Posted on: Saturday, March 12, 2005
P&G raises price of coffee; others expected to fall in line
Associated Press
CINCINNATI — The Procter & Gamble Co. yesterday increased the list price to retailers of its Folgers ground coffee by 12 percent because of the higher cost of green coffee beans.
Associated Press library photo • December 2004 P&G said it raised the list price by 28 cents for cans containing 11.5-ounces to 13 ounces — depending on blend — from $2.28 to $2.56.
Also effective yesterday were increases of 28 cents per 12-ounce can of Folgers whole bean coffee, 10 cents for an 8-ounce can of Folgers instant coffee, and 30 cents per 14- to 18-count bag of individual servings of Home Cafe.
The increases follow P&G's announcement Dec. 9 of a 14 percent price increase for its Folgers roast and ground coffee, the biggest rise in a decade.
Kraft Foods Inc., which sells Maxwell House coffee, declined to disclose its plans.
Nestle USA Inc., marketer of Nescafe, also declined.
"That's not something we comment on," said spokeswoman Yasmeen Muqtasid.
P&G shares closed 76 cents lower yesterday to $52.51 on the New York Stock Exchange. P&G shares have traded in a 52-week range of $50.53 to $57.40.
One analyst expected rivals to follow suit. Consumer products companies generally have been feeling the squeeze of rising commodity prices.
Rising prices for green beans were blamed yesterday as the Procter & Gamble Co. increased the prices of Folgers ground coffee by 12 percent.
