Corporate Profiles - 2022 - 88

COMPANY OVERVIEW
J.M. Smucker Co.
T
ightening its focus on the growing categories
of coffee, pet food and snacking
has been a strategic priority for the J.M.
Smucker Co. in 2022.
In January, the Orrville, Ohio-based company
divested the R.W. Knudsen and TruRoots businesses
to Nexus in a transaction valued at $110
million. The sale included a licensing agreement
for Santa Cruz Organic beverages as well
as manufacturing and distribution facilities in
Chico, Calif., and Havre de Grace, Md.
R.W. Knudsen is a producer of fruit and vegetable
juices. TruRoots is a processor of grain-,
bean- and seed-based products.
" With the close of this transaction, we are
now able to increase our focus and resources on
supporting our core brands to deliver continued
growth, " said Tina Floyd, senior vice president
and general manager, Consumer Foods.
In June, Smucker Foods of Canada Corp., a
subsidiary of the J.M. Smucker Co., sold its Red
River Cereal brand to Arva, Ont.-based Arva
Flour Mills.
Smucker's underlying business was strong.
The company retained elevated order levels
throughout the year, primarily in its consumer
foods and coffee segments, as at-home consumption
increased demand for those products.
Divestitures tighten focus on core coffee, pet food and snacking brands
The company delivered $8 billion in net sales
in fiscal 2022, a 5% increase on a comparable
basis.
Retail sales of Uncrustables grew 32% over
the past year, setting the stage for the brand
to grow to a $1 billion brand over the next five
years, said Mark T. Smucker, president and chief
executive officer. To support demand for the
company's signature frozen sandwiches, Smucker
announced plans to launch a third manufacturing
facility dedicated to the production of
Uncrustables.
During a Feb. 22 presentation at the Consumer
Analyst Group of New York virtual conference,
Mr. Smucker said the Dunkin' brand is on a
similar path as Uncrustables to reach $1 billion
in sales within five years.
His optimism surrounding the $2.4 billion
coffee segment reflected anticipation that athome
coffee habits formed during the COVID-19
pandemic will persist.
" At-home coffee consumption now represents
73% of all coffee-drinking occasions compared
to two-thirds pre-pandemic, " Mr. Smucker said.
" Consumers have also upgraded their at-home
coffee experience by investing in new home coffee
equipment, and they have been more willing
to trade up to premium offerings. "
In May, Smucker recalled 49 varieties of
Jif peanut butter due to potential Salmonella
senftenberg contamination. Executives of the
company said it was able to recover faster than
anticipated from the impact of the recall.
Investor confidence was evident with the
company's stock trading as high as $143.25 per
share on Oct. 11, up 17% from $122.08 per
share a year earlier.
On the personnel front, Mark Smucker was
named chairman of the board, succeeding Richard
Smucker, who had been executive chairman
since 2016 and retired in October after 50 years
with the company. Smucker hired Gagnesh Gupta
as the new chief procurement officer and senior
vice president of commodities and procurement.
Amy C. Held was named chief transformation officer
of the newly formed " transformation office "
in September.
Smucker in August projected fiscal-year net
sales to rise 4% to 5% versus fiscal 2022. CP
Chief executive officer -
Mark T. Smucker
J.M. Smucker Co. net income
(fiscal years ended in April)
J.M. Smucker Co. net sales
(fiscal years ended in April)
J.M. Smucker Co. share price
per share
$7,801
$780
2020
$876
2021
$632
2022
2020
2021
2022
$8,003
$7,999
$110
$120
$130
$140
$150
Oct. Dec.
2021
Feb.
2022
April
June
Aug.
Oct.
88 \ November 2022
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing
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Corporate Profiles - 2022

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