Coffee Prices Rise in 2014 and 2015 Isn't Looking Much Better
Some coffee companies, like Starbucks Corp. (NASDAQ: SBUX), hedge prices by locking up contracts that extend for five years. Other coffee purveyors have attempted to raise prices. In at least one case, there has been a sharp backlash, based on a decision to increase prices as a means to help its corporate margins. According to Reuters, on November 19:
"J.M. Smucker Co, the maker of Folgers coffee, said on Wednesday it made a “misstep” with its most recent price increase, which caused sales volumes to drop sharply as customers delayed purchases and shifted to cheaper private-label brands."