Smucker’s Uncrustables, the popular frozen peanut butter and jelly sandwiches, are on track to reach an annual revenue of nearly $1 billion. To accommodate the increasing demand, J.M. Smucker Co. plans to launch its third Uncrustables manufacturing facility in the United States next year.
Interestingly, the journey to this success was not straightforward. The company was in the red for over a decade after acquiring the Uncrustables brand in 1998, according to Mark Smucker, the Chairman, President, and CEO. Initially well-known for its jams and jellies, Smucker’s faced significant challenges in figuring out how to mass produce the unique crustless sandwiches with their distinctive stretchy bread.
For Mark Smucker, the fifth generation leading the 127-year-old family business, having the patience to develop their product has proven advantageous. He emphasized the long-term vision that comes with running a family-owned enterprise. “The peanut butter and jelly sandwich is the most popular sandwich for lunch in America, and we knew we needed to be at the forefront of this opportunity,” he noted.
Over the past two decades, the Orrville, Ohio-based J.M. Smucker has broadened its portfolio to include well-known brands such as Milk-Bone dog treats, Meow Mix cat food, Folgers coffee, and Jif peanut butter. Mark Smucker, who joined the family enterprise in 1997 and took on the CEO role in 2016, has focused on high-growth sectors. A notable acquisition last year was Hostess Brands, famous for Twinkies, purchased for $5.6 billion.
In a recent interview, Mark Smucker discussed various topics related to his family’s legacy, the food market dynamics, and even his passion for being a house music deejay. Selected snippets from his remarks illustrate his vision and strategies for the company.
When asked about the constant changes within J.M. Smucker—such as selling off Crisco, Gravy Train, and Pillsbury, then acquiring Hostess—he explained that a realization hit around the year 2000. His predecessor acknowledged that the company didn’t have to limit itself to being a fruit-centric brand. Instead, the focus shifted to leveraging their expertise in marketing and brand development, thus enabling them to diversify significantly and capture a larger market share. He expressed the importance of aligning their business ventures with categories that promise growth.
Discussing the addition of Hostess to the brand lineup, Smucker underscored the trend towards snacks, revealing that about 70% of consumers typically indulge in two snacks per day. The sector for indulgent snacks is expanding at a faster rate compared to standard food products, making Hostess a strategic fit for J.M. Smucker.
Turning to the topic of rising coffee prices, which have surged to levels not seen in 40 years due to adverse weather affecting harvests, he explained how the company navigates inflation while retaining customer loyalty in the face of lower-priced competitors. Smucker stated that they carefully consider price adjustments and aim to ensure fair pricing for consumers while defending shareholder profits by passing on necessary cost increases judiciously.
On diversity and inclusion, he emphasized the company’s commitment to fostering an environment where individuals from all backgrounds feel welcomed and valued. This diversity enriches the team’s collective thought processes and ultimately enhances their ability to connect with a varied consumer base, as many people enjoy products like Uncrustables and coffee.
Mark Smucker also shared a glimpse into his personal life, revealing his passion for house music, where he performs as a deejay under the name Mind.E. He noted that this creative outlet is more than a leisure activity; it helps balance his analytical business mindset. He’s found that being open about his hobbies makes him more relatable and approachable as a leader, encouraging authenticity in the workplace. Smucker believes it’s essential for colleagues to know each other beyond their professional personas, fostering a more cohesive working environment.