How Folgers roasts Starbucks, Green Mountain
The JM Smucker brand is tops in US supermarkets -- by far. Not bad for a 163-year-old name.
Folgers, which is owned by JM Smucker (SJM), controlled 15.6% of the U.S. market by volume from May through July. Kraft's (KRFT) Maxwell House, which coffee aficionados hate as much as Folgers, had a 10% share. Private-label brands came in third, then followed by Green Mountain with a paltry 4.3% and Starbucks with 3.3%.
That's not too shabby for a 163-year-old brand, which also topped the 2013 Harris Poll EquiTrend rankings of coffee brands.
Businessweek noted that volumes of Folgers climbed 4% from May to July, helped by a clever jingle-writing contest. Smucker's coffee sales are rebounding from the last fiscal year when they were $2.3 billion, little changed from the 2011 period but 1.9% higher than in fiscal 2009.
Besides Folgers, Smucker also makes Dunkin' Donuts (DNKN) packaged coffee, sales of which increased 6% during the recent quarter. CEO Richard Smucker told analysts during the recent earnings conference call that the company's Cafe Pilon brand made "solid gains," the publication says.
Folgers, though, can't rest on its laurels. Starbucks and Green Mountain are eager to expand their footholds in the U.S. and overseas. Single-cup coffee sales such as those used in Keurig K-cup machines are also soaring, hitting $1.8 billion in 2012. That's an increase of 82% from the previous year, according to Packaged Facts. That growth rate is expected to slow to 28% to 29% between 2012 and 2016.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
More on moneyNOW
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market began the last week of July on a quiet note with the S&P 500 ending less than a point above its flat line. Like the benchmark index, the Dow Jones Industrial Average (+0.1%) also posted a slim gain, while the Russell 2000 (-0.5%) and Nasdaq Composite (-0.1%) lagged throughout the session.
The major averages were awakened from their weekend slumber with an opening retreat that pressured the S&P 500 below its 20-day moving average (1975). Even though ... More
More Market News
'We're not exactly in a uniformly strong market,' says the notably pessimistic newsletter publisher.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'