Click here to listen to previous episodes.
About Chen Lin
Author "What is Chen Buying? What is Chen Selling?" Chen grew $5,400 to $2.3 million in 10 years. Learn More
Smucker’s Is Passing Rising Coffee Costs Onto Consumers
From StockNews.com: JM Smucker Co (NYSE:SJM) said today it would boost prices on its major coffee brands, including Folgers, Dunkin’ Donuts, and Café Bustelo, as it passes on the rising costs of coffee beans to consumers.
The Orrville, OH-based food products company commented via press release that “Prices increased an average of six percent on impacted items in response to sustained increases in green coffee costs. The Company’s K-Cup® pods were excluded from the price increase.”
The move comes in response to coffee futures for March delivery surging 8% year-to-date, and an whopping 30% over the past twelve months. Coffee bean prices have risen substantially due largely to drought conditions in several major coffee-producing countries. According to analyst estimates, it takes 37 gallons of water to grow and process the coffee beans needed to make a single cup of coffee.
While SJM owns the Folgers brand outright, it licenses the Dunkin’ Donuts brand and manufactures packaged coffee and k-cups using the name.
JM Smucker Co shares was trading at $129.47 per share on Wednesday morning, up $0.73 (+0.57%). Year-to-date, SJM has gained 1.10%, versus a 1.42% rise in the benchmark S&P 500 index during the same period.
SJM currently has an StockNews.com POWR Rating of C (Neutral), and is ranked #41 of 62 stocks in the Food Makers category.
ETF investors will want to keep an eye on the iPath Bloomberg Coffee Subindex Total Return SM Index ETN (NYSE:JO) on today’s news. The largest coffee-focused ETN has surged over 9% year-to-date and over 20% in the past 12 months amid the coffee price rally.
This article is brought to you courtesy of StockNews.com.
You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Powered by WPeMatico