SJM - Earnings call transcript Q2 2022 | The J. M. Smucker Company

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Operator

Hello, and welcome to the J. M. Smucker Company’s Fiscal 2022 Second Quarter Earnings Question-and-Answer Session. At this time all participants are in listen-only mode.

During the Q&A, please limit yourselves to two questions and re-queue if you have additional questions. reminder, is a recorded. As Instructions] this being conference [Operator call to Aaron It’s pleasure the over Relations. now my Investor turn to President, Broholm, Vice sir. ahead go Please

Aaron Broholm

Thank website detailed everyone my available has joining a you management's chance Quarter you, pre-recorded our and remarks, at morning's had Question-and-Answer Fiscal on results press review as and Earnings hope XXXX are Second this our Kevin. for I Session. jmsmucker.com. to morning in corporate Good which our thank release

this of replay at audio an post also Q&A will of conclusion morning's call this We the session.

make During we These statements call, and current and may today's our on due expectations rely future will estimates performance. forward-looking and materially that results actual risks differ plans reflect and assumptions and to statements uncertainties.

to to Executive and encourage results on Available forward-looking Financial Officer. internally. we this measures our concerning disclosure release. are use read President Tucker full and this Mark evaluate you Chief details statements on today Officer; Chief call in and non-GAAP non-GAAP I Marshall, performance press the morning's Additionally, Smucker,

now for queue question. questions. first the Operator, will open call up up please We the

Operator

Thank to reminder, question re-queue Andrew questions from that we your you. Our for two Instructions] questions. Barclays. additional [Operator and today please limit coming Instructions] [Operator first As you a from yourselves Lazar ask

Your line live. is now

Andrew Lazar

a much fiscal that It it’s are at like kicks the thinking you’ve get least about as bit seen kind seen you’ve been for than out what sense we’ve what way? little lower see so are for and impact I to more guess, a and a Thus in hinder has pricing of second elasticity greater you in I more. growth to as first thus volume morning, guess, bigger your Thanks more in way somewhat of far and Great. in I could everybody. trying elasticity. you’d maybe good seen that half And or kicked volume for start if – of that one Group the from is more is this volume more far, recently am to kind on historically below, in, forecast sounds elasticity building the you whether conservatism you’ve pricing started than broadly. modeling

Tucker Marshall

good to are sales relates really better half against $XX year million, million was guidance your our of Andrew, with initial respect second brand $XX from summer It With really what than our anticipated and midpoint. or associated morning. momentum full we approximately over business actions at and increasing underlying our question, that or million. overdelivery by along the net quarter in X% round pricing imperatives Of $XXX our fall. saw elasticities with we growth early to the

the $XX our about anticipating expectations. that and volume year, prominence against those mix better back of coming is of we The half growth million think elasticities. we are the As of continued incremental fiscal from prior of than momentum

associated fourth However, coffee have in to in we our quarter, cost a significant particularly inflation. pricing impacts lesser extent actions, do with and

quarter, waiver we that that factored elasticities of in fourth pricing have that take result additional of a pricing place As in the action. round against will

all is that factored therefore our guidance. so, And into

Andrew Lazar

growth its expected year, next Great. five of drive Smucker’s for $X growth Thanks per facility think on And Uncrustables, X% new which overall secondly, you And essentially the to planned going of is about in the for of of construction recently I billion company for half that. it kind sort announced then, to I brand a looks like sales annual target the own. or of years. about guess, X double point organic that could sales

about the matter big with needle. at question XX% the my brand about to sort is, now So, and you. driving and clearly now the in customers? of the about opportunities Thank are – terms growth guess, ACV move new or at expanding versus brand how – entering And ACV, incremental you in current enough by this is I brand I thinking distribution customers of guess,

