Smucker (J.M.) manufactures and markets food products. Co.'s principal products are coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, pickles, condiments, and grain products. Co.'s family of brands includes Smucker's®, Folgers®, Pillsbury®, Eagle Brand®, R.W. Knudsen Family®, Hungry Jack®, White Lily®, and Martha White® in the U.S., along with Robin Hood®, Five Roses®, Carnation®, and Bick's® in Canada. In addition, Co. markets products under various other brands, including Millstone®, Dickinson's®, Laura Scudder's®, Adams®, and Santa Cruz Organic®.
SJM’s moat comes from large number of category-leading consumer brands, including Folgers, Jif, and Smucker's. Depth and breadth of Smucker's brands gives the firm significant bargaining power in negotiations with retailers, since many of its brands are well known and drive retail traffic
Fiscal 2014 (ends April 30, 2015) was a difficult year for J.M. Smucker. Coffee profits were down 17%. Coffee will remain challenging in the near term, as Smucker's Folgers line faces stiff competition from Maxwell House and Chock full o' Nuts. Smucker finalized the acquisition of Big Heart Pet Brands, the maker of Meow Mix , Milk-Bone, and 9Lives pet foods, among others. SJM has expanded its partnership with Dunkin' Donuts, which now allows Smucker to distribute Dunkin' Donuts K-cups at all major retail outlets. Wall Street has reacted positively to these moves as reflected by the higher share price. Much of our forecasted potential is now reflected in the share price.
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Strong brand portfolio
Strong inorganic growth
Strong growth in revenues
Continuous product innovations
Concentrated customer base
Small scale operations compared to competitors
Fluctuations in raw material prices
Growing foodservice industry
Growing coffee consumption in the US
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