Loblaws Drops Folgers Coffee Products Due to “Unjustified” Cost Increases

Coffee is part of our daily routine. For many Canadians, Folgers coffee at Loblaws is a go-to brand. But now, it’s missing from Loblaws stores. Why? Because Loblaws says the price hikes by Folgers aren’t fair. They’ve called the cost increases “unjustified” and removed the product from their shelves.

This move surprised many of us. We often count on big stores like Loblaws to give us trusted brands at fair prices. But when suppliers raise prices too much, stores have to make tough choices. Loblaws chose to speak up and take action.

Let’s look at why Loblaws made this decision. We’ll also explore what it means for shoppers, for the coffee industry, and for brand trust. Let’s break it down and see what’s brewing behind the scenes.

Background on Folgers Coffee at LobLaws

Loblaws is one of Canada’s biggest grocery names. It runs Real Canadian Superstore, No Frills, Shoppers Drug Mart, and more. Folgers is a classic American coffee brand. It’s been stocked in Loblaws for years.

Their partnership has served many Canadians. Shoppers count on Folgers for its reliable taste and price. But that relationship hit a snag when prices spiked. Loblaws found the new cost levels hard to justify.

What Happened: Loblaws Scraps Folgers

In early June 2025, Loblaws made a public statement. They said they would stop stocking Folgers. The reason? Cost increases that were too steep to accept.

Loblaws labeled those hikes “unjustified.” They pulled the coffee from their stores nationwide. No slow phase-out, just a clean break. The company wants all suppliers to offer fair pricing or face removal from the shelves.

The Price Increase in Context

Coffee prices have been rising globally. Raw arabica prices nearly doubled over the past year due to droughts and supply chain issues. That pushed roasters like JDE Peet’s to ask for higher prices. Many grocers resisted, causing empty shelves in some regions.

In North America, coffee prices rose about 4.6% in volume last yearand volumes dropped 3.8%, as consumers cut back. Folgers, owned by J.M. Smucker, raised its price twice in the past year. 

The company warned that even more increases would hit consumers.

Loblaws says Folgers’ price hike went beyond what raw beans cost. They felt the brand was unjustly inflating retail prices. The result? Folgers vanished from shelves.

Consumer Impact: Folgers Coffee Loblaws

For many shoppers, Folgers was a go-to option. Now it’s gone. Loblaws still offers private-label coffee, usually cheaper. But for lovers of that distinct Folgers flavor, it’s a disruption.

Let’s do the math. If Folgers jumped from $12 to $18 per bag, a household that buys it weekly spends an extra $25 a month. That adds up, especially with other rising costs.

But Loblaws’ move might save consumers money if they switch to cheaper alternatives. Or it could just shift the pain, depending on what’s available.

Retail Strategy Behind the Move

Grocery stores work on tight margins. They can’t just absorb big price hikes. Loblaws decided to push back. They’re warning other suppliers: unfair prices won’t fly.

This may spark a chain reaction. Other Canadian chains like Metro or Sobeys might follow suit. Meanwhile, Folgers could return if its parent company, Smucker, negotiates a better price.

Loblaws’ stance gives it control. It sends a message:

Pricing must be fair to consumers, or brands lose shelf space.

What’s Next: Scenarios to Watch

Scenario 1: Smucker reduces the price. Folgers returns.
Scenario 2: Loblaws sticks to its guns. Folgers stays off the shelves.
Scenario 3: Rivals take advantage. Other stores scoop up any Folgers left, possibly at higher prices.

This showdown tests brand loyalty. Will many shoppers move to private labels or smaller brands instead?

Consumer and Market Trends

Global trends still work against coffee prices. Droughts in Brazil and other top producers continue to hit supply. Arabica prices remain volatile.

Meanwhile, shoppers are downtrading. More people are choosing store-brand options. Private-label coffee grew its market share in North America from 20.5% in 2021 to 23.1% in 2024.

Loblaws might benefit from this shift. Their brand of coffee is cheaper. That could boost loyalty to their label.

Final Thoughts

Loblaws removed Folgers over steep, “unjustified” price hikes. Raw coffee costs have surged across the globe. But Loblaws drew the line at what consumers should pay.

We’ll be watching to see how Smucker responds. And if Canadian shoppers shift away from Folgers for good. One thing is clear: grocery pricing is under pressure. Stores are fighting back, and shoppers are paying close attention.

For Canadians who love their coffee, this is a wake-up call. Be ready for changes. And weigh your options. Because, in the end, fair pricing matters especially at the start of our day.

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Disclaimer:

This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.