Folgers and Dunkin' Donuts coffee drinkers beware: it's soon going to cost you more to drink your favorite cup of joe at home.
J.M. Smucker Co. said Tuesday that the list price for most of its U.S. coffee products — which mostly includes those sold under the Folgers and Dunkin' Donuts names — will be going up 10 percent, on average, to deal with higher costs for unroasted beans, or green coffee.
Such price hikes have been made by several businesses recently. Sara Lee Corp., which reported earlier on Tuesday that its fiscal second-quarter net income more than doubled, said its international beverage revenue climbed 2 percent in the quarter as the segment raised prices to contend with the increased green coffee costs.
And in September Starbucks Corp. and Green Mountain Coffee Roasters Inc. said they were increasing prices to keep pace with rising costs.
This is not the first time Smucker has raised coffee prices because of its coffee costs. In August the food maker, based in Orrville, Ohio, said it was raising the price of its U.S. coffee products by an average of 9 percent. In May 2010 Smucker boosted coffee prices by about 4 percent because of higher costs for green coffee, fuel and packaging.
The Dunkin' Donuts brand is licensed to Smucker for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, and drug stores. The price hikes do not include Dunkin Donuts coffee or other products sold at Dunkin Donuts shops.
Shares of J.M. Smucker, whose other products include Jif peanut butter, added 53 cents to $63.40 in morning trading.