Kraft lowers Maxwell, Yuban prices as coffee costs fall

Northfield-based Kraft Foods Inc. lowered prices by a net 6 percent on some U.S. coffee products, including Maxwell House and Yuban, after the costs of beans declined.

Roasted- and ground-coffee prices were reduced by 20 cents a pound from Monday, and instant coffee by 2 cents, Bridget MacConnell, a Kraft spokeswoman based in Tarrytown, New York, said in an emailed reply to Bloomberg questions.

Kraft joined J.M. Smucker Co. in lowering prices after coffee futures fell as much as 24 percent since reaching a 14- year high of $3.089 a pound on May 3. The commodity had surged as rains damaged crops in Colombia, the world’s biggest producer of arabica beans after Brazil.

“We evaluate market factors and make our pricing decisions when it’s appropriate for the business,” MacConnell said in a telephone interview.

Kraft had raised U.S. prices on some types of Maxwell House and Yuban coffee in March. On Aug. 16, J.M. Smucker said it decreased prices for the majority of its coffee products sold in U.S.

Arabica coffee is grown mainly in Latin America and brewed by specialty companies including Starbucks Corp. Robusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa

Arabica coffee for December delivery advanced 1.55 cents, or 0.6 percent, to $2.699 at 11:24 a.m. on ICE Futures U.S. in New York. Before today, the commodity jumped 45 percent in the past year.

Kraft said prices of its Maxwell House International line of specialty soluble beverages and its Tassimo brand were not lowered.