Sales of J.M. Smucker’s pet food business decline
For its fiscal year 2021, the company’s pet food business recorded net sales of $2.84 billion, a 0.9% decline compared to the year before.
During this last year, J.M. Smucker’s sold multiple brands: Natural Balance (which used to generate $220 million in net sales) and Crisco. These divestitures played a role in the 7% decline of the company’s gross profit.
Mark Smucker, president and chief executive officer, said: “These decisions show our commitment to divesting brands and businesses that are no longer consistent with our long-term strategic focus. In turn, this allows us to optimize assortment to maximize productivity, reduce complexity and shift resources to our fastest-growing opportunities.”
Net sales for the company’s pet food segment were down $93.2 million, or 12%, to $674.6 million in the fourth quarter, with segment profit down 32% to $101.7 million.
Tucker Marshall, the company’s CFO, shared: “Dog snacks continue to perform well, decreasing just 1% in the fourth quarter after growth of 12% in the prior year. Cat food decreased 4%, following 18% growth in the prior year. Dog food net sales decreased 15%, reflecting anticipated declines versus the prior year.”
- The company’s US Pet Foods business remains its most profitable segment.
- E-commerce represents 12% of J.M. Smucker’s total sales, skewing towards pet food and snacks.
- The company increased its total marketing budget by nearly $40 million last year, including an $18.9 million increase to its pet food and snack marketing investments.
- J.M. Smucker will primarily focus on pet snacks, the premiumization of its Milk-Bone brand, and launching new products under its Meow Mix and Nutrish brands.