Americans are resorting to frozen PB&J and instant coffee -- that's good news for Smucker
By Alicia Wallace, CNN Business
(CNN) -- As the Covid-19 pandemic has kept more people at home, they're turning to coffee and PB&J sandwiches -- and that hits right in the sweet (and sticky) spot for J.M. Smucker.
The Orrville, Ohio-based Smucker on Tuesday reported double-digit sales increases for brands such as Folgers coffee, Jif peanut butter, Smucker's jams and jellies, and Uncrustables frozen peanut butter and jelly sandwiches.
The growth in Smucker's consumer food products and coffee brands helped lift the company's quarterly revenue by 11% to $1.97 billion for the three months that ended on July 31.
While Folgers and Jif posted respective sales increases of 13% and 14% for the quarter, the brands seeing the largest growth were Smucker's at 25%, Uncrustables at 35% and baking mainstay Crisco, at 50%.
"More consumers are purchasing our brands, they're repeating purchases at a higher rate, and they're spending more than they were before," CEO Mark Smucker told analysts Tuesday, during the company's fiscal first-quarter earnings call.
Consumers' pantry-loading during the early stages of the pandemic knocked many supply chains, including Smucker's, out of whack. But during the most recent quarter, brands such as Jif regained some market share as not only more jars of peanut butter, but a greater selection of similar products, returned to store shelves, Smucker said.
Smucker's pet food business, which has become the company's largest segment in recent years, was up 3% to $692.6 million as declines in dog food sales weighed down gains in cat food and dog treats.
Sales of pet food spiked this spring as people pantry-loaded to ensure their furry friends wouldn't be without sustenance. As expected, those sales fell as purchases tapered off.
Smucker's international and away-from-home segment declined 9% to $219.1 million.
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