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Diving overview:
- JM Smucker Appointment of 2 outside directors He joined the board of directors as part of a deal with activist investor Elliott Investment Management.
- The Uncrustables and Folgers coffee maker said NRG Energy Chief Financial Officer Woosung Jung and former Snyder’s-Lance CEO David Singer will join its board of directors on April 15.
- Elliott said the deal follows “constructive engagement” with Smucker. Marc Steinberg, partner at Elliott, added that the new board members “represent an important step in ensuring The JM Smucker Company reaches its full potential.”
Dive Insights:
The food sector has been a hotbed of activity in recent years from activist investors looking to shake up a sector struggling with declining consumer spending and a push toward healthier products. Most recently, PepsiCo agreed to reduce the number of products it sells after Elliott revealed how much it had amassed. $4 billion equity By September, it had become a giant in the snack and beverage industry.
Mark Smucker, the company’s CEO, said: Prepared Remarks on Company Earnings He is confident the jam and peanut butter maker has “the right strategy and leadership team in place to support long-term value creation for all stakeholders.” He added that the new board members are “proven executives with a track record of creating value” and will bring “additional skills and experience to accelerate the ongoing business momentum.”
Smucker has transformed its business amid rising coffee prices and a $5.6 billion challenge. Acquisition of Hostess Brands in 2023. Mark Smucker said last week: I’ve been with the company “longer than I expected.” Positioning for growth of the Hostess business.
Earlier this month, Smucker Shaking up the leadership ranksThis included firing the COO and giving CFO Tucker Marshall oversight of the company’s U.S. retail frozen to-go foods and spreads, sweet baked snacks and international businesses. Last week, Smucker told analysts it was reducing promotions on sweet baked snacks and products. Reduced the number of individual products we sell by 25%..
Smucker reported on Thursday. 7% increase in net sales In the third quarter, it hit $2.34 billion. The food and beverage manufacturer reported strength in its coffee business, which was offset by lower sales in its baking business due to a fire at its Kansas facility.
