The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2024)
55 slides from The J.m. Smucker's investor day presentation, Dec 10, 2024
Slide 1: The J.M. Smucker Co. Investor Day
THE JM. SMUCKER Co INVESTOR DAY
Slide 2: The J.M. Smucker Co.
THE JM. SMUCKER Co
Slide 3: Crystal Beiting, Vice President, Investor Relations and FP&A
CRYSTAL BEITING Vice President, Investor Relations and FP&A
Slide 4: 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 known and unknown risks and uncertaint
Slide 5: Investor Day agenda and presenters
Company & Strategy Mark Smucker Executing Our Strategy John Brase Our Marketing Model Gail Hollander BREAK U.S. Retail Coffee Rob Ferguson U.S. Retail Frozen Handheld & Spreads Rebecca Scheidler U.S. Retail Pet Foods Judd Freitag Sweet Baked Snacks Dan O’Leary International & Away From Home Tim Wayn
Slide 6: Company & Strategy
THE JM. SMUCKER Co COMPANY & STRATEGY.
Slide 7: Mark Smucker, Chair, President and CEO
MARK SMUCKER Chair of the Board, President and Chief Executive Officer
Slide 8: Positioned for Growth
POSITIONED FOR GROWTH Over the Long Term Enterprise Ambition Strategic Transformation World-Class Capabilities
Slide 9: Our Key Elements
OUR KEY ELEMENTS WORLD-CLASS LEGACY CONFIDENCE IN THE MARKETING, BUSINESS IS HOSTESS BRAND ® COMMERCIAL & DELIVERING 4% LONG-TERM MANUFACTURING STRONG GROWTH GROWTH TARGET CAPABILITIES ~85% OF OUR STRATEGIC FURTHER SALES NET SALES RATIONALE GROWTH & MARGIN REMAINS STRONG EXPANSION
Slide 10: Transformed into a leading consumer goods company
TRANSFORMED INTO A TRANSFORMATIVE JOURNEY LEADING CONSUMER FOUNDED IN 1897 GOODS COMPANY approaching anticipated ORRVILLE, OH $9 Billion FY25 NET SALES WITH A FOCUS ON Consumers rely on our A portfolio of LEADING BRANDS products every day LEADING & ICONIC with over brands 90% & in the attractive cat
Slide 11: Video Playing In Room
Video Playing In Room
Slide 12: Vision
OUR FOCUS ON THE CONSUMER REMAINS AT THE CENTER OF EVERYTHING WE DO VISION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Engage, delight and inspire consumers by building brands they love and leading in growing categories.
Slide 13: A Journey to Fundamentally Transform for the Future
A JOURNEY TO FUNDAMENTALLY TRANSFORM FOR THE FUTURE EXITED EXPANDED INVESTED IN BUSINESSES FOOTPRINT IN LARGEST DIVESTED ~30% OF SNACKING GROWTH OUR PORTFOLIO CATEGORY OPPORTUNITIES No Longer Fit Within Acquisition of Uncrustables ® our Key Focus Areas Hostess Brands Sandwiches
Slide 14: These Steps Have Fundamentally Transformed Our Portfolio
THESE STEPS HAVE FUNDAMENTALLY TRANSFORMED OUR PORTFOLIO To consistently deliver DEBT REPAYMENT & DIVIDENDS against our SHARE REPURCHASE OPERATING MARGIN LONG-TERM EXPANSION 10%+ FINANCIAL MSD HSD ALGORITHM LSD Net Adj. Adj. Total Sales Operating EPS Shareholder Growth Income Growth Growth Return
Slide 15: Aligned Portfolio, Right Leadership, & World-Class Capabilities
LOOKING TOWARDS THE FUTURE ALIGNED PORTFOLIO, RIGHT LEADERSHIP, & WORLD-CLASS CAPABILITIES EXCITED ABOUT THE OPPORTUNITIES
Slide 16: Confidence Driven By
CONFIDENCE DRIVEN BY Strength of Our Ability to Fuel Growth Portfolio of Leading Across Our Portfolio with Brands World-Class Capabilities Focus on Our Consumer-Led Talented Innovation People 16
