Coffee prices on the New York Board of Trade (search) are at the highest level in 4 1/2 years.
''Our price advance is based on the recent rise in green coffee prices,'' said Abbe Serphos, spokeswoman for Kraft.
Kraft's announcement comes on the heels of a 14 percent increase in ground coffee prices in early December by Folgers, a division of Procter & Gamble (PG). In October, Starbucks Coffee raised its retail prices by around 5 percent.
Sara Lee Corp. (SLE), another major retailer, lifted food service prices in late March.
The futures market has risen because of a shortage of quality coffee in Colombia, Central America and Brazil after reduced attention to groves during an extended period of low prices, industry members said. Brazil's next crop, harvested in May to September, is expected to be smaller than the last one because of the biennial tree cycle and minimal care for trees.
Kraft, which is based in Northfield, Ill., also markets Jacobs coffees, Kraft cheese, Philadelphia cream cheese, Oscar Mayer meats, Post cereal, Boca products and Balance bars.