Smucker finished 2021 on par with S&P500; revenue down

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Despite lagging the S&P500 for much of 2021, J.M. Smucker stock finished the year slightly above the S&P. Investment bank Cascadia Capital follows its own index of publicly traded pet industry stocks, including NestléJ.M Smucker, Chewy and FreshPet. Smucker and Purina’s stocks finished nearly on par with the S&P500 in 2021, while the Chewy and FreshPet finished lower. Cascadia’s analysts examined the drivers of this growth in “Pet Industry Overview Spring 2022.” 

Despite beating the S&P500, Smucker’s pet retail revenues in the United States declined by 7.4% during the 12-month period ended January 31, 2021. Cascadia’s analysts expect this trend to continue as the effects of pet food divestures continue to be felt by Smucker. Smucker’s pet division profitability declined 29.5%.

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Cascadia’s analysts pointed to data suggesting J.M. Smucker’s growth across categories had more to do with product access, and that real household penetration and repurchase rates declined during the lingering pandemic. Many of these challenges may trace back to Smucker’s dog food lines, which have experienced persistent share declines. Smucker’s dog food brands portfolio lost 20% of its market share in the natural pet foods category during the past five years due to headwinds for Nutrish and Blue Buffalo’s entrance into food drug and mass market retailers. Smucker’s leaders may address these dog kibble difficulties by expanding wet dog foods and launching Nutrish dog snacks, while adjusting its advertising strategy.

On the other hands, Cascadia’s analysts noted that Milk Bone continues to deliver quarterly growth. Meow Mix has assumed the number one position in dry cat food household penetration, volume and dollar share. Meow Mix grew twice as fast as the broader category.

J.M. Smucker pet foods history

According to Petfood Industry’s Top Companies Current Data, J.M. Smucker is a leading producer, distributor and marketer of premium-quality, branded pet food and pet snacks in the U.S., Smucker runs processing plants in Decatur, Alabama; Lawrence, Kansas; and Buffalo, New York, USA. Both a processing plant and distribution center are operated at locations in Topeka, Kansas, USA, and Bloomsburg, Pennsylvania, USA. In addition to its own brands, Smucker produces and distributes private-label pet products and utilizes 16 co-packers and 12 re-packers in the U.S., Canada and Thailand.

Smucker ranks fourth among all pet food companies worldwide in annual revenue with US$2,694,000,000 in 2021.

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