J.M. Smucker (NYSE: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.
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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 (NASDAQ: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.