The J.M. Smucker Company is in a jam.
Shares of the jelly giant sank to $116 on Wednesday, a low not seen since January 2016 when they were trading around $117. The move reflects broader struggles in the packaged food industry.
Like so many other companies, Smucker is battling pricing pressure in the grocery industry. Its portfolio includes its namesake jelly brand, as well as coffee and food brands including Folgers and Pillsbury, along with pet food brands such as Milk Bone and Meow Mix.
Some shoppers are looking for low prices at discount stores like Aldi and Lidl, said Robert Moskow, an analyst at Credit Suisse, while other shoppers are looking for natural products at more expensive stores like Whole Foods Market. Brands like Smucker are caught in the middle.
"But meanwhile, companies like Smucker and others have, instead of lowering prices to grocers, have actually tried to increase price realization to get margins higher," Moskow said. "Investors are losing faith in the ability of these companies to revitalize their top line."