UPDATE: Folgers Raises 100% Colombia Coffee Items By 19%
03 Avril 2009 - 11:20PM
Dow Jones News
Leading U.S. coffee roaster Folgers, owned by J.M. Smucker Co.
(SJM), on Friday announced an increase to their items containing
100% Colombian coffee, the company and trade reports said.
The increase in Folgers' Colombian blends come after real
purchasing prices in Colombia surged to 12-year highs this week as
both stocks in origin and certified Colombian stocks in U.S. and
European warehouses were reported to dry up.
"Effective April 3, we will increase the list price on new
orders of all Folgers mainstream 100% Colombian items by an average
of about 19%," the company said in a note passed on to traders, a
copy of which was forwarded to Dow Jones Newswires.
The company said the price increase didn't apply to the popular
Folgers retails blends such as Millstone, but was a particular
response to steep price increases to beans from Colombia after a
harvest shortage that has persisted for close to a year.
"The increase is only for the Folgers 100% Colombian blends,
which come in three different sizes and the price for these items
will increase by an average 19%, taking effect today," said Smucker
spokeswoman Maribeth Badertscher.
"The cost increase is due to the increase in Colombian prices
because of supply problems there," Badertscher told Dow Jones
Newswires.
Colombia's 2009 mitaca coffee harvest, or mid crop, for which
picking is scheduled to start this week, is expected to drop
between 20% and 30% after continuing bad weather and excessive
rains damaged flowering and led to lower yields, leading exporters
and traders say.
If the estimates hold, this will add crop losses of between 1
million and 1.5 million bags in Colombia's current 2008-09 crop
cycle.
Colombia is the world's largest producer of mild washed arabica
coffee, with annual output of between 11.5 million and 12.5 million
60-kilogram bags in recent years, and is the third-largest producer
overall after Brazil and Vietnam.
-By Maja Wallengren, Dow Jones Newswires; (52-55) 5001-5725;
maja.wallengren@dowjones.com
(Holly Henschen contributed to this report.)