The J. M. Smucker Company

Updated About encyclopedia.com content Print Article Share Article
views updated

The J. M. Smucker Company

FOUNDING ERA WITH JEROME MONROE SMUCKER AT THE HELM

GROWTH AND DIVERSIFICATION UNDER SECOND- AND THIRD-GENERATION LEADERSHIP

STEADILY EXPANDING

EARLY 21ST CENTURY: CREATING A MULTIBRAND FOOD EMPIRE VIA ACQUISITIONS

PRINCIPAL SUBSIDIARIES

PRINCIPAL COMPETITORS

FURTHER READING

One Strawberry Lane
Orrville, Ohio 44667-0280
U.S.A.
Telephone: (330) 682-3000
Toll Free: (888) 550-9555
Fax: (330) 684-3370
Web site: http://www.smuckers.com

Public Company
Founded:
1897
Incorporated: 1921
Employees: 3,500
Sales: $2.15 billion (2006)
Stock Exchanges: New York
Ticker Symbol: SJM
NAIC: 311211 Flour Milling; 311225 Fats and Oils Refining and Blending; 311230 Breakfast Cereal Manufacturing; 311412 Frozen Specialty Food Manufacturing; 311421 Fruit and Vegetable Canning; 311423 Dried and Dehydrated Food Manufacturing; 311514 Dry, Condensed, and Evaporated Dairy Product Manufacturing; 311822 Flour Mixes and Dough Manufacturing from Purchased Flour; 311911 Roasted Nuts and Peanut Butter Manufacturing; 311999 All Other Miscellaneous Food Manufacturing; 312111 Soft Drink Manufacturing

The J. M. Smucker Company (generally called Smuckers) has been the top producer and marketer of jams, jellies, and preserves in the United States, mainly under the flagship Smuckers brand, for nearly three decades, but the firm has developedprincipally through two major acquisitions in 2002 and 2004a wide-ranging portfolio of branded foods. In addition to two other leading U.S. brands, Jif peanut butter and Crisco cooking oils and shortening, Smuckers also produces Pillsbury flour, baking mixes, and ready-to-spread frostings; Hungry Jack pancake mixes, syrup, and potato side dishes; Martha White baking mixes and ingredients; Pet canned milk products; and Smuckers Uncrustables frozen sandwiches. The company operates about 20 manufacturing and processing facilities in the United States and Canada. Smuckers distributes its products in more than 45 countries worldwide, with foreign sales accounting for 19 percent of the total, but 90 percent of the non-U.S. revenues are generated in Canada. The familiar corporate slogan, With a name like Smuckers, it has to be good, alludes both to the companys founding family and its reputation for high-quality products. The firm is also known for its insistence on independence: Members of the Smucker family continue to head the company, and they control about 9 percent of the firms common shares.

FOUNDING ERA WITH JEROME MONROE SMUCKER AT THE HELM

The company was founded in 1897 by Jerome Monroe Smucker, a Mennonite from the small agricultural community of Orrville, Ohio, about 45 minutes south of Cleveland. The Mennonites traditional disdain for modernization did not keep Smucker from rational and efficient business practices. He applied his education from a two-year business course at a nearby academy to the management of four farms and a creamery that shipped butter as far as New York City. The success of his businesses allowed him to expand operations around the close of the century, when Smucker bought a cider mill and began pressing apples from an orchard planted in the early 19th century by Johnny Appleseed. To even out the seasonality of apple cider sales, Smucker began to make apple butter from his Pennsylvania Dutch grandfathers recipe. Smuckers steam-powered press and secret method for capturing the vapors usually lost in cooking gave the spread a unique flavor that soon drew more customers than the cider mill and creamery. Smucker staked his name and reputation on each crock of apple butter, hand-signing the paper lid on every package.

The family-owned business prospered. J. M. Smuckers eldest son, Willard, began delivering the 25 cent, half-gallon tubs in a wagon at the age of ten. By 1915, the first year for which records are available, the business was bringing in nearly $60,000 and netting almost $3,000 annually. Sales had topped $147,000 by 1921, the year The J. M. Smucker Company was incorporated and capitalized at $100,000.

