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P&G cuts Folgers price
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August 6, 1999: 6:58 p.m. ET
Price cut of 10 cents a can may spur other brands to follow suit
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NEW YORK (CNNfn) - Procter & Gamble Co. jolted the coffee market Friday by announcing plans to cut prices on its Folgers brand coffee by 10 cents a can.
In a statement, Procter & Gamble (PG) attributed the move to increased exports, which have depressed wholesale bean prices.
Effective Sept. 13, the price of a 13-ounce can of ground regular coffee will fall to $2.20, while ground decaffeinated will cost $2.90 a can. Prices of Folgers instant and Folgers singles will remain unchanged.
Analysts expect the other leading coffee roasters like Philip Morris Cos.' (MO) Maxwell House Coffee, Sara Lee Corp.'s (SLE) Superior and Nestle SA to follow suit.
"The others will definitely follow,'' said Donald Schoenholt of Gillies Coffee Co. in New York. "The others will probably wait for six months until they get the winter season under their belt.''
The four companies control around 70 percent of the U.S. coffee business. While Maxwell House, Folgers and Nestle are familiar names on supermarket shelves, Superior is a major institutional player catering to hotels and restaurants.
Sara Lee recently bought Wechsler Coffee Corp., which markets regular and gourmet coffee, along with Chock Full o'Nuts (CHF).
-- from staff and wire reports
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Procter & Gamble
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