ORRVILLE, Ohio -- J.M. Smucker Co. said it expected its coffee business to get back on track later this year as bean prices stabilize and the company introduces smaller Folgers cans to win back customers it lost after raising prices, reported Reuters.
"In the second quarter of fiscal 2016, we will begin to convert our core Folgers roast and ground items to a smaller canister [and] we look forward to providing consumers with a lower price point without compromising quality and improving our competitive positioning within mainstream coffee," president and COO Vincent Byrd said during the company's earnings call.
It currently sells Folgers roast coffee in cans ranging from 10.3 to 38.4 ounces.
Smucker, along with Kraft Foods Group Inc., raised prices last year after a drought in top coffee grower Brazil caused green coffee costs to soar. Smucker raised prices on most of its U.S. packaged coffee in June, leading to a sharp drop in sales volumes as customers shifted to cheaper private-label brands. The company in November termed the price increases a "misstep," the news agency said.
Smucker raised prices on its K-Cup packs by 8% in January.
The company, which also makes Jif peanut butter and Smucker's jams, said U.S. coffee volume decreased 8% in the third quarter, driven by Folgers. Net sales fell 1% as price increases offset lower volume.
Smucker said it was also hurt by increased promotional spending on its K-Cup packs and Dunkin' Donuts packaged coffee.
In other company news, Smucker announced a series of key executive promotions,
Byrd, eho has been with the company for 38 years, will assume the role of vice chairman. In this newly created position, he, along with David West, will lead the integration and synergy efforts of the recent Big Heart Pet Brands transaction.
Mark T. Smucker will assume the role of president for consumer and natural foods. He has 17 years of experience with the company, most recently serving as president for U.S. retail coffee.
Steven Oakland, who has been with the company for 32 years, will assume the role of president for coffee and foodservice. He most recently held the position of president of international, foodservice, and natural foods. Mr. Oakland has been with the Company for 32 years.
And Barry C. Dunaway will assume the role of president for international and chief administrative officer. He has 28 years of experience with the company, most recently serving as senior vice president and chief administrative officer.
In addition, following the anticipated closing of the Big Heart Pet Brands transaction, David West will assume the role of president for Big Heart pet food and snacks. He is currently CEO of Big Heart Pet Brands and has more than 25 years of food industry experience.
Orrville, Ohio-based Smucker is a leading marketer and manufacturer of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and natural foods products in North America. Its family of brands includes Smucker's, Folgers, Dunkin' Donuts, Jif, Crisco, Pillsbury, Eagle Brand, R.W. Knudsen Family, Hungry Jack, Millstone, Cafe Bustelo, Cafe Pilon, truRoots, White Lily, Martha White and Sahale Snacks in the United States, along with Robin Hood, Five Roses, Carnation and Bick's in Canada.
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