Good morning. A snack to fit your mood, a sandwich for lunch, or even giving your dog a treat, are just some of the “consumer occasions” that J.M. Smucker Company strives to supply, says CFO Tucker Marshall. In some cases, a typical consumer may reach for a Smucker product twice—or even five times—a day.
“If you have an Uncrustable, some Jif peanut butter, a cup of coffee, give your dog a biscuit, then maybe a Twinkie at the end of the day, you have nailed the Smucker company,” Marshall told me on Thursday. The company prioritizes “a very well-balanced portfolio so that we can meet any consumer where they are,” he said.
Along with its namesake jams and frozen treats, the Orrville, Ohio-based Fortune 500 company is home to brands like Café Bustelo, Dunkin’ coffee, Milk-Bone pet snacks, and Meow Mix. And thanks to its 2023 acquisition of Hostess, Twinkies are part of the brand mix too. But there is one item that is becoming the company’s crown jewel: Uncrustables, the crustless frozen sandwiches with a round shape that are crimped around the edges to seal the various types of filings.
When the company reported its earnings on Wednesday for the quarter ended July 31, it reported that Uncrustables enjoyed a 24% increase in net sales year over year, driven by national advertising, distribution gains, and new merchandising investments, according to the company. The full Uncrustables portfolio is “on track” to becoming a $1 billion brand by fiscal year 2026, Marshall said.
Meanwhile, net sales were $2.1 billion, an increase of about $320 million, or 18% from the same time last year. J.M. Smucker had a quarterly profit of $2.44 per share, an increase of 10%, beating estimates.
Not everything is rosy, though, as inflation continues to cast a shadow. Soaring green coffee prices, for instance, resulted in price increases in May, with another planned for October, he said. “If you rewind over a year ago, we had an experience where we saw green coffee come down, and we actually passed along that price decline,” Marshall said.
J.M. Smucker is also seeing some weakness in categories like pet treats and sweet baked snacks, a result of inflation and reduced discretionary income, Marshall said.
“Pet parents are still treating their pets,” he said. “They’re just not treating with as great of frequency as they were in the past.”
And the company is seeing “a little less snacking,” particularly snacking through the convenience channel that has impacted its top-line outlook for the year, Marshall said. An example? Consumers have typically walked into a gas station, bought a cup of coffee and maybe a sleeve of donuts, he explained. “They’re now just pumping gas and leaving because of the overall inflationary pressures,” he said.
The company forecasts annual net sales to increase in the range of 8.5% to 9.5%, compared with its prior forecast of a range of 9.5% to 10.5%.
“Despite the revision, the health and the momentum of the portfolio is still strong,” Marshall said. He pointed to the momentum of products like Uncrustables, Café Bustelo, peanut butter, including the recent launch of Jif Peanut Butter & Chocolate Flavored Spread, and the company anticipates growth in its pet portfolio.
When I talked to Marshall a few months ago, he told me a scoop of Jif peanut butter and a scoop of Smucker’s Natural Strawberry spread are his go-to items for snacking. Is that still the case? “One hundred percent,” he said. “I had it last night.”
In recognition of the Labor Day holiday on Monday, the next CFO Daily will be in your inbox on Tuesday. Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
The following sections of CFO Daily were curated by Greg McKenna
Leaderboard
Some notable moves this week:
Curt Calaway was promoted to CFO of Tyson Foods, Inc. (NYSE: TSN), effective immediately. Calaway has been with the company since 2006, most recently serving as interim CFO. He succeeds John R. Tyson, who remains with the company but is currently on health-related leave, according to Tyson Foods. Tyson, finance chief since October 2022, was suspended in June, following an arrest for allegedly driving under the influence. And following an arrest in 2022, Tyson pled guilty to charges of criminal trespassing and public intoxication. Calaway previously served as the CFO for Tyson Foods’ Prepared Foods Business Unit and was also responsible for the company’s mergers and acquisitions and corporate development efforts. He served as SVP of finance and treasurer. He has held various leadership roles with the company during his 18-year tenure including controller, chief accounting officer and VP of audit and compliance.
