Food Business News - July 10, 2018 - 40
remains confident in outlook
In spite of weak results, share price,
Mark Smucker sees growth ahead
Food Business News
brands combined equated to about a third
of Smucker coffee sales. The Folgers brand
remains the company's top selling brand.
Mr. Smucker said success the
customer shipments are occurring in this
quarter, the first quarter of fiscal 2019."
Investors failed to see Smucker's
coffee cup as half full after the release
'Initial customer demand for our 1850 and
Dunkin' Donuts canister launches was even
stronger than expected.'
- Mark T. Smucker,
J.M. Smucker Co.
company has achieved in new product
introductions weighed on fiscal 2018
"Initial customer demand for
our 1850 and Dunkin' Donuts canister
launches was even stronger than expected," he said. "As a result, we incurred
greater-than-forecasted operating and
introductory costs in response to a
broader-than-anticipated launch. While
these incremental costs were incurred in
the fourth quarter, the majority of initial
J.M. SMUCKER CO.
ven as the company acknowledges underperformance against
financial objectives in recent years,
executive leadership at J.M. Smucker
Co. insists the company is anything but
standing still. To the contrary, Smucker's top executive said no corner of the
business has escaped significant change
over the past year.
In a June 7 call with investment
analysts, Mark T. Smucker, president
and chief executive officer, highlighted
signs company actions were paying off.
While profitability of the company's
coffee business fell short of objectives
in the most recent fi scal quarter, Mr.
Smucker highlighted promising underlying developments.
"We are making progress toward
aligning our coffee portfolio with the
industry by increasing our presence
in both premium and one-cup coffee,"
he said. "To this point, sales for both
Dunkin' Donuts and Cafe Bustelo grew
11% this year as the brands crossed the
$550 million and $150 million threshold,
respectively, in annual net sales."
Based on those figures, the two
of fourth-quarter financial results, disappointed that the Folgers business did not
do better. In New York Stock Exchange
trading June 7, Smucker shares traded as
low as $96.13 per share, down 10% from
the June 6 closing price of $106.52. The
price was down 29% from the 52-week
high of $133.38.
Mr. Smucker attributed weaker-than-expected performance to an elevated level of trade promotion spending
for Folgers coffee, something he said "will
July 10, 2018