Strong sales for the Café Bustelo, Folgers and licensed Dunkin’ at-home ranges contributed to 5% revenue growth for J.M. Smucker’s coffee segment, with the food and beverage manufacturer noting sustained post-pandemic demand for coffee at home in the US
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Café Bustelo net sales grew 22% following 19% volume growth during the quarter | Photo credit: J.M. Smucker
J.M. Smucker has reported first quarter volume growth across all business segments, with its coffee division benefitting from sustained at-home coffee consumption following the pandemic.
The coffee, food and pet food manufacturer posted 5% net sales growth in its coffee segment for the three months ended 31 July 2023 to reach $625.1m, with profit increasing 17% to $170m.
The Café Bustelo and Folgers brands were credited for segment sales growth. Alongside its licensed Dunkin’ at-home retail range, J.M. Smucker said its coffee portfolio now features three of the top seven at-home coffee brands, with the segment growing dollar share more than any other branded manufacturer for the ninth consecutive quarter.
Café Bustelo net sales grew 22% following 19% volume growth during the quarter. Café Bustelo is the fastest growing US brand in the ‘mainstream, one cup and instant coffee categories’, according to J.M. Smucker.
Folgers net sales increased 6% while Dunkin’ achieved unspecified ‘dollar and volume growth’ during the quarter. J.M. Smucker plans to accelerate production and distribution of its Dunkin’ cold brew concentrates as part of plans to ‘make investments and explore opportunities in the fast-growing liquid and cold coffee segments’.
“Overall, the coffee category continues to remain resilient, as the pandemic driven increase in at-home consumption remains sticky and over 70% of all coffee drinking occasions continue to be at home,” said CEO Mark Smucker.
J.M. Smucker will also pass through ‘a moderation in commodity costs’ this year to provide its coffee customers with ‘increased value and some relief from inflation’, he added.
The coffee, food and pet food manufacturer’s total first quarter sales fell 4% to $1.8bn, with its US Retail Consumer Foods segment the next largest sales contributor with 49% sales growth to reach $464m.