J.M. Smucker — the owner of major coffee brands like Folgers, Dunkin’ At Home and Café Bustelo — has decided to cancel its planned “early winter” price hike on coffee products following the removal of U.S. tariffs on green coffee imports.
Originally, Smucker had warned of its fourth — and possibly fifth — price increase since June 2024, citing steep cost pressure from tariffs on beans sourced largely from Brazil and Vietnam.
Tariff Relief Offers Breathing Room
With the tariffs lifted, Smucker’s cost structure has eased. On its most recent earnings call, management indicated they no longer see a need for the price pass‑through, choosing instead to keep retail coffee prices stable.
The company’s U.S. retail coffee business — which had seen profits fall by 22% during the tariff‑heavy period — is now pivoting toward affordability and volume preservation.
What This Means for Consumers & Retailers
- Coffee bags likely will be less expensive this winter than expected — a relief for price‑sensitive consumers facing inflation.
- Retailers carrying Smucker brands may avoid turnover loss that often follows steep price hikes.
- For Smucker, this move may stabilize volume declines seen under prior price increases and support long‑term brand loyalty.
Context: Tariff Pressure, Price Hikes, and Demand Risk
Before the tariff change, Smucker had raised prices multiple times in 2025 — contributing to a ~21% year‑over‑year increase in consumer coffee costs.Many analysts warned that repeating price hikes risked suppressing demand in a category sensitive to price and brand loyalty.
With tariffs lifted, defusing cost pressure, Smucker now seems positioned to avoid a potential volume‑decline spiral and build goodwill among budget-conscious coffee drinkers.
