Nectar of Life is a coffee producer like Folgers, Maxwell House, and Starbucks and while all other industry leaders in the coffee world are raising their prices due to higher costs; Nectar of Life is going against the grain. They are choosing to go against rising costs by reducing their prices in a calculated risk to attract new customers and build some brand loyalty. They are opting to using some of their producer surplus to appeal to these new consumers and work with smaller margins.
Due to the addictive nature of the product, coffee manufacturers are given an almost essential position in the market place. Nectar of Life is choosing a Dominant Strategy that will likely have a negative impact on its competitors but could also have a negative impact on the company that squeezes its own margins. Some economists say this will force them to raise prices eventually. I think that the company is better off choosing the Nash Equilibrium by raising its price in an effort to maximize its profits and still gain profit share.