Smucker's Acquisition of Jif and Crisco
J. M. Smucker Company is a relatively old one. It was established in 1879 as a small business that catered to the local population . As business grew and transportation routed between cities became larger and easily accessible, Smucker's began to produce its other lines of products. These include; jams, jellies, preserves, ice cream toppings, peanut butters, beverages, and today they now supply ready made sandwiches. All the products provided by Smucker's are all food industry products that are sold steadily throughout the year with their peak time in the fall when children return to school. Smucker's also sells its products through many mediums such as supermarkets, schools, restaurants, and as fillers to other food companies. The use of food brokers has allowed Smucker's to grow its business in these areas and allowed a small but steady increase in overall sales . In 2002 Smucker's acquired Jif and Crisco brand products from Proctor & Gamble. Smucker's believed the acquisition of these brands and companies would allow for a large growth margin and ultimately bring them into the new millennium with a solid growth forecast.
J. M. Smucker's Company is trying to position itself to compete with larger companies that supply foods. The use of SWOT analysis (see exhibit 1) allows Smucker's to realize the problems and opportunities the company faces. The strengths for Smucker's show great promise as the company has been around for a long time. Smucker's has created a household name for itself and survived tough times. Smucker's has been through the industrial revolution and changed with the times to keep business afloat. The weaknesses faced by Smucker's focus on new super supermarkets that have the ability to pick and choose what goes on their shelves. Times have changed as larger chains such as Wal-Mart now hold significant power over manufacturers . This power has limited Smucker's ability to gain shelf space over higher profit margin products such as private labels owned by the retail store. The opportunities for Smucker's begin with the acquisition of Jif and Crisco. These two new brands to Smucker's would allow for new business and a greater profit margin if integrated correctly. Smucker's would hold a strong market in areas like jams and peanut butter of the accusation took place. The threats faced by Smucker's boil down to if the new acquisition is not handled delicately. This is a new area of business and much has to be done to ensure a smooth transition and to make a profit from doing so.
Smucker's accusation of Jif and Crisco would allow Smucker's to increase consumer consumption of different products owned by the Smucker Company. The acquisition took place in 2002 and the "New" Smucker Company profited greatly in 2003. Revenues had improved 87% from the previous year from $342.6 million to $641.9 million . It was found Jif and Crisco...