Milling & Baking News Corporate Profiles - November 2013 - (Page 122)

Company Overview The J.M. Smucker Co. Growth may come in single-serve coffee, name brands T he J.M. Smucker Co., Orrville, Ohio, has opportunities to grow in three product areas, said Richard K. Smucker, chief executive officer, in a Sept. 3 presentation at the Barclay's Back-to-School Conference in Boston. They include expanding in single-serve coffee, growing the Smucker and Jif brands, and building the frozen handheld business. A partnership with Green Mountain Coffee Roasters, Waterbury, Vt., has brought success in single-serve coffee. "In 2013, K-Cups added nearly $290 million to our top line, accounting for roughly half of the total company new product sales," said Vince Byrd, president and chief operating officer, on Sept. 3. "While growth rates are moderating, given the increased competition in the segment, we anticipate our K-Cup sales to grow approximately 15% this fiscal year and remain pleased with our positioning." The introductions of Jif Natural and Jif To Go have accelerated growth in that brand, he said. In frozen handheld, Uncrustables frozen sandwiches have had three straight quarters of 20% volume growth in retail channels. The J.M. Smucker Co. is investing $80 million in an expansion to add capacity for Uncrustables at a plant in Scottsdale, Ky. In the fiscal year ended April 30, the J.M. Smucker Co. had net income of $544.2 million, or $5 per diluted share, which was up from $459.7 million, or $4.06 per diluted share, in the previous fiscal year. Net sales of $5.9 billion in the year ended April 30 compared to $5.5 billion in the previous fiscal year. In the current fiscal year, the J.M. Smucker Co. expects net sales to decrease by about 1% compared to 2013. "This decrease reflects the impact of passing through lower green coffee cost," said Mark Belgya, senior vice-president and chief financial officer, on Sept. 3. He added the company has earningsper-share guidance of $5.72 to $5.82 for the current fiscal year. Mr. Smucker said, "While we will adjust tactics to changing circumstances, we remain committed to our strategy and the long-term growth of our business and our brands. We expect to grow net sales annually by 6% over our strategic time frame. Over half of this growth is expected to be achieved organically with the remainder from acquisitions." When deciding upon acquisitions, the Chief executive officer - company considers such characteristics as brand leadership, center-of-the-store presence and North America-focused, Mr. Smucker said. "We take a focused and disciplined approach to acquisitions and believe that over time, attractive brands and businesses will come to the market," he said. "As you go through the store aisles today, I think you will agree that there are a number of brands that would fit nicely into our portfolio." He said The J.M. Smucker Co. categorizes acquisitions in three different types: transformational, bolt-ons and enabling. Mr. Smucker cited the Enray, Inc. acquisition, which was completed in August, as an enabling acquisition. Enray, a privately-held company based in Livermore, Calif., manufactures and markets organic, gluten-free ancient grain products that primarily are sold under its flagship brand, truRoots. Enray will add more than $50 million in sales on an annual basis, Mr. Smucker said. "Enabling acquisitions, while typically smaller in size, present opportunities for new products, capabilities and technologies as well as capitalizing on our current resources," Mr. Smucker said. CP Top brands - Smucker Jif Uncrustables Fiscal year 2013 net sales - Richard K. Smucker 122 \ November 2013 $5.9 billion 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 - November 2013

Milling & Baking News Corporate Profiles - November 2013