Last Updated on 07/14/2021 by GS Staff
Can You Puchase Folgers Stock?
You cannot purchase Folgers stock. It is a brand of J.M. Smucker (Smucker’s). You can, however, purchase Smucker’s stock. It trades on the New York Stock Exchange (NYSE) under the ticker symbol SJM. As most people recognize, Smucker’s is a much larger company than Folgers alone. Read on for details.
When Did Smucker’s Acquire Folgers?
Smucker’s closed the deal to purchase Folgers from Proctor & Gamble (P&G) on November 6, 2008. They paid approximately $3 billion to buy the iconic coffee brand while assuming $350 million of its debt. The deal also benefited Smucker’s shareholders who received a one-time dividend of $5 per share. It was no secret prior to this deal that Proctor & Gamble was selling Folgers or spinning it off. P&G cited that the annual growth rate was too low as a reason for selling the brand.
P&G originally acquired Folgers in 1963. In 1965, the Federal Trade Commission challenged the acquisition citing potential antitrust violations. P&G eventually agreed to refrain from making grocery store and coffee acquisitions for seven and ten years, respectively. However, P&G would go on to bring Folgers to be the top-selling coffee brand in the United States despite the government’s restrictions.
Competitors of Folgers
Folgers has heavy competition down the coffee aisle at grocery stores. Here are the primary competitors of the coffee brand as outline in Smucker’s Annual Report for the fiscal year ended April 30, 2021:
| Brand | Competitor |
|---|---|
| Maxwell House | Kraft Heinz (Nasdaq:KHC) |
| Yuban | Kraft Heinz (Nasdaq:KHC) |
| Private Labels | Numerous |
| Cafe La Llave | F. Gaviña & Sons, Inc. (private) |
| McCafé | Keurig Dr. Pepper (Nasdaq:KDP) |
| Green Mountain Coffee | Keurig Dr. Pepper (Nasdaq:KDP) |
| Starbucks | Nestlé (OTC:NSRGY) |
What Does J.M. Smucker Own?
In addition to Folgers, Smucker’s is the parent company behind many popular brands. Here is a selection of the company’s more popular brands:
Consumer Foods
- Jif – the most popular peanut butter brand in the United States
- Smucker’s – the brand makes fruit spreads, peanut butter, ice cream toppings, and more
- Santa Cruz Organic – the brand makes juices, fruit spreads, peanut butter, choclate syrup, and other products
Pet Food and Snacks
- Meow Mix – budget-friendly cat food brand
- Milk-Bone – dog biscuit brand
- Nutrish – Premium dog and cat food brand that was created by Rachael Ray
- 9 Lives – a cat food brand
Coffee Brands
- Folgers – the iconic coffee brand that has been around since 1850
- Dunkin’ – Smucker’s produces the grocery store Dunkin’ products such as K-Cups on behalf of Dunkin’ who is owned by Inspire Brands
- Cafe Bustelo – this coffee brand was founded in 1928 in Bronx, New York and is now owned by Smucker’s
Final Thoughts
While Folgers was almost recently spun off into its own company by P&G, Smucker’s was able to acquire the brand before it happened. If you want to invest solely in Folgers, it is not possible. However, you can consider researching Smucker’s for a potential investment. As you can see above, the business is a bit complex due to the number of brands it owns. Of course, do your own due diligence before investing in any stock or seeking professional investment advice.
Sources:
Image Credit – Mike Mozart/flickr
J.M. Smucker’s Annual Report – Year Ended April 30, 2021
Bhattarai, A. (2008, June 5). Smucker to Pay $3 Billion for Folgers Coffee. The New York Times. https://www.nytimes.com/2008/06/05/business/05folgers.html.
Company-Histories.com. The Procter & Gamble Company — Company History. (n.d.). https://www.company-histories.com/The-Procter-Gamble-Company-Company-History.html.
