J.M. Smucker’s CFO explains how sales of Uncrustables grew 22% in the latest quarter—and is on its way to being a $1 billion brand

The J.M. Smucker Company’s namesake jams business, Folgers coffee, Jif peanut butter, and Meow Mix are some popular products in its portfolio. But the Orrville, Ohio-based company is finding its sweet spot with Uncrustables. And now Twinkies is also in the spotlight with the Hostess acquisition. 

J.M. Smucker reported earnings for the quarter ending Oct. 31 on Tuesday. Net sales were down about 12% from the same time last year, due to the divestiture of certain pet food brands. However, earnings, adjusted for one-time gains and costs, were $2.59 per share, up about 8% from the same time last year, beating estimates. And, comparable net sales grew by 7% due to higher net price realization, lower green coffee costs, and favorable volume/mix.

“There was momentum for Café Bustelo and Dunkin brands within the coffee portfolio, as well as for Milkbone pet snacks and Meow Mix cat food,” says Tucker Marshall, CFO of J.M. Smucker, a Coins2Day 500 company. And net sales for Uncrustables increased 22% for the quarter, he says. The product grew household penetration faster than any competitor in frozen handhelds, and the brand is expected to deliver over $800 million in net sales for the fiscal year, according to the company. Why is the snack finding sweet success? 

The round, crustless frozen sandwiches that are crimped around the edges to seal the various types of filings have become somewhat iconic, Marshall says. “It’s convenient,” he says. “It’s on the go. And it’s low to no preparation. You put it in the freezer, the lunchbox and an hour later, it’s ready to be eaten. And that’s a unique competitive advantage.” 

The products are produced in the company’s manufacturing facilities that have bread-baking capabilities, he says. Uncrustables are made with a layer of peanut butter on each side of the bread with the jelly in the middle to keep it from soaking through the bread. “That creates a really good consumer experience,” Marshall says. 

J.M. Smucker launched its first Uncrustables ads during a recent Monday Night Football game between the Eagles and the Chiefs. It featured the animated spokespeople, the “Bread Brothers.” The ad is now available on social and streaming. 

“By the end of April of 2026, we have a $1 billion ambition for Uncrustables,” Marshall says. “We’re currently at 11% household penetration, and we think that we can double that over time,” he says. “The way that we’ll do that is to begin marketing against the brand, which we’ve done this fiscal year.” In the meantime, the company has also been digesting its acquisition of Hostess Brands, Inc., the traditional home of Twinkies, in a transaction valued at approximately $5.6 billion. 

Any insight on consumer behavior during these uncertain times? “We’re seeing consumers seeking value more than premium,” Marshall says. They’re shopping more at Walmart and through dollar channels and club channels, he says. J.M. Smucker is monitoring the number of trips consumers are making to the store and how much stock up or pantry loading they’re doing, he says.

With weight-loss drugs becoming a growing market, how will J.M. Smucker accommodate consumers? “The consumer always wants a choice, and we need to listen,” Marshall explains. “Choice can be anything from a low to no sugar offering, to a full sugar offering. It could be a single-serve offering or a multipack offering. It could be something that feels like a portion-control product versus a full-size product. Our portfolio, inclusive of Hostess, works to provide that for the benefit of the consumer.”

But when it comes to Marshall’s favorite snack item, it’s low tech all the way: “My all-time favorite is probably a scoop of Jif peanut butter and a scoop of Smucker’s Natural Strawberry spread.”

Sheryl Estrada
[email protected]

Leaderboard

David Reeder was named CFO at Chewy, Inc. (NYSE: CHWY), an online retailer of pet food and other pet-related products, effective Feb. 14. Upon Reeder’s arrival, interim CFO Stacy Bowman will continue serving as Chewy’s chief accounting officer. Reeder joins Chewy from GlobalFoundries, Inc., a semiconductor manufacturer, where he has served as CFO since 2020. He previously served as CEO of Tower Hill Insurance Group, as well as president and CEO of Lexmark International Inc.  

Lance A. Berry was named CFO at Artivion, Inc. (NYSE: AORT), a cardiac and vascular surgery company, effective Dec. 4. Berry replaces Mr. D. Ashley Lee, who will retire at the end of the year. Berry, 51, most recently served as the EVP, CFO, and operations officer of Wright Medical Group N.V. Until Wright was acquired by Stryker in November 2020. Before that, he served as the SVP and CFO for Wright from 2009 to 2018. 

Big deal

A new report by S&P Global Market Intelligence finds private equity consortium's $15.11 billion bid for Adevinta ASA—a Norway-based owner of online classified sites—was the only $10 billion-plus global M&A deal announcement in November. The two largest M&A announcements of the year were in October with Exxon Mobil Corp.'s $65.32 billion deal for Pioneer Natural Resources Co. And Chevron Corp.'s $60.42 billion deal for Hess Corp.

The fourth quarter of 2023 is on pace to produce the largest total transaction value of $10 billion-plus M&A announcements since the second quarter of 2022 finished with a value of $339.52 billion, according to S&P Global Market Intelligence.

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Workday's Global CFO AI Indicator Report: Four Steps for Finance Leaders to Expedite Time to Value with AI, commissioned with FT Longitude, explains AI’s impact on everyday finance duties and underscores the need for finance leaders to start embracing AI and explore use cases. Workday's latest blog post, highlights the key findings of the report. 

Overheard

"Recent falls in Treasury yields mean further falls in mortgage rates are imminent, so the trough in mortgage demand is now behind us. Looking ahead, we think that it’s now extremely likely we’ve seen the peak in mortgage rates and anticipate a steady decline over the next two years."

—Thomas Ryan, U.S. Property economist for Capital Economics, wrote in a report released Thursday. The London-based research firm, known for its housing market forecasting, predicts a continued drop in mortgage rates based on its analysis of U.S. Treasury bonds, Coins2Day reported.