(Reuters) – J.M. Smucker Company (SJM.N) said on its website it will increase the list price for the majority of its Folgers, Dunkin’ Donuts, Millstone and Folgers Gourmet Selections coffees, effective Tuesday.
The price increase will be at an average of 4 percent on these products that are sold in the U.S. retail market, the company said.
The Orrville, Ohio-based company said the price hike is due to sustained increases in green coffee, fuel and packaging costs.
The second-position arabica coffee futures contract trading on ICE Futures U.S. closed at $1.3255 per lb on Monday, down 3.7 percent from the end of 2009. The contract hit its 2010 peak at $1.4870 in January.
The second-position robusta coffee futures trading on Liffe finished Monday at $1,352 per tonne, up 1.5 percent from the end of 2009.
“Prices for coffee sold in the company’s other business areas are also increasing during the current fiscal quarter,” the J.M. Smucker said, adding it’s currently in its year-end period.