The U.S. retail consumer foods segment profit decreased $6.1 million, or 6 percent, in the fourth quarter of 2012, compared to the fourth quarter of 2011, primarily due to volume. Price increases taken earlier in the fiscal year, most notably on peanut butter, more than offset higher commodity costs. Segment selling and marketing expenses were down, however, a noncash impairment charge of approximately $4.6 million was recognized in the fourth quarter of 2012 related to a regional canned milk trademark. Segment profit margin was 19.8 percent in the fourth quarter of 2012, compared to 22.1 percent in 2011.
The international, foodservice, and natural foods segment increased 47 percent in the fourth quarter of 2012, compared to 2011. Excluding the impact of acquisitions, divestiture, and foreign exchange, segment net sales increased 9 percent over the same period last year led by a 4 percent increase in volume. Volume gains in Robin Hood® and Five Roses® flour, Santa Cruz Organic® beverages, and Smucker's® fruit spreads and Uncrustables® sandwiches more than offset declines in R.W. Knudsen Family® beverages and Bick's® pickles.
Segment profit increased $9.3 million in the fourth quarter of 2012, compared to 2011, primarily due to lower marketing expenses, the contribution from recent acquisitions, and volume growth. Segment profit margin was 14.9 percent in the fourth quarter of 2012, compared to 17.9 percent in the fourth quarter of 2011, partially reflecting the acquisition of the lower-margin Sara Lee foodservice business.