WATERBURY, Vt., Sep 07, 2010 (BUSINESS WIRE) -- Green Mountain Coffee Roasters, Inc., announced today a price increase. The increase will occur across all sales channels and will be effective beginning October 11, 2010. Consumers could expect to see a purchase price increase of approximately 10 to 15 percent over the next several months as a result.
The increase is in response to several factors affecting the coffee industry including a sustained increase in the price of green coffee, differentials for premium quality coffees, increases in prices of other raw materials, as well as higher packaging and transportation costs. Over the past three months, green coffee prices have increased approximately 31 percent.
"Like others in the coffee industry, we have been closely monitoring rising green coffee costs and increases in other input costs like cocoa and packaging for several months," said Scott McCreary, president of GMCR's Specialty Coffee business unit. "While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we've experienced over the past three months led us to conclude it is necessary to adjust our pricing."
About Green Mountain Coffee Roasters, Inc.
As a leader in the specialty coffee industry, Green Mountain Coffee Roasters, Inc. is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. GMCR's operations are managed through two business units.
The Specialty Coffee business unit produces coffee, tea and hot cocoa from its family of brands, including Tully's Coffee(R), Green Mountain Coffee(R), Newman's Own(R) Organics coffee, Timothy's World Coffee(R) and Diedrich, Coffee People and Gloria Jeans(R), a trademark licensed to the Company for use in North America and owned by Gloria Jeans Coffees International Pty. Ltd. The Keurig business unit is a pioneer and leading manufacturer of gourmet single-cup brewing systems. K-Cup(R) portion packs for Keurig(R) Single-Cup Brewers are produced by a variety of roasters, including Green Mountain Coffee, Tully's, Timothy's and Diedrich. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in Fair Trade Certified(TM) coffee, and donating at least five percent of its pre-tax profits to social and environmental projects.
Saturday, October 16, 2010
Coffee price increase likely to be seen in stores
The cost of the coffee habit is going up.
The Price of raw coffee beans is at a 12-year high, which one Louisville supplier said means consumers can expect to pay between a nickel and dime more for a brewed cup of joe, said Bob Patterson of Consumers Choice Coffee in Louisville.
“We’re all kind of waiting to see what’s going to happen, if it’s going to keep going up or it’s going to drop back down. There’s really not a lot of fundamentals that are … supporting the market as high as it is today, but the reality is — it is up significantly.”
The company, begun in 1971, sells 1.5 million pounds of coffee annually to about 2,000 restaurants and convenience stores in 10 states, in addition to professional offices. The restaurant and store supplies are expected to remain the core of the business, Patterson said, and the online shop “is something that we’re trying to integrate really to support our professional office market.”
Patterson said his company will pass on its increased costs and expects restaurants and stores to do the same, just as major coffee makers are doing.
This month, the J.M. Smucker Co. said the prices for its Folgers, Dunkin’ Donuts and Millstone brands would increase 9 percent. Kraft Foods followed by raising the price of Maxwell House 11 percent.
The market “really took off in June and just kept going and it’s kind of holding steady at a pretty high level,” Patterson said.
But Patterson said he expects the spike may be short-lived. Brazil is the largest coffee producing country and is expected to have a strong crop, he said.
“That may tend to take some of the legs out from under the market and allow it to come back down,” he said.
But how long that decline will take to undo the spike is more difficult to forecast, he said.
During the last market spike more than a decade ago, Patterson said the peak prices only lasted a couple months but it took two years for the market to return to normal.
The Price of raw coffee beans is at a 12-year high, which one Louisville supplier said means consumers can expect to pay between a nickel and dime more for a brewed cup of joe, said Bob Patterson of Consumers Choice Coffee in Louisville.
“We’re all kind of waiting to see what’s going to happen, if it’s going to keep going up or it’s going to drop back down. There’s really not a lot of fundamentals that are … supporting the market as high as it is today, but the reality is — it is up significantly.”
The company, begun in 1971, sells 1.5 million pounds of coffee annually to about 2,000 restaurants and convenience stores in 10 states, in addition to professional offices. The restaurant and store supplies are expected to remain the core of the business, Patterson said, and the online shop “is something that we’re trying to integrate really to support our professional office market.”
