Smucker also makes Millstone and Cafe Bustelo coffee brands and licenses the Dunkin’ Donuts brands, which it sells in grocery stores. Due to “sustained declines” in the cost of green coffee beans, each of those brands will become cheaper.
The cost of arabica beans has plunged in the past year to about $1.90 a pound from more than $3 a pound.
The company made a similar cut to its coffee prices in August after hiking them 24% the previous year amid poor harvests, high demand abroad and speculative trading in commodity markets.
Soon after Smucker’s summer price decline, Maxwell House owner Kraft Foods followed with a 6% price cut of its own. The company has yet to do the same this time around.
Green coffee beans are now being used outside of brewed coffee. Television personality Dr. Oz recently discussed a dietary supplement made of green coffee bean extract on his show. Starbucks now has a line of energy drinks called "Refreshers," which are also made with green coffee bean extract.