Key Points:
- J.M. Smucker is planning to raise coffee prices for the third time this year due to tariffs and commodity costs.
- The price hike is expected to happen in early winter, marking the fifth increase since June 2024.
- The company is taking steps to mitigate cost increases through alternative sourcing strategies and responsible pricing.
Insights:
Smucker’s decision to raise prices reflects a trend among importers facing increased costs, leading to a 21% year-over-year increase in coffee prices.
The company primarily sources coffee beans from Brazil and Vietnam, which are subject to significant U.S. tariffs.
While the price hikes may impact sales volume, Smucker anticipates generating $100 million more in revenue due to the increased prices.
Despite inflationary pressures, the company remains optimistic about the resilience of the coffee category.