Dive Brief:
- Kraft Food has increased the prices for its Maxwell House and Yuban coffee brands by 10%.
- The move comes as the costs of Arabica beans have jumped 55% as a drought ravages Brazil's crop.
- Rival J.M Smucker Co. boosted the price of its Folger's brand by 9% last week.
Dive Insight:
It's been quite some time since Kraft or Smucker has increased prices. The last price jumps were in May 2011.
Consumers may not have to wait that long for the next hike. The drought in Brazil may worsen with the start of the El Nino weather phenomenon, leading to a spike in many food prices, including coffee.
