ORRVILLE, OHIO – As JM Smucker Co. struggled to recover from a Jif peanut butter product recall, the company’s Uncrustables brand helped boost profits in the first quarter ended July 31.
During an August 23 conference call with securities analysts to discuss first quarter financial results, Mark Smucker, President and CEO, expressed confidence in the Uncrustables brand and said Smucker invests in facilities to accelerate production of its signature frozen sandwiches.
Asked by an analyst about expectations for continued growth for Uncrustables through the end of fiscal 2023, Mr. Smucker replied, “Yeah, we’re still very bullish on Uncrustables, and everything related to it in terms of production remains on track.”
As the company’s current operations were unable to meet the demand for Uncrustables, Smucker initiated plans to expand production at facilities in Longmont, Colorado, and McCalla, Ala.
“The completion of the Longmont, Colorado facility expansion is on track to provide increased production capacity in the second half of this fiscal year,” Smucker said. “Additionally, we opened our Uncrustables sandwich plant in McCalla, Alabama, which will further support capacity expansion as demand continues to outstrip supply. We look forward to providing regular updates and progress on our path to making Uncrustables Sandwiches a billion dollar brand in annual net sales.
Net sales of Uncrustables frozen sandwiches in the first quarter exceeded $160 million, an increase of 30%, driven by “higher prices and a return to double-digit volume/mix growth,” the company said. .
“Supply hasn’t quite caught up with demand,” Smucker added. “All of the work on production is meant to do that over time… McCalla won’t come online for a few years, but all of the efficiency improvements we’ve seen in Kentucky as well as Longmont will sustain us. . respond to the request. “