Americans are no longer afraid of fat, eating more nutmeg butter, and JM Smucker Co. Jif still occupies almost one third of the market. So, why does it blame peanut butter to reduce all year's guidelines?
Jif sales volumes in the United States have increased for two consecutive years, according to Euromonitor International show data, increasing the gap compared to No. 2 Skippy, Hormel Foods Corp brand. But, as Smucker sells more, the costs associated with peanut butter are increasing and the prices it earns per jar have been reduced by reducing the profitability of making sandwiches.
The fourth autumn call with analysts after the second quarter results was announced by Finance Director Mark Belgium, who began to compete with low-priced private label brand branded brands.
Peanut butter problems associated with lower coffee prices led the company to reduce sales forecasts for the entire year to $ 7.9 billion out of $ 8 billion. Smucker stocks dropped by 7.2 percent after reporting a profit, which is the highest in the day since August.
However, the overall volume trend is positive, and since 2013 sales in the total nut and seed butter category have increased by 1.3 percent, according to Euromonitor. In addition to the benefits of natural brands, such as Hormel's Justin's, as well as other nut-nut offers, a pickup is also obtained.
"People are expanding in other nut butter, almond butter and also Indian butter," said Michael Bloomberg Intelligence, Michael Halen. They are also looking for healthier, lower sugar levels, non-allergenic options, so big name brands are expanding their offerings more and more.