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Smucker raises packaged coffee cost

Smucker said its latest increase includes Smucker’s Millstone and Folgers Gourmet Selections packaged coffees. Smucker said its latest increase includes Smucker’s Millstone and Folgers Gourmet Selections packaged coffees. (Justin Sullivan/Getty Images)
Associated Press / May 25, 2011

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NEW YORK — Coffee drinkers will soon get another jolt at the supermarket: The company that sells Folgers and packaged Dunkin’ Donuts coffees has announced its second double-digit price increase this year.

J.M. Smucker Co. said it will charge retailers 11 percent more, on average, for most of its US coffee products. Smucker blames a continuing rise in what it pays for unroasted beans, known as green coffee.

Coffee companies and analysts say speculators may be causing most of the increase, though demand is rising in emerging markets and harsh weather in some coffee-growing regions shrank supply. Green coffee prices jumped 77 percent last year.

Smucker said its latest increase includes Millstone and Folgers Gourmet Selections packaged coffees. For the Dunkin’ Donuts brand, the increase affects only packaged coffee sold in grocery, club, drug, and general-merchandise stores. Items sold at Dunkin’ Donuts shops are not Smucker products.

Smucker said in February that it was raising coffee prices 10 percent, on top of a 9 percent price hike last August, which followed a 4 percent increase in May 2010.

Sara Lee Corp. said and Kraft both raised prices this winter. Peet’s Coffee and Tea Inc. has raised its retail prices twice recently.

And in March Starbucks Corp. raised the prices it charges retailers for packaged Starbucks and Seattle’s Best coffee by 12 percent.