Full year sales at the coffee, consumer and pet foods company increased 3% to $8bn, with the US retail coffee market performing robustly during the pandemic
J.M. Smucker's licensed Dunkin' coffee products performed well during the pandemic
Established retail coffee brands, including a licensed Dunkin’ range, have maintained J.M. Smucker Co’s financial position during a challenging 12 months.
In the year ending 29 April 2021, net sales for the company’s US retail coffee business increased $1.5m to $583.1m, with profits decreasing 9% to $173.7m. Volume increases for its Café
Bustelo and Dunkin’ retail coffee products were offset by a sales decline for the Folgers brand, the company said.
“Our strong financial results reflect sustained elevated demand for at-home food and coffee consumption, and consumers' desire for our trusted and iconic brands,” said said Mark Smucker, J.M. Smucker Co President and CEO.
J.M Smucker Co’s international and out-of-home business performed less favourably, with declines across flour and baking, fruit spreads, and coffee contributing to a 7% net sales decline to $242.7m.
However, indicating J.M. Smucker Co has confidence in a return to form for out-of-home sales, in March 2021 it announced a strategic partnership
with JAB Holdings-controlled JDE Peet’s to collaborate in the US out-of-home coffee market.
In a press statement, the companies said the strategic partnership would allow them to “aggressively pursue” liquid coffee innovation and sales growth across a range of out-of-home settings, such as hospitals, universities, hotels and conference centres.