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Consumer packaged goods company J M Smucker Co (NYSE: SJM) knows "a little bit more about the future" now than it did in prior months, so Smucker is confident that its recent momentum can be sustained, CEO Mark Smucker said on CNBC's "Squawk on the Street."
Share Gains: Smucker reported second-quarter results Tuesday in which all of its core categories performed well, Smucker said. Specifically, the company saw growth across 80% of its product lines and more than half of the product lines gained market share in the quarter.
For example, the coffee business gained a net 1.5 million more households compared to the prior quarter, he said. Coupled with an increase in marketing, he said Smucker is confident it can keep customers within its franchise.
This helped prompt management to increase its full-year fiscal 2021 sales, EPS, and free cash flow outlook.
Related Link: JM Smucker: Q2 Earnings Insights
Coffee Outlook: In an eventual post-COVID-19 reality, there is no doubt that food companies will lose some sales as customers start going out again.
This is especially true in the coffee category, where sales rose 9% year-over-year to $594.7 million and generated a $202.1-million segment profit, Smucker said.
Smucker believes it remains positioned to grow its coffee business moving forward given its exposure to all price points from budget to high-end and within the fast-growing K-cup convenience segment.
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