Kraft of Maxwell House coffee U.S. - YAHOO price reductions!

(Reuters) — Kraft Foods said Friday it lower prices on many of its U.S. cafés, including its flagship, Maxwell House brand, citing the decrease in the cost of green coffee since the price reached last year, which in fact the second coffee roaster of U.S. major to lower its prices of coffee this week.

The move comes three days after the J.M. Smucker Co. reduce the cost of brands Folgers and Dunkin ' Donuts an average of 6%. It is the second cup of coffee prices since August, 2011, for the two companies.

"These changes reflect a decrease in the cost of the green coffee," spokesman Kraft Bridget MacConnell told Reuters in an e-mail.

Price reductions following increases in several consecutive price due to a prolonged rally that lifted future coffee arabica of ice to a maximum of 34 years over $3 per pound in May 2011. Prices have declined for more than 40% and are close to a minimum of 20 months.

Effective immediately, Kraft, lower prices on Maxwell House and Yuban roast and ground coffee brands by about 6 per cent and roast Gevalia and soil sold in retail outlets by about 10 percent, MacConnell said.

Taste non-coffee instant, other than those sold under the brand name Maxwell House International, are reduced by about 4%, she said.

Instant coffee is traditionally processed at base of robusta coffee beans. Robusta future trading on LIFFE are currently about 16 per cent of their three-year high reached in March 2011. Recently, however, the market exploded on concerns about tight supplies, climbing about 12 percent over the past two weeks to draw a high 8-1/2 month to $2 235 per metric tonne (1.1023 tonnes) Friday.

(Reports of Marcy Nicholson;) (Editing Bernard Orr)

View the original article here