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J M Smucker sees smaller decline in annual sales

Jif peanut butter maker J M Smucker Co. forecast a smaller-than-expected decline in annual revenue on Tuesday, betting on higher prices and steady demand for its ready-to-eat meals and snacks.

Packaged food product makers have been bumping up prices to combat elevated raw materials, supply chain, labour and freight costs.

Yet they have faced little resistance from consumers who prefer to prepare meals at home rather than spending more on eating out amid mounting recessionary worries, also evident from the latest quarterly reports of peers Kraft Heinz, Kellogg Co. and Hershey Co.

Besides, J M Smucker is looking to add specialized and less expensive products such as seasonal flavours of its packaged Dunkin’ coffee to the shelves of dollar stores to attract budget-conscious shoppers.

The company expects its full-year net sales to decrease 10 per cent to 11 per cent, compared with analysts’ average estimate of a 14 per cent fall, according to Refinitiv data.

BUSINESS

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2023-06-07T07:00:00.0000000Z

2023-06-07T07:00:00.0000000Z

https://saltwire.pressreader.com/article/281891597670944

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