CREATING MEMORABLE MEALS & MOMENTS Michelle Toth Jenny Robertson Caroline Hantman Caitlin Carrick Huy Tran Chris Harcourt Phu Son Le December 12 th 2011

CREATING MEMORABLE MEALS & MOMENTS Presentation Overview Company Background Enterprise Analysis Industry Analysis Competitive Analysis Customer Analysis Enterprise Growth Strategy Options

CREATING MEMORABLE MEALS & MOMENTS Company Background The J. M. Smucker Company was established in 1897 and was incorporated in Ohio in The Company has four reportable segments: U.S. Retail Coffee Market, U.S. Retail Consumer Market, U.S. Retail Oils and Baking Market, and Special Markets. – The Company's three U.S. retail market segments in total comprised over 80 percent of the Company's net sales in – The Special Markets segment represents sales outside of the U.S. retail market Principal products of the Company are coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to- spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, and pickles and condiments.

CREATING MEMORABLE MEALS & MOMENTS A.Industry Analysis KEY FACTS: Smuckers operates in the Processed and Packaged Food Goods industry The Food Processing industry as a whole is currently estimated to be $416 billion and is expected to increase to 435 billion in 2012 INDUSTRY TRENDS: 1.The rising cost of inputs 2.Trading down to less expensive products (generic brands) 3.Healthy Eating & Environmental Concerns 4.Increasing demand for pre-packaged foods

CREATING MEMORABLE MEALS & MOMENTS Customer Analysis Largest customer is currently Wal-mart and its subsidiaries, – accounted for 27% net sales in 2010 Major supermarkets within the U.S. and Canada (representing 22% and 2% respectively) Family oriented/long standing tradition End user – families and their children – “Pester power” of children

CREATING MEMORABLE MEALS & MOMENTS 5-Year Financial Performance Met or Exceeded Target

CREATING MEMORABLE MEALS & MOMENTS Business Segments U.S. Retail Coffee U.S. Retail Consumer Foods Special Markets International SegmentBrands

CREATING MEMORABLE MEALS & MOMENTS U.S. Retail Coffee 35% Dollar Market Share Smucker Internal Share Report 52 Weeks Ended 1/23/11

CREATING MEMORABLE MEALS & MOMENTS Fruit Spreads 45% Dollar Market Share Smucker Internal Share Report 52 Weeks Ended 1/23/11

CREATING MEMORABLE MEALS & MOMENTS Peanut Butter 45% Dollar Market Share Smucker Internal Share Report 52 Weeks Ended 1/23/11

CREATING MEMORABLE MEALS & MOMENTS Segment Performance TTM Ended January 31, 2011

CREATING MEMORABLE MEALS & MOMENTS Mascot Advertising Campaign Pilot campaign will target MA, CT, and NY school buses. Advertisement revenue will narrow public school system’s budget deficits and provide Smucker’s access to target audience: Children. Advertisement of Smucker’s Fun Foody Mascot here

CREATING MEMORABLE MEALS & MOMENTS Campaign Cost Summary

CREATING MEMORABLE MEALS & MOMENTS Campaign Financial Analysis Assumption: Year 1 sales revenue is 10% of FY 2011 Net sales Sales Revenue growth rate at 5% YOY

CREATING MEMORABLE MEALS & MOMENTS Leveraging Existing Brands Advertising brands on other brands – New labels that offer: Coupons for other brands in the Smucker’s family Recipes for complementary Smucker’s products Bundle as meal solutions in grocery stores – Target Stop & Stop, Market Basket, Shaw’s for dedicated space Online order management system: special occasion gift baskets

CREATING MEMORABLE MEALS & MOMENTS Leveraging Existing Brands: Cost

CREATING MEMORABLE MEALS & MOMENTS Existing Brands Financial Analysis Assumption: Year 1 sales revenue is 10% of FY 2011 Net sales Sales Revenue growth rate at 5% YOY

CREATING MEMORABLE MEALS & MOMENTS Packaging Changes 1.Bundling products together to create a solution for the customer 2.Add the “Nutrition Keys” to packaging

CREATING MEMORABLE MEALS & MOMENTS Increasing Online Presence Revamp Smucker’s website to make it for fun and interactive for children – Incorporate “fun and foody” mascot – Games containing Smucker’s products/logo Online consumer panel – Allow both users and nonusers to give feedback and share ideas Recipes/cookbooks – E-cookbooks, e-recipes – Create “app” for Smucker’s for use on iphones and ipads

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS

CREATING MEMORABLE MEALS & MOMENTS