Despite Lacking a Moat, Smucker Should See a Return to Low-Single-Digit Sales Growth

Smucker has leading share in some categories, especially its Uncrustables brand, but we don’t think it has enough pricing power or entrenched retailer relationships to create an economic moat. Its long-term strategy is to turn low-single-digit sales growth into mid-single-digit adjusted operating income growth, leading to high-single-digit adjusted EPS growth—but we expect mid-single-digit run-rate growth.