We have established superior knowledge in buying coffee to help us meet the needs of consumers economically and we are also aware of the needs of suppliers. This commitment includes having employees located in major coffee producing regions to ensure the relationships and transparency needed to deliver on our promise. The process of offering the unique flavors derived from the different geographies from which coffee beans are obtained requires time, diligence and passion. We are proud to produce delicious roasts and varieties for coffee lovers of all tastes. And that commitment is maintained at every stage of the process.
Great things are happening at The J. M. Smucker Company, where you can reach your full potential with their support. In January, Procter & Gamble (P&G) announced that it would separate or divest from Folgers, as it focused on faster-growing segments, such as health and beauty. President and CEO A.
G. Lafley said in a statement that selling the business to Smucker in a tax-free stock deal meets the targets that P&G set when it announced plans to divest from Folgers, to maximize the after-tax value of the coffee business for P&G shareholders and minimize earnings-dilution per share. The deal is also better for P&G shareholders than a direct spin-off due to cost savings and other benefits Smucker can gain by combining Folgers with its existing portfolio, Lafley said during a conference call with analysts. To execute the deal, P&G will distribute Folgers to P&G shareholders, with a simultaneous merger of Folgers with Smucker. Sales are expected to increase 6 percent annually, in the long term, with gains 8 percent, Smucker said, adding that it will continue to seek acquisitions to help drive sales.
The addition of Folgers will add to the products Smucker brings to retailers, allowing more marketing options, said Richard Smucker, president and co-CEO of Smucker. Procter & Gamble stepped in and acquired Folgers Coffee in 1985. With this fusion, America's favorite coffee was distributed nationally and found in most of the country's kitchens. During this time, there were more changes in the company. New slogans, new aroma stamps for freshness and newly designed containers helped Folgers establish itself as the most popular coffee brand in the United States. After a test season with Joe Ruttman driven, Larry McClure owned Chevrolet in 1985, Folgers expanded his sponsorships. When the deal was closed, Folgers merged with a subsidiary of Smucker, surviving as a wholly owned subsidiary of Smucker. Taking matters into his own hands, James decided to test every shipment of coffee beans Folgers bought.
Procter & Gamble has owned Folgers, the nation's best-selling packaged coffee brand, for 45 years.
