Loblaw vs JM Smucker face off over Folgers coffee price; weather, Trump tariffs also play a role
Canada's largest grocery retailer,
Loblaw
Companies Ltd., has removed all
Folgers coffee
products from its stores following a pricing disagreement with the manufacturer,
J.M. Smucker Co.
The grocery giant said the proposed cost increases were 'unreasonable and unjustified based on underlying costs.'
In an internal email to retailers, Loblaw explained that talks with Folgers' manufacturer failed to produce an agreement. 'After several weeks of negotiations, we were unable to reach an agreement with the manufacturers of
Folgers
coffee regarding their significant and unjustified proposed price increases,' wrote Suren Theivakadacham, Loblaw's category director. The company emphasized that it is acting in the interest of consumers struggling with affordability.
Loblaw spokesperson Catherine Thomas stated the decision was not taken lightly but was necessary to keep prices in check. 'We will not accept or pass unjustified cost increases on to customers, and therefore we have removed Folgers from our shelves,' she said. 'We recognize this may create some inconvenience for customers and for that we apologize, but again, we will do what is right to help address price increases.'
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Honor a Forgotten Father Today
HelpAge India
Donate Now
Undo
The company has also circulated a list of alternative coffee products to its stores as shelves are being updated. Thomas added that most stores are expected to be out of stock of Folgers items within the next week or two.
This move comes amid rising coffee prices across Canada. In April,
Statistics Canada
reported a 13.4 per cent year-over-year increase in the price of coffee and tea, well above the 3.8 per cent rise in overall grocery costs and the national inflation rate of 1.7 per cent.
Live Events
Experts attribute the rising costs to a combination of factors, including extreme weather conditions that have reduced crop yields. Coffee is also affected by a weaker
Canadian dollar
and ongoing retaliatory tariffs on certain US imports, even though the US isn't a major coffee producer.
Folgers products are manufactured by Ohio-based J.M. Smucker Co., which has implemented price hikes in the past year due to escalating costs. Company CEO Mark Smucker said in a February earnings call that more increases were expected in the near future.
'Our pricing actions have been managed prudently and responsibly and have only been taken when justified by costs,' company spokesperson Frank Cirillo said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
28 minutes ago
- Time of India
RCB to be sold after historic IPL 2025 win? Owner Diageo breaks silence
Image credit: BCCI/IPL Diageo India, the Indian branch of UK-based Diageo Plc and owner of the Royal Challengers Bengaluru (RCB) IPL franchise, has firmly rejected rumors of selling the team. In a letter addressed to the Bombay Stock Exchange (BSE) and its Surveillance Department on Tuesday, June 10, a Diageo India representative stated that the media reports suggesting a potential sale are purely speculative. "The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion," Mital Sanghvi, the company secretary, informed the regulating body of the Indian Stock Market. "This is for your information and records." Go Beyond The Boundary with our YouTube channel. SUBSCRIBE NOW! According to a Cricbuzz report, Diageo's statement was in response to a query from the Bombay Stock Exchange (BSE), where the company is publicly listed. Since speculation about a possible sale of the RCB franchise began circulating, shares of United Spirits — the Diageo-owned company that holds RCB — have seen a notable uptick. On Tuesday, Bloomberg reported that Diageo is considering selling the RCB franchise. The report surfaced shortly after RCB's maiden IPL title win on June 3 — a milestone achieved after 17 years — followed tragically by an incident in Bengaluru on June 4, where celebrations turned fatal, leaving 11 dead and many injured. Virat Kohli's love for 'dhaba' food, priority for family & more | RCB bus driver shares stories Though Diageo officially dismissed the sale reports as "speculative," the ambiguity of their statement has sparked deeper speculation. A seasoned voice in India's sports business ecosystem suggested that 'being a public company, there will be a lot of pressure on reputational damage,' hinting that Diageo could be weighing its options more seriously than publicly admitted. There are also murmurs about Diageo valuing the RCB franchise at around USD 2 billion. While some industry insiders view that figure as inflated — especially when compared to Torrent's acquisition of Gujarat Titans at approximately INR 7500 crore (around USD 1 billion) — others disagree. Lalit Modi , the architect of the IPL, told Cricbuzz that a USD 2 billion valuation for RCB is quite realistic. 'A particularly special feeling': Andy Flower hails Virat Kohli, RCB after historic title win "I will not be surprised if it is sold for a higher price," he remarked, adding that comparing the RCB valuation to that of the newer Gujarat franchise isn't an apples-to-apples comparison. "I will not be surprised if it is sold for a higher price," he said , stating that the valuation of GT cannot be compared here since it was a one-year-old deal. The sale report remains speculative, as clarified by the Diageo official in the response to the BSE. "No decision is final and they may decide against selling the team, the people said, asking not to be named as the details are private," the Bloomberg report says.
