J.M. Smucker Co.'s performance in its third quarter was hurt by lower volumes in its coffee division, which were down 9.2% in the 12 weeks ending Jan. 28, according to Morgan Stanley Research. The company attributed the declines in Folgers coffee to competition, promotions not being as effective as in the past and consumers not responding well to promotional prices that were higher than in the past for its roast and ground coffee products, reported Wichita Eagle (Feb. 13).
J.M. Smucker experienced an overall coffee dollar sales decrease of 0.4% over the past 12 weeks, with Folgers dollar sales down 0.9% and Dunkin Donuts dollar sales down 4.7%. The company's prospects improved somewhat in the four weeks ending Jan. 28, when overall dollar sales were up 2.3% and the decline in volume sales was only 3.9%.
However, the increase was mainly attributed to a 7% price bump combined with the slowing slide of volume sales, according to Morgan Stanley.
The company expects results from its coffee segment to remain soft in the near term. Despite the trouble the company posted a profit of $160.9 million for the period.
Several food companies reported earnings over the last week. While manufacturing and retail are thriving with increased sales during the pandemic, portions of the foodservice segment continues to struggle.read more
With a background in both daily and weekly publications, Bryan has worked as a journalist since freelancing for his hometown paper in high school. He has since written both in print and online for min, The Times of Trenton and North Jersey Media Group, holding positions from stringer to editor. With a background as a news reporter, he has learned to seek out the focus behind the story, digging for the most important information.
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