JM Smucker: Away-From-Home Hit by COVID

(NOVEMBER 24, 2020) - US food and beverages manufacturer has reported further weakness in the away-from-home (AfH) segment as many people continue to work from home.

The company’s AfH sales fell by 24% year on year, largely due to declines in coffee and portion-controlled products. However, this was more than offset by a near 10% increase in its US Retail Coffee division as at-home coffee consumption again rose. The Dunkin’ and Café Bustelo led the growth, up 24% and 19% respectively. Total K-Cup sales increased by 15%.

CEO Mark Smucker pointed to changing consumer habits and the increase in the number of Keurig brewing machines in the at-home market. However, he said it was too early to say to what extent these changes to coffee consumption habits would be permanent once the COVID situation was over.

Second quarter trends of elevated at-home coffee drinking and lower AfH sales are expected to continue throughout the current quarter. - (OPI)