Smucker Has Some Strong Brands but Continues to Suffer Headwinds in Coffee and Sweet Baked Snacks

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 targets low-single-digit sales growth, mid-single-digit adjusted operating income growth, and high-single-digit adjusted EPS growth. However, we expect it will fall short and deliver low-single-digit adjusted EPS growth.