Time of India
31 minutes ago
- Time of India
Chinese beauty brands explore foreign M&A to spur growth
HighlightsProya Cosmetics aims to join the ranks of the top ten global beauty brands within the next decade, targeting annual revenue of at least 50 billion yuan ($7 billion) through acquisitions of established European brands. Chinese beauty companies such as S'Young and Ushopal are actively pursuing international acquisitions, having already expanded their portfolios with well-known foreign skincare and fragrance brands. Experts warn that while global acquisitions can diversify revenue streams for Chinese beauty firms, challenges remain in successfully managing and localizing foreign brands after acquisition. Some of China's top beauty brands such as Proya and S'Young are exploring acquisitions of smaller foreign rivals to expand their portfolios and replicate the success of global leaders like L'Oreal or Estee Lauder amid slowing growth at home. While still relatively unknown internationally, these Chinese brands have found significant domestic success, even capturing market share from global players. But a prolonged property crisis and concerns about wage growth and employment security have dampened consumer spending in China - posing new challenges to their continued growth. Proya Cosmetics ' founder, Hou Juncheng, said last month that the company's 10-year plan aims to position the firm among the top ten globally, a goal that would require an annual revenue of at least 50 billion yuan ($7 billion). To do so, the Hangzhou-based Proya plans "to acquire some European brands with history and technology", local media reports cited Hou as telling shareholders at a meeting. Proya, which specialises in science-backed skincare at mass market price points, became the first Chinese beauty player to surpass 10 billion yuan in annual revenue in 2024. In comparison, Japan's Shiseido, currently ranked tenth globally, raked in $6.9 billion and market leader L'Oreal generated over $45 billion in revenue last year. S'Young and Ushopal , two prominent Chinese beauty groups, have already made strides in international acquisitions. S'Young owns French skincare brand Evidens de Beaute and U.S.-brand ReVive, while Ushopal added French brand Payot to a portfolio that includes British skincare label ARgENTUM and French fragrance Juliette has a gun. William Lau, a partner at Ushopal, said the company plans to acquire one to two new brands annually. Analysts say buying foreign brands can help Chinese beauty firms diversify revenue streams and reduce reliance on the domestic market, but they also note that some similar efforts by Chinese fashion groups had missed expectations in the past. The beauty and personal care market is projected to generate a revenue of $677.19 billion globally in 2025, versus $41.78 billion in China, German data provider Statista estimates. Chinese brands are likely to target premium-positioned European skincare, fragrance or haircare brands with valuations under $500 million, said Gregoire Grandchamp, co-founder of Next Beauty China, who has advised Chinese groups on global deals. "In coming years, there will be a big Chinese company that will be the Chinese L'Oreal, Estee Lauder, Shiseido, or Amorepacific," Grandchamp predicted. GLOBAL M&A 'VERY DIFFICULT' Acquisitions have long been a growth strategy for beauty giants. L'Oreal's $2.5 billion purchase of Australian brand Aesop in 2023 added a premium, natural cosmetics brand to its portfolio, while Estee Lauder's $2.8 billion acquisition of Tom Ford in 2022 helped boost its array of high-end perfumes. Chinese beauty brands aim to borrow from this M&A playbook, but there are concerns about their ability to operate brands outside their home turf. In the fashion space, state-owned textile giant Ruyi once made headlines for snapping up foreign brands and touting its ambition to become "China's LVMH" only to see those international deals unwound by creditors in a few short years. But Ushopal's Lau says these challenges are not unique to Chinese groups, citing examples like Shiseido's buyout of Drunk Elephant to L'Oreal's purchase of some Chinese brands that struggled to meet expectations. "Global acquisitions are very difficult" in general and part of the problem is that companies often try to localise brands too quickly after a deal, he said. "One of the reasons you buy a brand is because it's an amazing brand, so if you then redo the entire DNA of the brand, what's the point of buying it?" he added. Mark Tanner, founder and managing director of Shanghai-based marketing and research agency China Skinny, said: "Opening doors to the Chinese market and capital injections, rather than a wholesale management takeover" are more likely to succeed.
&w=3840&q=100)
Business Standard
36 minutes ago
- Business Standard
TA Associates exits AU Small Finance Bank; sells 1.26% stake for ₹714 cr
Private equity firm TA Associates on Tuesday exited AU Small Finance Bank by selling its entire 1.26 per cent stake in the company for Rs 714 crore through an open market transaction. According to the bulk deal data available on the BSE, US-based TA Associates through its arm TA FDI Investors sold 93.90 lakh shares, amounting to a 1.26 per cent stake in Jaipur-based AU Small Finance Bank (AU SFB). The shares were disposed of at an average price of Rs 760.07 apiece, taking the deal value to Rs 713.78 crore. Details of the buyers of AU SFB's shares could not be ascertained on the BSE. Shares of AU Small Finance Bank fell 0.93 per cent to close at Rs 764.70 apiece on the BSE. In a separate block deal on the BSE, Morgan Stanley Asia (Singapore) sold 1.25 lakh shares of Bajaj Finserv for Rs 25 crore through an open market transaction. The shares were offloaded at an average price of Rs 1,983.8 apiece, taking the deal value to Rs 24.80 crore. These shares were acquired by Paris-based BNP Paribas through its affiliate BNP Paribas Financial Markets at the same price. The scrip of Bajaj Finserv slipped 0.92 per cent to settle at Rs 1998.35 apiece on the BSE.
