Morningstar Rating

Stock Research and Analysis

by Liang Feng

Bulls Say

Smucker's strong market shares in coffee, peanut butter, and fruit spreads give retailers a strong incentive to stock Smucker products to increase traffic.
Improved employment and confidence could prompt consumers to trade back up to name brands, allowing Smucker to generate higher volume and charge higher prices.
Folgers' mainstream coffee market has still generated volume and sales growth while the premium segments have taken share and could continue to benefit as the growing popularity of high-end and coffeehouses brings new consumers into the market. Read more 

Bears Say

Retail industry consolidation gives big-box retailers more buying power to negotiate lower prices, to the detriment of food suppliers.
A weak economic environment in the U.S. could prompt more cost-conscious consumers to trade down to lower-priced private-label products.
Higher-end products are emerging in both the coffee (K-Cups, for instance) and consumer food categories, which could grow in popularity, and pigeonhole Smucker's offerings as lower end, damaging the value of the firm's intangible assets. Read more 

Management

We have assigned Smucker a Standard Stewardship Rating. Smucker has put capital to work through a number of acquisitions over the years, including its notable acquisition of the Folgers brand from Procter & Gamble in 2008. This acquisition was transformational,  Read more 

Profile

J.M. Smucker manufactures and distributes coffee, fruit spreads, peanut butter, shortening and oils, baking mixes and frostings, and natural products under its portfolio   Read more 

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2 Global Luxury Stocks at Non-Luxury Prices 
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