The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2020)
19 slides from The J.m. Smucker's investor day presentation, Dec 10, 2020
Slide 1: Investor Day
INVESTOR DAY DECEMBER 10, 2020
Slide 2: Geoff Tanner
GEOFF TANNER Chief Commercial & Marketing Officer 2
Slide 3: Transformation
Transformation 3
Slide 4: Structural Shifts
STRUCTURAL SHIFTS
Slide 5: Resurgence of Trusted, Familiar, Iconic Brands
RESURGENCE of Trusted, Familiar, Iconic Brands 55% 77% Consumers J.M. Smucker Co. turning to Brands with brands they HOUSEHOLD TRUST GROWTH 5 SOURCE: 2020 EDELMAN TRUST BAROMETER SPECIAL REPORT: BRANDS AND THE CORONAVIRUS, EDELMAN, MARCH 2020, EDELMAN.COM “IN THIS TIME OF CRISIS, I AM TURNING MORE A
Slide 6: High Efficiency Shopping
HIGH EFFICIENCY Shopping INCREASED $ PER TRIP DIGITAL-FIRST SHOPPING MORE PRODUCTIVE +11% YOY growth in $ per trip when purchasing +57% SHELF ASSORTMENTS SJM E-Commerce growth during Smucker products COVID-19 Pandemic 6 SOURCE: IRI NCP 52 WE 11.1.20 VS YA; 2. 1010 DATA 6 MONTHS ENDING SEPTEMBER 2020
Slide 7: Category Tailwinds
Category TAILWINDS +11M new pet households in 2020 U.S. RETAIL PET FOODS a +9% INCREASE 30% TREATING MORE are U.S. RETAIL COFFEE +1M coffee & espresso machines purchased during the COVID-19 Pandemic 55%eating at home more often U.S. RETAIL CONSUMER FOODS of U.S. Households are 7 SOURCE: APPA COVID P
Slide 8: Commercial Model: Strategic Growth Imperatives
LEAD IN THE BEST BUILD BRANDS BE EVERYWHERE CATEGORIES CONSUMERS LOVE Strategic Growth IMPERATIVES Commercial MODEL WINNING WITH WINNING WITH CONSUMERS CUSTOMERS 8
Slide 9: Brand Building Model Objectives
Brand Building Model OBJECTIVES CULTURALLY RELEVANT BROADER REACH, AGILE, DATA-DRIVEN & CREATIVE MORE PRECISE TARGETING COST-EFFECTIVE MODEL Culturally Relevant Creative 9
Slide 10: Importance of Quality Creative
Importance of QUALITY CREATIVE 12 Percent Sales Contribution by Advertising Element NEW BREAKTHROUGH CAMPAIGNS 40% Executional Elements 60% Copy, Quality / Creative Source: Nielsen Five Keys to Advertising Effectiveness, Video Creative, Sept 2017 10
Slide 11: Brand Building Accomplishments
Brand Building ACCOMPLISHMENTS BROADER, MORE EFFICIENT DRIVING SUPERIOR RETURNS REACH, AND FASTER TO MARKET +10% increase in reaching new households +12% Gross $ from Marketing Investments REDUCED Non-working spend by $30M +15% Margin ROI 50% faster to market 11
Slide 12: Commercial Model: Strategic Growth Imperatives
LEAD IN THE BEST BUILD BRANDS BE EVERYWHERE CATEGORIES CONSUMERS LOVE Strategic Growth IMPERATIVES Commercial MODEL WINNING WITH WINNING WITH CONSUMERS CUSTOMERS 12
Slide 13: New Focused, Streamlined Sales Model
New Focused, Streamlined SALES MODEL Dedicated Pet Precision Selling E-Commerce and Food & Customer GPS Acceleration Beverage Teams Platform 13
Slide 14: Dedicated Pet and Food & Beverage Sales Teams
Dedicated PET and FOOD & BEVERAGE Sales Teams PET FOCUSED FOOD & BEVERAGE FOCUSED PET FOOD & PET CARE COFFEE & CONSUMER $57B CATEGORY $68B CATEGORIES 14 Source: Euromonitor; Addressable markets, 2020 Retail Value RSP, Categories defined as Pet Food, Pet Products, Coffee, RTD Coffee, Sweet Spreads, F
Slide 15: Customer GPS Feeds a Customized Analytical Communication
Customer GPS FEEDS A CUSTOMIZED ANALYTICAL COMMUNICATION PERFECT SALES EXECUTION >BILLION DATA POINTS DISTRIBUTION MERCHANDISING SYNTHESIZE 13 DATA SOURCES PRICING SHELVING IN-STOCK 80+ DATA VISUALIZATIONS 15
Slide 16: Accelerating E-Commerce, Profitably
Accelerating E-COMMERCE, Profitably PROFIT LEVERS Optimize Assortment +57% 11% Unique SKU’s YTD SJM YTD SJM Supply Chain Efficiencies E-Commerce U.S. Retail Sales Growth Brand Protection & Minimum Advertised Pricing 16 SOURCE: JMS INTERNAL DATA, INCLUDES BOTH PURE PLAY & CLICK & COLLECT
Slide 17: Momentum
MOMENTUM
Slide 18: Momentum
MOMENTUM WEIGHTED % OF SJM BRANDS GROWING DOLLAR SHARE 46% 37% 39% 26% 27% FYQ2 2020 FYQ3 2020 FYQ4 2020 FYQ1 2021 FYQ2 2021 SOURCE: IRI MULO FYQ2 THROUGH10.25.20 18
Slide 19: Commercial Model: Strategic Growth Imperatives
LEAD IN THE BEST BUILD BRANDS BE EVERYWHERE CATEGORIES CONSUMERS LOVE Strategic Growth IMPERATIVES Commercial MODEL WINNING WITH WINNING WITH CONSUMERS CUSTOMERS 19
The J.M. Smucker Company — Investor Day (December 2020) on 6ix