Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Eric Katzman - Deutsche Bank
Eric Katzman - Deutsche Bank
My first question has to do with the multi-promo events, although its early and you’re kind of going into the key season I’m wondering what kind of lift you’re seeing by bundling the Folgers business with the other products versus let’s say what you’ve seen in the past? I know when you added Jif and Crisco you got quite a boost and I’m wondering if you at least initially see the same kind of lift.
Steve Oakland
Obviously it’s early on those. We did have a chance to run our first breakfast promotion with Hungry Jack tying in both FSI and trade support with coffee. I think what we saw was more merchandising. Those brands respond great to display, coffee allow us to get more display so we hope that will continue.
Eric Katzman - Deutsche Bank
At least initially you would attribute some of the performance, the strong volume growth that you saw in some of those brands to the initial co-marketing? Is that the way to interpret your comment?
Steve Oakland
I think that’s fair. We’re able to line those up, its very efficient to purchase the media and its very easy for the trade to get behind displaying for example pancake mix, syrup and coffee and jams and jellies. That’s a pretty simple concept for them and I think fits exactly what they’re trying to do right now.
Richard Smucker
I think having the volume and the brand strength of Folgers helps us with our customers in terms of getting their attention. They like that brand, it’s a great brand that they can merchandise and it just gives us more credibility and strength.
Eric Katzman - Deutsche Bank
I assume that based on most of the volume numbers you talked about outside of the Specialty business that that signals most of the products gain market share is that a fair statement?
Paul Wagstaff
I’d say that’s fair with the exception of oils. Oils we did not gain market share over the first quarter period. We had a competitor that had very aggressive pricing going on. That being said we still improved our volume but just not market share.
Eric Katzman - Deutsche Bank
Can you go over the comments you made about the $80 million of cost synergies and so you’ve achieved the $80 million or you’re now at a run rate of $80 million of you were to annualize what you’re doing today?
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