Kraft Foods, the world's second-largest food company, raised Maxwell House and Yuban coffee prices by about 7 percent, the second increase in three weeks after bean costs climbed. As of Tuesday, Kraft started charging 20 cents more for 11-ounce to 13-ounce containers of Maxwell House and Yuban coffee, said Bridget MacConnell, a Kraft spokeswoman in Tarrytown, N.Y. Instant coffee prices are rising by 3 cents an ounce, or 4 percent, she said.
The move follows a similar price increase Monday by Procter & Gamble, which makes Folgers, the top-selling U.S. coffee brand. Both companies raised prices twice since February because arabica and robusta beans have soared in recent weeks.
Kraft's decision reflects "the significant increase in the cost of green coffee," said MacConnell, referring to coffee beans before they're roasted and ground.
Arabica beans used in Maxwell House and Yuban ground coffee and by Starbucks last week reached their highest price in a decade. Robusta beans for instant coffee and espresso climbed to a 12-year high last month before falling this week.
On Feb. 11, P&G started charging 6 percent more for Folgers coffee. The next day, Kraft raised Maxwell House prices by a similar amount.
Starbucks, the world's largest chain of coffee shops, has no plans to charge more, spokesman Brandon Borrman said Tuesday in an e-mail. In July, the Seattle-based company increased U.S. prices for lattes, Frappuccinos and other drinks by 3 percent to cover higher dairy, energy and coffee costs. It previously raised prices 1.9 percent in October 2006.
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