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Smucker's (SJM) Jif Brand Unveils New Product, Boosts Offerings

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The J. M. Smucker Company (SJM - Free Report) is on track to boost assortment strength. Keeping along these lines, the company’s iconic brand — Jif — unveiled plans to launch Jif Natural Squeeze Creamy Peanut Butter Spread. The new product innovation under the Jif brand will be available on digital platform as well as at specific retailers beginning this month.

Notably, Jif Natural Squeeze Creamy Peanut Butter Spread is made using five ingredients and includes 90% peanuts. Moreover, the product is preservatives or GMOs free. Also, this easy to use product comes in a multi-serve 13 oz pouch. Thus, it serves as a convenient snacking option.

The Jif Natural Squeeze Creamy Peanut Butter Spread is featured in a commercial, rolled out nationally. The commercial showcases how the peanut butter can be consumed without using a spoon. We believe that the newly-introduced product innovation is a step closer toward solidifying Smucker’s brand portfolio that boasts some iconic brands like Folgers, Milk-Bone, Rachael Ray and Uncrustables among others. 

 

More Growth Efforts

Smucker recently outlined its strategic priorities, which include redesigning the portfolio, upgrading the commercial model and streamlining the organization. In this regard, management laid down four pillars of operational priorities for the next 12-18 months. As part of operational priorities, Smucker expects to drive commercial excellence by transforming the marketing and sales model. Through this growth pillar, it also plans to create a dedicated pet food sales organization. Further, the company expects to streamline the cost infrastructure by staying committed to enhance productivity, while focusing on lowering costs.

Growing trend of online customers has urged Smucker to focus on its e-commerce channel and boost sales. In fact, e-commerce is a fast-growing retail channel. We note that during second-quarter fiscal 2021, overall e-commerce sales surged 45% and contributed 11% to the company’s total U.S. retails sales. Moreover, the company is benefiting from increased demand due to coronavirus-led higher at-home consumption, which is driving its retail businesses.

Apart from this, Smucker actively pursues strategic acquisitions both in the United States as well as overseas. We note that the company’s acquisition of Ainsworth (completed in May 2018) has been aiding performance in the U.S. Retail Pet Foods category. Other noteworthy acquisitions of the company include; Big Heart Pet Brand (pet food maker), Sahale Snacks (branded nut and fruit snacks maker), Enray Inc. (manufacturer of organic, gluten-free ancient grain products) and coffee brands and business operations of Rowland Coffee, among others. These acquisitions have added iconic brands to the company’s portfolio and strengthened its presence in the United States. Additionally, Smucker has formed key partnerships with quite a few coffee companies.

We note that, shares of this Zacks Rank #3 (Hold) company have increased 11.5% in the past year compared with the industry’s growth of 3.7%.

Better-Ranked Food Stocks

B&G Foods, Inc. (BGS - Free Report) — carrying a Zacks Rank #2 (Buy) at present — has a trailing four-quarter earnings surprise of 9.3%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hain Celestial (HAIN - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 24.6%, on average.

Sysco Corporation (SYY - Free Report) , also a Zacks Ranked #2 stock, has a long-term earnings growth rate of 11%.

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