Slide 17: Our Portfolio of Leading Brands
Our Portfolio of Leading BRANDS
Slide 18: Over 95% of U.S. Retail Channel Sales Leading in Attractive Categories
OVER 95% OF U.S. RETAIL CHANNEL SALES LEADING IN ATTRACTIVE CATEGORIES LEADING BRANDS come from categories where we hold the ARE RESILIENT TO #1 OR #2 BRANDED POSITION CATEGORY DYNAMICS IS MORE IMPORTANT THAN EVER FOCUS ON OUR KEY GROWTH PLATFORMS SOURCE: SMUCKER INTERNAL CIRCANA MULTI-OUTLET SHARE
Slide 19: Snacking Category
SNACKING CATEGORY Snacking is a $200 Billion Market in the U.S. Plays an Increasingly Important Role in Consumers’ Lives Snacks Account for Half of all Eating Occasions SOURCE: CIRCANA'S "SNACK JOURNEY" THOUGHT LEADERSHIP PIECE FROM APRIL 2024. CIRCANA NATIONAL EATING TRENDS 2023.
Slide 20: Consumer Snacking
CONSUMER SNACKING MAJORITY EAT A “BALANCE SHEET” 2+ SNACKS PER DAY APPROACH Younger Consumers Snack More Balance Multiple Needs in Snacking Decisions: than Older Demographics Taste, Convenience, & Quality We are focused on three areas of snacking: Frozen Snacks Spreads Sweet & & Sandwiches Indulgent
Slide 21: Frozen Snacks & Sandwiches Category Leadership Position
Frozen Snacks & Sandwiches Category Leadership Position Consumers turn to frozen to make their lives easier to navigate Small Meals Component of a Meal Snack SOURCE: SMUCKER INTERNAL CIRCANA MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 03, 2024.
Slide 22: Fueling the Momentum of the Uncrustables Brand
FOCUSED ON FUELING THE INCREDIBLE MOMENTUM OF THE UNCRUSTABLES BRAND ® Leads the entire freezer in new buyers for: Households with kids Millennials Gen Z Setting the stage for high lifetime value from consumers SOURCE: SMUCKER INTERNAL CIRCANA OMNICHANNEL SHARE REPORT 13 WEEKS ENDED NOVEMBER 03, 202
Slide 23: Creating a Truly Iconic Brand
CREATING A TRULY ICONIC BRAND Engrained in Culture Investing in Marketing Expanding Distribution Accelerating Innovation $1 BILLION IN ANNUAL NET SALES BY THE END OF FY26 23
Slide 24: Creating an iconic brand with widespread, multi-generational appeal
Building brand loyalty Broaden presence in Exciting innovation through national new & existing channels with new varieties & marketing campaign seasonal offerings Creating an iconic brand with widespread, multi-generational appeal
Slide 25: Our Leading Spreads Portfolio
OUR LEADING SPREADS PORTFOLIO Modern Spreads Business Current Spreads Business Address a New Evolving the Portfolio Mega Spreads Category Fruit Spreads Peanut Butter Other Spreads Spreads Elevate Daily Meal & Snack Experiences
Slide 26: Opportunities to expand beyond sandwiches into new usage occasions
We continue to see opportunities to expand beyond sandwiches into new usage occasions
Slide 27: The Iconic Jif Brand
THE ICONIC JIF BRAND ® Jif Peanut Butter & ® Chocolate Flavored Spread Opportunities to expand beyond sandwiches into new usage occasions Leveraging a strong foundation of Offers a new flavor leadership, awareness & loyalty to drive increased to create new snacking occasions relevance & excitement
Slide 28: Sweet & Indulgent Snacking Leading Position
SWEET & INDULGENT SNACKING LEADING POSITION in the Sweet Baked Goods Category SOURCE: SMUCKER INTERNAL CIRCANA MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 03, 2024.