Smuckers offered a full line of preserves (generally made from whole fruit or large pieces of fruit) and jellies (made from strained, pure fruit juice). J. M. Smucker owned 94 percent of the private companys stock; his sons and daughters split the remainder. The company had grown to such a scale that in 1928 the Pennsylvania Railroad built a special siding to the Smucker plant, as the companys products were distributed in ever increasing volume throughout Ohio, Pennsylvania, and Indiana.

Sales continued to grow in spite of the October 1929 stock market crash, nearing $319,000 in 1931. Still, the company did not emerge from the crisis unscathed: It recorded two consecutive years of losses in 1932 and 1933. Throughout this period, J. M. Smucker began to delegate authority to Willard, who directed the establishment of Smuckers first facility outside Ohio in 1935. The plant was located in the state of Washington, chosen for its high-quality, low-priced apples, which were preprocessed, then shipped to Orrville for cooking. The move set Smuckers up for national distribution and marked the first step toward the vertical integration that would become a company hallmark.

Packaging and marketing were taken for granted at Smuckers until 1938, when Willard decided that the traditional crockery was too heavy and awkward to ship. He wanted to shift to a more modern glass package without losing the Smucker reputation for old-fashioned quality. The glass jar he designed and later trademarked reflected the old crock, and its label, showing a pioneer woman boiling up a batch of apple butter over an open fire, reinforced Smuckers quaint image. The new package was a success; after its introduction, sales surpassed the $1 million mark in 1939. The new jar and label also garnered the company an award from the National Packaging Show for best packaging design success. National distribution of Smuckers products began in 1942.

The war years at Smuckers were characterized by labor, glass, and fruit shortages, but the company withstood such hardships to celebrate its 50th anniversary in 1947. Founder J. M. Smucker, too, endured just long enough to see his business through five decades: he passed away at the age of 90 the following year.

COMPANY PERSPECTIVES

Our Basic Beliefs are an expression of the values and principles that guide our Companys strategic behavior and direction. These basic beliefs are deeply rooted in the philosophy and heritage of the Companys founder, Jerome Monroe Smucker. Because he made a quality product, sold it at a fair price, and followed sound policies, the Company prospered.

Today, we continue to grow by adhering to our Basic Beliefs of quality, people, ethics, growth, and independence. These time-honored principles have served as a strong foundation throughout our history, and serve as the guideposts for all our future strategy, plans, and achievements.

GROWTH AND DIVERSIFICATION UNDER SECOND- AND THIRD-GENERATION LEADERSHIP

The second generational transfer of power at Smuckers began in the late 1950s, when son Paul joined Willard in drawing up a plan for future growth and diversification. Like his father, Paul had started working in the family business at a young age. From the age of 13, according to the Wall Street Journal, after school and during the summer months, he did everything from janitorial work to assisting the cook. Paul earned a business degree from Miami (Ohio) University in 1939, then returned to Orrville to work full time as a cost accountant at a salary of $100 per month. After marrying and serving in the Navy for three years during World War II, Paul was put in charge of a recently acquired applesauce factory. Despite the ventures failure, Pauls responsibilities increased: he was promoted to corporate secretary in 1946, treasurer in 1949, executive vice-president in 1954, and president in 1961.

In spite of merger offers from such respected giants of the food industry as Quaker Oats, Ralston Purina, Beatrice Foods, and Borden, the family opted to remain independent. In 1959 they offered one-third of the company to the public, raising $2.3 million for capital investments. At the time, Smuckers had annual sales of $11.4 million and earnings of $812,000. The family business legacy under Paul Smucker included an aversion to long-term debt and an almost obsessive concern for avoiding any move that might adulterate his companys products or blemish the corporate image, according to the Wall Street Journal.

Paul Smucker led a two-decade period of dramatic growth through increasing vertical integration, product diversification, acquisition, and national advertising and market penetration that culminated in the companys 1980 dominance of the fruit spread market. From early in its history, the company sought control of all aspects of production. Contracting directly with farmers for fruit crops precluded buying produce on the open market and empowered Smuckers to control production from seed to jam. Along with this vertical integration came vertical quality control. Beginning in 1946, Smuckers paid U.S. Department of Agriculture inspectors to oversee every aspect of its production, earning the company the designation U.S. Grade A Fancy. This evidence of quality assurance allowed Smuckers a higher markup and better shelf placement.

