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Dive brief:
- JM Smucker plans to raise coffee prices in the coming months due to increased resource costs, resulting in a total increase in more than 20 % this year.
- Tucker Marshall said the food and beverage company is likely to raise prices for the third time in early winter. SMUCker has previously raised prices in May due to tariffs on imported and made of imported beans Another walk in August.
- “We are currently anticipating the impact of higher tariffs in the United States on green coffee costs, and we are trying to reduce this increase in costs through a combination of alternative resource strategies, supply chain optimization and pricing.”
Dive insight:
According to a previous call in June, the projected price increase in early winter is the fifth time that SMUCker has raised the price of coffee since June 2024. According to the August consumer price index, other importers have done the same, which increases the cost of atmosphere by approximately 21 % compared to last year.
Smucker bought £ 500m annually £ 500m £ 500m coffee beans, mainly from Brazil and Vietnam. Imports from the two countries face 50 % and 20 % tariffs in the United States. Outside of coffee, Smucker provides most of the US products domestically.
According to Marshall, food and beverage maker expects higher prices to reduce the volume of coffee sales in the current fiscal year. However, the company expects to produce $ 100 million more in the current fiscal year because of its pricing increase.
“We expect that despite the recent inflationary pressures, with the love of consumers in daily coffee rituals and the continuation of home consumption, resistant to it,” Smoker said.
This story was first published in our Operations Weekly Newsletter. Register here
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