ORRVILLE, Ohio — J.M. Smucker Co. slashed prices across a majority of its coffee products, including the Folgers and Dunkin’ Donuts brands, marking a sharp turn back from price increases rolled out just months ago, Dow Jones Newswires reported today.
Smucker — known for its namesake jams and jellies, Jif peanut butter and Pillsbury products — said coffee prices will decrease an average of six percent. It said the cuts are driven by declines in the green coffee futures market. The company had raised prices at least four times since May 2010.
The food company, which gets most of its revenue from US retail coffee, struggled recently alongside peers with soaring commodity costs.
In June, Smucker said retailers accepted a fresh round of price increases from the company, including an 11 percent hike on coffee. Yet while food manufacturers are raising prices where they can, many are taking a cautious stance on how it will impact volume.