How Smuckers earnings were unaffected by weight loss drugs
J.M. Smucker (SJM) stock rose Tuesday morning after the company posted better-than-expected results for its fiscal second quarter. Comparable sales for the company rose 7% in its second quarter compared to last year. Most notably, sales of the company’s "Uncrustables" line of products rose 22%.
J.M. Smucker CEO Mark Smucker joins Yahoo Finance to discuss earnings results, as well as the recent sentiment around weight loss drugs and their potential impact on consumer food sales for companies and brands like Smuckers.
"We haven't seen any meaningful impact at this point, of course, we are watching that very carefully. We are in the business to serve consumers, so we want to listen to them, to what they need," Smucker says. "If you think about our broader portfolio, we have products that will meet the needs of consumers across the entire value spectrum, but also in the snacking space. Consumers continue to snack more than they used to."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
SEANA SMITH:
(ON) SEANA SMITH: Mark, what's your assessment of the consumer? 'Cause there is a lot to be optimistic about obviously within your business, but I-- I would guess it's a very challenging time. How are you navigating what could be a tough couple of months?
MARK SMUCKER: You know, consumers, there are some consumers out there that are seeking value. Our portfolio, regardless of the category, whether it's coffee, pet snacks, handheld snacking, sweet baked snacks, all of those categories, we play in the entire spectrum of value. So value brands like Folgers all the way up to Dunkin' and Bustelo in the coffee space, even within milk bone our-- our pet snacks, there are both value and premium offerings, and so we're able to actually move and capture the consumer where they need to be and really want to make sure that we're meeting their needs. So even though there are some premium items that continue to grow, we are also seeing that-- that value consumer and capturing and providing them with products that they need as well.
BRAD SMITH: Uh, Mark i-- it seems like some of the weight loss drugs and the-- the trend there that we've seen of GLP 1s among consumers, too, that's presented a headwind for snacking as a whole, and we've heard that come up as a theme time after time again with some of the grocery retailers over the course of this earnings season. How is that kind of trickling through to your business? How is that kind of playing itself out? And even what your production looks like, the wholesale partnerships and where people are taking on inventory and that assessments that you have to think about on a day in, day out basis.
MARK SMUCKER: Yeah, you know, we haven't seen any meaningful impact to this point, of course, we're watching that very carefully, and-- and we're in the business to serve consumers. So we want to listen to them, to what they need if you think about our broader portfolio, we have products that will meet the needs of consumers, uh, across again the value spectrum but also in the snacking space consumers continue to snack more than they used to, and often, that's a sweet snack. Sometimes, it's a sweet coffee beverage. Even in the hostess line, there are opportunities for our portion control. T-- The products come individually wrapped you have bite size offerings. So we're going to continue to innovate and listen to the consumer and make sure that the products that we're providing are meeting their needs, and that may even include Voortman Cookies, which is part of the hostess portfolio a-- a zero sugar a-- alternative. So ver-- very, uh, broad portfolio, and able to-- to meet those needs of the consumer.
SEANA SMITH: Mark, are you at all thinking about maybe smaller packaging when it comes to the number of items within some of these boxes within some of your offerings because of the impact of weight loss drugs potentially?
MARK SMUCKER: You know, y-- yes, and-- and we've already done some of that if you, again, if you look at the hostess line, there are alternatives of whether they're individually wrapped or b-- bit sized alternatives b-- but, but there are other alternatives like, like, peanut butter, which is obviously a higher protein vegetable protein, very affordable, so we think our portfolio can play across all of those, uh, needs states.
BRAD SMITH: Just don't make the Twinkies smaller please, please, Mark.
SEANA SMITH: [CHUCKLES] That's all Brad's asking for today, at least, all right. Mark Smucker, always great to talk to you here. JM Smucker Company CEO. Thanks, Mark.
MARK SMUCKER: Thanks so much for having me.
