Kraft to Stay Competitive in Coffee Wars

Kraft Foods, a unit of Philip Morris Cos., said it will cut prices of its Maxwell House coffee next month, matching reductions by rival Folgers. The list price of Maxwell House, the nation’s second-best-seller after Folgers, will fall 10 cents for a 13-ounce can of regular coffee to $2.11 effective Aug. 14, a Kraft spokeswoman said. The new price will be the lowest since 1993, she said. Kraft last cut coffee prices by 15 cents May 22. The declines in retail prices follow a drop in wholesale coffee beans, which at 83.4 cents a pound in New York are a third lower than their five-year average. Procter & Gamble Co., the maker of Folgers, announced its price cut of 10 cents Tuesday, putting its 13-ounce can of regular grind at $2.05, also effective Aug. 14. Procter & Gamble cut its price 20 cents in May. Coffee futures are down 11% from a year ago after bumper harvests from Latin American and Asian producers.