STORY: Shares of J.M. Smucker fell as much as 14% Tuesday morning after the packaged food company forecast annual profit below estimates.
The maker of Jif peanut butter and Smucker’s jams is dealing with tariff uncertainty as the Trump administration’s ever-shifting policy has disrupted businesses and rattled shoppers worldwide.
Packaged food makers including J.M. Smucker have been raising prices to counter higher costs of commodities such as green coffee, which have hurt their sales.
The company, which owns coffee brands including Folgers, purchases about 500 million pounds of green coffee annually, the majority of which is imported from countries affected by U.S. tariffs such as Brazil and Vietnam.
CEO Mark Smucker said that, “The current U.S. tariff impact on green coffee is our largest exposure that we will manage on top of navigating record-high costs for the commodity.”
Smucker said the company will increase prices across its coffee portfolio in its first and second quarters.
The company also posted quarterly net sales that missed estimates, hurt by declines in its pet foods, baked snacks, and spreads businesses.
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