The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2022)
47 slides from The J.m. Smucker's investor day presentation, Dec 14, 2022
Slide 1: Investor Day 2022
INVESTOR DAY 2022
Slide 2: Executing Our Strategy
Executing Our Strategy JOHN BRASE Chief Operating Officer
Slide 3: Our Strategy Makes Us Stronger
OUR STRATEGY MAKES US STRONGER Execution & Leveraging Investments our Scale Delivering for our Strong Financial Customers Results 3
Slide 4: Focusing on the Future
FOCUSING ON THE FUTURE PET FOODS CONSUMER 2 COFFEE & PET SNACKS FOODS Our Brands & Categories ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Provide an ADVANTAGED POSITION Among Packaged Food Companies 4
Slide 5: U.S. Retail Pet Foods
U.S. RETAIL PET FOODS OTHER BUSINESSES DIVESTED 2% $2.8B FY22 NET SALES DOG FOOD SNACKS 31% 33% CAT FOOD 32% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 5
Slide 6: The Strategic Importance of Dog Snacks
THE STRATEGIC IMPORTANCE OF DOG SNACKS MARGIN ACCRETIVE WITH STRONG PROJECTED FUTURE GROWTH MARKET LEADER WITH 23% DOLLAR SHARE AND NEARLY 60% HOUSEHOLD PENETRATION YOY NET SALES GROWTH IN 16 OF LAST 18 QUARTERS EXPECT DOG SNACKS TO GROW TO $1B IN NET SALES IN THE NEXT 2 YEARS SOURCE: SMUCKER INTERN
Slide 7: Growth in Pet Snacks
GROWTH IN PET SNACKS EXPAND LEADERSHIP IN CONTINUE BUILDING A BISCUITS AND SOFT & MEANINGFUL PRESENCE IN CHEWY SEGMENTS LONG-LASTING CHEWS Breakthrough Expanding Evolving & Igniting Marketing & Seasons & Optimizing Premium Engagement Occasions Assortment Innovation 7
Slide 8: Leading Our Pet Snacks Growth
LEADING OUR PET SNACKS GROW TH 8
Slide 9: Strong Milk-Bone Momentum
STRONG MILK-BONE MOMENTUM ® GREW OVER 2X THE CATEGORY RATE LAST YEAR #1 #1 #1 DOLLAR DRIVING NEW BRAND SHARE HOUSEHOLDS AWARENESS SOURCE: SMUCKER INTERNAL IRI PANEL DATA: NLR BUYER FLOW AND MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022., AND BRAND GPS REPORT 52 WEEKS ENDED DECEMBER 01,
Slide 10: Focusing on New Pet Parents
FOCUSING ON NEW PET PARENTS 21% 85% of new dog treat of younger consumers buyers were brought see themselves as a in by Milk-Bone over ® “parent” to their dog the last year SOURCE: SMUCKER INTERNAL IRI PANEL DATA: NLR BUYER FLOW 52 WEEKS ENDED NOVEMBER 06, 2022. KANTAR PET PARENT SEGMENTATION REPORT
Slide 11: Growth in Special Occasions
GROWTH IN SPECIAL OCCASIONS of pet parents believe it is 86% important to involve their dog in holidays or special occasions SOURCE: KANTAR PET PARENT SEGMENTATION REPORT DATED FEBRUARY 2021. 11
Slide 12: Cat Food Momentum
CAT FOOD MOMENTUM Net Sales growth last 19 of 20 quarters Meow Mix outpaced the category average ® Leverage momentum in dry cat food to drive growth in wet food SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 12
Slide 13: Maintain Dry Food Leadership
MAINTAIN DRY FOOD LEADERSHIP #1 BRAND IN DRY CAT FOOD SEGMENT ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ We will maintain strong distribution, satisfy existing consumers and attract new ones SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 13
Slide 14: Unlocking Growth in Wet
UNLOCKING GROWTH IN WET 20% GROWTH 50% OF OF CATEGORY OPPORTUNITY MEOW MIX ® DOLLAR SALES SALES ARE WET ARE WET SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 14
Slide 15: Revitalizing Wet Cat Food
REVITALIZING WET CAT FOOD WET IS THE LARGEST SEGMENT IN RETAIL SALES AND IS GROWING FAST SOURCE: IRI PANEL DATA AND SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 15
Slide 16: Optimizing Dog Food