Mark Smucker

for question. the Thank Andrew, Hey, Mark. it’s you

in in are first up only fundamentally investing about Uncrustables, where headline is which it’s strategy response of is our opportunities. we’ve against that, making our is words, one the resources our growth sure about other about clearly those. it’s And but of portfolio, reshaping that this The M&A, about largest talked not is, we also putting

almost quarters one This of double-digits. the consecutive of If it’s quarter, you think growth, last it’s and been quarters every about XX%. XX mostly, about

could fantastic facility billion in in continued is and of are early, course, investment which $X.X a $X the Longmont, what are that of break next you over support to target billion. $X.X couple supported we the yes, year facility getting to to months correct, and And billion. We be the support, Alabama the add north to been we believe in ground in will lines Colorado, in invest on further to obviously hit has growth which we which by investment there going our will second our have

reason on Number we mean, have why household not number one penetration growth to just brand. there in a is still this is significant invested room significantly two, the for is in about believe household ton It’s There marketing. I – the is, so, XX%. low. And reasons penetration. only of runway

significant any even places locations particular, there certain And runway from on in U.S. And our is on home. that’s turned butter we just have consumer then, in in away offerings, jelly retail, and not core whether spend. so, peanut

We on have Canada is And then not opportunities convenience the yet. turned in there channel.

that just any there growth opportunities those, ton So, brand. of a plus done is innovation, think in that fact if for momentum haven’t we we about think really meaningful of you all the

Andrew Lazar

much Great. Thanks have great and holiday. a very

Mark Smucker

too. Thank you,

Operator

coming question next is The Thanks. Ken Goldman Morgan. JP from from

now live. Your line is

Ken Goldman

Hi. Thanks so much.

Mark Smucker

Good morning.

Ken Goldman

on A free quick question cash.

maybe previously implication cash operating you $XX the are than that, think I less around million is expecting flow you expected. in

increase? maybe Can anticipate you a bit it at for you inventory driving had in elaborate just How on guidance biggest little is long highlighted you your lasting? looking the what’s Just that And CapEx. that expected inventory headwind.

Tucker Marshall

Ken. morning, Good

to shortages, with stock So, levels, managing have and ensure in the are earnings, business building the inventory us to finished to facility Uncrustables what that year-over-year with that right, network materials taking along flow raw million. is driving we as trying the the we inventory requirements on regard free continuity. the associated for and the expenditures cash our our we fiscal in make is up capital are noted is of that $XXX we support of working you With order expansion. in along chain challenges, through inclusive decrease with what now target shelves sure that in year and are supply both also goods Really capital is within do of

the in to balance term the elevated should of about near-term, the inventory so, fiscal work the year, now, have we sort ensuring implications supply. levels. expect that And next as it’s of and we inventory think on provide But just longer of of right we can an update levels year product additional through we

Ken Goldman

you. just clarification. Thank then, sense. quick a Makes And

amount mentioned is looking Has was should amount think be the that we you of Are you number up that are or of that you I around the increasing some which, that help Thank productivity offset you same you. think for $XX that the savings thinking will for million. I around inflation cost the gone about still experiencing. are year?

Tucker Marshall

fiscal cost we this of is through about talk annual low What $XX million describing pricing changing productivity actions not needs that rounds with we are when target here cost are to we in double-digit we of savings inflation. be associated seeing year. our year-over-year that, savings Ken, are is, inflation covered

to We also the acknowledge our support to products long-term both and that in of to savings support will productivity form company, over both and need to dollar overall profitability profitability health the time our continue cost of we SG&A to. the remain profitability, which of committed advance we sold and environments percent goods across

Operator

Guggenheim. today Thanks. Laurent coming The question from next from is Grandet

Your line now live. is

Laurent Grandet

the Hey, good quarter. congrats and on morning, everyone strong

first is really Uncrustable. from question on question my a follow-up So, Andrew’s

good experienced the your You with line that very brand, be but next finalizing fiscal year. you remarks end would that construction sales the the mentioned you by of of second strong in

in short-term fiscal more the sales the next Uncrustables or constrain that into will So, year?

Tucker Marshall

Laurent, correct. are you

the ongoing will of And Longmont, We our million target. sales fiscal X expect complete. the by phase the $XXX that facility XXXX above of the to enable expansion have end Colorado

a therefore, near-term the so, with that of we brand growth not continued constrain in and the associated And do see business.

