Coffee prices ready to rise
The fuel that powers the American economy is soaring. And, I’m not talking about oil.
Bad news sent coffee futures soaring 44% since June, and companies such as Dunkin’ Donuts, Green Mountain and Maxwell House are passing on those costs. Bad weather in South America threatens crops. Brazil and Vietnam consider hoarding their stocks. U.S. stockpiles are reportedly at 10-year lows (who ever thought of a coffee stockpile?).
Bagged coffee by Millstone, Folgers, and Dunkin’ Donuts are already 10% more expensive. The three brands’ parent company, J.M. Smucker, cited “sustained increases in green coffee costs” in announcing the price hike last month.
Kraft Foods raised prices of Maxwell House Coffee and Yuban coffee products by about 9% last month as well, about 5 cents to 30 cents per pound of ground coffee and an increase of 2.5 cents per ounce for instant coffee.
Single-serve K-cups – sold as Tully’s Coffee, Timothy’s Coffee, Newman’s Own Organics, Caribou Coffee and other Green Mountain Coffee brands – will see prices rise 10% to 15%, starting Oct. 11. Sales of the brewing system and K-cups make up about 86% of Green Mountain Coffee Roasters Inc.’s business.
Posted on September 10, 2010, in Global Biz, Newspaper & Journal Articles and tagged brazil, caribou coffee, coffee, coffee prices, Dunkin' Donuts, Folgers, Kraft foods, Maxwell House, Millstone, Newman's own organics, south america, timothy's coffee, Tully's coffee, vietnam, yuban. Bookmark the permalink. Leave a comment.