OPTIMIZING DOG FOOD IMPROVED ASSORTMENT AND EXPANDING OUR WET FOOD OFFERINGS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Double-digit Resurgence with sales growth +20% YoY momentum sales growth NOTE: NET SALES GROWTH 1H FY23. 16
Slide 17: Nutrish Momentum
NUTRISH MOMENTUM ® Reduced complexity in our assortment Continuing to expand into wet dog food and dog snacks Upgrading formulations with improved nutrition 17
Slide 18: U.S. Retail Coffee
U.S. RETAIL COFFEE $2.5B INSTANT 8% FY22 NET SALES PREMIUM 17% MAINSTREAM 46% ONE CUP 30% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 18
Slide 19: Coffee Strength
COFFEE STRENGTH #1 U.S. BRANDED AT-HOME COFFEE MANUFACTURER 3 of TOP 8 26% Share of Market coffee brands SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 19
Slide 20: Portfolio Positioned for Growth
PORTFOLIO POSITIONED FOR GROWTH OVER 50% OF OUR COFFEE K-CUP ® SALES PODS Shifting to faster-growing segments 20
Slide 21: Expanding to New Formats
EXPANDING TO NEW FORMATS We have bold ambitions to keep pace with consumer trends On-trend Investments in Explore product manufacturing & portfolio innovation partnerships additions 21
Slide 22: One of Our Fastest Growing Brands
O N E O F O U R FA S T E S T GROWING BRANDS Expect annual net sales $300M of in the next 2 years 22
Slide 23: Café Bustelo Momentum
CAFÉ BUSTELO MOMENTUM ® CONSUMER TAKEAWAY GREW 21% LAST YEAR ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Grew the most dollar share & was the fastest growing brand in the category last year 8th #1 #1 Largest Brand Espresso Latin in the Category Coffee Coffee SOURCE: SMUCKER INTERNAL MULTI-OUTLE
Slide 24: Geography Expansion
GEOGRAPHY EXPANSION GROWTH OPPORTUNITY 75% of Café Bustelo® sales come from ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ the northeast and southeastern states SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 24
Slide 25: The Future of Café Bustelo
THE FUTURE OF CAFÉ BUSTELO ® Well-positioned with consumers’ preferences, with ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙the ∙ ∙ ∙ ∙goal ∙ ∙ ∙ ∙ ∙ to ∙ ∙ ∙ become ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙the ∙ ∙ ∙ ∙ Latin ∙ ∙ ∙ ∙ ∙ ∙ ∙coffee ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙authority ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ across all formats in the U.S. 25
Slide 26: Opportunity to Increase Dual Users
O P P O RT U N I T Y TO INCREASE DUAL USERS* Expect annual net sales $1 BILLION of in the next 4 years *INDIVIDUALS WHO BUY AT DUNKIN’ RESTAURANTS AND FOR AT-HOME OCCASIONS 26
Slide 27: Growth in Cold Coffee
GROWTH IN COLD COFFEE PREPARED ICED COFFEE DRINKS AT-HOME HAVE DOUBLED OVER THE LAST 5 YEARS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ LAUNCHING NEW DUNKIN’ COLD FORMATS IN 2023 ® SOURCE: NATIONAL COFFEE ASSOCIATION DRINKING TRENDS - SPRING 2022, AND SMUCKER INTERNAL DATA. 27
Slide 28: An Iconic Coffee Brand
AN ICONIC COFFEE BRAND Grew the most Over double the DOLLAR SHARE VOLUME SHARE last quarter of any other brand SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 12 AND 52 WEEKS ENDED NOVEMBER 06, 2022. 28
Slide 29: Growth Through Varieties
GROWTH THROUGH VARIETIES A D A R K E R , S M O OT H E R E X P E R I E N C E #1 #1 Dark Roast Fastest Growing Canister Dark Roast Canister DOLLAR SALES & MILLENNIALS & DOLLAR SHARE G E N E R AT I O N X SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 29
Slide 30: K-Cup Pods
K-CUP PODS ® W E C O N T I N U E TO O U T PA C E T H E C AT E G O R Y Expect annual net sales $1 BILLION of in next 5 years SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 30
Slide 31: Leveraging Our Powerful Brands
