Loblaw removes Folgers coffee from store shelves, citing “unjustified” price increases by manufacturer. Experts link rising coffee prices to extreme weather, tariffs, and currency issues.
In a bold stand against rising costs, Loblaw Cos. Ltd. has announced it will no longer carry Folgers-brand coffee products, citing “significant and unjustified” price increases proposed by the brand’s manufacturer, the J.M. Smucker Co.
The Canadian retail giant said the decision comes after weeks of failed negotiations and is part of its ongoing effort to shield customers from unreasonable cost pressures.
“We are doing this because we are on the side of customers,” said an internal Loblaw email. “We will not accept or pass unjustified cost increases on to customers.”
Price Pressures Brewing in the Coffee Market
The dispute highlights growing tension between retailers and manufacturers amid surging coffee prices across Canada. According to Statistics Canada, coffee and tea prices rose 13.4% year-over-year in April 2025, far outpacing the 3.8% rise in overall grocery prices and 1.7% national inflation.
Experts attribute the sharp increase to:
- Extreme weather events that have disrupted coffee harvests and reduced global supply,
- A weaker Canadian dollar, making imports more expensive, and
- Retaliatory tariffs that still apply to certain U.S.-linked imports, including coffee.
While the U.S. doesn’t produce large volumes of coffee, Canadian buyers often rely on American brokers, making them vulnerable to cross-border cost fluctuations.
Smucker Defends Pricing Amid Record Costs
Folgers, owned by Ohio-based J.M. Smucker Co., has already implemented price hikes in June and October 2024 and warned of more increases to come.
Company CEO Mark Smucker said during a recent earnings call that pricing adjustments are being driven by “record high and sustained” prices for green coffee beans, not corporate greed.
“Our pricing actions have been managed prudently and responsibly,” said Smucker spokesperson Frank Cirillo, noting the company is committed to working with retail partners to balance costs and consumer value.
Impact on Shoppers and Shelves
As the dispute plays out, Loblaw has begun removing Folgers from shelves, with most stores expected to run out of stock within one to two weeks. The retailer has provided its stores with a list of alternative coffee brands to fill the void.
Loblaw’s move may frustrate loyal Folgers drinkers, but the company insists it’s about protecting consumers from unfair pricing amid ongoing affordability challenges across the country.
“We recognize this may create some inconvenience for customers and for that we apologize,” said Loblaw spokesperson Catherine Thomas, “but again, we will do what is right to help address price increases.”
Bottom Line:
As inflationary pressure brews across the food sector, the clash between Loblaw and Folgers underscores a larger debate over pricing transparency, corporate responsibility, and how much of the cost burden should be passed on to Canadian consumers.
Stay connected for updates on how this story develops and whether other retailers will follow Loblaw’s lead.
