This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Companies That Raised Prices This Year

Stocks in this article: DIS KO NFLX SJM COST UAL DAL

2. Smuckers
J.M. Smucker (SJM) has implemented some of the steepest price increases of the year, though it did so on products that typically only cost a few dollars to begin with.

The company raised prices on its coffee products -- which include popular brands such as Folgers and Dunkin' Donuts (DNKN) -- four separate times in the past year, including a steep 11% increase in May this year. The company pinned these increases on the rising cost of coffee beans, due both to rising demand and a poor harvest.

For some, coffee may well qualify as an essential that warrants the extra cost, but at the end of the summer, Smuckers announced it would lower the price of its coffee products by an average of 6%, perhaps hinting it had reached the limit of how much it could charge consumers, at least for now.

3. Coca-Cola
Smuckers isn't the only food company raising prices. It was revealed this summer that Coca-Cola (KO) would implement a 3% to 5% price increase on its sodas to compensate for the higher cost of transportation as well as the corn and plastic used to make their products. It might be tough to argue that Coca-Cola's sodas are really an essential, but as we reported at the time, the price increase came during the summer, when beverages of any sort are in high demand.

4. Netflix
Netflix (NFLX) is the classic example of how not to go about raising prices. The company nearly doubled what it cost to stream movies and rent DVDs in July by separating the features into two services that now cost at least $16 to bundle together, compared with $10 before.

At the time, analysts said the price hike was intended to put more of a premium on its streaming services. Indeed, a few months later the company announced plans to split in two, effectively annexing itself from the DVD side of its business by placing it under a sister company with a different name. Needless to say, the changes did not go over well with customers.

"Netflix tried to raise prices and you immediately saw the blowback that followed," Baumohl says. "Consumers were furious."

Eventually, the company decided not to split, but the price changes remained in effect. As a result, Netflix lost 800,000 subscribers in the third quarter alone, and its shares plummeted by 35% after it announced quarterly earnings on Monday, including a grim outlook: The once and recent high-flying company won't be profitable for several quarters -- not even coming close to meeting Wall Street expectations in the fourth quarter of 2011.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs