Folgers, Maxwell House Call Off Price Cuts

Procter & Gamble Co. and Philip Morris Cos., makers of the nation’s best-selling Folgers and Maxwell House coffees, said they rescinded plans to cut prices after frost fears in Brazil sent the cost of wholesale beans soaring. Procter & Gamble had planned to drop the price for a 13-ounce can of its best-selling Folgers coffee by 10 cents to $2.05, effective Aug. 14. Prices now will stay at $2.15. Decaffeinated coffee, which was also set for a 10-cent drop, will stay at $2.85. “It’s in response to recent frost activity in Brazil,” said a Procter & Gamble spokeswoman. “The market has been volatile since we made the announcement” last month, she said. The recommended price of Maxwell House coffee will stay at $2.21 for a 13-ounce tin of regular grind and $2.91 for decaffeinated, according to a Philip Morris spokeswoman. Both companies had announced the planned cuts after wholesale coffee prices dropped by about one-third from a 19-month high in December. Now, cold weather in Brazil, the world’s biggest coffee grower, has sparked a 22% rally in the coffee futures market this week.