Dive Brief:
- J.M. Smucker Co. opened a 900,000-square-foot Uncrustables sandwich manufacturing facility in McCalla, Alabama, the company announced on Nov. 7.
- The facility will increase the company's current production capacity for its Uncrustables brand to help meet demand for the popular frozen sandwiches.
- The food manufacturer initially announced the $1.1 billion facility in 2021, which is expected to create up to 750 jobs.
Dive Insight:
The new facility marks the third manufacturing location dedicated to the Uncrustables brand, along with existing facilities in Scottsville, Kentucky, and Longmont, Colorado, the press release stated.
J.M. Smucker launched the brand in 1998.
"We have grown Uncrustables from a $12 million brand to one delivering approximately $800 million in annual net sales last fiscal year,” President and CEO Mark Smucker said in the release. “With the new facility now open, we are well positioned to realize our goal of $1 billion in annual net sales by the end of fiscal year 2026.”
The food giant has been on a journey since 2018 to revamp its “dusty” products. At the time, less than a quarter of its brands were growing or maintaining share, a percentage that now stands near 86%, by volume — surpassing a two-third benchmark, according to Smucker Chief Marketing Officer Gail Hollander.
Iconic brands like Jif, Folgers and Meow Mix have since been rejuvenated to appeal to younger audiences.
While the company is growing its frozen sandwich business, J.M. Smucker is still struggling in a few other areas — including battling inflation and a dip in consumer spending in the dog snacks and sweet baked goods departments.
J.M. Smucker lowered its full-year net sales guidance by 1%, down to between 8.5% and 9.5%, according to its Q1 earnings report for the period ending Aug. 28.
While the company expands its Uncrustables brand, it’s divesting others. Last month, the company sold its Voortman Cookies business to Second Nature for $305 million, giving up its manufacturing facility in Ontario. Approximately 300 employees will transfer to Michigan-based food maker Second Nature Brands.
Voortman was acquired by J.M. Smucker as part of its $5.6 billion purchase of Hostess Brands in 2023. The Uncrustables maker expects to gain $100 million in synergies from the Hostess acquisition by fiscal year 2026.
