In Canada, mystery brews: a popular morning coffee staple just disappears off the nation’s largest grocery chain’s shelves, sparking heated discourse across kitchen tables and morning news desks.
What could prompt such a dramatic move? A branding conflict, a hidden quality flaw, or something more purposeful? Folgers coffee, a staple of North American morning routines, vanishes from Loblaw grocery stores.
To customers, it seems like a spontaneous blackout. But in the background, a bitter price war brews. What began as ordinary haggling has escalated—leaving customers and rivals in suspense, wondering.
Loblaw Drops a Bombshell
Loblaw Companies Limited, the owner of Loblaws, No Frills, Real Canadian Superstore, and Shoppers Drug Mart, shocked Canadians with the news of discontinuing Folgers coffee altogether.
The store cited its inability to agree on price increases, which it described as ‘significant and unjustified.’ The decision was made at a time of increasing national concern over soaring grocery prices.
Loblaw packaged it as a consumer-friendly action: not passing on significant price hikes to Canadian families.
In the Price Dispute
Behind the scenes, Loblaw’s internal memo outlined the standoff. Folgers parent company J.M. Smucker increased retail prices twice in the last year. Loblaw found the hikes weren’t justified on cost trends.
The retailer plans to phase out Folgers over a one to two-week period and marketing substitute brands. Most Canadians will no longer see their familiar red cans at checkout stands anytime soon—eliciting worry from devoted customers questioning what’s next.
A Storm in the Coffee Supply Chain
So why the price increase at J.M. Smucker’s? Global coffee bean prices have surged due to drought, shipping congestion, and grain tariffs—putting pressure on roasters.
For Smucker, keeping up with higher input costs required raising prices on in-home staples such as Folgers.
In Canada, this challenge is compounded by a weak currency and consumer discontent as grocery prices rise. The outcome: retailer against supplier, with coffee drinkers caught in the middle.
Rising Prices, Rising Tensions
Statistics Canada reports coffee prices rose by 13.4% year-over-year in April—far exceeding overall food inflation of 3.8%. Coffee bags in British Columbia have risen by a dollar per bag compared to last year.
Loblaw’s move is not just symbolic—it signals resolve to fight price inflation and maintain shopper confidence in times of economic hardship.
Folgers: More Than Just a Brand
Folgers is not just any brand—it’s a North American institution. Since 1850, it’s been ingrained in morning routines and popular culture history. J.M.
Smucker bought it in 2008, and Folgers remains one of the top-selling in-home coffee brands, along with Dunkin’ and Café Bustelo.
Its long history has influence—but will it be enough to carry it through this retailer standoff? The outcome could rewrite the rules on how legacy brands negotiate shelf space.
Grocers Fight Back
Loblaw’s stance also reflects broader retail forces. In the face of severe food inflation pressures, grocery chains are flexing their muscles, bargaining hard with suppliers.
Loblaw has invested $2.2 billion in expansion and renovations this year, showing it’s ready to reconsider supplier relationships. Abandoning Folgers could be a hard‑bargaining tactic.
Smucker’s Balancing Act
For J.M. Smucker, making higher costs disappear with price increases is no simple feat. The company already raised prices worldwide, reported diminishing profit margins, but also laid the groundwork for future increases.
Their plan is to remain profitable while holding its brand position. But with Loblaw’s threat, Smucker might have to revisit pricing—or lose a big retailer and market share in Canada.
Shoppers Left in the Lurch
What does this do for consumers in Canada? In the short run, fewer varieties of Folgers will be on Loblaw shelves.
Consumers may switch to substitutes—store-brand mixtures like President’s Choice or competitive roasts from other firms. Loblaw initiated this shift by providing a list of substitutes. The shift may even assist smaller coffee brands that are gaining shelf space.
Ripple Effects Across the Industry
Are spillover effects elsewhere? Perhaps. Other chains may reassess price expectations. Smucker may renegotiate or terminate distribution contracts to balance supply and price dynamics.
If left unresolved, rival grocers may follow suit—or choose to carry Folgers on other price models. Either way, this chapter may rewrite coffee-pricing standards in Canadian retailing.
A Global Coffee Crunch
Globally, coffee is a resilient product. Smucker quoted green-bean tariffs and supply‑chain inflation as drivers. This pressure also struck U.S. producers: Starbucks warned of price overhauls.
Smucker’s competitors are equally in the crosshairs of consumer wrath for price hikes. Loblaw’s boldness is proof of heightened consumer awareness—and retailer willingness to push back.
What Happens Next?
The outcome now rests with negotiations. Smucker can adjust price increases or modify them to regain Loblaw’s business.
Or Loblaw holds out, relying on consumers’ allegiance and alternative sources of supply. Other large Canadian chains will be watching the outcome. A resolution—or a prolonged standoff—will establish a retail benchmark.
Will Folgers Make a Comeback?
Watch store shelves in the weeks ahead: will Folgers be back on Loblaw’s shelves? Or will private-label and rival coffee gain more ground?
Consumer uproar—particularly on social media—could speed up the pressure. If Loblaw stands firm, it will likely inspire other grocery chains to follow suit and establish new retail bargaining norms.
Beyond the Coffee Aisle
The fallout of this coffee showdown extends far beyond one brand or supermarket. It shows supply chain stress, escalating costs, and reconfiguring of the balance of grocery vendor dynamics.
With inflation more deeply rooted, value is what shoppers demand—and store operators deliver. Whether Folgers comes back or not, this incident will be analyzed by industry analysts and food inflation cynics.
Discover more trending stories and Follow us to keep inspiration flowing to your feed!
Craving more home and lifestyle inspiration? Hit Follow to keep the creativity flowing, and let us know your thoughts in the comments below!