US beverages and snacks vendor JM Smucker has reported steady growth in its Coffee segment during Q3 2019.
Coffee sales totalled $561.6 million, a 5% increase on Q3 2018, which the company attributed mainly to the 9% growth in sales of Dunkin’ Donuts Dunkin Coffee. Net profit for the category rose 1% to reach $183.7 million.
Speaking on the earnings call, CEO Mark Smucker highlighted 4% growth in K-Cup sales, which outpaced the category.
He also called attention to the strength of the company’s digital offering: “Within the e-commerce channel, we have a strategic advantage by participating in fast growing online categories. We continue to achieve very strong e-commerce growth in both coffee and pet food as our brands continue to keep pace with or exceed their respective categories online growth.”
Overall, JM Smucker’s group sales increased 6% to just over $2 billion, which includes the acquisition of Ainsworth Pet Nutrition in May 2018. Adjusted profit for the quarter grew 1% to $406.2 million.
