EveryJoe » food industry

Smucker’s Sees Profit and Revenue Jump

Mark Ellis — Sat, 22 Aug 2009 03:36:12 +0000

With a name like Smucker’s, their profit and revenue has to be good, right? Apparently so. Their latest quarterly report was very good.

After profiting $42.3 million last year at this time, Smucker’s saw their profit just to $98.1 million. The jump in revenue was even more impressive — from $663.7 million last year to $1.05 billion this year.

Image: Smuckers.com

Most analysts point to last year’s purchase of Folgers coffee as the biggest reason for the improvement.

“We are off to a strong start this year,” said Richard Smucker, the company’s co-CEO, “with good results in our core Smucker business and the addition of Folgers, which continues its strong performance”

Smucker’s, in addition to Folgers coffee, is known for Jif peanut butter in addition to their jellies and jams. The business, officially known as J. M. Smucker Company, was founded by Jerome Monroe Smucker in 1897. The first product sold by the company was apple butter. Smucker’s reportedly purchased Folgers coffee for $3.3 billion from Procter & Gamble.

Post from: EveryJoe

Smucker’s Sees Profit and Revenue Jump

Kraft Foods Enjoys 2Q Profit Increase

Mark Ellis — Wed, 05 Aug 2009 00:36:03 +0000

Despite a decrease in revenue, Kraft Foods has managed to post an 11 percent rise in profits for its fiscal second quarter. This result surpassed analyst expectations and has led Kraft Foods to enhance its outlook for the rest of the fiscal year, banking on a recent restructuring effort and the improvement of its products.

According to company CEO Irene Rosenfeld, Kraft’s higher-priced products are still managing to lure shoppers, but that Kraft will now focus on increasing volume and product variety rather than prices. She also credited the company’s three-year turnaround plan with its surprisingly strong performance this quarter.

As part of its cost-cutting efforts, Kraft managed to streamline production and get rid of unprofitable brands. The company will soon unveil further cost-cutting measures that should save Kraft $50 million once they are all put into place. In the future, Kraft hopes to increase its brands’ strength in the market by spending more money on advertisement, especially at a time when ad rates have fallen significantly.

Image: Flickr

Post from: EveryJoe

Kraft Foods Enjoys 2Q Profit Increase

Efficiency Might Be An Enemy to Quality

Bob Turek — Wed, 09 Jul 2008 11:34:00 +0000

Very interesting issue popped up the other day as I was speaking with a food manufacturer. They are very high quality and taste is everything. They therefore cringe when talk of continual improvement comes along because they do NOT want to mess with the process of food preparation even though they are a manufacturer and not a restaurant. Efficiency, as it relates to continual improvement, can lead to what they call recipe “drift”. In other words, many companies have started small with taste and quality of their food as the key differentiator, only to inexplicably lose that taste edge as they became “efficient” in their manufacturing. This is a great example because everyone understands what happens when your mom’s great recipe is passed onto the next generation the first time.

This got me thinking about other manufacturing processes, of very high quality, that might be subject to inexplicable “drift”. Over-engineering is generally a problem of not listening to the customer. The other thought is to concentrate on waste and NOT efficiency. Waste seems to be a more palatable target for the firm that is hesitant to embrace the efficiency side of continual improvement. The other approach might be to simply separate what you apply continual improvement approaches to. In the case of a food manufacturer maybe packaging, distribution and planning processes could be targets for waste reduction. Always remembering what your customer must have to continue to do business with you reigns supreme.

Do you have a high quality manufacturing process that could be subject to “drift”? Does focusing on waste and not on efficiency help combat “drift”? Is it possible to introduce continual improvement into an organization in one area and not another?

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Post from: EveryJoe

Efficiency Might Be An Enemy to Quality

Calendaring and Preparation Fight Bad Multi-Tasking on Projects

Bob Turek — Mon, 07 Jul 2008 11:39:00 +0000

Becky at www.myorgnanizedbiz.com recently wrote about the value of calendaring your “biz” and your life. One thing that stuck out was her proposal to try a two week experiment that could change your life:

Becky: Try this for the next two weeks: each day, figure out the five most important things that you need to accomplish that day. Then schedule time for them on your calendar. Schedule it around meetings and e-mail and errands. Actually block out time where you concentrate on that task.

And when that time comes, work on the task. If you only have a 1/2 hour, then see how much you can get done in a 1/2 hour. Don’t answer e-mail. Don’t pick up the phone. Just stick to your calendar.

Didn’t get your task done in the allotted time? That’s okay. Did you make progress? That’s the important part.

My response to her post was to link this thinking to project management best practices, preparation, and actually doing more by doing less:

PM411: Becky- really like the “capacity planning” emphasis. Many are great at calendaring but end up going from one activity to the next being unprepared. I find that lack of preparation means a lot of what I call “stops, starts and redos” which waste a lot of time. We almost need to do less in a better way to cut down the bad multi-tasking- this is what I love to write about at http://www.projectmanagement411.com, i.e., the ways good project management practices enable efficient prioritization of projects and alignment with strategies- whether it be on a personal or business level.

How about you? Do you have examples of doing more by doing less? The Theory of Constraints (Goldratt) deals with issues like suboptimization, slowing down certain activities to actually get more done because of the alignment with rates of other processes- do you see an application for this in your office? Your Plant? Your personal life?