Correction: Story corrects throughout to state that J.M. Smucker produces Pillsbury-branded cake mixes and baking products while General Mills, owner of the Pillsbury brand, makes Pillsbury biscuits.
NEW YORK (TheStreet) -- While J.M. Smucker (SJM) had a generally good quarter, considering the rising intensity of price competition among major food retailers, there was one notable area of weakness: sales of its Pillsbury-branded products.
Smucker's, which licenses the Pillsbury name for its cake mixes and baking products, had a rocky quarter, which like its fiscal year, ended in April. Meanwhile, over at Minneapolis-base General Mills (GIS), which owns the brand and makes Pillsbury biscuits, business is much better.
Smuckers reported an 8% decline in sales in the quarter, falling to $1.2 billion. The Orrville, Ohio-based company owed this drop in part to lower coffee prices and slowing business at its international unit. Net income also dropped, falling 9% to $118.5 million or $1.21 per diluted share.
Net sales for the year were on the decline as well. Smuckers recorded $5.6 billion in sales for the 2014 fiscal year, a 5% decrease from last year's $5.8 billion. On a lighter note, Smuckers did see a 4% increase in profits this year with over $565 million in sales as compared to last year's $544 million.
However, despite Smuckers' decline in net sales and income this past quarter, the company did manage to see volume gains in Crisco oils, flour and Folgers' Coffee while sales of Pillsbury baking mixes and frostings declined. According to the company, "net sales and volume for the overall Pillsbury brand decreased 14 percent and 4 percent respectively".