Corporate Profiles - 2021 - 86

COMPANY OVERVIEW
J.M. Smucker Co.
J
.M. Smucker Co. believes a focus on commercial
excellence, moves to streamline its
cost infrastructure and reshape its portfolio
will prove to be a winning strategy.
In pursuing commercial excellence, the Orrville,
Ohio-based company has adapted its approach
to deliver what customers and consumers
want and need more efficiently, said Mark T.
Smucker, president and chief executive officer,
in a June 3 conference call with analysts.
" These changes included standing up a new
sales model with two distinct teams, one focused
on pets and the other on our consumer
foods and coffee businesses, " he said. " The
benefits from improved in-store execution and
leveraging insights, combined with additional
advertising and improved reach through new
digital media models, have been a driving factor
for our market share gains. "
The company's new commercial
delivery
model includes an increased focus on e-commerce,
which accounted for 12% of Smucker's
US retail sales in fiscal 2021.
The company increased its focus on profitability
and cost discipline by restructuring its corporate
support functions, efforts that are expected
to deliver $50 million in incremental cost savings
in each of the next three fiscal years.
Company sees opportunities in pet food, coffee and snacking categories
On the portfolio reshaping front, J.M. Smucker
exited the US baking ingredient category, selling
its Crisco oils and shortenings business last
year to B&G Foods, Inc. for $550 million. It also
divested the Natural Balance pet food brand.
The divestitures will allow the company to improve
productivity, reduce complexity and shift
resources to faster-growing opportunities in the
pet food, coffee and snacking categories, Mr.
Smucker said.
" Consumer habits have changed, " he said in
a Sept. 9 session at the virtual Barclays Global
Consumer Staples Conference. " One very notable
place is that people will work from home
more than they used to. "
In addition to building out the Uncrustables
brand with new offerings, Smucker may seek to
acquire brands that check similar boxes, he said.
" We think about snacking as portable, no
mess, ready-to-eat meal solutions, " Mr. Smucker
said. " Those are the key characteristics of
Uncrustables. Things that might fit into the
snacking portfolio, whether they're frozen or
not, would be something of interest. "
Expanding a facility in Longmont, Colo., will
help Smucker meet a goal of $500 million in
annual sales for the Uncrustables brand.
Another tailwind is the number of coffee
beverages consumed in the home. J.M. Smucker
has benefited from playing in both the singleserve
space as well as the premium space with
the Dunkin' and Cafe Bustelo brands. Folgers,
an anchor brand for the company that also has
gained share in recent quarters, may benefit
from more innovation, Mr. Smucker said.
" We have plans to continue to contemporize
the brand and ensure that we're not alienating
our core consumers, but we're also speaking to
new trends in the category, " he said.
An uptick in pet adoptions during the pandemic
has allowed the company to gain new
customers in the pet space. Pet snacks is one
area of strength that has benefited from more
premium innovation. Examples include new
dipped products and alternative rawhide products
under the Milk-Bone brand.
" That portfolio can continue to evolve into
a more premium space, and that is specifically
what we intend to do, " Mr. Smucker said. CP
Chief executive officer -
Mark T. Smucker
J.M. Smucker Co. net income
(fiscal years ended in April)
J.M. Smucker Co. net sales
(fiscal years ended in April)
J.M. Smucker share price
per share
$7,838
$514
2019
$780
2020
$876
2021
2019
2020
2021
$7,801
$8,003
$98
$111
$124
$137
$150
Oct. Dec.
2020
Feb.
2021
Apr.
June
Aug.
86 \ October 2021
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Corporate Profiles - 2021

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