Slide 29: Taking Decisive Actions to Return Brand to Net Sales Growth
TAKING DECISIVE ACTIONS TO RETURN BRAND TO NET SALES GROWTH 5 KEY PILLARS DELIVERING BASE EXPANDING DRIVING PORTFOLIO REVENUE PORTFOLIO DISTRIBUTION INNOVATION EVOLUTION SYNERGIES ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ Each ∙ ∙ ∙ ∙ ∙ ∙ ∙pillar ∙ ∙ ∙ ∙ ∙ ∙ ∙ represents ∙∙∙∙∙∙∙∙∙∙∙∙∙∙a ∙ ∙ ∙key ∙
Slide 30: Launching a Bold New Marketing Campaign
LAUNCHING A BOLD NEW MARKETING CAMPAIGN
Slide 31: Expanding Distribution
EXPANDING DISTRIBUTION Unlocking new channels & opportunities for the Hostess brand, particularly in ® Away From Home Markets Closing Gaps in Critically Entering Leveraging Strong Our Existing Channels New Channels Sales Force
Slide 32: Innovation Leader in the Sweet Baked Goods Category
INNOVATION LEADER IN THE SWEET BAKED GOODS CATEGORY Delivers Innovative Products that Resonate with Consumers Introducing flavors, formats & limited-time offerings that keep the Hostess brand exciting & top of mind ® SOURCE: SMUCKER INTERNAL CIRCANA TOTAL AOC+CONVENIENCE SHARE REPORT 52 WEEKS ENDED
Slide 33: Evolving Our Portfolio for Sustained Growth
EVOLVING OUR Ensuring network is fully optimized to: UNLOCK PORTFOLIO FOR COSTS SUSTAINED REDUCE GROWTH COMPLEXITY DRIVE QUALITY
Slide 34: Revenue Synergies
REVENUE SYNERGIES A key fundamental of the acquisition Plan to execute Expanding Uncrustables ® cross-promotional events sandwiches into C-store between the Hostess ® brand using our new capabilities & other iconic brands
Slide 35: At-Home Coffee Category
AT-HOME COFFEE CATEGORY A LEADING PORTFOLIO OF COFFEE BRANDS 3 of the top 7 coffee brands SOURCE: SMUCKER INTERNAL CIRCANA MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 03, 2024.
Slide 36: At-Home Coffee Consumption
At-Home Coffee Consumption 70% of all Coffee Drinking Occasions Represents Only a Fraction Drive More Dollars with of Total Dollars Premiumization & Spent on Coffee Quality of Experiences SOURCE: QUARTERLY MARKET SIZING REPORTS VIA NCA. NCA OCTOBER 2023 COFFEE IMPACT ON US ECONOMY.
Slide 37: Fastest Growing Leading Brand in the At-Home Coffee Category
FASTEST GROWING LEADING BRAND IN THE AT-HOME COFFEE CATEGORY New National Innovation that will Disrupt Positioned to Double Marketing Campaign the Pre-Pack Segment Household Penetration SOURCE: SMUCKER INTERNAL CIRCANA MULTI-OUTLET SHARE REPORT 13 WEEKS ENDED NOVEMBER 03, 2024.
