Other holdings fell back a bit. Jam, peanut butter and coffee company J.M. Smucker Co. (NYSE:SJM) retreated -10.64% due to a recent acquisition that has not met expectations. In 2015, the company moved into pet food as a part of its “center of the store” strategy with the purchase of Big Heart Pet Brands. That unit did not deliver the revenues or profits analysts expected. We believe the shortfall is mainly due to pet food cost deflation and a price war from its chief competitors. We think the management team will get things moving in the right direction and are content to own the stock at a cheaper multiple in the meantime.
From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund third-quarter 2016 commentary.
