Smucker says it’s getting bang for its marketing buck

Two-thirds of the company's brands grew or maintained share in Q3 as pet and coffee sales continue to surge.

Meow-mix

Smucker is reporting fiscal Q3 profit of $69.7 million, and revenue of $2.06 billion in the period, topping forecasts.

The maker of Jif, Smucker’s and Folgers as well as pet brands, Meow Mix and Milk Bone, is reporting net sales decreased $19.6 million, but organic net sales – which exclude the divestitures of its Crisco and Natural Balance Pet brands, as well foreign currency exchange – increased 4%.

Mark Smucker, president and CEO, says its strong third quarter reflects the continued momentum of its business and underlying consumer demand for its iconic brands, and says that it’s focusing on key growth platforms of pet, coffee, and snacking.

“We have become more efficient in our [marketing] spend and have been able to get better bang for our buck,” Smucker said in its most recent earnings call Q&A. “Over two-thirds of our brands continue to grow or maintain share, so our strategy clearly is working.”

According to the executive, the company is committed to continuing to invest in its brands as it has over the last two years and going forward and will remain “very committed to spending the requisite dollars against our brand.”

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The Milk-Bone and Meow Mix brands continued to perform well, the company reports, growing net sales 11% and 8%. And Smucker says its dry cat food portfolio continues to outperform the category.

At-home coffee habits formed during the pandemic have continued, as at-home coffee consumption now represents over 70% of all coffee drinking occasions, compared to two-thirds pre-pandemic.

A beneficiary of this shift in demand is Smucker’s K-Cup portfolio, which “continues to grow at an outstanding pace” with all its brands growing double digits in retail sales.

Regarding its Away From Home channel – the division that specializes in foodservice– Smucker notes that Canada is an area that would come online at “some point in the future.”