Smuckers maintained its quality control as it expanded. The company opened a manufacturing plant in Salinas, California, that increased production capacity by 40 percent in 1960. Acquisitions, including $4 million (annual sales) West Coast jam and jelly maker Mary Ellens, Inc. (1963) and Pennsylvania peanut butter manufacturer H.B. DeViney Company, Inc. (1965), helped extend Smuckers geographical reach, augmented its annual sales volume, and increased product variety. Smuckers most successful and innovative internally developed product was a candy-cane-striped mixture of peanut butter and jelly dubbed Goober Jelly. The company expanded its product line to over 100 varieties, including ice cream toppings, which accounted for 20 percent of sales by 1960. By the late 1960s, jellies, jams, and preserves comprised less than two-thirds of sales. Product acquisitions and internal developments helped diversify the companys offerings, but not all new product launches and acquisitions were successful. The 1965 purchase of Wooster Preserving Company and the 1966 purchase of H.W. Madison Co., both pickle concerns, became oft-noted examples of failure.

In spite of Willard Smuckers general disdain for advertising, the company hired Wyse Advertising of Cleveland to produce radio spots in 1961. The agency thought up the enduring With a name like Smuckers, it has to be good slogan the following year. Family members did not relish the thought of making fun of their own name at first, but the taglines phenomenal success on the West Coast persuaded them to use it for the brands New York launch in the later years of the decade.

KEY DATES

1897:
Jerome Monroe Smucker opens a cider mill in Orville, Ohio, and later begins making apple butter.
1921:
Smucker incorporates his company as The J. M. Smucker Company.
1923:
Company expands its product offerings to include a full line of preserves and jellies.
1935:
Firm moves toward national distribution with establishment of fruit processing plant in the state of Washington.
1959:
Company goes public.
1962:
The enduring With a name like Smuckers, it has to be good slogan is used for the first time.
1979:
Smuckers attains the number one spot among U.S. jelly and jam manufacturers.
1988:
International expansion begins via two acquisitions in Canada.
2000:
Smuckers Uncrustables frozen sandwiches make their debut.
2002:
In a $781.5 million stock transaction, Smuckers acquires the Jif peanut butter and Crisco shortening brands from the Procter & Gamble Company.
2004:
Company acquires International Multifoods Corporation in an $871 million deal that brings Pillsbury baking mixes, Hungry Jack pancake mixes and syrup, and other brands into the fold.

Sales doubled from $14.6 million in 1961 to $30 million in fiscal 1965. Smuckers stock more than tripled from its $20 issue price to $67.50 in 1965, when it was split 3-for-1 and listed on the New York Stock Exchange. Despite its growth, the company ranked second to grocery chain A&Ps Ann Page store brand at the end of the decade. Smuckers increased its advertising budget to $1.3 million to accommodate network television, and continued to push for first place.

Profits more than tripled to $3 million between 1959 and 1969, then dropped almost 13 percent in the 1970 fiscal year in spite of a sales increase. The company continued to have troubles throughout the decade. Not able to increase prices as fast as inflation boosted overhead, the Smuckers steadfastly refused to compromise quality to pad earnings. As a result, profit margins shrunk from 16 percent in 1964 to 11 percent in 1970. Smuckers instituted cost-cutting measures, including the consolidation of three packing operations into two and corresponding workforce reductions that reduced the payroll by 15 percent between 1973 and 1984. The 1969 and 1971 acquisitions of manufacturing operations in Oregon, Tennessee, and California enhanced economies and enabled Smuckers to sell its excess fruit to competitors.

Still the number two jelly manufacturer (now trailing Welchs) in 1974, Smuckers launched a concerted effort to dominate the industry. The company broadened its institutional markets and rounded out consumer jelly lines with the introduction of Smuckers for Kids, a lower-priced line, as well as low-calorie and all-natural products. The combination of increased advertising, more thorough market penetration (especially in the South), and the 1979 acquisition of the Dickinsons line of gourmet preserves and jellies, catapulted Smuckers to the number one spot among jelly and jam manufacturers, with over one-fourth of the market, in 1979. Over the course of the decade, sales increased almost three times to $145.8 million, and profits nearly doubled to $5.9 million.

The 1970s also saw the ascent of Smuckers fourth generation of family leadership, when Timothy Smucker was appointed vice-president of planning. The assignment marked a new, more modern approach to strategic, tactical, and operational planning, as the company began to rival some of the worlds largest food companies in its specialized niche. Timothy refined the Basic Beliefs first outlined by his father in 1967, including commitments to quality, personal and business ethics, growth, and independence. He incorporated them into a detailed blueprint for the companys future. Timothy was promoted to president and chief operating officer and brother Richard earned the title chief administrative officer in addition to executive vice-president in 1981.

