November 16, 2017 / 2:49 PM / a year ago

BRIEF-Smucker on conf call- Will have a greater benefit from lower green coffee cost in Q4

Nov 16 (Reuters) - J M Smucker

* Had Q2 double-digit sales increases for Nature’s Recipe, Dunkin’ Donuts and Jif, and high single digit growth for Uncrustables‍​

* Can capitalize on strength of brands like Folgers, Smucker’s, Jif by expanding reach through introduction of new platforms such as premium coffee and snacking

* On conf call- e-commerce sales for pet food brands doubled in Q2, Jif peanut butter rose over 75% and coffee sales increased over 150%

* On conf call- just over 2% of U.S. Retail sales came from e-commerce in Q2

* New agreement with Keurig has lower costs, helps expand distribution of our brands and sell multiple pack sizes and new varieties

* Q2 commodity cost, notably green coffee, were higher but were offset by the overall higher net pricing

* Q2 net sales for folgers declined 6% driven by roast and ground coffee as folgers k-cups sales were flat

* Lower green coffee cost will have a greater benefit in Q4, Q3 will experience a sharp increase in marketing spend, reflecting our U.S. Olympics sponsorship

* Executive on conf call- coffee business “fragmented, it’s not as simple as it was 10 years ago”

* We do about 20- 21% of our coffee business in k-cups

* “ we think there’s an opportunity to as much as double our k-cup business over time”

* “Our opinion is there’s going to be a lot of arabica coffee in the world next year” Further company coverage: ( )

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below