JM Smucker is cutting the list price for most of its packaged coffee products sold in the US by an average of 6%, in response to lower green coffee costs, said bosses today.
Brands impacted include Folgers, and the Dunkin' Donuts brand, which is licensed to Smucker for packaged coffee products sold in grocery stores and other retail outlets in the US.
Ohio-based Smucker, which generates just under half of its sales from coffee, has had strong success with K-Cups in recent years after striking a deal with Green Mountain Coffee Roasters whereby the latter manufactures Smucker coffee brands including Folgers Gourmet Selections and Millstone in K-Cup packs.
In its Q3 earnings call last week , the firm said K-Cup sales will approach $300m in the 2013 fiscal year, up 70% compared with 2012.
K-Cups - portion packs used with Keurig single serve brewing systems - continue to attract new users to the coffee category rather than simply cannibalizing sales from roast and ground, and Smucker has nine of the top 20 SKUs in the market in groceries, according to research by Citigroup.
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