The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2020)
32 slides from The J.m. Smucker's investor day presentation, Dec 10, 2020
Slide 1: Investor Day
INVESTOR DAY DECEMBER 10, 2020
Slide 2: John Brase, Chief Operating Officer
JOHN BRASE Chief Operating Officer 2
Slide 3: Why I Joined Smucker
WHY I JOINED 1 SMUCKER EXECUTING OUR 2 STRATEGY PRIORITIES FOR U.S. 3 RETAIL SEGMENTS 3
Slide 4: Powerful Brands in Great Categories
POWERFUL BRANDS IN GREAT CATEGORIES U.S. RETAIL PET FOODS SIGNIFICANT U.S.U.S. RETAIL RETAIL COFFEE MOMENTUM WITH OUR COFFEE CORE ICONIC BRANDS U.S. RETAIL CONSUMER U.S.FOODS RETAIL CONSUMER FOODS 4
Slide 5: Organization Structure
Organization Structure IMPROVE EXECUTION UNLOCK FASTER GROWTH INCREASE VALUE WE ARE FOCUSED ON COMMON GOAL BECOMING A LEANER AND FLATTER ORGANIZATION DRIVING TOP AND BOTTOM-LINE OWNERSHIP OF DECISIONS, GROWTH ACCOUNTABILITY, AND INCENTIVES TIED TO THE INCOME STATEMENT 5
Slide 6: "Core and More"
“Core and More” SUPPORT THE CORE AND FOCUS ON ADJACENT GROWTH OPPORTUNITIES 6
Slide 7: Drive Balanced Growth
Drive Balanced Growth PROFITABLE GROWTH FOR BOTH EVALUATING 60% OF SKUs US AND OUR CUSTOMERS THAT REPRESENT JUST 20% OF COMPANY SALES NET REVENUE OPTIMIZATION STRATEGIES TO DRIVE INCREASED DOLLARS PER OCCASION MEETING THE UNIQUE NEEDS OF THE SHOPPER 7
Slide 8: Total Company Net Sales $7.8B
Total Company Net Sales INTL & AFH 13% U.S. RETAIL COFFEE $7.8B 28% U.S. RETAIL CONSUMER FOODS 22% FY20 NET SALES U.S. RETAIL PET FOODS 37% 8
Slide 9: U.S. Retail Pet Food $2.9B
U.S. Retail Pet Food PRIVATE LABEL 5% SNACKS 29% DOG FOOD 38% $2.9B FY20 NET SALES CAT FOOD 28% 9
Slide 10: Pet Food & Pet Snacks $34B
Pet Food & Pet Snacks $34B ANNUAL RETAIL SALES LARGEST CENTER OF STORE CATEGORY 52% OF HOUSEHOLDS OWN AT LEAST PET AVERAGE PET SPENDING PER HOUSEHOLD EXPECTED TO INCREASE 6% YOY 10 SOURCE: EUROMONITOR, MARKETRESEARCH.COM, NUMERATOR, OUR PET PROJECT, 9/20
Slide 11: Pet Portfolio
Pet Portfolio #1 #2 #3 SHARE OF SHARE OF SHARE OF DOG SNACKS CAT FOOD DOG FOOD CATEGORY CATEGORY CATEGORY SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE 11 REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 12: Pet Segment Value Creation
Pet Segment Value Creation 1 2 3 ACCELERATE CONTINUE WIN IN DOG FOOD MOMENTUM SNACKING GROWTH IN CAT FOOD 12
Slide 13: Dog Snacks
Dog Snacks YoY NET SALES GROWTH IN FASTEST GROWING SEGMENT IN THE PET CATEGORY 12 OF 13 QUARTERS INNOVATION DRIVES 60% OF CATEGORY GROWTH SOURCE: IRI UNIFY, POS CAUSAL DRIVERS, 52 WEEKS ENDING SEPTEMBER 2019 13
Slide 14: Rachael Ray Nutrish
Rachael Ray Nutrish ® ® IMPROVE VALUE THROUGH 1 COMPETITIVE PRICE AND BAG SIZES OPTIMIZE ASSORTMENT AND 2 IMPROVE PACKAGING 3 INNOVATION INCREASE MARKETING 4 INVESTMENTS *ALL PACKAGING IS FPO AND SUBJECT TO CHANGE 14
Slide 15: Rachael Ray Nutrish: Enhanced Packaging Design
Rachael Ray Nutrish ® ® ENHANCED PACKAGING DESIGN AMPLIFIED ASSETS ELEVATE MASTERBRAND CONSISTENCY IN COPY / CLAIMS 15 *ALL PACKAGING FPO AND SUBJECT TO CHANGE
Slide 16: Rachael Ray Nutrish: Big Dog Opportunity
Rachael Ray Nutrish ® ® A OPPORTUNIT Y IN THE PET CATEGORY BIG DOGS CONSUME 1/2 CATEGORY VOLUME LAUNCHING IN EARLY 2021 THE FIRST EVER TAILORED, REWARDING MEAL EXPERIENCE FOR BIG DOGS 16 *ALL PACKAGING IS FPO AND SUBJECT TO CHANGE
Slide 17: Rachael Ray Nutrish: Marketing Support
