost for the country’s coffee beans.

Colombia is the third biggest coffee producer in the world. The combination of heavy rains and a renovation program to replace old coffee trees with new ones has caused supply shortages and shipping delays in the country. (Reporting by Marcy Nicholson; Editing by John Picinich)