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Kraft Lowers Some Coffee List Prices

Source: Reuters
23/10/2008

New York, Oct 22 - Kraft Foods Inc decreased its list price for Maxwell House and Yuban roast and ground coffees by 10 cents per lb equivalent, effective immediately, a company spokeswoman said on Wednesday.

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The drop was due to lower green coffee prices, spokeswoman Bridget MacConnell said.

The company also lowered the list price for its instant coffees by 3 cents per ounce, excluding the General Foods International line of flavored soluble coffee and tea, MacConnell said.

The price change follows Procter and Gamble's drop in list prices of its Folgers Ground and Instant coffees on Oct. 17. It is the fourth round of price adjustments by major U.S. roasters in 2008, a volatile year for coffee futures contracts.

Coffee roasters hiked some of their list prices in February and again in early March as the futures market soared, but then dropped some prices in late March when the market turned lower.

"Seattle's Best Coffee prices decrease 55 cents per 12 and 16 ounce packages. That is effective next Monday, October 27th and that change is the repositioning of the brand to a new premium coffee great price strategy. It's not attributable to market fluctuations," MacConnell said.

Seattle's Best Coffee is a Starbucks Corp's brand that Kraft markets.



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