STEADILY EXPANDING

As the leader of the highly competitive, but slow growing, jam and jelly market, Smuckers found itself ever more dependent on heavy advertising expenditures, acquisitions, and product launches to increase sales and earnings in the 1980s. A four-year plant expansion program was announced in 1982 on the heels of a 39 percent year-to-year earnings gain. Magic Shell brand ice cream toppings were purchased from Foremost-McKesson in 1980 and Knudsen & Sons, Inc., a manufacturer of pure fruit juices, joined the family of companies in 1984. The 1987 purchase of R-Line Foods complemented Smuckers institutional operations. Also in 1987 Timothy Smucker was named chairman and Richard Smucker assumed the presidency, while Paul Smucker remained involved in the business as chairman of the executive committee.

Smuckers began international efforts in the late 1980s. In 1988 it acquired Canadas Good Morning brand marmalade (citrus jelly made of small pieces of fruit) and Shirriff ice cream toppings, as well as Elsenham Quality Foods, Ltd., a British manufacturer of specialty preserves, marmalades, and fruit chutneys. Henry Jones Foods, producer of one of Australias oldest and best-known labels, IXL preserves and jams, was purchased the following year. Sales more than doubled from $151 million in 1980 to $367 million in 1989, and earnings quadrupled during the same period from $6.7 million to $27.6 million. By 1993, international sales comprised almost 8 percent of Smuckers annual total.

Smuckers entered the 1990s with 38 percent of the domestic jam and jelly market. The fourth generation leaders set an even loftier goal for their namesake brand and company: a 70 percent share. However, with tenacious, experienced rivals such as Kraft and Welchs as well as locally strong store brands, the company had its work cut out for it. In 1994 Smuckers ended its 35-year relationship with Wyse Advertising in favor of Leo Burnett Company, Inc., an agency company executives believed could support the brands aspirations.

In the early 1990s, members of the Smucker family continued to control over half of the companys stock, and evinced no intentions of relinquishing that majority rule. As consolidation within the food industry gained momentum, the family shored up its takeover defenses by creating a new class of nonvoting stock. This allowed older members (Paul Smucker, for example) to plan their estates without relinquishing influence. From 1990 to 1993, sales increased over 16 percent to $491.3 million, as Smuckers sought to increase per capita consumption of its products, as well as increase its market share in each category.

Smuckers in the mid-1990s continued to pursue acquisitions, some of the international variety and some aimed at broadening the product portfolio. In July 1993 the firm significantly expanded its presence in the Canadian market by acquiring the jam, preserve, and pie filling business of Montreal-based Culinar, Inc., for $16.1 million. In March of the following year, Smuckers completed its largest purchase yet, acquiring the Mrs. Smiths frozen pie business from the Kellogg Co. for $84.1 million and thereby expanding into the frozen food section of the supermarket and gaining a foothold in the dessert category. Later in 1994 Smuckers acquired After The Fall Products, Inc., a maker of natural fruit juices and sodas based in Brattleboro, Vermont, and the Laura Scudders brand of natural peanut butter. After The Fall fit in well alongside Smuckers Knudsen natural-beverage brand.

Whereas the After The Fall and Laura Scudders brands enjoyed steady growth following their arrival at Smuckers, the Mrs. Smiths deal quickly turned sour. Part of the problem was poor timing. The Mrs. Smiths acquisition had occurred at a time when sales of frozen pies were shrinking, in part because of the growth of in-store bakeries. Mrs. Smiths was also in the process of an expensive national rollout of a new line of lower-calorie desserts. The new product flopped, however, and it was pulled from the market in 1995. By the fall Smuckers had decided to return to its core product areas and divest the Mrs. Smiths line. Two separate deals to sell the line, a November 1995 agreement with SBI Brands Inc. and a March 1996 agreement with ConAgra Foods, Inc., fell apart soon after they were announced when the parties were unable to come to final terms. Ultimately, Smuckers succeeded on its third try, offloading Mrs. Smiths at a loss to Flowers Industries Inc. in May 1996. In the meantime, disappointing results at Elsenham Quality Foods led Smuckers to sell this U.K. business in December 1995, incurring a loss there as well.

