NEW YORK – Procter & Gamble Co. (PG) cut the list price for its popular Folgers brand ground and roast coffee by 5 percent, or 13 cents per 13-ounce equivalent can, a company spokesman said Tuesday.
"It's reflecting the sustainable change in the green coffee prices," said Lars Atorf, a spokesman for P&G, adding the price change was effective immediately.
For whole bean coffee, the price was likewise lowered by 13 cents per 12-ounce equivalent can, Atorf said.
An equivalent can is used as a measure for setting prices for shipments of various sizes to supermarkets and store chains.
Also, P&G trimmed by 10 cents the list price for Folgers (search) and Millstone Home Cafe (search) packages containing 14 to 18 pods. A pod is a packet of coffee used in single-server brewing machines which is a growing trend among consumers.
The change in list prices was "just for Folgers base business -- roast and ground -- and Home Cafe," Atorf added.
About five months ago, arabica coffee futures prices at the New York Board of Trade (search) were hovering at their highest in more than five years.
Those lofty prices prompted several large U.S. roasters, including P&G, to boost the list prices they ask from their customers.
Since peaking at $1.4425 per lb on March 11, NYBOT's benchmark arabica contract for September delivery fell to an 8-month low of 96.15 cents per lb on July 19. The contract is now trading around $1.0180 a lb.
Futures prices generally fluctuate on expectations of shifts in supply and demand for world coffee. However, the prices are also vulnerable to managed-money funds holding positions as a hedge against other markets.