NEW BUSINESS PITCH

WITH A NAME LIKE SMUCKER’S, IT HAS TO BE GOOD!

NAME BRAND PITCH TYPE

Digital creative, CRM, SEO and

e-commerce

MARKET

United States

DATE

April 27 , 2016

The Data You Need to Win This Pitch

DESCRIPTIONThe J.M. Smucker Company is in the middle of a digital review for all 29 of its domestic brands, including the flagship Smucker's line.

According to people with knowledge of the matter, the review includes all digital elements, such as creative, CRM, SEO and e-commerce, but no media. People familiar with the review also said the company is still in the process of deciding whether it will bring on one agency for all brands or multiple shops."There is a digital RFP currently in progress," said a J.M. Smucker spokesman. The representative added that "it felt like it was a good time to evaluate the strategic nature in which we operate from an agency perspective" due to some recent changes, such as the company's acquisition of Big Heart Pet Brands

in 2015 for $5.8 billion.

J.M. Smucker Company in Midstof Digital Review

Across All 29 Brands

th

Client Profile / Market

The J. M. Smucker Company manufactures and markets branded food products worldwide. It operates through four segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; U.S. Retail Pet Foods; and International, Foodservice, and Natural Foods.

The company provides various consumer food and beverage products, including 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, pickles, condiments, grain products, and nut mix products; and pet products comprising dry and wet dog food, dry and wet cat food, dog snacks, and cat snacks.

The company sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, and pet specialty stores; and through retail channels, foodservice distributors and operators, and natural foods stores and distributors.

The J. M. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.

FINANCIAL OVERVIEWCOMPANY BACKGROUND

MAIN COMPETITORS

2015 Sales (mil)

2015 Employees

Employee Growth Percent

Assets (mil)

Net Income Growth Percent

Sales Growth Percent

5,692.7

7,370

54.35%

37,938.699

-38.98%

1.46%

The J.M. Smucker Company

J.M. SMUCKERMARKETS ITS

PRODUCTS UNDER 29Brand names

U.S. RETAIL CONSUMER FOODS U.S. RETAIL COFFEE U.S. RETAIL PET FOODSINTERNATIONAL FOODSERVICE

AND NATURAL FOODS

TOP BRANDS TOP BRANDS TOP BRANDS TOP BRANDS

Fast Food industry in numbersPercentage of net sales by segment

$5,692.72015 Net Sales (Mln)

(-14%)

ADV EXPENDITURE FY’ 15:

$107mlnU.S. RETAIL

CONSUMER FOODS

37%

U.S. RETAILCOFFEE

37%

INTERNATIONAL FOODSERVICE AND NATURAL FOODS

22%

U.S. RETAILPET FOODS

4%

Smucker’s Brands performance

U.S. RETAIL PET FOOD

#1 DOG 27%DOLLAR SHARESNACKS

#2 DRYCAT FOOD

PET SPECIALITY

INT. FOOD SERVICES& NATURALS

3% VOLUMEDECREASE

SMUCKER’S PORTION CONTROL

SMUCKER’S UNCRUSTABLE

U.S. RETAIL CONSUMER GOODS

27%DOLLAR SHARE#1 PEANUT BUTTER

#1 FRUIT SPREAD

44%DOLLAR SHARE

U.S. RETAIL COFFEE

27%DOLLAR SHARE

SMUCKER’S #1 IN THE MARKET

TOP BRANDS

+12%Segment’s sales

The Pet Food Market

PET FOOD SALESAMOUNTED TO

$21.26BIN 2013

SMUCKER’S ACQUIREDBIG HEART PET BRANDSIN MAY ‘15 FOR ABOUT $6B BIG HEART PET BRAND’S MILK-BONE GOOD

MORNING DAILY VITAMIN TREATS WON THECONSUMER-VOTED PRODUCT OF THE YEARAWARD IN THE PET HEALTH CATEGORY

PET FOOD SALES

VALUE PET FOOD

12%

REGULAR PET FOOD

30%

PREMIUM PET FOOD

42%

- PACKAGED FACTS -

Pet Ownership

TODAY ABOUT ⅔ OF AMERICANS HOUSEHOLD HAVE A FAMILY PET

DOMESTIC PET FOOD SALES WILL GAIN 16% FROM 2015 TO 2018

45

35

15

0

25

Freshwater FishCatDog

46.3

38.9

Bird

11.9 5.7

Number of Households That Own a Pet(In millions)

90%of pet parents

considering theirpets to be cherished

members of the family

$500the average each american household spent on pets in 2011

$183The average spending on pet food alone

+43%The average cost of owning a dog compared to owning a cat

Millennials’ growing influence

40%

30%

10%

0

20%

Baby BoomersGeneration XMillennials

25%

30%

Pet ownership by generation

37%

MILLENNIALSVS.PET OWNERS GREW 25% BETWEEN

2007 AND 2015

GENERATION XPET OWNERS GREW 14% OVER THE SAME

PERIOD

MILLENNIALSRESPONSIBLE FOR THE 43% OF THE MARKET

GROWTH BETWEEN 2007 AND 2015

MILLENNIALSARE MORE LIKELY THAN OTHER PET OWNERS TO

EXPECT AND ACTUALLY SPEND MORE ON HIGH-PRICED PET PRODUCTS AND PET CARE SERVICES

MILLENNIALSAGREE WITH THE STATEMENT

“EVERY ONCE IN A WHILE I LIKE TO ‘SPLURGE’ ON AN ITEM FOR MY PETS.”

