Keurig Green Mountain Inc said on Thursday it will hike coffee prices by up to 9 per cent in November, becoming the latest major drinks maker trying to cover soaring coffee costs.
The move was also due to increasing costs for packaging materials, energy, and transportation, it said. Green coffee prices have surged about 55 per cent over the past year, it said.
“After careful review, we determined that it is necessary for us to adopt a small price increase in light of these higher costs,” said John Whoriskey, president of U.S. sales and marketing, in a statement.
The price hike on all portion packs for use in its brewing systems and on all its traditional bagged, fractional packs, and bulk coffee products is effective from Nov. 3, it said.
Keurig is following rivals, including Kraft Foods Group Inc and J.M. Smucker Co, which raised prices in June for some of their best-known brands, including Maxwell House and Folgers.
Analysts said price hikes are likely to cause some sticker shock in the near term as consumers balk at paying a higher price for their daily brew.
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