COFFEE INCREASE

Hey guys, this is across the board!! All manufacturers seem to be increasing 6-30% !! Time to tighten the belts and increase coffee prices!! :-(

July 15, 2010
To Our Valued Customers:
Sara Lee Foodservice remains committed to aggressively driving efficiency within our supply chain organization to help offset escalating commodity costs. However, due to the unexpected rise in green coffee market costs (41% increase since last Roast & Ground pricing action and 25% increase since last DE Cafitesse Liquid action), we have determined it is necessary to take a pricing action.
As a result, we will be implementing a national list price change on the following Sara Lee Foodservice categories effective August 15th, 2010:
Operator contract pricing on coffee products will be adjusted in accordance with the terms of the existing agreements.
All orders received with standard lead times prior to August 15, 2010 will be invoiced at current price levels. In order to ensure proper service for all customers, it may be necessary for Sara Lee to limit orders to average levels as determined by Sara Lee based on a customer’s purchase history. Backorders will not be created in the event an order needs to be adjusted.
In order to provide you better clarity to the three components of the Sara Lee Beverage value proposition (Ingredients, Equipment, & Service), we will provide specific commentary on the impact of price changes on all elements. At this time, there is no change in pricing associated with Equipment or Service.
Please contact your respective Sara Lee representative should you have any questions regarding these changes.
We will continue to monitor the developments in the green coffee commodity markets and make adjustments as changes in those markets dictate. Thank you for your business and your continued support of Sara Lee products.
Sincerely,
Christopher J. Johnson
Vice President, Beverage Sales
Sara Lee Foodservice
Products
List Price Change
Roast & Ground Coffee
$0.40/lb
Douwe Egberts Cafitesse Liquid Coffee
$2.50 - $4.00/case