As raw coffee prices go down, your favorite coffee brands get cheaper.
J.M. Smucker Co. (SJM) announced on Tuesday that it will be cutting the prices of its coffee products, including Folgers and Dunkin’ Donuts, by 6%, the Wall Street Journal reports. Unfortunately for K-Cup lovers, this price reduction won’t affect the cost of coffee pods.
This is the second price cut that Smucker has implemented in less than a year. The company lowered the cost of some of its coffee products at the beginning of last July as well, also by 6%.
The year before that, in 2014, Smucker tried to raise its coffee prices by 9%. It was later reported that the company saw the demand for its products drop, which ended up in a 3.5% decrease in its quarterly profits.
Considering the top selling coffee brands tend to be on the cheaper side—both Folgers and Dunkin’ Donuts appear in the top five—it makes sense that consumers veered away from the Smucker brands when they became more expensive. The company has since described the price hike as a “misstep.”
The Journal notes that this 6% price reduction reflects the fact that raw coffee prices are on the decline.
