NEW YORK Procter & Gamble hiked the list prices of some of its well-known Folgers coffees, including Folgers Instant, by 6 percent, effective immediately, a company spokesman said Monday. Other coffee companies are expected to follow suit within a few days.
The price hike reflects the recent rally in green arabica and robusta beans on the futures markets, P&G spokesman Bryan Brown said.
Arabica beans are typically used to make brewed coffee. Robusta is either processed into instant coffee or blended into a roasted mix typically priced less than 100 percent arabica.
The benchmark arabica May futures contract KCK8 trading on ICE Futures U.S. closed up 0.70 cents at $1.505 per pound Monday, after touching a 10-year high for the second position at $1.512 in early trade Monday.
May robusta futures LKDK8 trading on the London International Financial Futures Exchange closed down $14 at $2,238 per ton after hitting a 10.5-year high of $2,291.
While Maryland Club will be included in the Folgers Ground increase, other brands including Millstone Gourmet, Dunkin’ Donuts retail coffee and Folgers Singles will not be affected, according to the company.