Shoppers across Canada will soon find Folgers coffee missing from Loblaw shelves as the country’s largest grocer moves to delist the iconic American coffee brand following an impasse over price increases.

In an internal email sent to retailers on Wednesday, Loblaw Companies Limited said that it had decided to pull all Folgers products from its stores after failing to reach a pricing agreement with the brand’s manufacturer, the J.M. Smucker Company. According to the email, Loblaw determined that the proposed price increases were significant and unjustified.

Suren Theivakadacham, category director at Loblaw, said in the email that the company was taking this step to protect its customers and to help keep prices low. Theivakadacham noted that the decision reflects Loblaw’s ongoing efforts to provide value for customers by rejecting unreasonable cost increases that would otherwise impact Canadian consumers.

The email included a list of alternative coffee products that stores can stock as Loblaw begins removing Folgers inventory. The company expects that most locations will be sold out of Folgers coffee within one to two weeks.

A Loblaw spokesperson, Catherine Thomas, said that the retailer considered the proposed cost increases from Folgers to be unreasonable and unjustified based on underlying costs. Thomas explained that Loblaw felt it was necessary to push back on the price hikes, particularly as many Canadians continue to face affordability challenges. She added that while the decision may inconvenience some customers, Loblaw believed it was the right step to take in order to address rising food prices.

Coffee Prices Soar Across Canada

The dispute comes amid sharp increases in coffee prices nationwide, creating new financial pressures for both retailers and consumers. According to Statistics Canada, the price of coffee and tea rose by 13.4 percent year-over-year in April, exceeding both the 3.8 percent increase in overall grocery costs and Canada’s general inflation rate of 1.7 percent for the same period.

In British Columbia, coffee prices climbed by 15 percent over the past year, amounting to roughly a dollar more per bag for many consumers. Analysts suggest that these price pressures are unlikely to ease in the near term.

Multiple Factors Behind Rising Costs

The current surge in coffee prices is being driven by a range of global, environmental, and economic factors. Severe droughts and extreme weather events in major coffee-producing regions such as Brazil have contributed to lower yields, reducing supply worldwide. In February 2025, global coffee bean prices reached $4.40 USD per pound, up from $1.43 USD per pound in late 2023—a dramatic 207 percent increase over just 15 months.

Climate-related disruptions continue to affect growing conditions, with droughts and unpredictable temperature fluctuations placing additional strain on harvests.

At the same time, a weaker Canadian dollar has made it more expensive for Canadian importers to purchase coffee from international suppliers. Trade tensions have also played a role, with coffee remaining subject to Canada’s retaliatory tariffs against the United States. Many Canadian distributors continue to source coffee through U.S.-based brokers, making Canadian pricing sensitive to U.S. trade policies.

These combined factors are driving up prices not only for packaged coffee sold in grocery stores but also for brewed coffee at cafes. While large chains such as Tim Hortons and McDonald’s may be better positioned to absorb these increases, smaller independent cafes and specialty roasters may be forced to pass costs directly on to consumers.

Smucker Signals More Price Increases Ahead

Folgers coffee is manufactured by the Ohio-based J.M. Smucker Company, which has already raised prices multiple times in the past year. In June and October, Smucker increased prices across its coffee portfolio, citing higher costs as the driving factor.

During a February earnings call, company president and CEO Mark Smucker told analysts that further price increases were likely in the coming fiscal year, probably within the first half. Smucker stated that pricing decisions were being made in response to ongoing increases in company costs.

Loblaw Maintains Tough Position on Supplier Pricing

Loblaw’s move to delist Folgers reflects a broader trend of Canadian grocers adopting a firmer stance in supplier negotiations as food inflation becomes an increasingly sensitive public issue. Loblaw, in particular, has positioned itself as taking a leadership role in protecting Canadian consumers from soaring prices.

With over 2,400 stores across the country operating under banners such as Loblaws, No Frills, Real Canadian Superstore, Shoppers Drug Mart, and T&T Supermarket, Loblaw serves approximately 90 percent of Canadians. The company’s private label brands, including President’s Choice and No Name, remain among the most recognized and widely purchased in the Canadian market.

Earlier this year, Loblaw announced plans to invest $2.2 billion in store expansion and supply chain improvements, with 80 new store openings and 8,000 new jobs planned for 2025. Over the next five years, the company expects to invest more than $10 billion into the Canadian economy.

Ongoing Uncertainty for Canadian Coffee Shoppers

For many Canadians, escalating coffee prices have become a significant pain point as part of broader cost-of-living challenges. The combination of global supply disruptions, climate effects, currency weakness, and trade issues continues to apply upward pressure on coffee prices, with little immediate relief in sight.

Industry experts warn that meaningful price stabilization may only occur once weather patterns improve in key growing regions and global trade tensions ease. In the meantime, the absence of Folgers from Loblaw shelves is likely to push some shoppers toward alternative brands as they continue navigating one of the most volatile coffee markets seen in years.

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