On Tuesday, jams-and-jellies purveyor J.M. Smucker Co. (NYSE:SJM) -- which also owns the Folgers brand, and licenses the Dunkin' Donuts packaged coffee brand -- announced it has cut the list prices for the majority of its packaged coffee products sold in the U.S.
Passing on savings from "sustained declines in green coffee costs," Smucker says it has reduced prices on its coffees by an average of 6% on those brands affected. Clarifying the import of its announcement for patrons of Dunkin' Brands' (NASDAQ:DNKN) doughnut shops, Smucker made clear that its price cut on packaged Dunkin' coffee sold in stores does not mean there will be a price cut at the Dunkin' restaurants. Smucker is licensed to sell Dunkin' Donuts packaged coffee products in outlets such as grocery stores.
Last year, Smucker conducted a similar round of price cuts which were quickly followed by price slashing at Kraft Foods' rival Maxwell House and Yuban coffee brands.