Rachael Ray Nutrish ® ® STRONG MARKETING SUPPORT FOR NEW LAUNCHES AND ACROSS PLATFORMS DRIVE BRAND LOVE NATIONAL PROMOTIONS TV & TARGETED DIGITAL ADVERTISING 17
Slide 18: Dog Food Initiatives
Dog Food Initiatives EXPANDING WET DISTRIBUTION AND LAUNCHING INNOVATION ACROSS SEVERAL BRANDS EXPANDING VARIETY WITH GRAIN-IN OPTIONS 18
Slide 19: Cat Food Portfolio
Cat Food Portfolio #1 DRY CAT FOOD BRAND IN HOUSEHOLD PENETRATION AND VOLUME SHARE 4.5 POINT DOLLAR SHARE GAIN OVER THE LAST 3 YEARS 13 CONSECUTIVE QUARTERS OF GROWTH 19 SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 20: U.S. Retail Coffee $2.1B
U.S. Retail Coffee INSTANT 8% PREMIUM $2.1B 16% MAINSTREAM 50% FY20 NET SALES ONE CUP 26% 20
Slide 21: Coffee Portfolio
Coffee Portfolio #1 3of10 +2M TOP AT-HOME NET NEW SHARE OF AT-HOME COFFEE BRANDS IN HOUSEHOLDS ADDED COFFEE CATEGORY OUR PORTFOLIO IN LAST 52 WEEKS SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE 21 REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 22: Coffee Marketing
LAR ARANANANINININININAIRIRARARARINININININING Coffee Marketing Pad cafebustelo @ Weekend plans = es) folgers @ Find peace at home over a #CafeBustelo poolside @ Fresca y ‘fresh, hot cup of #Folgers. & refrescante! #CafeBusteloWasHere #TheBestPartOfWakingUp #CafeBusteloEstuvoAqui fia: @keystomiamibe
Slide 23: Coffee Growth
Coffee Growth MOMENTUM AND GROWTH FOR DUNKIN’® K-CUP SALES GROWING NEARLY 2X THE CATEGORY AND CAFÉ BUSTELO® 17% GROWTH OVER PAST YEAR 23 23 SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 24: +3M New Households Have Tried Folgers
+3M NEW HOUSEHOLDS HAVE TRIED FOLGERS® OVER THE PAST 9 MONTHS 24 SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 25: U.S. Retail Consumer Foods $1.7B
U.S. Retail Consumer Foods TOPPINGS & SYRUPS 3% OTHER NATURAL FOOD & 4% BEVERAGE 9% SHORTENING & OILS PEANUT BUTTER 39% $1.7B 14% FY20 NET SALES FROZEN HANDHELDS 16% FRUIT SPREADS 17% 25
Slide 26: Consumer Foods
Consumer Foods FOCUS ON FAST GROWTH, NO MESS, CONVENIENT AND NUTRITIOUS OFFERINGS FUELING LEVERAGING OUR GROWTH OF CONVENIENT NUTRITIOUS EXPERTISE SMUCKER’S® PACKAGING SNACKS INPB&J UNCRUSTABLES® 26
Slide 27: Strong #1 Position in Peanut Butter and Fruit Spreads
STRONG # POSITION IN BOTH PEANUT BUTTER AND FRUIT SPREADS DOLLAR SHARE 46% TOTAL PEANUT BUTTER 42% TOTAL FRUIT SPREADS 27 27 SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 28: Uncrustables $365M FY20 Net Sales
$365M FY20 NET SALES +26% YoY GAINED OVER 2 POINTS OF HOUSEHOLD PENETRATION IN PAST YEAR 28 SOURCE: IRI PANEL DATA, 52 WEEKS ENDED NOVEMBER 11, 2020
Slide 29: Uncrustables FY21 YTD Growth
22% FY21 YTD INCREASE 15 CONSECUTIVE QUARTERS OF DOUBLE-DIGIT GROWTH 29% INCREASE IN HOUSEHOLDS OVER PAST YEAR 29 SOURCE: IRI PANEL DATA, 52 WEEKS ENDED NOVEMBER 11, 2020
Slide 30: New Production Line and $500M FY23 Net Sales Goal
NEW PRODUCTION LINE IN EARLY 2021 PLANT EXPANSION IN FY22 $500M FY23 NET SALES GOAL 30
Slide 31: Consumer Foods Portfolio
Consumer Foods Portfolio #1 #1 #1 SHARE OF SHARE OF GROWTH IN PEANUT BUTTER FRUIT SPREADS FROZEN CATEGORY CATEGORY HANDHELD SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE 31 REPORT 52 WEEKS ENDED NOVEMBER 1, 2020
Slide 32: Long-Term Growth
Long-Term U.S. RETAIL PET Growth FOODS INCREASED FOCUS ON U.S. RETAIL COFFEE CONSISTENT INNOVATION PRODUCTIVITY AND EFFICIENCIES U.S. RETAIL CONSUMER FOODS ACCELERATING E-COMMERCE AND CLICK & COLLECT 32
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