On Wednesday, Folgers coffee maker J.M. Smucker Co said that it has done a “misstep” considering the latest price increase that it has made. It caused the volumes of sales to go down sharply as consumers had purchase delays and switched to private-label brands that are cheaper.
As stated by President Mark Smucker of the Smucker’s US Retail Coffee, obviously, they feel that what they did was some kind of a misstep. Those words were said during a conference call that happening after their company had their fiscal 2015 earnings for the second quarter released.
In addition, he said that if you are going to look at the movement of their promo prices through the months of August and September, the relevant jump appear sort of unique to the step they have done during the past. This has resulted to consumers experiencing some kind of sticker shock.
During the month of June, the prices of Smucker rose on the majority of the US packaged coffee it sold by nearly nine percent, mainly on Dunkin’ Donuts and Folgers brands. In three years, this has happened for the first time due to some drought in Brazil that resulted in the soar of the prices of green coffee.