Topic: How To Invest

Q: Hi, Pat and team. I have seen some interesting comments on Smucker lately. What’s your view on this food producer as a buy? Thanks in advance.

Article Excerpt

A: J.M. Smucker Co., $117.13, symbol SJM on New York symbol (Shares outstanding: 114.1 million; Market cap: $13.2 billion; www.jmsmucker.com), is the largest maker of jams, jellies and peanut butter in the U.S. Its top brands include Smucker’s and Jif. It also makes pet food and many other consumer products. The company has over 30 offices and manufacturing facilities across North America. The U.S. accounted for about 92.5% of Smucker’s total sales in the latest quarter. In addition, Walmart is its largest customer, representing about 32% of its sales. Acquisitions have helped Smucker expand in the past few years, particularly into faster-growing businesses like pet foods. The company’s pet food business now generates 38% of total sales, while coffee products contribute 32%, and consumer products provide 24%. The remainder of the sales were from the International and Away From Home segments. Key acquisitions include the March 2015 purchase of Big Heart Pet Brands for $6.0 billion. That business makes a variety of…

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