Milling & Baking News Corporate Profiles - 2014 - 70

Corporate Outlook

The J.M. Smucker Co.
More grain-based
foods join portfolio at
107-year-old company

Fast Facts:
Already a leader in jellies and jams,
as well as shortening, Smucker's
2004 acquisition of International
Multifoods Corp. gives the company
a major position in the baking aisle
with flour and mixes sold under the
Pillsbury, Martha White and Hungry
Jack brands.
Smucker completed work on its new
Scottsville, Ky., plant for its fastgrowing Uncrustables sandwiches.
The company continues its innovative practices with plans to introduce zero grams trans-fat Crisco and
Pillsbury Ultimate Dessert kits.
74

Milling & Baking News

lready an up-and-coming player in grain-based foods, The
J.M. Smucker Co. leapt to the
industry's forefront this year with the
June acquisition of International Multifoods Corp. in a transaction valued at
$840 million.
Smucker, a 107-year-old business
best known for its jams and jellies, has
gained increasing attention during the
past few years for the rapid growth of
its frozen, crustless bread sandwiches
called Uncrustables.
While Uncrustables is a new name
in grain-based foods, the Multifoods
acquisition gives Smucker many of the
most venerable brands in the industry,
including Pillsbury, Martha White and
Hungry Jack flour and mixes.
"With the addition of Multifoods, we
have added an impressive array of leading North American icon brands to the
family of Smucker," said Tim Smucker,
chairman and co-chief executive officer.
"We have already started to invest behind these brands and the integration of
the businesses is well under way."
Richard K. Smucker, president, chief
financial officer and co-c.e.o., said the
company plans to increase its share of
the baking product market.
"We think this market is very receptive to innovative products and is one
area that we're going to concentrate on,"
said Mr. Smucker, who named other new
products his company plans to introduce,
including zero grams trans-fat Crisco and
Pillsbury Ultimate Dessert kits.
Investing in Uncrustables
To support continuing growth of
Uncrustables, the company made
its largest capital investment ever in
a Scottsville, Ky., plant, which was
completed in the first quarter of 2005.
Smucker now plans to devote resources

Baking & Snack Corporate Profiles

December 2004

to significant promotion and marketing
activities for Uncrustables.
Yet it was the purchase of Multifoods
that made the baking foods world take
notice when Smucker brought three major
brands into its fold. Two Canadian brands
were also part of the purchase: Robin
Hood flour and baking mixes and Golden

Smucker's first-quarter sales
(Period ended July 31)
(in millions)

$491.3

$500

$415.8

$400
$300

$341.9

$200
$100
$75.5

F.Y. 2004

F.Y. 2005

From International Multifoods

Temple's ethnic flour and rice mixes.
With the acquisition and innovations,
Smucker's earnings for fiscal year 2005
are projected to grow approximately
24%, and sales are forecast at approximately $2.1 billion. The company's goal
is for a long-term growth rate of 8%.
Multifoods contributes
The Multifoods' businesses contributed to the company's net income of
$32.8 million for the first quarter of
2005, up 27% from last year's firstquarter net income of $25.8 million.
However, Smucker intends to divest
itself of Multifoods' U.S. food service
and bakery products businesses.

Milling & Baking News Corporate Profiles - 2014

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