Slide 38: Temperature State Is a Big Area of Opportunity
TEMPERATURE STATE IS A BIG AREA OF OPPORTUNITY Cold coffee expands consumption & extends occasions throughout the day ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Meeting Consumers in Cold Through our Café Bustelo Multi-Serve ® OFF TO A STRONG START & EXCEEDING INITIAL EXPECTATION
Slide 39: Leading Brands in Pet
PET LEADING BRANDS IN DOG SNACKS & DRY CAT FOOD Category continues to grow with more pets & pet parents than ever Continued Pets Viewed Trends Humanization as Equal Accelerating in of the Members of Younger Category the Family Generations SOURCE: SMUCKER INTERNAL CIRCANA MULTI-OUTLET SHARE REPORT 52
Slide 40: Utilizing our Marketing Model to Attract Younger Consumers
Utilizing our Marketing Model to Attract Younger Consumers Represents the Next Phase of Growth for the Pet Category Large opportunity as they Reaching them through Attain Spending Consumer-Led Power Innovation
Slide 41: Dog Snacks
DOG SNACKS Humanization Trend in the Category ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Able to meet a unique consumer experience of sharing foods consumers love with their pets Success of recently launched Milk-Bone Peanut Buttery Bites ® made with Jif Peanut Butter ®
Slide 42: Launching Meow Mix
MEOW MIX ® LAUNCHING Bringing Indulgence & Dual Texture Experience Into the Dry Aisle
Slide 43: Pet Category Is Primed for Continued Growth
PET CATEGORY IS PRIMED FOR CONTINUED GROWTH Next-Gen Consumers are Redefining Emotional Connections with Pets Well-Positioned to Capitalize on FUTURE GROWTH of Dog Snacks & Cat Food
Slide 44: Brands Core of Our Strategy
Portfolio of Leading BRANDS CORE OF OUR STRATEGY Ability to utilize the full power of our total enterprise capabilities across brands, through our world-class capabilities in: MARKETING COMMERCIAL MANUFACTURING
Slide 45: Marketing Model
MARKETING We are Brand Builders MODEL A consistent & proven approach to building brands & driving profitable growth Built on data-driven insights with culture at the core of what we do
Slide 46: Enhanced Sales, Supply Chain & Procurement Capabilities
THE NEXT PHASE OF OUR COMMERCIAL MODEL ENHANCED SALES, SUPPLY CHAIN & PROCUREMENT CAPABILITIES TO FUEL BRAND PERFORMANCE
Slide 47: Sales Strategy
SALES STRATEGY STRATEGIC STRONG EVOLVING OUR PARTNERSHIPS EXECUTION CAPABILITIES 23 Products Available Evolving Our Where our E-Commerce & Category Captainships Consumers Shop Omni-Channel Capabilities
Slide 48: Procurement & Supply Chain
PROCUREMENT & SUPPLY CHAIN Strong & resilient infrastructure bolstered by advancements in: TECHNOLOGY TRACEABILITY TRACEABILITY ARTIFICIAL INTELLIGENCE
Slide 49: Robust Pipeline of Innovation
ROBUST PIPELINE OF INNOVATION Innovation Launches this Year ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Anticipated to contribute over a point of growth to net sales for fiscal 2025
Slide 50: Innovation Driving Growth
INNOVATION DRIVING GROWTH Return to Historical Average FY25 One of the MOST +5% Growth to Net Sales SUCCESSFUL Within 3-Year Launch years for Combine product TECHNOLOGY & INNOVATION innovation capabilities
Slide 51: Our People
OUR PEOPLE Driving Our Success ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Best Team in the Industry
Slide 52: Our Legacy Business Is Our Foundation
OUR LEGACY BUSINESS IS OUR FOUNDATION DELIVERING RESULTS HAS NEVER BEEN We are taking action to STRONGER reaccelerate growth for the HOSTESS BRAND ® WITH A FOCUS ON Positioned to Confident in the LEADING BRANDS DELIVER ON STRATEGIC CHOICES we have made OUR LONG-TERM & in the attractive categories of
Slide 53: The J.M. Smucker Co. Investor Day
THE JM. SMUCKER Co INVESTOR DAY
Slide 54: 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 55: Additional Information
ADDITIONAL INFORMATION The J.M. Smucker Co. is the owner of all trademarks referenced herein, ® except as set forth below and ® for Dunkin’ , which is a trademark of DD IP Holder LLC. The Dunkin’ brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels such as g
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