Laurent Grandet

Okay. Perfect. about the second is guidance. Thanks. And my question

of food very I mean, environment. one company volatile only top-line guidance I few are the very the increase but quarter, not despite mean a to You your also, this EPS

the confidence? in Or what you what’s built words, got of other that in? So, cushion level Thanks. you’ve level give of can

Tucker Marshall

momentum was cost which We our an driven follows: and is the half are the elasticities, correct. raise high range cost, second broken by did by the of of offset guidance as favorable Laurent, and along fourth $X.XX end low overdelivered additional partially anticipated end that additional business by we with both anticipate momentum actions. better by some ongoing $X.XX. by offset quarter We being That $X.XX, really in our down $X.XX pricing you than primarily quarter back savings. from

balance a the top-line this And our both the at range. or in the low being so, year. therefore, we bottom-line. supporting high at that expectation standpoint from that the We fiscal balanced the do cost and by the have of guide $X.XX a both increased gives is we that feel and to therefore, of price midpoint overdelivery point $X.XX the the delivering dime That increase the offset end impact

Mark Smucker

of is Laurent, inflation, think, dynamic a we you? to we our there what number in chain I execution this continued may because about related your Mark. have a has have confidence, point clearly, is or are fundamentally, the environment that deliver been just reason it’s where add operating that, to supply very excellent. been whether challenges, just have I

extremely been they react been many anticipate in have before happen. or to people able Our and challenges pivot cases agile and

the it’s fundamentally chain customer consumer a both combination so, execution. supply detailed and of then And combination management and of

along few and allowed working together I last consistently truly execution sales over our marketing in management, us chain supply concert continue the with has deliver to quarters. to think So,

Laurent Grandet

up good keep you. and execution. very Thank the Mark Thanks, Okay.

Mark Smucker

for Thanks. support. Thank you the

Operator

now Your is question next The from line Chris Growe live. Thanks. today coming from Stifel, is

Chris Growe

morning. good Hi,

Mark Smucker

Good morning.

Chris Growe

could. – to two the had how inflation. questions if understand keeping I just with pace just the And first I pricing quarter understanding I Hi. was have is

of in? catch-up pricing were that when should that the still so quarter half have – If at of would was Are in continue in the more it the year quarter. pricing look to or it in kicks peanut, to that or more the that is pricing caused, negative second you seeing then fourth accelerate you

Tucker Marshall

year. So, mid-summer as that an in year, pricing nine the you timeframe, the the about of months walk of the think is initial for back round the we benefiting really took

And cost of additional pricing our the had lastly in as take into the support pet fourth we inflation came have taken then, cost we round transportation, When will pricing quarter, portfolio benefiting primarily And believe of help last an had cost subsequent come our our quarter, to us will we we and since seeing so, that call first green into is, that seen well initial having increases your we sort that additional rounds coffee we that benefit increased primarily coming point. is have look and year. that we start and coming in through is portfolio QX. of the fiscal through to which in see of coffee that to we in were

FY point, coming up sort of the then, effects lapping we will of of the benefit our your pick the the QX are we XXXX. into yes, to predominance balance seeing and So, through

Chris Growe

had the just broad I curious know, Okay. I today? a of see data for level this other a you. That question in see private-label your your health was well, occurring the so a doing pricing. and helpful. Mark some amidst of view, all broad you it’s share, we confirmed I again it’s brands I question, when consumer is today. share, Thank how losing IRI brands am that guess, in general – had one gaining it’s but core we perhaps And high

as just elasticities maybe take there conservative So, all a change the point what the Do into elasticity result for view into has non-existent very pricing move we brands? you and been low as this consumer continue XXXX. that more of to most companies. Does a been strong growth to and – almost the of in

Mark Smucker

Chris. Sure,

Tucker things. success of we’ve But going think, of one a couple little previous a the assumptions is bit his of some elasticity I talked answers our that forward. in experienced about

of managing best marketing notably campaigns, First and keep in not on the continuing as chain store foremost through our we dynamic sure most stock. I our changes, that invest as just said this Laurent’s brand firing about Jiff, continuing invest. trying in but world-class as cylinders just supply to some question well level way, to our had to of cut its brands what all is during material a do in We’ve to recently, the in time, marketing execution work as a make well all

So, folks to are is going model it. an those the be, plus it’s a back what we that to. people hybrid they of the than to is work keep to I elevated going ongoing fact work way think, they go believe, homes that consumption, driven There to that at-home things, not used their we believe tailwind in is wanted by going more

was and And definitely focusing as so, in going as you to XX% are since Milk-Bone well pet is lunch oriented, support know, up to breakfast our quarter. that we clearly the snacks, on alone continue business,

of what by as tailwind consumption. execution we this supported both had then we’ve of So, results nice just some persisting our view and at-home a some very

Chris Growe

you Thank that holidays. for happy and Okay.

