J.M. Smucker Co. plans to boost the Folgers brand in fiscal year 2014, while focusing less on bulk coffee and more on K-Cup product development, said Vince Byrd in a call to financial analysts yesterday morning.
Citing a strong relationship with Green Mountain Coffee Roasters, Byrd was discussing the company’s FY2013 results, which included $290 million in K-Cup-related revenue, compared to $25 million in bulk coffee sales. (The company’s total revenue in the coffee segment for the year topped $2.3 billion). “Consumer preference in premium coffee continues to shift away from the bulk segment,” Byrd said. “Accordingly, we have decided to exit our bulk coffee business by the end of the fiscal year.”
Byrd and Steve Oakland, the president of the international, food service and natural foods division, also announced that the company plans in the United States to replace the Douwe Egberts name with Folgers. Smucker added the Douwe Egberts brand when it acquired the North American coffee assets of Sara Lee last January. Oakland said the Douwe Egberts brand is well-known in Europe but lacks the name recognition in North America.
“We’re very excited about putting the Folgers brand on it,” Oakland said of the food service division. “That allows us to take that product, the high-volume coffee outlets where it’ll be front of house.”
Other coffee-related plans for J.M. Smucker in FY2014 include developing a new Dunkin’ Donuts coffee brand, as well as developing a UTZ-certified coffee line in partnership with the nonprofit Life is Good.
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