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Smucker "Lowers" Coffee Prices 6%, Hopes You Won't Notice They Already Raised Them 34%

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NOW THIS IS HAPPENING
DailyFeed


Great news! The J.M. Smucker Co. is announcing a 6% price cut for "most of its coffee products sold in the U.S." -- which include the Folgers and Dunkin' Donuts brands -- because of "falling green coffee futures."

"Coffee futures are down 30% already this year," Shawn Hackett, founder and president of Hackett Financial Advisors, a Boynton Beach, Florida-based firm with a specific focus on commodities. "So, they're lowering prices by six cents while their costs are down 24."

Meanwhile, when green coffee futures were going up, Smucker didn't hesitate to raise prices:

May, 2011: 11% increase

February, 2011: 10% increase

August, 2010: 9% increase

May, 2010: 4% increase

"With this they can say, 'Hey, we're Smucker's -- we've been around for 100 years and let us show you how much we care about you and your family," explains Hackett. "See? We're charging you a little bit less for what we already marked up 34% last year."
POSITION:  No positions in stocks mentioned.

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