Coffee Prices – Zeleniy Coffee Tue, 22 Nov 2022 14:29:42 +0000 en-US hourly 1 Coffee Prices – Zeleniy Coffee 32 32 JM Smucker optimistic about coffee despite slowing sales in premium segments Tue, 22 Nov 2022 14:29:42 +0000

“Earlier this year, we led the market to raise prices to recover from significant raw material cost inflation, which impacted price differentials and elasticities”across the coffee portfolio, especially in the premium segment, CEO Mark Smucker said in prepared remarks on JM Smucker Co.’s fiscal 2023 second quarter, ending Oct. 31.

“As a result, the Dunkin brand slightly increased its net sales ​[at 3%] as volume slowed, in line with trends in the premium coffee segment,”​contributing to an overall 13% decline in mix volume in the coffee segment compared to the same period last year and a 10% decline in segment profit to $187.7 million, Smucker said .

The company’s K-Cup portfolio also saw a downturn as more consumers shifted away from high-end products to save as inflation in all categories continued to squeeze their budgets.

Smucker speculated that the deceleration in K-Cup activity might not be a loss for the company, but rather “there may have been people who brewed more drip coffee”,which he dismissed as not being a lasting trend.

“Clearly, brewer penetration of Keurig brewers has increased significantly over the last few quarters. So we would expect that over time this will continue to benefit us,”he said.

In addition to expecting further growth in single-serve coffee over the coming quarters, Smucker said it also remains “Confident in the overall health of the Dunkin brand, its leadership position and our long-term growth prospects.”

Price gaps between Smucker brands, competitors begin to close