J.M. Smucker (SJM) raised prices for the majority of its packaged coffee products sold in the U.S. on Tuesday by 9% -- K-cups were not impacted.
The food giant said it was raising the prices in response to “sustained increases in green coffee costs.”
Prices for Arabica coffee have almost doubled since Jan. 1 due to an ongoing drought in Brazil. On Tuesday, coffee futures slipped into bear market territory having fallen 20% since April 23.
Included in the price hike are popular brands such as Folgers and Dunkin’ Donuts, which it licenses from Dunkin Brands (DNKN), though Dunkin is not impacted by this announcement.
This could spark other coffee giants to also raise prices.
Shares of Smucker fell 0.17% to $102.30 in early trade. They are down about 1.3% since Jan. 1.