Mark Smucker

Thank you too.

Operator

Thanks.

coming Powers from Steve Bank. question Deutsche Our is next today from

now is line live. Your

Steve Powers

Hey, Thanks morning good great. everybody. and

Mark Smucker

morning. Good

Steve Powers

you Maybe, SG&A have updated productivity, just – would your said But up is earlier, despite upward believe pressure lower on was I to you not components. forecast those think you response taking if some back assume productivity – targets Ken’s I circling what XXXX. you for to I of were it in question

So, maybe of discretionary just to in that are – and coming where they savings from help more pullback me sort on as out activity? you just a there this are items of those can opposed corporate if terms

Tucker Marshall

Yes.

you just the favorability. on a more said. latter think, year-over-year of pullback and I it’s items what discretionary to of It’s

benefit in expenses now of ago. from really lower year, year organizational projected initiated marketing That’s and programs the we to benefits prior to SG&A decrease approximately by the our spends restructuring we cost a it’s expenses. as are really compensation incentive other X%. lapping a management And strong of also, So, are well. and due because reduced from that’s discretionary reductions that It’s a pretty spend the fourth and quarter also

And latter so, as the your the what to more question former. asked, I of think it’s opposed

Steve Powers

reinvigoration shifting the could quarter, helpful. Thank planning topic just any guess, maybe, That’s is circle dog gears there? sort Okay. if and what in your focus side future updates you. was thinking of that last a and to in there I around you from And are some dry back maybe to we food Nutrish drive

Mark Smucker

Sure, Steve.

bit probably talked and last repetitious. this first all, of we So, as quarter is a little

contingent on legs strategy, pet stool. Our of you’ll recall, the is really three

pet snacks, because we The the snacks are business. first to pet in direct and pet priority continuing leader is and snacks resources to our

number has cat are to Our solid and growth, growth Meow significant we food quarter-over-quarter business sequentially. Mix experienced the even where continues two see

But two food, and priorities. the to we And where leg a then, important same with well quarter going course, of not role. are about position positions still specifically relatively where a are leadership much on level is as the food growth and that do about last in the we our have small it experience albeit and dog brand quarter. over growth so, portion third stronger we of total entire in serves clearly business dog Nutrish, those not dry growth, the other. recognize X% acknowledge the are quarter the actually dog sorry, And did that would we is on our in our X% as leadership an

growth the to which vet entire and me some our dog. let both So, well. thought was X% you as we as I includes dry well snacks, as if right, correct Nutrish growth committed we on recall myself. it some did And remain experience brand, was products,

this solid we Nutrish quarter dry quarter. dog So, a on have did on

Steve Powers

you good. Thank Very much. very

Operator

Thanks.

Bryan is Bank today Spillane America. from of coming question from next Our

Your line live. now is

Bryan Spillane

a just the to on follow-up Good morning, bit little everyone. operator. Thanks, inflation. Tucker, maybe Hi.

now I runrate are a, at low We double-digit year-to-date. guess,

actually this are guess, maybe maybe the pressure XX was we And underneath so be on, some months of forward. we where what of just of just continue we trying the are perspective so, get point some pressure would I are that next a to what and I continue that, in put areas at to might pieces moderation a that look may to goes. And as be do closer elevation what source get or peak just about we and perspective to even, more terms to thinking cost maybe like think

continues try and probabilities inflation a back we elevate as come later we understand, are that to to Just continues the of to what rate quarter move higher?