The pet market adapting to Millennials’ wants

52%Pet owners are

looking for pet food with no by products

50% 47%Pet owners want “All Natural” pet food

Pet owners want real meat as the number

one ingredient

ONLINE PET CARE SALESGREW BY 76% BETWEEN 2010 AND 2014

PET FOOD DELIVERYIS GAINING POPULARITY

AMONG MILLENNIALS

EXPECTED TO GROWBETWEEN 10-15%THROUGHT 2018

NOW ACCOUNTING FORTHE 6% OF THE TOTAL

18 % OF MILLENNIAL DOGOWNERS USE IT

16 % OF MILLENNIAL CATOWNERS USE IT

- PACKAGED FACTS -

MILLENNIALPET LOVERS

• • •

• • •

QUICK DEFINITION

“People who love animals and are likely pet owners. Animals literally make up part of their friends, and they are passionate

about the world respecting their rights. Over seventy percent of this segment are women.”

MEDIA BEAUTY APPAREL &FASHION

FOOD &DRINK

BIG HEART PET BRANDS AUDIENCE CROSSOVERS

Websites are popular also among Big Heart Pet Brands audience

(P 116.9)

25.8% of Big Heart Pet brands consumers is entertainment junkies (67.1 popularity index)

Radio are not the favorite media by the audience. It is slightly under-indexing

(P 91.6)

They share interest in BarkBox (P 193.2), Pitbullsarea.com (P 175.5) and iHeart

Radio (P 143.6)TOP WEBSITE TOP RADIO

NPR PANDORA iHEART RADIO

WEBSITE112.0

( popularity index )

KNOW MORE?

KNOW MORE?

MILLENNIAL PET LOVERS: MEDIA

ENTERTAINMENTJUNKIES

31%( popularity index )

FAVORITE MEDIA

RADIO101.7

( popularity index )

PITBULLSAREA.COM

BUZZFEEDVIDEO

BARKBOX

MILLENNIAL PET LOVERS: BEAUTY BIG HEART PET BRANDS AUDIENCE CROSSOVERS

Hair Care is an important matter also for this audience

(P 190.3)

Big Heart Pet Brands are Beauty & Wellness Aware (P 165.4) and stick to

their style (Just a trim P 181.5)

Body Art and Tattoos are not compelling to this audience

(P 96.1)

Clear (R 154.1), Burt’s Bees (R 149.3), Essie Nail Polish (R 130.2) are relevant

brands.

BEAUTY &WELLNESS AWARE

133.1( popularity index )

TOP BEAUTY BRANDS

CLEAR BURT’S BEES

ESSIE NAILPOLISH

KNOW MORE?

SELF-APPLIEDSTYLE135.0

( relevance index )

BODY ART & TATTOOS

144.3(popularity index)

HAIRCARE

159.8(popularity index)

BIG HEART PET BRANDS AUDIENCE CROSSOVERS

They are accessories addicted (P 184.8) but also swayable shopaholic trait

reaches high popularity points (P 172.1)

More Big Heart Pet Brands consumers are identified as Fashion Lovers (21.7%)

They share interest in Verragio Rings (R 126.8), Hearts on Fire (R 141.2), Jewlr (R

110.6)

Plus size clothing shop Deb Shops is over-indexing (R 124.8) while Teeturtle (R

85.0) and Tobi (R 26.4) are underperforming.

MILLENNIAL PET OWNERS: APPAREL & FASHION

20.0%is fashion lover

SWAYABLE SHOPAHOLICS121.6

(popularity index)

GEMS, JEWELRY & WATCHES152.6

(popularity index)

TOP CLOTHING BRANDS

TOBI TEETURTLE DEBSHOP KNOW MORE?

TOP ACCESSORIES BRANDS

VERRAGGIORINGS

HEARTSON FIRE

JEWLR KNOW MORE?

BIG HEART PET BRANDS AUDIENCE CROSSOVERS

They share attention to a balanced and healthy diet as the Thoughtful Eaters trait

conquers high popularity points (191.3)

The 34.9% of BHPB’s audience is a Foodie

Breakfast foods (P 193.2) are among the top 3 food genres contrarily to Grains &

Pasta and Organic & Natural Food

Eggo (R 147.3), Similac (R 128.4) and Mrs. Dash (R 159.4) are over-index

MILLENNIAL PET OWNERS: FOOD

22.3%FOODIES

GRAINS & PASTA

(popularity index)

THOUGHTFUL EATERS129.6

(popularity index)

156.3ORGANIC & NATURAL FOOD

(popularity index)145.2

BREAKFAST FOOD

(popularity index)145.2

TOP FOOD BRANDS

EGGO SIMILAC NRS, DASHKNOW MORE?

72.4%

MILLENNIAL PET LOVERS

Millennial Pet Lovers - Big Heart Pet Brands audienceAdherence

Big Heart Pet Brands audience share 72.4%

of Millennial Pet Lovers’ top interests: Media, Food, Beauty

and Fashion

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