J.M. Smucker Focuses on Coffee Affordability Amid Tariff Policy Changes
The J.M. Smucker Co. has updated its anticipated tariff impact — a total expense of $75 million in fiscal year 2026, almost entirely made up of coffee-related costs.
Recent changes in U.S. trade policy mean tariffs on green coffee have been eliminated, and J.M. Smucker won't raise prices in light of the reduced tariffs.
U.S. retail coffee prices increased by an annual 40% in September, due in part to the tariffs, according to Reuters.
Coffee Consumption & Performance
While consumers continue to consume coffee, and they are resonating with J.M. Smucker brands, said Smucker, the company has been plagued by competitive pricing pressure in previous quarters, requiring surgical pricing decisions to support innovation and seasonality.
Prior to the tariffs being lifted, profits for its U.S. retail coffee business decreased 24%, primarily due to the tariffs as well as higher commodity costs, unfavorable volume/mix and increased marketing, according to CFO Tucker Marshall.
J.M. Smucker does, however, see resilience across the category, with strong performance from Bustelo and Folgers, and growth for the quarter from Dunkin'.
The company has been carefully monitoring what it calls "a dynamic and evolving external environment" that includes tariffs and related trade impacts, regulatory and policy changes, ongoing input inflation and changes in consumer behaviors.
