ORRVILLE, OHIO — Despite experiencing a little bit of a deceleration in the fourth quarter due to supply chain constraints related to supply and labor, J.M. Smucker Co. still managed to churn out a record amount of Uncrustables in fiscal 2022.
“We actually made over 1 billion sandwiches in the fiscal year, which was, of course, a record,” Mark T. Smucker, president and chief executive officer, said during a June 7 conference call to discuss fiscal 2022 results.
Net sales for the Uncrustables brand totaled approximately $130 million in the fourth quarter and exceeded $500 million for the full fiscal year, which represented an increase of 19% from fiscal 2021, he said.
Mr. Smucker said demand for Uncrustables continues to exceed supply and the company is working to manufacture “as many sandwiches as we can.”
He noted that supply and labor challenges that emerged in the fourth quarter were a “temporary hiccup” and have been resolved, and Smucker expects Uncrustables to return to double-digit growth in the first quarter of fiscal 2023.
“As the completion of the second phase of our Longmont (Colo.) investments finish, we would expect to see some additional acceleration for Uncrustables sales in the back half,” Mr. Smucker said. “So bottom line, the brand is super healthy. It’s going to continue to grow. The demand and supply dynamic is as we’ve discussed, and we continue to make meaningful investments in capacity to support that. So we do believe that we will become a $1 billion brand.”
Pressed about the sales and volume decline in the fourth quarter, Tucker H. Marshall, chief financial officer, acknowledged that Uncrustables isn’t immune to the cost environment.
“We’ve had to take pricing against Uncrustables as well, just as we’ve had to do across our broader portfolio,” Mr. Marshall said. “But we’re very confident against that brand due to the points that Mark made earlier about demand outstripping the current capacity, and we continue to bring capacity online to meet demand.”
Meanwhile, Mr. Smucker noted that the voluntary recall on select Jif products has not had an impact on the company’s Uncrustables business. All of the peanut butter that goes into Uncrustables is produced in Memphis, Tenn., and the only facility affected by the recall was the company’s Lexington, Ky., location, he said.Net income at Smucker in the year ended April 30 was $631.7 million, equal to $5.84 per share on the common stock, down 28% from $876.3 million, or $7.79 per share, in fiscal 2021. Sales totaled $7.99 billion, down narrowly from $8 billion in fiscal 2021.