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Smucker Hikes Coffee Prices For 4th Time In A Year

Tyler Durden's picture





 

It may be time for the CME to hike some coffee margins as prices for the legal drug are starting to get out of control. According to Dow Jones, Smucker has just increased its average coffee product price by 11% in its 4th price hike in just the past year. This, along with all other comparable deflationary developments (according to some) could not have been foreseen by anyone, and will lead to the Fed's Elizabeth Duke discussing next year how, very inexplicably, America's low and middle classes are forced to choose between espresso shots and toilet paper.

From Dow Jones:

The food company, which also makes jams, jellies and Jif brand peanut butter, said the move is driven by sustained increases in green coffee costs. It disclosed similar price increases in February, August and last May.

The increase applies to such brands as Folgers, Dunkin' Donuts and Millstone.

Smucker reported an 11% increase in U.S. retail coffee sales for the nine months ended Jan. 31, while profit during that period grew 12%. But the commodity is being stung by higher prices for coffee futures due to strong demand in emerging markets, disappointing harvests and speculative trading. Those factors have led retailers to increase prices in order to pass along some of the cost to consumers.

Look for Goldman to lower its coffee price target imminently on the "global supply/demand outlook", promptly followed by a price target hike a month later on the "global supply/demand outlook."

 


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Tue, 05/24/2011 - 09:37 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Look for Goldman to lower its coffee price target imminently on the "global supply/demand outlook", promptly followed by a price target hike a month later on the "global supply/demand outlook."

Funny 'cause it's true.

Tue, 05/24/2011 - 09:41 | Link to Comment youngman
youngman's picture

Actually Goldman will raise it in the hours of 6am till 11am..then lower it for the afternoon...then raise it for the after dinner coffee time..then lower again for sleepy time...

Tue, 05/24/2011 - 09:39 | Link to Comment Weisbrot
Tue, 05/24/2011 - 09:42 | Link to Comment Michael Victory
Michael Victory's picture

speculators..

I like my coffee....

But there are some things to stay away from.

 

 

Tue, 05/24/2011 - 09:59 | Link to Comment citrine
citrine's picture

+1

Tue, 05/24/2011 - 09:35 | Link to Comment velobabe
velobabe's picture

what the fuck, and this is news. damn coffee stortages.

Tue, 05/24/2011 - 10:27 | Link to Comment Sudden Debt
Sudden Debt's picture

Important news!

No Coffee No Workee!!

And as ALREADY +40 MILLION American take this literally, the GOV. must increase margins on Coffee to decrease unemployment!

 

 

Tue, 05/24/2011 - 09:38 | Link to Comment lizzy36
lizzy36's picture

Can one have an espresso shot without TP? Just asking because i thought they are correlated.....or perhaps causation is at work on that pair?

Tue, 05/24/2011 - 09:47 | Link to Comment DeadFred
DeadFred's picture

Summer is near. Corn husks will be plentiful. Who cares about TP but don't touch my morning coffee.

Tue, 05/24/2011 - 10:06 | Link to Comment The Limerick King
The Limerick King's picture

A student from Kalamazoo

Loved coffee, but lacked funds to poo

So the next time he shat

He cleaned-up like a cat

Which affected the taste of his brew

Tue, 05/24/2011 - 10:20 | Link to Comment Double down
Double down's picture

First Prize!

Tue, 05/24/2011 - 14:04 | Link to Comment andybev01
andybev01's picture

+ ewwww.....

Tue, 05/24/2011 - 11:05 | Link to Comment Problem Is
Problem Is's picture

DeadFred: Spoken like a true Midwesterner:

"Summer is near. Corn husks will be plentiful."

Summer memories of corn silk in your shorts...

Tue, 05/24/2011 - 09:40 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Long SJM, toilet paper (physical) and coffee (physical) here.

Tue, 05/24/2011 - 10:04 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Amerika - One cup of coffee away from revolution.

Tue, 05/24/2011 - 10:28 | Link to Comment Sudden Debt
Sudden Debt's picture

bummer it's decaf...

