Smucker’s bested analyst expectations for sales, while promising to invest in its portfolio “across the board” when it comes to marketing.
The maker of Milk Bone, Jif peanut butter, Folgers coffee and Uncrustables reports that net sales for its international business (which includes Canada) spiked $11 million to approximately $300 million. Overall, Q3 net sales were $2.23 billion.
Marketing spend as a percentage of net sales, was around 5%, down slightly from the prior quarter. However, in the earnings call on Tuesday (Feb. 27), president and CEO Mark Smucker says the company “strives to be in at 6 to 7%” of net sales, and that “marketing is really key to our model.”
“We are committed to continuing supporting our brands through marketing,” he noted, adding that marketing and selling expertise helped with the move to reshape the company’s portfolio.
While Smucker’s emphasized that its marketing spend doesn’t skew to one business or another, and that it spreads pretty evenly, he did call out several brands. For example, the CPG is promising a “step up” in marketing to support the excitement regarding its recently acquired Hostess business, whose success has been a result of what he calls “iterative innovation,” and mixing flavours.
Smucker’s is also promising a marketing “step up” for its recently launched Uncrustables snack. Uncrustables came to Canada last year, with campaign support for the Smucker’s snack brand from Leo Burnett and Spark.
Performance for the frozen sandwich snack was “really good” in Canada, Smucker noted, and he says the company confidence in Uncrustables has not wavered. Traditional and social marketing and endorsements have boosted the brand’s performance.
Regarding coffee, the company says it is “advertising on all of our brands” in order to have a strong share of voice. The company reports that while K-Cups and Dunkin’ are driving growth, Folgers had “solid” performance.
“We remain confident in our strategy to lead in attractive categories, build brands consumers love, and deliver sustainable growth and shareholder value,” Smucker says.