In 1997, when Smuckers celebrated its 100th year, the company continued the fight to maintain its dominance of the jelly and jam sector in the face of the increasing encroachment of private-label products. Smuckers acquired Kraft Foods, Inc.s U.S. fruit spread business, which held around 2 percent of the market, and also introduced the reduced-calorie Smuckers Light line. Another noteworthy product introduced in 1997 was Smuckers Snackers, a prepackaged peanut butter, jelly, and crackers snack kit. Shelf stable, meaning that refrigeration was not required, the product was designed for children to take to school and proved to be a hit. The firm also began pursuing cobranding and licensing deals that year. Smuckers teamed up with Brach & Brock Confections, Inc. (later known as Brachs Confections, Inc.) to produce Brachs Smuckers jelly beans and fruit chews. Via a licensing deal with Mars, Incorporated, Smuckers introduced Dove ice cream toppings.

Acquisitions remained on the agenda in the late 1990s, as Smuckers also developed new sales channels. In 1998 Henry Jones Foods, Smuckers Australian subsidiary, acquired the Allowrie jam brand, the number four jam brand in Australia. The following January, Smuckers acquired the Adams brand of natural peanut butter from Agrilink Foods, Inc. Adams products were available exclusively in the northwestern United States and western Canada. In late 1998 Smuckers entered the mail-order business, sending out hundreds of thousands of catalogs in its first mailing. The company soon launched online sales as well, and in May 1999 the firm opened its first retail store. Located in Orrville about three miles south of the company headquarters and called Simply Smuckers, the 3,100-square-foot store offered more than 350 Smuckers products and gifts and served as a brand showcase. With food manufacturers fighting for retailers shelf space, these new sales channels provided Smuckers with the ability to directly connect with its customers and offer products to them that might not be available at the local supermarket. In the meantime, the involvement of the third generation of Smuckers in the business ended with the death of Paul Smucker in December 1998 at age 81. Smuckers concluded the 1990s by posting net income of $37.8 million for fiscal 1999 on sales of $602.5 million.

EARLY 21ST CENTURY: CREATING A MULTIBRAND FOOD EMPIRE VIA ACQUISITIONS

Smuckers entered the 21st century still an independent company but a conservatively run one perhaps in danger of being swallowed up by one of the food industrys ever larger giants. Just a half a decade later, the company had tripled its sales thanks primarily to two major acquisitions that belied Smuckers sleepy image. The company began the decade, however, continuing to pursue smaller deals. In early 2000 Smuckers purchased a plant in Brazil to process fruit-based ingredients for the Dannon Company, Inc., a move that supported Smuckers position as a major supplier of fruit ingredients for Dannon yogurt. Later in the year Henry Jones Foods made another acquisition in Australia, adding the Taylor Foods line of prepared sauces and marinades. Smuckers also simplified its share structure in 2000, creating a single class of common stock. Perhaps the most significant outcome here was that the Smucker familys voting interest in the company was reduced from 75 percent to around 34 percent. Smuckers also scored big in 2000 on the new product development front when it introduced Uncrustables, a package of frozen peanut-butter-and-jelly sandwiches on crustless white bread. Like the Snackers product, Uncrustables was primarily aimed at children and was designed to be particularly convenient for school lunches or for snacking at anytime of the day, needing only to be thawed for about 20 minutes before being ready to eat. Even before launching Uncrustables into the consumer market, Smuckers had successfully introduced the product into school lunch programs around the country as part of the firms growing food-service business.

In early 2001 Timothy and Richard Smucker began serving as co-CEOs of Smuckers, adding this title to their previous duties as chairman and president, respectively. Smuckers enhanced its industrial business in October of that year by acquiring International Flavors & Fragrances Inc.s fruit and vegetable preparation businesses, which had operations in the United States and Brazil. The much larger news that month, however, involved Smuckers reaching an agreement to acquire the Jif peanut butter and Crisco cooking oil and shortening brands from the Procter & Gamble Company (P&G). This deal, completed in June 2002, thoroughly transformed Smuckers. Beforehand, the company generated about half of its revenues from fruit spreads. Afterward, Smuckers had a balanced portfolio of three brands, each of which was responsible for around one-quarter of sales with all three holding the number one position in their respective categories in the United States. Acquiring Jif was particularly significant given the synergies between this top peanut butter brand and Smuckers core jellies and jams; in fact, Smuckers had coveted Jif for decades as Paul Smucker had approached P&G officials about buying it as far back as the 1970s.

