Smuckers Essay

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CASE ANALYSIS Smucker’s in 2011: Expanding the Business Lineup MBAD 6286 11 Strategy Formulation & Implementation I. Introduction In 2010, J. M. Smucker Company (Smucker’s) is one of the major companies in the processed food industry across North America (USA, Canada and Mexico). Although Smucker’s historically operated as a producer of jams, jellies and preserves, with the rapid expansion in the last decade, it has transformed itself into a leading company in areas such as coffee, canned milk, oils, baking mixes, juices, beverages and frozen sandwich markets. As a family-run business, Smucker’s was founded by Jerome Monroe Smucker in 1879. After being highly successful selling apple butter, Smucker’s started selling products of jams, jellies and preserves. In 1959, the company went public under the management of Jerome Monroe Smucker’s grandson, Paul Smucker. The Company made a lot of acquisitions until 2001 but even with these acquisitions, the company yielded only $651 million annual sales in 2001, which was dwarfed by its rivals such as Nestle with $61.3 billion annual sales or Unilever with 51.5 billion euros. After that, the company began making larger acquisitions, focusing on well-known brands. In 2002, Smucker’s acquired brands Jif and Crisco from P&G in exchange for $786 million stock swap. In 2004 it acquired International Multifoods with Pillsbury and Hungry Jack brands for $840 million. This trend accelerated with acquisitions of White Lily Foods in 2006, Eagle Family Foods in 2007, Knott’s Berry Farm jams, jellies and preserves in 2008. Also, in the same year the company made its largest acquisition when it purchased Folgers coffee from P&G for $3.7 billion. II. Smucker’s Current Strategic Management Steps A. Objective, Analysis, and Strategy Formation Given the fact that sales of the company were much less than

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