ORRVILLE, OHIO — Over the last few years, the J.M. Smucker Co. has significantly reshaped its portfolio to prioritize the Uncrustables frozen sandwiches business, John Brase, chief operating officer, said in a Dec. 14 investor day presentation. In 2022, sales of Uncrustables reached $511 million, a year ahead of the company’s target to pass the $500 million mark.
Within Smucker’s $1.7 billion Consumer Foods business, Mr. Brase said the company is most interested in the fast-growing snacking segment. The company expects Uncrustables to deliver 1% of total-company top-line growth in 2023 and to make up 50% of net sales for the Consumer Foods business within the next five years, he said.
“With the extraordinary potential of Uncrustables, we’re investing in the third production location in McCalla, Ala., where operations are expected to begin in calendar ‘25,” Mr. Brase said. “The new facility will include production for PB&J but also the ability to expand into new offerings beyond peanut butter and jelly.
“We are confident Uncrustables can grow to a $1 billion brand and are now accelerating that goal to reach $1 billion in annual net sales by fiscal ‘26, a full year ahead of our previous expectation.”
Responding to an analyst’s question about potential acquisitions in the Consumer Foods business, Mark Smucker, president and chief executive officer, stressed the company’s commitment to its signature brand.
“Uncrustables, it is clearly — we’ve got a tiger by the tail,” Mr. Smucker said. “And so, the investment there is going to pay off. So, we’ve got to remain focused on Uncrustables.
“If you think about Uncrustables specifically and why it’s so successful, it comes back to this option of low prep, so thaw and eat, although some of the products that you saw are heat and eat but thaw and eat is magic, if you will, and that’s why the PB&J format is working so well. So low prep, no mess, on-the-go.”
After completing the expansion at its Longmont, Colo., facility, Smucker currently has the capacity to produce approximately 1.5 billion sandwiches per year with its two current production facilities.
In addition, the company recently announced construction of a 29,000-square-foot research and development facility for Uncrustables on its Orrville campus.
“Our aspirations from Uncrustables go beyond PB&J,” Mr. Brase said. “We plan to move this brand from an iconic product to an iconic brand. While PB&J will remain the driver of growth for years to come, we are bringing new varieties to the lunchbox with — meat and cheese snack bites. These offerings will enable Uncrustables to be in lunch boxes and peanut-free schools.
“Future plans also include expanding our famous circular no crust crimp sandwich beyond peanut butter and jelly into a new delicious alternatives.”The company said it expects 2023 Uncrustables sales to exceed $650 million.