JM Smucker Announces A Second Coffee Price Hike – CoffeeTalk

JM Smucker is set to raise coffee prices in August due to inflation in green coffee costs. CEO and chair Mark Smucker said that as the US food and drinks group announced its annual results, there is a need to take further pricing actions to recover increasing costs from ongoing green coffee inflation. The decision comes after a price increase in May that has already been implemented in stores. JM Smucker aims to recover anticipated costs for the fiscal year and considers a historical price elasticity of demand impact to volume in its guidance.

Coffee manufacturers have been facing pressure on commodity costs and seeking to raise prices. In the fourth quarter of JM Smucker’s fiscal 2025, the company’s US Retail Coffee business generated net sales of $738.6m, up 11% year-on-year. The growth was primarily driven by a ten percentage points contribution from “net price realisation”, particularly from Folgers and Café Bustelo. The segment’s profit stood at $211.2m, almost flat compared to the previous year. However, the segment’s profit margin decreased by 300 basis points to 28.6%, highlighting the impact of commodity cost inflation.

JM Smucker swung to a net loss of $729m in the fourth quarter of its 2025 fiscal year versus a profit of $245.1m in the year-ago period. Non-cash impairment charges of $980m linked to the company’s snacks business drove the company to a $599.1m operating loss.

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