Friday, August 21, 2009

Frugality brings coffee makers success?

Interesting combo article:
Frugal Consumers, Cheaper Commodities, Give Smucker a Jolt
While not the sexiest of the corporate titans, J.M. Smucker Co. is nevertheless one of the most high-profile earnings reports today.

Best known for jams, jellies and peanut butter, Smucker has seen coffee become one of the most important contributors to the company’s earnings since it bought Procter & Gamble Co.’s Folgers coffee business in November for $2.65 billion.

The decision to scoop up Folgers by the Orrville, Ohio company has looked especially savvy, since it coincided with the economic earthquake that radically reshaped behavior among U.S. consumers.

Last quarter, Smucker’s fiscal fourth-quarter earnings more than doubled, juiced by the purchase of Folgers. The Journal wrote at the time that the coffee segment’s results suggested shoppers could be making a frugal switch from buying their coffee at specialty shops to brewing it at home.

And... a 2.8% dividend yield: Smucker ticker: SJM

Jittery Caffeine Induced: CHEERS!!!!

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