The J.M. Smucker Company is connecting its flat quarterly fiscal numbers to this year’s divestiture of its Canadian condiment business and 2023’s purchase of Hostess Brands, the company reports.
Smucker, which manufactures Uncrustables, Jif peanut butter and Milk Bone, is reporting it hiked Q4 ad spend as a percentage of net sales, 6.1%, to approximately USD $136 million.
Net sales for the quarter were $2.2 billion, a decrease of $29.1 million or 1%. For the fiscal year, net sales were $8.2 billion, a decrease of 4%. For International, which includes Canada, net sales slumped 1%.
In Thursday morning’s earnings call, CEO Mark Smucker says it has been consistently talking about aspirations in investing in brand: spend will be “up slightly” this year and “largely in Uncrustables,” because the company saw “growth in frozen hand-held portfolio.”
The CPG is now “turning on” Uncrustables brand building and investments supporting with national TV and digital to really drive household penetration and trial in the frozen aisle. There is also a merchandise and promotion component for the brand to drive interest.
“We are moving from a supply-driven growth, to demand-driven growth, which requires brand building,” he says.
With regard to its other segment ad spend, Smucker says it is taking a prudent and balanced marketing approach.
Smucker admitted to “softness” in coffee and peanut butter, with saw heightened competitiveness against its Folgers brand, with consumers seeking value.
Topline growth will be driven by pricing in coffee, with softer volumes to come, Smucker predicts, adding that competitive environments for java will normalize over time.
Finally, Smucker touted the promise of its “transformed portfolio” with its purchase of Hostess, and long-term growth of key platforms like coffee, Uncrustables, dog and cat food (Milk Bone and Meow Mix), and snacking. He also cited the promise of a new peanut butter chocolate Jif innovation and a national campaign stateside.
The company provided its fiscal year 2025 outlook, with net sales expected to increase to 10.5%.