Amy Weaver is stepping down from her role as president and CFO of Salesforce (NYSE: CRM), the company announced in its quarterly earnings report. Weaver will remain CFO until a successor is appointed, according to Salesforce. After that time, she will be an advisor to the company. Weaver, who joined Salesforce in 2013, has served as president and CFO since 2021. Before that, she served as president and chief legal officer. Prior to joining Salesforce, she was EVP and general counsel of Univar Solutions Inc.
Kevan Parekh was promoted to CFO of Apple, Inc. (NASDAQ: AAPL). Longtime CFO Luca Maestri will transition from his role on Jan. 1. Maestri will continue to lead the corporate services teams, including information systems and technology, information security, and real estate and development, reporting to Apple CEO Tim Cook. Parekh has been at Apple for 11 years. He currently serves as VP of financial planning and analysis.
Gary Chase was appointed CFO of Viasat (Nasdaq: VSAT), a satellite communications company, effective Sept. 16. He will succeed Shawn Duffy, who will remain at the company as chief accounting officer. Chase arrives from Delta, where he spent more than 12 years. He most recently served as SVP of operational finance and was a member of the airline’s top leadership committee.
James D. Allison was appointed CFO of human resources provider Insperity (NYSE: NSP), effective Nov. 15. He will succeed Douglas S. Sharp, who is retiring after 21 years in the role. Allison, who currently serves as chief profitability officer and EVP of comprehensive benefit solutions, first joined the company in 1997.
Yao Liu is resigning from her position as CFO of Tuya (NYSE: TUYA), a Chinese cloud software company, effective Sept. 16. Liu made the decision to devote more time to her personal endeavors, the company said. Cofounder and director Yi Yang will take on the additional role of CFO.
Todd Smith, CFO of charter airline Wheels Up (NYSE: UP), is stepping down and leaving the company to take a new role, Wheels Up said. Chief accounting officer Eric Cabezas will act as interim CFO, effective Sept. 9, while a search is conducted for Smith’s replacement. Cabezas joined the company in 2019 and has previously served as interim CFO.
Thomas Liguori was appointed CFO of Valmont Industries (NYSE: VMI), a manufacturer in infrastructure and agriculture. He will succeed Timothy P. Francis, who has served as interim CFO since July 2023 and will remain at the company as chief accounting officer.
Big Deal
Retailers have filed for bankruptcy at the fastest pace since 2020, according to a new report from S&P Global Market Intelligence. As of Aug. 15, there have been 24 bankruptcy filings in the sector this year, despite consumer retail spending hitting a record $709.67 billion in July, per Census Bureau and Federal Reserve economic data cited in the report.
The median default risk for publicly traded American retailers held relatively steady at 2.4%, S&P Global noted. The outlook improved most significantly for household appliance companies, with the sector’s one-year probability of default dropping to 3.9% in mid-August from 5% the month prior. The consumer electronics sector, meanwhile, suffered the largest increase its default risk, which rose to 3.4% from 2.9%.
Going deeper
Here are a few Fortune weekend reads:
“Zillow CEO says the worst of the housing crisis may be over: ‘We’re past the eye of the hurricane,’” by Jane Thier
“How this Goldman Sachs sports boss helps the Yankees, FC Barcelona, and other famous clubs build their stadiums,” by Michael del Castillo
“Wall Street’s AI darling Super Micro postponed earnings while under short-seller’s microscope,” by Will Daniel
“This tool was supposed to fix America’s retirement crisis—but it may not be much of a solution after all,” by Alicia Adamczyk
Overheard
“The philosophical challenge in the Harris-Walz agenda is to balance advancing U.S. economic growth with securing fair worker wages, providing affordable education opportunities, ensuring affordability of basic goods, and offering childcare support for employed parents.”
—Jeffrey Sonnenfeld, president of the Yale Chief Executive Leadership Institute, and Stephen Henriques, a senior research fellow at the institute, wrote in a Fortune opinion piece about how the Harris-Walz campaign must clarify its positions on issues like inflation, housing, immigration, and taxes.