Nov 26, 2025 (MarketLine via COMTEX) --
The company behind CafA(C) Bustelo coffee is no longer planning to up prices this winter.
JM Smucker has halted plans to raise coffee prices this winter after the US cut tariffs on the commodity.
The US group behind CafA(C) Bustelo coffee has upped prices throughout the year amid the rising cost of green coffee and had been lining up another.
However, in the wake of the Trump administrationaEUR(TM)s decision to remove tariffs on raw coffee, JM Smucker has put its next move on ice.
aEURoeGiven the recent changes to US trade policy to exclude tariffs on green coffee, we are no longer contemplating another pricing action in early winter,aEUR CEO Mark Smucker said yesterday (25 November).
The absence of another price hike means JM Smucker will not aEURoefully recover green-coffee tariff costs incurred in this fiscal year, which negatively impacts our adjusted earnings per shareaEUR, he added.
JM Smucker, also home to brands including Hostess snacks and Uncrustables frozen sandwiches, issued new forecasts for its annual adjusted earnings per share and net sales.
The company, which published its first-half financial results yesterday, now sees its adjusted EPS coming in between $8.75 and $9.25, versus an earlier forecast of $8.50 to $9.50. In JM SmuckeraEUR(TM)s last full financial year, it booked adjusted EPS of $10.12.
The Meow Mix pet-food owner is forecasting a 3.5-4.5% rise in net sales, compared to its previous projection of 3-5%.
aEURoeComparableaEUR net sales are expected to rise 5-6%, JM Smucker said, as price rises offset lower aEURoevolume/mixaEUR.
In the companyaEUR(TM)s second quarter, net sales from its US Retail Coffee arm increased 21% to $144.9m despite a six percentage-point decline in volume/mix.
Coffee brands Folgers and DunkinaEUR(TM) came under pressure but CafA(C) BusteloaEUR(TM)s sales rose.
aEURoeThe CafA(C) Bustelo brand grew net sales by 41% in our US Retail Coffee portfolio, inclusive of a 9% increase in volume/mix,aEUR Mr. Smucker said.
aEURoeWe anticipate another year of double-digit net sales growth for the CafA(C) Bustelo brand as we advance our long-term strategy and make progress on our ambition for CafA(C) Bustelo to become a top four brand in the at-home coffee category.aEUR
On a call with analysts to discuss the results, JM SmuckeraEUR(TM)s management was asked about the recent performance from DunkinaEUR(TM) and whether the price elasticity of the brand had been softer than Folgers and CafA(C) Bustelo.
aEURoeThe resilience of the category overall gives us optimism in terms of how we have consumers still consuming coffee, our brands are resonating with consumers [and] the investments weaEUR(TM)ree making behind these brands is working,aEUR Mr Smucker said. aEURoeBustelo just had a phenomenal quarter and, in the quarter, we did see a bit of improvement in DunkinaEUR(TM).
aEURoeAs weaEUR(TM)ve highlighted in previous quarters, weaEUR(TM)ve seen some competitive pricing pressure that we have not overcome but we are continuing to actually make some surgical pricing investments, as well as supporting innovation in terms of seasonals and so forth.aEUR
He added: aEURoeI think the long-term story on DunkinaEUR(TM) is that itaEUR(TM)s a great brand. We love the brand and we still think it has plenty of runway. Over time, as we would expect pricing to moderate competitively, that will support the brand overall.aEUR
During the six months to the end of October, JM SmuckeraEUR(TM)s net sales increased 1% to $4.44bn. Operating income fell 11% to $464.1m. The group recorded a 23% rise in its net income to $197.4m.
http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall
not be liable for errors or delays in the content, or for any actions
taken in reliance thereon
COMTEX_470570489/2227/2025-11-26T14:04:17
Copyright (C) 2025 Datamonitor. All rights reserved
