In Stunning Move, Kraft Heinz Asks Coffee Suppliers To Provide 60 Days' Notice Before Raising Prices Due To Tariffs – CoffeeTalk

Kraft Heinz, a leading food company, has requested 60 days’ notice from its coffee suppliers before raising prices due to US President Donald Trump’s tariffs. The company asked suppliers to raise prices only if the tariffs are permanent and to immediately reverse them if the levies are removed. This move highlights the challenges faced by US companies in mitigating the fallout from Trump’s erratic and punitive trade policies. The document also undermines the hopes of investors in US-based companies and Trump administration officials that companies with significant buying power could negotiate better deals with their suppliers to offset tariffs.

Under the Green Coffee Association contract, tariff costs imposed at the market of destination will be borne by the buyer. Kraft Heinz, which also sells premium Gevalia coffee, declined to comment on the matter. The company also hoped suppliers would work with it to “mitigate the impact” of tariffs.

The US implemented a 10% universal tariff last month on all imported goods, including coffee, and is negotiating separate trade deals with different countries. Trump paused plans for steeper tariffs on April 2, except for Chinese imports. Kraft Heinz’s well-known brands like Lunchables, Kraft Macaroni and Cheese, and Oscar Meyer are struggling to maintain their position on grocery store shelves against private label and start-up rivals.

Coffee has not faced U.S. tariffs since colonial times, and both roasters and suppliers are grappling with how to handle them. Kraft Heinz reported net sales of $835 million in its fiscal year ended December 28, accounting for about 3% of its total net sales of $25.8 billion.

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