"Corporate responsibility is doing what is right so we can make the world a better place now and for generations to come," Chief Executive Richard Smucker told shareholders on Wednesday.
ORRVILLE, Ohio -- As a 115-year food manufacturer run by fourth- and fifth-generation family members, the J.M. Smucker Co. said it is especially committed to becoming a more environmentally conscious, socially responsible company.
View full sizeJ.M. Smucker's fruit spreads factory in Orrville is LEED certified by the U.S. Green Building Council As such, it devoted the majority of its annual shareholders meeting on Wednesday to tell investors and analysts about its companywide efforts to make positive, long-term improvements in its business.
That includes goals such as generating less waste for landfills, conserving or reusing water, reducing its greenhouse gas emissions, making its palm oil supply chain more sustainable, and helping the farming families who grow its coffee beans.
"Corporate responsibility is doing what is right so we can make the world a better place now and for generations to come," Chief Executive Richard Smucker told shareholders on Wednesday. He said it goes beyond protecting the environment, and encompasses widespread social, economic and cultural changes.
View full sizePaul Smucker Wagstaff, president of U.S. retail consumer foods He quoted Jerome M. Smucker, company founder and his great-grandfather: "We must take a stand for higher ideals if our life is to have counted for anything."
Paul Smucker Wagstaff, president of the company's U.S. retail consumer foods business and a great-great-grandson of J.M. Smucker, said: "Smucker is a principle-based company with a long history of doing the right thing and doing great things right."
In 2006, the company's Sustainability Task Force drew up three environmental goals it hoped to achieve within five years, including: Diverting 75 percent of its waste away from landfills; reducing its water usage by 25 percent; and curbing its greenhouse gas emissions by 15 percent.
By 2009, the company had exceeded those goals. It had diverted 87 percent of the waste at its manufacturing plants through greater efficiency, from using recyclable containers in its cafeterias to building environmentally friendly LEED (Leadership in Energy & Environmental Design) buildings certified by the U.S. Green Building Council.
View full sizeJ.M. Smucker's Crisco factory in Cincinnati At its Cincinnati facilities where it makes Crisco, it had 45 million from landfills. That plant also saves 100 million gallons of water a year, enough for more than 600 homes a year.
It also hopes to create an entirely sustainable (and reliable) source of palm oil by December 2015.
Keeping 45 million pounds of waste out of landfills has saved the company more than $4 million a year and generated $275,000 in annual recycling revenues.
Smucker is still working to reduce its water usage and greenhouse gases, but has posted progress toward those goals at each of its facilities. In addition, about 85 percent of Smucker's products are packaged in materials that can be recycled.
By 2020, the company hopes to keep 95 percent of its wastes out of landfills, reduce its water usage by another 15 percent, and curb its greenhouse gas emissions by another 10 percent.
View full sizeJ.M. Smucker's Robin Hood Gluten-Free Flour Company executives also outlined some of what consumers can expect to see in fiscal 2015:
The company introduced more than 100 new foods last year, including: more K-cups, Folgers foodservice liquid coffee, Jif Hazelnut, Almond and Cashew Butters, Dunkin' Donuts Bakery Series flavored coffee, Pillsbury Funfetti baking mixes and frostings, and Robin Hood gluten-free Nutri Flour Blend in Canada. It plans to launch another 100 new products this year.
Steven Oakland, president of the company's international, foodservice and natural foods business, said Smucker is pleased with the manufacturing of and response to its Seamild oatmeal products in China, and expects to expand its operations there in coming years.
New products contributed $425 million, or 8 percent, to net sales in fiscal 2014.
That doesn't include new products from acquisitions, such as Enray Inc.'s TruRoots brand organic, gluten-free, non-GMO verified ancient grains, and the Sahale Snacks fruit and nut mixes the company is buying for an undisclosed sum in a deal expected to close in September.
View full sizeJ.M. Smucker's Seamild oatmeal products in China Smucker is also following up its sponsorship of the 2014 U.S. Olympic and Paralympic teams in Sochi, Russia, by sponsoring the teams at the 2016 Summer Olympic Games in Rio de Janeiro, Brazil.
The company said it is expanding its focus on Hispanic consumers beyond Cafe Bustelo and Cafe Pilon, and reaching out to Millennials and value-oriented consumers. It is also putting greater emphasis on its digital, e-commerce and social media platforms, including Facebook, Twitter, Pinterest, Instagram, and YouTube.
Smucker is scheduled to report its first-quarter earnings for fiscal 2015 on Wednesday, Aug. 20.