Kraft Follows JM Smucker, Ups Coffee Prices
Yahoo! Finance reports today that Kraft Foods Group, maker of Maxwell House and Yuban roast and ground coffee brands, will increase U.S. retail prices by approximately 10% beginning June 6. Kraft’s price increase does not apply to its instant and single-serve coffees or Gevalia and Tassimo brands.
The culprit affecting the coffee supply is a drought in Brazil that has caused an unprecedented price surge in the commodity. (Find our related coffee news posts here.)
Says Orinoco Coffee & Tea CEO Pedro Ramirez, “It looks like the floodgates have opened. This news comes just days after retailer J.M. Smucker announced its coffee price hike. Unfortunately this is sure to prompt other brands and local coffee suppliers to increase their prices, if they have not already.”
According to news sources, Starbucks coffee needs are covered through 2014 and therefore an immediate price increase will not be necessary. Their customers may get an unwelcome wake up call in 2015 although, as industry and market analysts project that only 40% of Starbuck’s 2015 needs are protected by favorable prices.
Read entire Yahoo Finance post.
Read related post: J.M. Smucker to hike coffee prices by 9%.