Dunkin’ and 1850 coffee brands strengthen JM Smucker’s quarterly sales

The JM Smucker Company has reported net sales of US$2.012 billion for the third quarter of its 2019 fiscal year, ended 31 January 2019. This represents an increase of US$108.6 million, or six per cent, over the same period last year. For its United States retail coffee products, JM Smucker reported net sales of US$561.6 million. This represents an increase of US$12.5 million, or two per cent, over the same quarter the year prior. JM Smucker attributes the increase to favourable volume and mix from its Dunkin' Donuts and 1850 brands. The favourable volume and mix were partially offset by lower net price realisation due to increased trade spend. Segment profit increased one per cent to US$183.7 million due to lower input costs, which JM Smucker says more than offset lower net price realisation and increased marketing expense. “We are pleased with the progress that we made in the third quarter to advance our consumer centric strategy for growth, including increasing contributions from new platforms such as 1850 coffee,” says Mark Smucker, Chief Executive Officer of JM Smucker. “Our results reflect strong sales across all of our key growth brands… We are also pleased with our cost management efforts, as we continue to deliver on our synergy and cost savings targets. Across all our businesses, we are executing on our strategic plan focused on meeting consumer and retail trends and delivering sustainable long-term growth.” JM Smucker coffee brands include Folgers, Dunkin' Donuts, Café Bustelo, 1850, Kava, Medaglio D’Oro, and Pilon. The Dunkin' Donuts brand is licensed to JM Smucker for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, and drug stores.