 

Tue, 05/24/2011 - 09:38 | Link to Comment Dexter Morgan
Dexter Morgan's picture

We need our honorable government to institute price controls across the board!  haha

Tue, 05/24/2011 - 09:51 | Link to Comment TheTmfreak
TheTmfreak's picture

We need an "honorable" government to do alot of things. Like Seppuku.

 

Edit: In fact, if we had politicians who did this, I would have a completely different (favorable) view of American politicians.

Tue, 05/24/2011 - 09:39 | Link to Comment SilverRhino
SilverRhino's picture

And silver appears to have broken out of the doldrums.  

Tue, 05/24/2011 - 09:54 | Link to Comment fuu
fuu's picture

The bidding algos have correlated and trapped the ask algos right now.

Tue, 05/24/2011 - 09:42 | Link to Comment monmick
monmick's picture

It's just transitory...

Tue, 05/24/2011 - 09:40 | Link to Comment LRC Fan
LRC Fan's picture

I think we need some hearings on this price gouging by "Big Coffee"

/s

Any chance at all that the markets reverse and close lower?  Sadly I think not.  The DXY will maybe rise a bit until noon when it crashes lower as it has for the last few weeks on nearly every single day. 

Tue, 05/24/2011 - 09:43 | Link to Comment The Profit Prophet
The Profit Prophet's picture

My God....please let them choose the toilet paper!!!

T.E.I.N. everyone!

Tue, 05/24/2011 - 09:46 | Link to Comment John McCloy
John McCloy's picture

VP Joe Biden "Summer of Recovery" Take Two.

Tue, 05/24/2011 - 09:43 | Link to Comment Dolemite
Dolemite's picture

Commodities (no coffee yet), FX, equities, disected for your viewing pleasure

http://deadcatbouncing.blogspot.com/

Tue, 05/24/2011 - 09:47 | Link to Comment mworden
mworden's picture

In my area it has worked this way: First they raised the price of a can of coffee $3, then they made the can ....smaller. 

 

Thank mammon there's no inflation.

Tue, 05/24/2011 - 09:53 | Link to Comment Urban Redneck
Urban Redneck's picture

The only good thing about EU bureaucracy is that makes shrinkage inflation more difficult for producers to implement.  However, since my cheap grocery store coffee is now more than $10 per pound now after a 10% increase this month, that is not much consolation.

Tue, 05/24/2011 - 09:52 | Link to Comment LoneStarHog
LoneStarHog's picture

Sorry, I don't have a square to spare...I just want one square...You don't have one spare square?...I don't have a square to spare...Take some Decaf, already!

Tue, 05/24/2011 - 09:49 | Link to Comment Jason T
Jason T's picture

I drink Tea... lipton!  bitchez!

Tue, 05/24/2011 - 09:50 | Link to Comment Brian316
Brian316's picture

Coffee  Bitchezzzz....

Come on, that should have been the first comment! 

Tue, 05/24/2011 - 10:04 | Link to Comment TheTmfreak
TheTmfreak's picture

You see it less and less.

Maybe you should have said "No Coffee Bitchezz" That might make more sense.

Tue, 05/24/2011 - 09:50 | Link to Comment Hedgetard55
Hedgetard55's picture

I roast my own beans. You can buy green beans on the web, roast them yourself. I do it in a cast iron frying pan. So simple. Delicious.

Tue, 05/24/2011 - 09:54 | Link to Comment LRC Fan
LRC Fan's picture

Maybe you should grab a shovel.  I bet it only costs $5 to dig coffee out of the ground.  Winning!

Tue, 05/24/2011 - 10:30 | Link to Comment Sudden Debt
Sudden Debt's picture

? And what do you call it? 50$ DIY COFFEE THAT TASTES LIKE SHIT?

 

Tue, 05/24/2011 - 10:38 | Link to Comment Jason_1sandal
Jason_1sandal's picture

An air popper works much better....

Tue, 05/24/2011 - 10:00 | Link to Comment LRC Fan
LRC Fan's picture

And this market is ridiculous.  Any move lower is immediately met with a few down ticks in the DXY and a corresponding tick up or two in the Dow.  I'm honestly an idiot for not BTFD yesterday...I'm still short...do you really think this market will be allowed to fall by 200+ pts in a day?  Only if they lose control, and even then you're likely to be screwed if you're holding puts because they will close the market.  Stacked deck...not winning. 

