One of the biggest COVID 19 trends was people spending more time at home and adjusting their consumption habits accordingly. With a large share of workers still operating remotely — and a new variant sparking fears around the globe — big consumer brands like J.M. Smucker SJM are still reaping the rewards.
In its quarterly report, the company said that Dunkin's and Cafe Bustelo saw an increase in sales by 8% compared to this time last year.
Smucker, which mainly has products consumed at breakfast or lunch, is seeing a benefit from the at- home trend, but coffee is seeing a lot of upside, according to Mark Smucker, CEO of Smucker, who believes the boost comes from home-bound customers.
In an interview this week, he told Yahoo Finance that our entire business benefits from folks staying at home and staying at home as we go back to a new normal, where folks will probably work more time from home than in the office.
According to Smucker, 72% of coffee consumption takes place at home, compared to 65% prior to the epidemic. Smucker is helped by that dynamic. Coffee prices went to 7 year highs this past week.
Smucker's portfolio includes Milk-Bone and Uncrustables, which are benefitting from the at-home trend.
Smucker considered the latter a true. One of the biggest growth engines for the company in its 30 consecutive quarter of growth is the shining star.
Uncrustables was invented in 1995 and Smucker bought the patent in 1999. Smucker said the brand has a lot of runway. The company plans to open a third production facility in McCalla, Alabama to meet the demand for the grab-and- go lunch.
The CEO told Yahoo Finance that they were still building their second plant, which once completed and it is up and running, we will have exceeded our initial goal of half a billion dollars in sales.
He said that a planned third plant in Alabama, expected to open within a few months, will eventually get us over to a billion dollars.
The J. M. Smucker Company's shares are up 14.7 percent this year.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at BrookeDiPalma or email her at bdipalma yahoofinance.com.