About The J M Smucker Company

The J. M. Smucker Company gets its bread and butter from more than just making and marketing jelly. The company, known for manufacturing its namesake Smucker's fruit spread and for selling the Jif peanut butter brand, has expanded its product portfolio to include Folgers, the #1-coffee brand in the US, as well as market leaders in espresso (Café Bustelo) and premium java (Dunkin' Donuts, licensed). Other top-shelf lines are Hungry Jack and Pillsbury baking mixes and frostings, Eagle canned milk, and Crisco shortening and oils, among others. Smucker's brands are sold to consumers through retail outlets in the US and Canada, with some products exported.

Operations

Smucker's operations are divided among three business segments: US Retail Coffee, US Retail Pet Foods, and US Retail Consumer Foods. The US retail market segments are distinguished by product, which combined account for more than 85% of the company's sales. (Consumer Foods and Coffee each contribute around 30% of revenues).

The International and Foodservice segment (nearly 15% of sales) comprises Smucker's portfolio of brands that are distributed both at home and abroad through retailers (grocery stores, mass merchandisers, club stores, and drug stores), as well as through food service suppliers and operators, such as restaurants, educational and health care institutions, and natural foods stores.

After acquiring Big Heart, Smucker established its newest segment, US Retail Pet Foods. That unit contributes about 30% of revenues.

Smucker's long-term agreements include one with Dunkin' Donuts to manufacture and market its namesake coffee brand; the pact is effective until 2034. In the single-serve coffee market, Smucker holds sway through a manufacturing and distribution deal with Keurig Green Mountain and Keurig. Smucker also totes royalty-free licensing agreements with General Mills, and Nestlé to make and sell, respectively, Pillsbury flour and baking mixes, Borden canned milk, and Carnation canned milk.

The company’s principal products are coffee, pet food, pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products.

Geographic Reach

Smucker operates in the US, where it generates more than 90% of its revenue. It has an international presence, as well, through its extended reach into Canada, Mexico, and China. The company has established a small customer base along with some manufacturing facilities in Canada, and a limited export market.

The company has a principal distribution center in Canada, nine sales and administrative offices in the US, and one each in China, Canada, and Mexico. Its corporate headquarters are located in Orrville, Ohio, and its Canadian headquarters are located in Markham, Ontario. The headquarters of its pet food business is in San Francisco.

Sales and Marketing

Products are sold through direct sales and brokers to a broad range of retailers. Wal-Mart and subsidiaries account for 30% of sales. Indeed, the company's top 10 customers generate some 70% of Smucker's revenues. The company's International and Foodservice business distributes Smucker's products through retailers and food service suppliers and operators both domestically and internationally.

In the US retail market segments, the company's products are primarily sold through direct sales and brokers to food retailers, supermarkets, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, natural foods stores and distributors, pet specialty stores, and online retailers. Its International and Foodservice products are distributed through retail channels and foodservice distributors and operators (e.g., restaurants, lodging, schools and universities, health care operators).

Financial Performance

In fiscal 2017 Smucker's revenue decreased to $7.39 billion from $7.81 billion in fiscal 2016. The company's net income also decreased in fiscal 2017 compared to the prior fiscal period. Smucker's reported net income of $592 million in fiscals 2017, down from $688 million in fiscal 2016.

In fiscal 2017 the company's net cash provided by the operating activities was $1 billion, down from $1.4 billion at the end of fiscal 2016.

Strategy

Smucker's strategy focuses on growth through owning and marketing the #1 brand name food products in North America, with potential for worldwide appeal. Acquisitions and manufacturing and distribution agreements underpin these ends. As part of the company's long-term growth objectives, it is working to increase sales by 6% and earnings per share by more than 8% annually on average. While the sales contribution from acquisitions will vary from year to year, it expects organic growth, including new products, to add up to 4% per year and acquisitions to contribute the remainder over the long term.

With the acquisition of Big Heart Pet Brands, the company instantly became a player in the growing pet food and snacks market. The company plans to pay down debt it took to finance that purchase over the next three to five years.

Smucker's sold off its US canned milk brands and operations to Eagle Family Foods, a subsidiary of funds affiliated with Kelso & Company. The transaction included canned milk products that were primarily sold in US retail and food service channels under the Eagle Brand and Magnolia brands, along with other branded and private label trade names.

Mergers and Acquisitions

In 2017, Smucker's signed an agreement to acquire the Wesson oil brand from Conagra. The transaction was valued at approximately $285 million. After a transition period, Smucker's expects to consolidate Wesson production into its existing oils manufacturing facility in Cincinnati, Ohio.

In early 2015, Smucker's purchased Big Heart Pet Brands in a cash and stock transaction valued at $5.8 billion (including $2.6 billion of debt). Smucker's gained a huge product portfolio with the deal, adding such notable names as Mew Mix, Milk-Bone, Kibbles 'n Bits, Natural Balance, and Milo's Kitchen, among others, to its own list of brands. Smucker's reported a 47% increase in sales in the first quarter following its acquisition of Big Heart Pet Brands.

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The J M Smucker Company

1 Strawberry Ln
Orrville, OH 44667-1298
Phone: 1 (330) 682-3000
Fax: 1 (330) 684-3428

Stats

  • Employer Type: Public
  • Stock Symbol: SJM
  • Stock Exchange: NYSE
  • Vice Chairman and CFO: Mark R. Belgya
  • Vice Chairman; President, U.S. Food and Beverage: Steven T. Oakland
  • Chairman: Richard K. Smucker
  • 2017 Employees: 7,140

Major Office Locations

  • Orrville, OH

Other Locations

  • Decatur, AL
  • Rogers, AR
  • American Canyon, CA
  • Carson, CA
  • Chico, CA
  • Encino, CA
  • Hanford, CA
  • Lathrop, CA
  • Oxnard, CA
  • San Pedro, CA
  • Walnut Creek, CA
  • Centennial, CO
  • Longmont, CO
  • Stratford, CT
  • Doral, FL
  • Medley, FL
  • Atlanta, GA
  • Boise, ID
  • Topeka, KS
  • Lexington, KY
  • Scottsville, KY
  • Lacombe, LA
  • New Orleans, LA
  • Havre De Grace, MD
  • Grand Rapids, MI
  • Minneapolis, MN
  • Seneca, MO
  • Charlotte, NC
  • Buffalo, NY
  • Blue Ash, OH
  • Canton, OH
  • Cincinnati, OH
  • Elyria, OH
  • Toledo, OH
  • Woodburn, OR
  • Bloomsburg, PA
  • Eddystone, PA
  • Washington, PA
  • Memphis, TN
  • Grandview, WA
  • Issaquah, WA
  • Mount Vernon, WA
  • Weirton, WV
  • Etobicoke, Canada
  • Port Colborne, Canada
  • Sainte-Marie, Canada
  • Saskatoon, Canada
  • Sherbrooke, Canada
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