Smucker’s shares have underperformed the industry on a year-to-date basis, due to unfavorable coffee volumes. Smucker also posted disappointing first-quarter fiscal 2018 results and slashed its earnings guidance for fiscal 2018. Both earnings and sales declined on a year over year basis due to lower coffee volumes, planned increases in commodity costs and higher marketing expense. In fact, the quarter marked the fifth straight quarter of sales decline in its coffee business. Heightened competition in the pet food business also remains a cause of concern. Nevertheless, the company has resorted to cost cuts amid the tough industry conditions to uplift its performance. Though strong organic sales growth, product innovation and improving its position in the mainstream dog food category is driving volumes, headwinds continue to dent the performance.