Tucker Marshall

good Bryan, morning.

at continues As disruption But is we’ve are million chains the now pretty and and the it fiscal balance and inflation, $XXX the beginning decreasing experiencing sort commodity cost our to that overall just able we sold we also still you’ve to as basket around inflation, since well of also based year, equate well. but going factoring year, and discontinuity balance total inflation. double-digit to-date. what see are inflation, to year been that the the our the of noted, we it supply transportation think and fiscal rate some the cost as are of and That’s too we of get elements key at see fiscal that over low that. this increasing year-over-year a products you of as goods as comps against increase, packaging that of labor-related our into of sort arms our on we Part of ingredient consistent seeing of are

side, but But that and want only tremendous front. overall environment also the have at We signals continue execute production work our looking think, environment. inflationary productivity this manage beyond on to to on this probably through just the price we acknowledge continue time, beyond again to is year. and successfully year fiscal fiscal prudent manage the understand to this just our much done teams current and current not as I overall the the But I not

Bryan Spillane

about that of we thinking for incremental guess, for to – matching suggest now. I additional incremental back rounds inflation Thanks the continues to at the pricing year, you the half as know back that higher, would those of are price go come have you price that. guess, point the some is inflation really you are going maybe that that if price it actions, increases then, And right, And I increases? to are take Okay.

Mark Smucker

it’s is, playbook answer short changed. our Bryan, Yes, Mark. hasn’t fundamentally The

to in And as acting a intent fully is recover leader the right. over so our categories, time,

several and we although. raises And unusual months so, last not obviously, they less price these sort over the ubiquitous, are have of tide are as movements seen so because

productivity I experiencing of intent in is as and highlight fully quarters, our yes, price us you’ve last it. we also our marketplace. these would other hit is everyone that So, over and within to actions fully to previously trade say that mentioned. initiatives some – couple from there use the the less just But, timing overtime, the those spend, that, recover some obviously, Tucker the and is can addition intent heard increases optimizing recover, our like levers to when lag

Bryan Spillane

happy Alright. Thanks, Mark. Thanks, you. Tucker. Have both Thanksgiving of a

Mark Smucker

to Same you.

Operator

coming Thanks. Howard Bernstein. from from The is question Alexia next today

is now line live. Your

Alexia Howard

Good morning, everyone.

Mark Smucker

Good morning.

Alexia Howard

So, here. two questions

for last better the to third a quite pricing the couple quarter of the should fourth changed in things a with bit all, over of modest now First fiscal obviously is get the down XXXX has guidance quarters quarter. there guide and then

lot of So pieces there here. a is moving

rank summarize remainder what and order would uncertainties of we the for If into for would them? you you look your have out even key fiscal as biggest XXXX what – you are uncertainties how here XXXX, the in mind to

Mark Smucker

and Mark, start here. I’ll it’s Alexia,

challenges is, the of all, dynamic industries. exists that seeing the that chain been just how uncertainties, think of in I first what multiple supply labor it’s terms of some across So, we’ve

persist you to those if think, the for are about foreseeable future. those I components, probably going think

particular describe consistent mean or ingredient could I that’s what It exist theme. say isolated when some packaging months-to-months. at be it think change the we I dynamic, can pretty a way would is, geography. week-to-week, is, that I The challenges labor challenges component could it been in a one a point be an

organization, a to that continue where the to allowed to very dynamic think challenges did we truly which again, We to us And a ago, environment six that So top those has ultimately and be of quickly. And do customers. us organization flatter and to ability to agile respond deliver target. – to this has is – very changed of we months somewhat became it our very of on our I agile moving products some pivot see to it be fact stay allowed really to actually about it’s that end and structure.

Alexia Howard

are mentioned you in, Thank what you an you in before And result just a have do pass that describe That’s what prepared the capabilities idea basic the investments commercial you. capabilities. that I And as really you of model I’ll got you Can very you that you how – can Great. now it we think that the an of Thank couldn’t incredibly helpful. much. improved on. follow-up developing? have remarks, and question,

Mark Smucker

Alexia. Sure, Okay. question. the for Thanks

are able products very capability that on spoken or are the our of we of clusters out actually to that of it’s the to has it’s headline area we example, our that geographies actually So, and how we believe sure best-in-class. If at specific in that’s able marketing are capability together two year is that capabilities getting online see that I have way where general in, and actually we quickly those CAGNY not, the a before, store of Those able combination out if just backroom potentially execution. customers, of we may to for or things and customer, tactical. one we out we and a target go rolled of some react just outages, working example what about are last do sales whether quickly bit and to in and said one been can are with make that metropolitan customer, have major of believe I truly that’s shelves, But incredibly both consumer actually a an that recall, and by successful. stock retail is react with new example stores ensure we we a groups that say, even

Alexia Howard

much. I’ll very on. you pass it Thank Great.

