CNN Money reports, "Kraft will raise prices for its Planters brand peanut butter by 40 percent starting Oct. 31."
The Los Angeles Times writes, "J.M. Smucker Co.’s Jif will boost wholesale prices 30 percent this fall, according to the Wall Street Journal. Unilever’s Skippy brand will see a 35 percent increase while ConAgra Foods Inc.’s Peter Pan label will jump nearly 25 percent."
The National Peanut Board, a farmer-funded research group, found Americans spend almost $800 million a year on peanut butter and consume more than six pounds of peanut products per person each year.
Hot weather and a drought are to blame for the peanut butter price increase. According to USDA figures on the summer crop of Runner peanuts, the variety mostly used to make peanut butter, raw peanuts that cost about $450 a ton in 2010 now cost $1,150 a ton.