Milling & Baking News Corporate Profiles - October 2011 - (Page 118)

Company Overview J.M. Smucker Co. Company performs well in volatile economic climate T he J.M. Smucker Co., Orrville, Ohio, continued to expand its reach in the retail coffee segment while navigating instability in coffee prices in 2011. In May, the company acquired the coffee brands and business operations of Rowland Coffee Roasters, Inc., of Miami for $360 million. Manufacturing, distribution and the office facility in Miami were included in the deal. The transaction added the Cafe Bustelo and Cafe Pilon brands to the Smucker portfolio, which includes the Folgers brand and the license for Dunkin’ Donuts brand packaged coffee sold at retail. The company is the leading Hispanic coffee brand, and it had sales of more than $110 million in 2010. “The addition of the Cafe Bustelo and Cafe Pilon coffee brands, each with a rich heritage, provides us with a unique opportunity to establish a strong presence in coffee with Hispanic consumers in the U.S.,” said Richard Smucker, executive chairman and co-chief executive officer for J.M. Smucker. The addition of brands from Rowland Coffee is on track to contribute more than $100 million in sales in the current fiscal year, Mr. Smucker said at the Barclays Capital Back to School Consumer Conference held in September. Coffee prices, like many commodities, presented a challenge for the company. In February, sustained increases in green coffee costs led Smucker to raise prices for the majority of the coffee products the company sells in the United States by 10%. Products sold under the Folgers and Dunkin’ Donuts brands were affected. Then, in August, the company lowered prices by an average of 6% on coffee products sold in the United States, primarily consisting of items sold under the Folgers, Dunkin’ Donuts and Folgers Gourmet Selections brand names. Declines in the green coffee futures market drove the price decrease. Net sales for the company’s U.S. Retail Coffee segment increased 27% in the first quarter of 2012, primarily reflecting price increases. Segment profit increased $27.8 million, or 25%, in the same period, the company said. The company’s U.S. Retail Consumer Foods segment profit decreased 15% in the first quarter of 2012. Higher costs for flour, soybean oil and other raw materials pressured profits, according to the company. Net sales for the segment increased 2% and volume decreased 3% in the first quarter of 2012, compared to 2011. Richard and Tim Smucker Price increases were also necessary for the company’s peanut butter products. A poor peanut crop in 2010 created tightness in the peanut market. Smucker experienced a net sales decline of 3% and a volume decline of 4% in Jif peanut butter. In response to the poor market conditions, the company discontinued eight items in order to focus on the company’s core 18-oz and crunchy and creamy products. Smucker also scaled back promotional activity. The company said the bad conditions in the peanut market factored into the Smucker fruit spreads business, which reported an increase in net sales of 1%, but had flat volume in the quarter. CP F ast acts The J.M. Smucker company acquired the coffee brands and business operations of Rowland Coffee Roasters Inc. The company raised and then lowered prices for the majority of its coffee products as green coffee costs rose and then fell. A poor peanut crop in 2010 factored into higher prices for the company’s peanut butter products. 118 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011
Contents
Editorial - Headwinds yes, but improvement looms
Grain-based foods
Frozen meals
Soup
Beverages
Beef, chicken and pork
Dairy
Confectionery
Food service
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - The Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Groupe Danone S.A.
Company Overview - Dean Foods Co.
Company Overview - Diamond Foods, Inc.
Company Overview - Dunkin’ Brands Group Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - Hain Celestial Group Inc.
Company Overview - The H.J. Heinz Co.
Company Overview - The Hershey Co.
Company Overview - The Kellogg Co.
Company Overview - Kraft Foods Inc.
Company Overview - Krispy Kreme Doughnuts Inc.
Company Overview - Mars, Inc.
Company Overview - Nestle S.A.
Company Overview - Panera Bread Co.
Company Overview - PepsiCo, Inc.
Company Overview - Ralcorp Holdings, Inc.
Company Overview - Sara Lee Corp.
Company Overview - Smithfield Foods, Inc.
Company Overview - J.M. Smucker Co.
Company Overview - Snyder’s-Lance, Inc.
Company Overview - Tyson Foods, Inc.
Company Overview - Unilever P.L.C.
Ad Index

Milling & Baking News Corporate Profiles - October 2011

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