J M SMUCKER Co (SJM)

The J. M. Smucker Company, established in 1897 and incorporated in Ohio in 1921, is a manufacturer and marketer of branded food and beverage products sold primarily in the United States, with additional operations in Canada and export sales to other countries; net sales outside the U.S. represented 5 percent of consolidated net sales in 2023. The company operates through three reportable segments—U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods—which together comprised 87 percent of 2023 consolidated net sales, with the remainder generated through International and Away From Home channels. Principal products in 2023 included coffee, cat food, pet snacks, dog food, frozen handheld products, peanut butter, fruit spreads, portion control products, and baking mixes and ingredients, sold under major trademarks such as Meow Mix, Milk-Bone, Pup-Peroni, and Canine Carry Outs (U.S. Retail Pet Foods); Folgers, Dunkin’, and Café Bustelo (U.S. Retail Coffee); and Uncrustables, Jif, and Smucker’s (U.S. Retail Consumer Foods), along with Robin Hood and Five Roses in Canada.

Products are distributed in the U.S. retail segments through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, drug stores, military commissaries, mass merchandisers, and natural foods stores, while International and Away From Home products reach consumers through retail channels and foodservice distributors serving health care, restaurants, lodging, offices, and educational institutions. The company has divested several businesses in recent years, including certain pet food brands (Rachael Ray Nutrish, 9Lives, Kibbles ’n Bits, Nature’s Recipe, Gravy Train, and private label pet food) sold to Post Holdings in 2023; the natural beverage and grains businesses (R.W. Knudsen, TruRoots) sold to Nexus Capital Management in 2022; the private label dry pet food business sold to Diamond Pet Foods in 2021; the Natural Balance premium pet food business sold to Nexus in 2021; and the Crisco oils and shortening business sold to B&G Foods in 2020. Raw materials used across segments are largely commodities and agricultural products, including green coffee, protein meals, peanuts, grains, oils and fats, fruit, and packaging materials such as plastic, glass, metal cans, and corrugate, with green coffee sourced internationally and other key materials sourced mainly from North America; certain materials, including packaging for Folgers and Jif products and finished goods such as K-Cup pods and Pup-Peroni, are sourced from single suppliers under long-term contracts.

Walmart Inc. and subsidiaries represented a significant customer concentration, accounting for 34 percent of net sales in both 2023 and 2022, and the top 10 customers collectively accounted for approximately 60 percent of consolidated net sales in 2023. The company holds branded market-leading positions in the U.S. in coffee, dog snacks, peanut butter, and fruit spreads, and in Canada in flour, pickles, fruit spreads, canned milk, and ice cream toppings, competing against other branded manufacturers such as Nestlé, Mars, General Mills, The Kraft Heinz Company, JDE Peet’s, and Keurig Dr. Pepper, as well as private label offerings, in an industry shaped by evolving consumer preferences, health and wellness trends, e-commerce growth, and private label competition. The company employs almost 5,800 full-time employees worldwide and operates under regulatory oversight from agencies including the FDA, USDA, EPA, and equivalent bodies in Canada and other countries, while maintaining environmental sustainability goals related to waste, water, energy, emissions, and packaging, alongside human capital programs focused on employee engagement, health and safety, and ethics and compliance.