On the revenue front, the purchase nearly doubled Smuckers sales, which totaled $1.31 billion for the fiscal year ending in April 2003. That the deal was structured as a tax-free transaction using Smuckers stock was also significant. P&G first spun Jif and Crisco off to P&G shareholders and then Smuckers immediately acquired the brands. P&G shareholders received one Smuckers share for every 50 P&G shares they owned, which translated into an acquisition price of $781.5 million in stock. Because of the payment in stock, the Smucker familys stake in the company was further reduced by more than half, down to around 16 percent.

During fiscal 2003, in addition to increasing marketing support for Jif and Crisco by 50 percent, Smuckers also made a series of restructuring moves aimed at cutting costs. Three plants were shut down in the United States, the workforce was cut by 335 jobs, and the company stopped making about 1,000 products that collectively were generating less than 2 percent of sales. In May 2004 production began at a new $70 million facility in Scottsville, Kentucky, dedicated solely to production of the expanding Uncrustables line. Electing to concentrate more keenly on its North American branded, retail foods operations, Smuckers in 1994 sold Henry Jones Foods to SPC Ardmona Ltd. for $35.7 million and also offloaded its industrial ingredient businesses in the United States and Brazil. In January 2004 Smuckers, with a longstanding reputation as a good employer, was named as the best place to work in the nation by Fortune magazine, becoming the first manufacturing company to receive this distinction.

In June 2004 Smuckers completed its second transformative acquisition of the new century. Having gained a foothold in the baking aisle via the addition of Crisco, the company took a major leap into that section by acquiring International Multifoods Corporation (IMC) of Minnetonka, Minnesota. Purchasing IMC brought into the Smuckers fold the Pillsbury line of baking mixes and ready-to-spread frostings; Hungry Jack pancake mixes, syrup, and potato side dishes; Pet evaporated milk; and Martha White baking mixes. Smuckers also gained several Canadian brands: Robin Hood flour, Bicks pickles and condiments, and Golden Temple flour and rice. The purchase price was approximately $871 million in cash, stock, and assumed debt; the stock included in the deal further reduced the Smucker familys stake in the company to around 12 percent. The deal pushed revenues over the $2 billion mark for fiscal 2005, while the net income figure of $129.1 million was more than three times the figure for 2000. Fruit spreads accounted for only around 14 percent of overall revenues. Thanks to the addition of the Canadian brands, revenue generated north of the border jumped from just $64.3 million in 2004 to $338.8 million in 2005, representing more than 16 percent of the total.

During 2005, while working to integrate the IMC brands into its existing operations, Smuckers sold some peripheral businesses it had inherited, including IMCs foodservice and bakery products units in the United States and a Canadian foodservice business operating under the Gourmet Baker name. Net sales were up 5 percent in fiscal 2006 to $2.15 billion, driven largely by a 29 percent increase in sales of Uncrustables products. Annual revenue from this line, which had been expanded to include such sandwiches as peanut butter and honey on wheat bread and grilled cheese, had grown to more than $85 million. In the fall of 2006 Smuckers unloaded another noncore asset, its Canadian grain-based foodservice and industrial businesses, and it acquired the White Lily brand from C.H. Guenther & Son, Inc. The White Lily line, which generated annual sales of $33 million, encompassed flours, cornmeal, muffin mixes, grits, and frozen biscuits, making a neat fit with Smuckers other baking brands.

As part of an industry trend, Smuckers in January 2007 announced that it had reformulated its entire line of Crisco shortening products to nearly eliminate artery-clogging trans fats from their formulas. Looking ahead, Smuckers had set an overall long-term sales growth target of 8 percent per year, with half of this increase slated to come from its core business and new products and half from acquisitions. In April 2007 the company announced a significant acquisition aimed at helping it stay on track with these targets. Smuckers agreed to purchase Eagle Family Foods Holdings, Inc., a private company based in Columbus, Ohio, for $133 million in cash and the assumption of $115 million in debt. Eagle was the largest producer of sweetened condensed and evaporated milk in the United States and Canada, marketing under the Eagle and Magnolia brands, and it also owned a grab bag of other brands, including None Such mincemeat, Kava acid-neutralized coffee, and Borden eggnog. Eagles revenues for fiscal 2006 totaled $206 million.

