Kraft Heinz Reportedly Seeks 2-Month Notice From Coffee Suppliers Before Tariff-Driven Price Hikes

Kraft Heinz (KHC), which owns several coffee brands, has asked its coffee suppliers to provide at least 60 days' notice before raising prices in response to potential U.S. tariffs, Reuters reported Thursday, citing an internal document.

In the April communication, the food giant reportedly urged suppliers to implement price increases only if the tariffs become permanent and to roll them back immediately if the levies are lifted.

According to Reuters, coffee has not been subject to U.S. tariffs since colonial times, and the prospect of new duties has left both roasters and suppliers uncertain about how to respond.

The report also highlights the limited power of big buyers like Kraft Heinz in negotiating prices with suppliers, which are set months in advance.

The Reuters report said under the Green Coffee Association contract, which covers most shipments to the United States, tariff costs imposed at the market of destination "shall be borne by the buyer."

Kraft Heinz's coffee business makes up about 3% of its total revenue. Its consumer coffee brands include Maxwell House, Gevalia, and Sanka.

The issue in the coffee business comes amid broader weakness due to competition and tariff pressures.

Kraft Heinz's sales dropped in the last quarter, and it lowered sales and profit forecasts for the rest of the year.

Investment firm Bernstein has highlighted flattish to weak growth for four of its key products: Lunchables, Kraft Mac & Cheese, Capri Sun, and Oscar Mayer.

On Stocktwits, the retail sentiment dropped to 'neutral' from 'bullish,' with 'low' message volume.

Kraft Heinz shares are down 7.2% year to date.

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