LEVERAGING OUR POWERFUL BRANDS POSITIONED TO BENEFIT FROM NEW COFFEE TRENDS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Delivering on evolving consumer preferences 31
Slide 32: U.S. Retail Consumer Foods
U.S. RETAIL CONSUMER FOODS OTHER $1.7B TOPPINGS 2% DIVESTED & SYRUPS 4% BUSINESSES FY22 NET SALES FRUIT SPREADS PEANUT BUTTER 18% 44% FROZEN HANDHELD 25% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 32
Slide 33: Shifting the Portfolio
SHIFTING THE PORTFOLIO YESTERDAY TODAY FUTURE % Net Sales % Net Sales % Net Sales UNLOCKING ORGANIC GROWTH BIGGER & COMPLEX FOCUSED STRONGER 33
Slide 34: Slide 34
Slide 35: A Category Leader
A CATEGORY LEADER #1 #1 in households #1 repeat rate with kids 9% share of the category & #1 velocity fastest growing 2 of the top 7 SKUs growth rate in frozen category SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 13 AND 52 WEEKS ENDED NOVEMBER 06, 2022. 35
Slide 36: Uncrustables Growth
UNCRUSTABLES GROWTH ® $650M+ $511M 15% 10-YEAR CAGR ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ON TRACK TO EXCEED $220M $650M NET SALES IN FY23 $126M $94M $12M FY01 FY07 FY12 FY17 FY22 FY23E 36
Slide 37: Expanded Capacity
EXPANDED CAPACITY COMPLETED LONGMONT PLANT EXPANSION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Capacity to produce approx. 1.5 BILLION sandwiches per year Expected to deliver approx. 1% of Total Company top-line growth 37
Slide 38: Significant Runway for Growth
SIGNIFICANT RUNWAY FOR GROWTH Larger “Iconic” JMS Brand Frozen Lunchbox (L52W) Leader Leader (Sandwiches) $ (M) $647 $881 $1,654 $1,702 HH Pen 11% 20% 23% 27% TDP 585 1,610 2,269 2,976 Awareness 65% 90% 81% 88% (Aided) SOURCE: SMUCKER INTERNAL IRI PANEL DATA AND MULTI-OUTLET SHARE REPORT 52 WEEKS EN
Slide 39: Winning the Lunchbox
WINNING THE LUNCHBOX WE PLAN TO Double current household penetration Broaden distribution, including new channels and geographies Increase awareness with national advertising 39
Slide 40: Continued Capacity Expansion
CONTINUED UNLOCKINGCAPACITY GROWTH EXPANSION IN WET Expect to grow to $1 BILLION in annual net sales by FY26 MANUFACTURING EXPANSION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Scottsville | Longmont | McCalla 2019 2022 2025 40
Slide 41: An Iconic Brand
AN ICONIC UNLOCKING BRAND GROWTH IN WET Bringing variety to the lunchbox ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ CORE OFFERINGS INNOVATION 41
Slide 42: Peanut Butter & Fruit Spreads
PEANUT BUTTER & FRUIT SPREADS Peanut butter and jelly is America’s #1 sandwich among households with kids A staple in over We have the #1 share positions 40 MILLION for both the peanut butter households across the U.S. and fruit spreads categories SOURCE: DIRECTIONS HOUSEHOLD SANDWICH CONSUMPTION RE
Slide 43: Meeting Consumer Needs
MEETING CONSUMER NEEDS NEW OFFERINGS, OPTIMAL SHELF SETS, LASTING CONNECTIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Now offer convenient squeezable formats & launching new on-the-go squeezable formats 43
Slide 44: Strategy for Growth
STRATEGY FOR GROWTH PET FOODS CONSUMER 2 COFFEE & PET SNACKS FOODS Confident in Delivering Continued Growth ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 44
Slide 45: Investor Day 2022
INVESTOR DAY 2022
Slide 46: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by thos
Slide 47: Additional Information
ADDITIONAL INFORMATION The J.M. Smucker Co. is the owner of all trademarks and logos referenced herein, except for the following, which are used under license: Dunkin’® is a trademark of DD IP Holder LLC, and Rachael Ray® is a trademark of Ray Marks II LLC. The Dunkin’® brand is licensed to The J.M.