Operator

Thanks.

from Our Credit from Moskow is Robert coming next Suisse. question today

line Your now is live.

Robert Moskow

thanks. Hi,

and them One strong more be of pet several indicate as the The that specific could surprises I to bigger Tracking which – snacks really quarter. see Data Nielsen where and wondering, for if me channels the snacks to then, of was in in. then a was so you labor. challenges And doesn’t you your it When follow-up talk four is labor and on own that at mostly what come I growth walls are retail at really had distributor is you challenges, the the about within to level the seeing or extent level? Thanks. growth

Mark Smucker

Rob, it’s Mark.

Let as me Alexia, systemic, labor terms mentioned and shortages. around start moving is question labor. second with you might It where we as it your experience in to a is I target certain know of is and

it I geography. think on depends the

Sometimes what tell pet general and snacks skilled able But – very shift sometimes geographies, think that time. been been innovation, by of adapting at done our effective. the competing Pet have you us very would varies actually think, remain probably things in new would supporting we we labor. over and stock stay snacks, which advertising level and probably most allowed again have to capabilities the labor which it bit I a we’ve skilled been that which been most I been less - has and little has I would in again, may again see is the specific, be And more some moves turnover. well at specifically in for in reasonably business most with some the has centers in it the of be also. the labor, is part. obviously, certain I can for of sales agile supported is other store to Milk-Bone, around challenges the terms it But around to we distribution top on

consumption I is Milk-Bone, of channels, and a things other it what as been our you So seeing line is think supporting typically I of in we combination those that specifics snacks The are sales specifically. as seeing growth. is and – the is channels across are just follow-up of but business, in all comment with have I well the get would that might to one has numbers generally from we with our the on all our that you that, growth and that growth make

Robert Moskow

follow-up Thanks. Okay. I’ll later.

Operator

coming The Stanley. from Morgan Thanks. from question Kaufman next is Pamela

line Your now live. is

Pamela Kaufman

anticipated Good making morning. through any seen. than the demand that to strategy your adjustments I was wondering if year, marketing you are the promotion you’ve given stronger and

Tucker Marshall

forward actually and sticking No, we on are plans. to our marketing guns our basically moving

across Given last year. more up would versus last were will with you be but in what they down percent are is slightly budgets the inflation much broadly, our portfolio that very the marketing see our of line sales year, actually slightly. Coffee

And in we so, continue to invest our brands.

Pamela Kaufman

And there of Thanks. innovation growth you see portfolio that the touch working helpful. Are products Uncrustables is investment are step-up maybe the And on brand lot other clearly, some on. there behind can is of in strong investments? seeing. a That’s you given the that the where you opportunity to

foods, areas step-up mentioned innovation. particular other investment You and are see where but there to you pet in opportunity

Mark Smucker

for Milk-Bone are Sure. biscuits example. a there a biscuit for relatively does Yes. really being Peanut is butter do do. one products. and new is around other those products, utilization dipped some and is well Milk-Bone, on The for example dog number easy butter peanut Think of line our extensions about us very to

And on marketing Meow good in so, That’s there. a to we’ve we’ve continued example. really Milk-Bone. done well invest Mix,

on Meow Dunkin good And – both and have see in are growth Mix. So coffee, then, households. maintained their we Bustelo

their have both at whole double-digits. in In category seeing fact, are that the we they the that maintained brands two is what coffee household are

continuing is has the more selling great of brewers in million fantastic job that terms probably brewers couple to space. just continues to finally, to we brand a as more coming the brands, doing and been online. Folgers in our going And this And to think well. so, be K-cups shift K-cups. in category then just Keurig invest And we has know those on as Folgers, done

So, just to the growth again really us. has shifting the where where our portfolio in or is benefited going growth

Pamela Kaufman

Thank you. Okay.

