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J. M. Smucker Company (SJM)

  • Thu, Feb. 26, 10:42 AM
    • Shares of J.M. Smucker (SJM +1%) and Dunkin Brands' (DNKN +2.9%) are both higher after the two companies sign a deal to broaden distribution for Dunkin' Donuts K-cups.
    • J.M. Smucker is handling distribution to grocery stores and club chains, while Keurig Green Mountain (GMCR -0.1%) will cover office supply stores and specialty stores.
    • Perhaps the most important aspect of the new distribution deal is that Dunkin' K-Cup packs will now be sold online.
    • The K-cup shakeup isn't expected by most analysts to have a major impact on Starbucks (SBUX +0.2%) which is also a Keurig partner. Smaller coffee brands could suffer though.
  • Thu, Feb. 26, 6:48 AM
    • Dunkin' Brands (NASDAQ:DNKN) and J.M. Smucker (NYSE:SJM) expand a partnership with Keurig Green Mountain (NASDAQ:GMCR) for the distribution of Dunkin' K-Cup packet to include retailers and grocery store chains nationwide in the U.S. and Canada.
    • The current deal between the companies only includes Dunkin' restaurants in the U.S.
    • The development should have positive implications for Keurig Green Mountain (GMCR).
    • Financial terms of the arrangement weren't disclosed.
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  • Wed, Feb. 18, 4:02 PM
    • The International Coffee Organization expects global coffee demand to rise 25% by 2021.
    • Expectations for rising demand in China, India, and Latin America is partially behind the strong forecast.
    • The coffee market is under pressure currently from tight supply due to crop difficulties in Brazil.
    • A sharp drop in the real has counterbalanced the supply shortage to a degree.
    • Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
    • Related ETFs: JO
  • Sat, Feb. 14, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
  • Fri, Feb. 13, 7:54 AM
    • J.M. Smucker (NYSE:SJM) warns on continued pressure on its U.S. retail coffee business.
    • The company saw a volume decline in Folgers coffee offset gains it made during the quarter with Jif peanut butter, Crisco oils, and fruit spreads in FQ3.
    • Revenue growth by segment: U.S. Retail Coffee -1% to $571.8M, U.S. Retail Consumer Foods -2% to $549.5M, International/Foodservice/Natural -3% to $318.7M.
    • Price realization added a point of growth during the quarter.
    • Gross margin -90 bps to 36.3% as commodity price increase weren't recaptured by price hikes.
    • Marketing costs rate -120 bps to 4.2%.
    • Operating income rate -30 bps to 17.7%.
    • SJM unchanged in early trading.
    | 1 Comment
  • Fri, Feb. 13, 7:05 AM
    • J. M. Smucker (NYSE:SJM): FQ3 EPS of $1.54 beats by $0.03.
    • Revenue of $1.44B (-2.0% Y/Y) misses by $30M.
    • Press Release
    | 1 Comment
  • Thu, Feb. 12, 5:30 PM
  • Mon, Feb. 9, 6:43 PM
    • J.M. Smucker (NYSE:SJM) COO Vincent Byrd has been named vice chairman. In his new role, Byrd, along with Big Heart Pet Brands CEO David West, will "lead the integration and synergy efforts of the Big Heart Pet Brands transaction." Timothy Smucker remains chairman.
    • Mark T. Smucker, formerly the president of U.S. retail coffee, will now be president of Consumer and Natural Foods. Steven Oakland will be president, Coffee and Foodservice, and Barry Dunaway president, International and chief administrative officer. They'll all report to CEO Richard Smucker.
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  • Wed, Feb. 4, 12:03 PM
    • FreshPet (FRPT +1.6%) and PetSmart (PETM +0.1%) trade higher following J.M. Smucker's (SJM +5.3%) entry into the pet food business through an acquisition of Big Heart Pet Brands.
    • The product category has shown stronger demand from consumers than anticipated by analysts.
    • PetSmart etched out an all-time high today of $82.53 - just off its buyout price of $83.
