November 16, 2017 / 2:50 PM / a month ago

BRIEF-Smucker on conf call- Will have a greater benefit from lower green coffee cost in Q4

Nov 16 (Reuters) - J M Smucker

* Had Q2 double-digit sales increases for Nature’s Recipe, Dunkin’ Donuts and Jif, and high single digit growth for Uncrustables‍​

* Can capitalize on strength of brands like Folgers, Smucker‘s, Jif by expanding reach through introduction of new platforms such as premium coffee and snacking

* On conf call- e-commerce sales for pet food brands doubled in Q2, Jif peanut butter rose over 75% and coffee sales increased over 150%

* On conf call- just over 2% of U.S. Retail sales came from e-commerce in Q2

* New agreement with Keurig has lower costs, helps expand distribution of our brands and sell multiple pack sizes and new varieties

* Q2 commodity cost, notably green coffee, were higher but were offset by the overall higher net pricing

* Q2 net sales for folgers declined 6% driven by roast and ground coffee as folgers k-cups sales were flat

* Lower green coffee cost will have a greater benefit in Q4, Q3 will experience a sharp increase in marketing spend, reflecting our U.S. Olympics sponsorship

* Executive on conf call- coffee business “fragmented, it’s not as simple as it was 10 years ago”

* We do about 20- 21% of our coffee business in k-cups

* “ we think there’s an opportunity to as much as double our k-cup business over time”

* “Our opinion is there’s going to be a lot of arabica coffee in the world next year” Further company coverage: ( Bangalore.newsroom@thomsonreuters.com )

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