By Jesse Newman and Nicholas G. Miller

Coffee is getting more costly.

J.M. Smucker said it will continue raising coffee prices to help offset rising costs from tariffs.

The company, which owns brands such as Folgers and Café Bustelo, has raised coffee prices twice this year to recoup some of its own higher costs. Smucker said Wednesday it is likely to do so again this winter, as the Trump administration's tariffs deliver a bigger hit.

Chief Executive Mark Smucker said the company's brands remain affordable relative to coffee shop purchases. "We expect the coffee category to remain resilient, despite recent inflationary pressures, given consumers' love of daily coffee rituals," he said.

Still, the company said that it expects sales volumes to take a hit, and that it is seeking alternative sources and tweaking its supply chain to minimize cost increases. Smucker expects its coffee prices to be up by more than 20% over the 12 months ending April 30, 2026.

Smucker shares fell 4.5% in morning trading.

The Orrville, Ohio-based company on Wednesday reported a fiscal first-quarter loss, with profit from Smucker's retail coffee division down 22%. Net sales for the unit rose 15% from the year prior due to higher prices, the company said.

Smucker said in June that it had raised prices of its coffee in May and that it would do so again in August. That announcement preceded President Trump imposing a 50% tariff on certain imports from Brazil, one of the world's largest coffee producers.

Smucker, which also owns Jif peanut butter, posted a loss of $43.9 million, or 41 cents a share, down from a profit of $185 million, or $1.74 a share, for the same quarter a year earlier. Sales of its sweet baked snacks fell 24%, with smaller declines for peanut butter and pet foods.

Adjusted earnings were $1.90 a share. Analysts were expecting $1.93 a share, according to FactSet.

J.M. Smucker raised its full-year sales-growth guidance to between 3% and 5%, up from its previous forecast of 2% to 4%. The company reaffirmed its previous full-year earnings guidance of $8.50 to $9.50 a share. Analysts have forecast adjusted earnings of $9.21 a share.

J.P. Morgan analysts said in a note this month that coffee volumes have been resilient despite the price increases, and that Smucker would see growth in its sales of Uncrustables and a rebound in pet-food demand.

Write to Jesse Newman at jesse.newman@wsj.com and Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

August 27, 2025 11:08 ET (15:08 GMT)

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