Smucker Lands in the Doghouse

Turns out, you can teach an old-dog company new tricks. But, at least for J.M. Smucker, new tricks can bring new troubles.

The almost 120-year-old jam maker acquired Big Heart Pet Brands last year in an effort to boost sales growth rates above the lackluster levels that have plagued the packaged-food industry. The $5.8 billion deal -- Smucker's largest ever -- was pricey, but investors didn't seem to mind. With talk of 4 percent to 5 percent revenue growth each year, what wasn't to like?

At the start of the week, Smucker was trading at an all-time high. Then came Tuesday, when Smucker reported its quarterly results and a 6 percent drop in pet-food sales. Even former bright spots like snacks and premium fare showed signs of losing steam, while mainstream products like Kibbles 'n Bits and Meow Mix continued to struggle.