Smucker recently acquired Rowland Coffee Roasters brands.
“As with the rest of the industry, questions are likely to focus around input costs, elasticity, and competitive dynamics, especially in the key coffee category,” Deutsche Bank analysts wrote in a Smucker earnings preview.
They noted the company in late May announced an 11% increase on the majority of its coffee products on top of three other price increases within the past year. The analysts said they expect Smucker’s gross margins to decrease significantly on higher raw material costs for green coffee, milk, sugar and soybean oil.
The iPath Dow Jones-UBS Coffee ETN (NYSEArca: JO) rose 1%.
Also Thursday, Coffee Holding (NasdaqCM: JVA) shares vaulted over 20% after the company reported quarterly results.