Mark Smucker

Thank you.

Operator

Thanks.

question Inc. Morningstar coming Our from Rebecca Scheuneman is from today next

now live. Your line is

Rebecca Scheuneman

Good Great. morning.

Mark Smucker

Good morning.

Rebecca Scheuneman

been just set has if of And take Smucker’s industry? apart we could look few clear and does kind have your a if And I process? competitive play. at at Uncrustables development Smuckers a product am to But history highly there stumbles you So, this a wondering innovation in home what others itself been run. of share from

Tucker Marshall

Rebecca. Sure,

we focused few did and you on first been The is, mentioned, fewer I ago there. we a bigger a couple think have what as – years stumbles have

brand still and XXXX steady. of the market in is Our notably sort is

of learned is And to that process decent so in of a if the done with right, smaller had would extension that have been consistent products relatively brand, and if and our was our even our has an growth we you as you vets XXXX I big get new combination over highlight have stumbles, has launch algorithm Folgers – time. through have What remains larger mix market. works. that we which we a when coffee it in from and

different of very is and right, other about of another putting getting just some been convenient And well. like so, feel we on we delivered now, some and our taking vets, hope, I innovation really mean, as products. right mentioned mix that example times mix larger algorithm just where successful And a some Jif I’ve several peanut that and been got our like, the new packaging feel of already the even in we’ve growth the really good butter that in of seeing Squeeze still as been the have Milk-Bone we’ve we’ve has years right. successful, we against more

and the end the right. knowing the down of day, comes getting balance at So consumer your to it

Rebecca Scheuneman

your now, your I And so, was Thank about And was at a new marketing you’ve helpful. of And out also, provide progressing? your it very to you you. Investor to ago percent is year plan like, as what redesign wondering laid Day, model. part an media how of digital if medium? your that you That’s spend that, can allocated is share if strategy on could update

Mark Smucker

Okay. part about XX:XX important, be The is question, what and mass you in that Digital XX:XX roughly all many it as but can. category, last varies it’s It’s it as your of to by consumers reaching targeted. is, range means more reach. because or XX:XX about media – is the about would it’s

them keep sort to are think in consumers franchises. your about brand and trying have So, oversimplification. how you you we That’s sure already an you But of make it. that’s

and specifically to in external partners. question have the many to have needed with we broader try we one. to primarily We how about relevant that you our with we the And down line We marketing. And giving partner terms, to are making doing importantly, very to bold creative. both. – really maybe fundamentally afforded organized essentially Publicis marketing We many, about partnered on had up consumer restructure with it the I’ll them. and partners and think it was to agencies. sure consolidated we do so, us has The our consumer So, license most more are create opportunity how

campaign but we is made, of which that example most recent impressions also There of was from that, and we partnerships which as have unbelievable the us both with a of a would in TikTok views actually the eras. number. different two number in terms again earned rappers rap record a So, part I is record for where and we a the a Jif, certainly use X billion probably as company Ludacris Gunna, challenge

the gave in I year. XX are us, think most we this top influential past TikTok campaigns

piece sales those very definitely is things combination has So, consumer the powerful been It’s more over this two of key model, our years. three the of is success. last with the now combination focused a and a again, and clearly, working execution to marketing and a journey the refined

Rebecca Scheuneman

Great. Thank much. you so

Operator

to or end any to Thank Question-And-Answer of over closing Session. you. turn management I’d back further We’ve reached the like floor our for the comments.

Mark Smucker

very thing work first you with for think just to I pause results. who Thank a and holiday us employees to week all, important wish number happy our this everyone most happy and Well, is and And this it’s week. thank through a of yeoman’s this week. have want done being delivering I Thanksgiving challenges know truly holiday very of and managing really I the company tremendous a

of for most and you your our thank employees you support. So, all thank to our to shareholders

Operator

webcast. Thank teleconference does you. That and today’s conclude

this time have a your day. at line today. your and wonderful disconnect participation for you We may You thank

The J. M. Smucker Company (SJM) 23 Nov 212022 Q2 Earnings call transcript