You might come by that morning cup of coffee with a little less out of pocket in the days ahead, with word coming from J.M. Smucker (SJM) on Tuesday that it plans to cut the list prices for most of the java it sells at stores in the U.S.
The Orrville, Ohio, company said the reductions, averaging 6%, cover the majority of its packaged coffee sold domestically, primarily under the Folgers and Dunkin' Donuts brands carried in stores. Smucker cited declines in the cost for coffee beans.
While widely known for jelly, Smucker has been becoming more reliant on coffee in recent years, with that part of its product line regularly making up roughly 40% or more of its sales in recent quarters and increasing the company's overall top line.
In late 2008, Smucker acquired the Folgers brand from Procter & Gamble (PG), and since then it has added the operations of Rowland Coffee Roasters and taken over a coffee business line from Sara Lee, now known as Hillshire Brands (HSH).
Source: Smucker. Data in $ millions.
Shares of Smucker were little changed, down 67 cents at $91.73. The stock is up about 3% so far in 2013.