Tue, 05/24/2011 - 10:17 | Link to Comment citrine
Tue, 05/24/2011 - 10:05 | Link to Comment buzzsaw99
buzzsaw99's picture

Coffee is hot these days, and so are coffee related stocks. People switch to beer in the summer so let's wait for the full year report. Meanwhile I may as well buy some good coffee if Folgers is $10.

Tue, 05/24/2011 - 10:14 | Link to Comment wombats
wombats's picture

To the barricades!!  We cannot stand still for this!

Tue, 05/24/2011 - 10:34 | Link to Comment Sudden Debt
Sudden Debt's picture

DON'T WORRY!!

 

DO LIKE ME AND SWITCH TO RED BULL IN THE MORNING!!

 

WWHHHAAAAAAARRRhhhhhhhh!!!!!!

Tue, 05/24/2011 - 10:14 | Link to Comment Fiat2Zero
Fiat2Zero's picture

Rapidly rising coffee prices may be what we need to get the lethargic American populace to the streets. Expect the comex "espresso massacre" margin hike takedown to be swift and brutal.

A caffeinated sheep is a controllable sheep.

Tue, 05/24/2011 - 10:17 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Buy the brands that have a money back guarantee. Many of the cheaper store brands have it. Call up and complain say the no only did they raise the price but the taste is worse. Give me a another one free.

Truth is taste may have changed due to formulation or cheaper coffee.

Probably get free coffee for a year working it this way.

Tue, 05/24/2011 - 10:24 | Link to Comment serotonindumptruck
serotonindumptruck's picture

Consumers in developed nations will soon adopt the defecation practices of the Middle East. Just don't offer your left hand to shake while meeting new people or closing business transactions, as this is the ultimate insult.

Tue, 05/24/2011 - 10:38 | Link to Comment What_Me_Worry
What_Me_Worry's picture

I would not recommend choosing espresso over toilet paper.  That will not end well.

 

Tue, 05/24/2011 - 12:59 | Link to Comment topcallingtroll
topcallingtroll's picture

Toilet paper is overrated.

Coffee is a true necessity.

Tue, 05/24/2011 - 13:45 | Link to Comment boiltherich
boiltherich's picture

TP=$$$$ just use FRN's it will be cheaper

Coffee=total necessity and there is no substitute.

Tue, 05/24/2011 - 11:01 | Link to Comment Problem Is
Problem Is's picture

"America's low and middle classes are forced to choose between espresso shots and toilet paper..."

They can buy a regular coffee at Starbucks and take their crap there...

"The increase applies to such brands as Folgers..."

Wait, I thought Folgers was a sawdust product...

Tue, 05/24/2011 - 11:44 | Link to Comment GoldBacon
GoldBacon's picture

I can eat my iPad, but this one is gonna hurt.

Tue, 05/24/2011 - 13:10 | Link to Comment Chuck Walla
Chuck Walla's picture

Yeah, but how can I guarantee delivery of my coffee futures?

Tue, 05/24/2011 - 13:46 | Link to Comment boiltherich
boiltherich's picture

With a name like Smuckers you know it has to be expensive.

Tue, 05/24/2011 - 16:33 | Link to Comment HungrySeagull
HungrySeagull's picture

Ah yes the Trucking will slow or stop as the Drivers pass out from lack of Coffee.

/sarcasm.

Bout ready to start buying coffee by the case and ignore it the rest of the year.

Tue, 05/24/2011 - 21:52 | Link to Comment StychoKiller
StychoKiller's picture

French Press to relieve American Distress (over percolating coffee prices!)  :>D

Wed, 05/25/2011 - 02:34 | Link to Comment tony bonn
tony bonn's picture

this is sad if it implies inflation....inflation only happens when people expect it to happen....thus everyone needs to stop expecting inflation so that it will go away....and think non-inflationary thoughts....just like the chairsatan of the fed has urged....

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