Patterson said his company will pass on its increased costs and expects restaurants and stores to do the same, just as major coffee makers are doing.
This month, the J.M. Smucker Co. said the prices for its Folgers, Dunkin’ Donuts and Millstone brands would increase 9 percent. Kraft Foods followed by raising the price of Maxwell House 11 percent.
The market “really took off in June and just kept going and it’s kind of holding steady at a pretty high level,” Patterson said.
But Patterson said he expects the spike may be short-lived. Brazil is the largest coffee producing country and is expected to have a strong crop, he said.
“That may tend to take some of the legs out from under the market and allow it to come back down,” he said.
But how long that decline will take to undo the spike is more difficult to forecast, he said.
During the last market spike more than a decade ago, Patterson said the peak prices only lasted a couple months but it took two years for the market to return to normal.
Coffee prices on the rise
NEW YORK (CNNMoney.com) -- You may soon find yourself paying more for your morning coffee - if you aren't already.
A trifecta of bad news has sent coffee futures soaring 44% since June, and companies such as
Dunkin' Donuts, Green Mountain and Maxwell House are passing on those costs.
Bad weather in South America is threatening crops. Brazil and top exporter Vietnam are talking about hoarding their stocks. And U.S. stockpiles are reportedly at 10-year lows.
That means higher prices for U.S. coffee companies, which, in turn, may mean higher prices for consumers.
Bagged coffee from Folgers, Dunkin' Donuts and Millstone already costs 10% more. The three brands' parent company, J.M. Smucker cited "sustained increases in green coffee costs" in announcing the price hike last month.
Kraft Foods raised prices of Maxwell House Coffee and Yuban coffee products by about 9% last month as well.
And single-serve K-cups - sold as Tully's Coffee, Timothy's Coffee, Newman's Own Organics, Caribou Coffee and other Green Mountain Coffee brands - will see prices rise 10% to 15%.
"Like others in the coffee industry, we have been closely monitoring rising green coffee costs," Scott McCreary, president of Green Mountain's specialty coffee unit, said in a statement. "While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we've experienced over the past three months led us to conclude it is necessary to adjust our pricing."
The ripple effect: As retailers start paying more, the coffee you drop into your shopping cart may very soon start costing you more at the register.
Supply crunch: With U.S. coffee stockpiles at multi-year lows and world coffee exports down 5.2% in July compared to a year earlier, worries about a supply crunch have driven prices higher.
"It's the age-old principle of supply and demand," said Hector Galvan, a senior trading adviser at RJO Futures. "The larger coffee-growing nations like Colombia and Brazil are having really significant issues getting good crop out to the market."
A trifecta of bad news has sent coffee futures soaring 44% since June, and companies such as
Dunkin' Donuts, Green Mountain and Maxwell House are passing on those costs.
Bad weather in South America is threatening crops. Brazil and top exporter Vietnam are talking about hoarding their stocks. And U.S. stockpiles are reportedly at 10-year lows.
That means higher prices for U.S. coffee companies, which, in turn, may mean higher prices for consumers.
Bagged coffee from Folgers, Dunkin' Donuts and Millstone already costs 10% more. The three brands' parent company, J.M. Smucker cited "sustained increases in green coffee costs" in announcing the price hike last month.
Kraft Foods raised prices of Maxwell House Coffee and Yuban coffee products by about 9% last month as well.
And single-serve K-cups - sold as Tully's Coffee, Timothy's Coffee, Newman's Own Organics, Caribou Coffee and other Green Mountain Coffee brands - will see prices rise 10% to 15%.
"Like others in the coffee industry, we have been closely monitoring rising green coffee costs," Scott McCreary, president of Green Mountain's specialty coffee unit, said in a statement. "While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we've experienced over the past three months led us to conclude it is necessary to adjust our pricing."
The ripple effect: As retailers start paying more, the coffee you drop into your shopping cart may very soon start costing you more at the register.
Supply crunch: With U.S. coffee stockpiles at multi-year lows and world coffee exports down 5.2% in July compared to a year earlier, worries about a supply crunch have driven prices higher.
"It's the age-old principle of supply and demand," said Hector Galvan, a senior trading adviser at RJO Futures. "The larger coffee-growing nations like Colombia and Brazil are having really significant issues getting good crop out to the market."
Sunday, October 10, 2010
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