    • Though FreshPet is off its IPO highs, the stock trades at a much higher sales multiple than what J.M. Smucker shelled out last night.
    | 1 Comment
  • Wed, Feb. 4, 9:13 AM
  • Tue, Feb. 3, 4:57 PM
    • J.M. Smucker (NYSE:SJM) is acquiring Big Heart Pet Brands from its P-E owners for 17.9M shares, $1.3B in cash, and $2.6B in debt that will be refinanced (total consideration of $5.8B). For reference, Smucker closed today with a $10.7B market cap.
    • Big Heart, known as Del Monte before unloading its consumer products ops, owns the Meow Mix, Kibbles 'n Bits, Milk-Bone, and Natural Balance pet food brands, among others.
    • The deal is expected to close by the end of Big Heart's FY15 (ends on May 3). Following its closing Big Heart CEO Dave West will serve as the the president of Smucker's pet food ops.
    • Smucker has risen to $110.75 in AH trading, making new 52-week highs along the way.
  • Fri, Jan. 23, 12:41 PM
    • Companies selling coffee perked up their ears after Starbucks said it saw strong single-serve and packaged coffee sales during its most recent quarter and took market share.
    • Grocery store analysts have noted the aggressive positioning of Starbucks products in many chains over the last six months.
    • SBUX FQ1 report, SBUX earnings call.
    • On watch: Keurig Green Mountain (NASDAQ:GMCR), Dunkin' Brands (NASDAQ:DNKN), Kraft Foods (NASDAQ:KRFT), J.M. Smucker (NYSE:SJM), TreeHouse Foods (NYSE:THS).
    | 1 Comment
  • Sat, Jan. 17, 12:45 PM
    • Milk prices are in a downward trend with an excess of supply on the international market.
    • The supply is so far beyond expectations that some U.S. cooperatives have directed farms to pour out part of their inventory.
    • A reduced level of milk imports from China and Russia has been a factor in the market.
    • Food companies are seeing a quicker benefit from the milk price decline than consumers, although analysts anticipate lower prices at grocery and C-stores stores in 2015.
    • Milk price data (consumers) vs. milk futures chart
    • Related ETFs: MOO.
  • Fri, Jan. 16, 5:19 PM
    • J. M. Smucker (NYSE:SJM) declares $0.64/share quarterly dividend, in line with previous.
    • Forward yield 2.51%
    • Payable March 2; for shareholders of record Feb. 13; ex-div Feb. 11.
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  • Dec. 10, 2014, 5:43 PM
    • Citing "sustained increases in costs," J.M. Smucker (NYSE:SJM) is "increasing the list price on its K-Cup packs sold in the United States under the Folgers, Folgers Gourmet Selections, Cafe Bustelo, and Millstone brand names" by an average of 8%. The hikes go into effect on Jan. 5.
    • SJM, along with Starbucks, is one of  Keurig Green Mountain's (NASDAQ:GMCR) biggest K-Cup licensees.  In May, Keurig and SJM expanded their partnership to cover new Keurig brewers.
    | 1 Comment
  • Nov. 24, 2014, 3:43 PM
    • Twenty-two spinoffs have been completed in 2014, the most in a decade, and another 28 have been announced. Among the catalysts are activist investors, so Credit Suisse screened for companies with multiple business segments, slow growth, and stocks trading for lower multiples than peers, in other words, "good, quality companies that are struggling to grow."
    • The list is heavy on big media names like Time Warner (NYSE:TWX) and Twenty-First Century Fox (NASDAQ:FOXA), big tech like Oracle (NYSE:ORCL), Symantec (NASDAQ:SYMC), and IBM, and big industry like Lockheed Martin (NYSE:LMT), Ingersoll-Rand (NYSE:IR), and Raytheon (NYSE:RTN), but just two financial names - Travelers (NYSE:TRV) and Torchmark (NYSE:TMK).
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Company Description
JM Smucker Co manufactures and markets branded food products.