Food Business News - July 10, 2018 - 43
time, Smucker has tended
The J.M. Smucker Co. is considering divestto outperform expectations,
ing its baking and oils business.
as measured by shareholder
return, he said.
"Although we haven't
done this over the last three
years or so, we have overdelivered in terms of shareholder
return," Mr. Smucker said.
"But in order to continue to
do that in this environment ...
these changes are necessary in
order to position ourselves for
long-term growth. And so our
J.M. SMUCKER CO.
confidence is bolstered by the
fact that everywhere that we've
difficult? I would tell you that it is taking
invested in our portfolio, if you go back to
a little bit longer. There is more discusmy prepared comments, every brand that
we've invested in has grown. Yes, we've had sion about pricing, particularly increases. But I would say, in almost every case,
some drag from the oils and baking business. Part of that is because we consciously we've continued to be successful in
getting that pricing through."
chose to back off on investment. And so
Following the conference call,
where we are focused, there is no question
Smucker announced it has entered
that we're actually seeing results."
into a partnership with Rev1 Ventures,
Regarding challenges in maintaining and/or raising prices to sustain prof- Columbus, Ohio. Rev1 invests in startit margins, Mr. Smucker said the current up companies, and the partnership is
designed to help Smucker identify new
environment is challenging.
businesses with potential in areas such
He continued, "One of the quesas ingredient and process technology,
tions you all have asked us is, is it more
snacking and commodity
supply chain. Smucker is
one of many major packaged foods companies
seeking ways to participate
in the burgeoning food
Companies Rev1 has
worked with in the past
include The Toasted Oat, a
Columbus-based maker of
soft-baked granola made
with what the company
calls "heritage receipes"
with artisan ingredients.
Plans to divest the baking and oils business indicate a recognition
by management that changes made to date,
substantial as they have been, may not be
enough to reach the level of performance
sought by the company, Mr. Smucker said.
"We recognize that there is still
more work to do as part of our company's
transformation," he said. "We also know
that we can't stand still, and we'll continue to adapt to changes in our industry
and consumer preferences." FBN
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