Loblaws takes popular coffee brand off shelves after huge price increase

Folgers will soon disappear from Loblaws store shelves after a pricing dispute between the grocer and the coffee brand.

In an email, a Loblaw Companies Ltd. spokesperson stated that Folgers recently proposed "significant" cost increases on its coffee, which it believes are "unreasonable and unjustified based on underlying costs."

"We know many Canadians have struggled with affordability in many aspects of their lives, and we have done what we can to keep prices down," reads the statement. "An important part of this has always been pushing back on manufacturers when we believe proposed cost increases are unjustified."

The spokesperson noted that the price hikes were not related to tariffs, but would have had tariffs applied on top if it.

"Despite several attempts to address this with the manufacturer, we were not successful," Loblaws stated. "We will not accept or pass unjustified cost increases on to customers, and therefore we have removed Folgers from our shelves."

The grocery giant added that it expects most stores to be out of stock over the next week or two, encouraging customers to check out its wide range of coffee brands available at competitive prices.

The J.M. Smucker Company, manufacturer of Folgers coffee, told us in an email statement that it continues to experience "record high and sustained green coffee prices."

Loblaws' April food inflation report highlighted that coffee is facing higher-than-usual prices due to a poor growing season.

"To address this, we have leveraged our cost management strategy, which is inclusive of evaluating productivity and efficiency measures as well as pricing actions, only when necessary," stated Smuckers. "Our pricing actions have been managed prudently and responsibly and have only been taken when justified by costs."

The American food company stated that it would continue to collaborate with all its retail partners to manage increased costs while delivering value to its shared customers.

Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, explained in a X post that the public nature of this dispute reminds him of the 2022 clash between Loblaw and PepsiCo Canada, which helped pave the way for a grocery code of conduct.

"These disputes happen all the time — and they almost always end up costing consumers more," wrote Charlebois. "Unwarranted fees and price hikes ripple up the food chain as suppliers try to offset the charges imposed by grocers."

Shoppers have been noticing the price hikes on Folgers coffee, sharing their frustrations online.

"At Costco, Folgers increased from $18.49 to $27+. Absurd. No one will buy crappy coffee at that price," reads one post on X.

 In its latest food inflation report, Loblaw warned Canadians that grocery prices will continue to rise in Canada amid the trade war with the U.S.