April Dougal Gasbarre

Updated, David E. Salamie

PRINCIPAL SUBSIDIARIES

J.M. Smucker LLC; Smucker Fruit Processing Company; The Dickinson Family, Inc.; J.M. Smucker (Pennsylvania), Inc.; Mary Ellens, Incorporated; Smucker Quality Beverages, Inc.; Juice Creations Co.; Knudsen & Sons, Inc.; Santa Cruz Natural Incorporated; Rocket Juice Company; Smucker Holdings, Inc.; Simply Smuckers, Inc.; Smucker Direct, Inc.; Smucker Latin America, Inc.; J.M. Smucker de Mexico, S.A. de C.V.; Smucker Hong Kong Limited; JM Smucker (Scotland) Limited; Smucker-IMC, Inc.; Fantasia Confections, Inc.; IMC North America, Inc.; IMC U.S., Inc.; Inversiones 91060, C.A. (Venezuela); Martha White Foods, Inc.; IMC Bakery International, Inc.; Smucker Brands, Inc.; Smucker Bakery Manufacturing, Inc.; RHM Corporation (Canada); RHM Management Inc. (Canada); RHM Canada LP; Smucker Foods of Canada Co.

PRINCIPAL COMPETITORS

Unilever; National Grape Cooperative Association, Inc.; ConAgra Foods, Inc.; B&G Foods, Inc.; Kraft Foods Inc.; Ralcorp Holdings, Inc.; Tropicana Products, Inc.; The Coca-Cola Company; General Mills, Inc.; Pinnacle Food Group, Inc.; Dean Foods Company.

FURTHER READING

Adamy, Janet, Smucker Agrees to Acquire Maker of Pillsbury Mixes, Wall Street Journal, March 9, 2004, p. A3.

Barker, Robert, No Suckers, Those Smuckers, Business Week, March 4, 2002, p. 112.

Brown, Paul B., A Bread-and-Butter Business, Forbes, January 30, 1984, p. 77.

Byrne, Harlan S., J. M. Smucker Co.: Why Cant We Be Like a Gerber? Asks Jam Company, Barrons, April 9, 1990, p. 60.

Clark, Sandra, Living Up to Its Name: Smucker Delivers on Its Promise, Cleveland Plain Dealer, November 1, 1992.

DeFotis, Dimitra, Time to Jam, Barrons, February 28, 2005, p. T5.

Ellis, William Donohue, With a Name Like , Orrville, Ohio: J. M. Smucker Company, 1987, 161 p.

Ethridge, Mary, Smucker Jelly Goes Well with Jif Peanut Butter, Crisco Oil, Akron (Ohio) Beacon Journal, October 11, 2001, p. A1.

, Smuckers Leaves Advertiser, Akron (Ohio) Beacon Journal, March 29, 1994, p. D6.

False Teeth and Jelly, Forbes, November 1, 1968, pp. 2122.

Goforth, Candace, Smucker Named Top Place to Work, Akron (Ohio) Beacon Journal, December 30, 2003, p. A1.

Groseclose, Everett, The Scions: Paul H. Smucker Takes Great Pains to Preserve His Products Quality, Wall Street Journal, February 3, 1975, pp. 1, 21.

Increased Ad Spending, New Executives Boost Smucker Market Share, Wall Street Journal, December 26, 1979, p. 2.

Kirk, Jim, Smucker Jells for Burnett, Adweek (Midwest Edition), March 28, 1994, pp. 1, 5.

Malcolm, Andrew H., Of Jams and a Family, New York Times Magazine, November 15, 1987, pp. 82+.

McEnaney, Maura, Smucker Has Eyes on Frozen Pies, Akron (Ohio) Beacon Journal, March 1, 1994, p. D7.

Murray, Matt, A Maker of Sugary Jellies Spreads Out into Natural and Organic Fruit Juices, Wall Street Journal, July 8, 1994, p. B1.

, Smuckers Deal for Mrs. Smiths Is Proving to Be a Pie in Face, Wall Street Journal, November 22, 1995, p. B1.

Nelson, Emily, and Devon Spurgeon, Its a Natural: P&G Sells Jif to J. M. Smucker, Wall Street Journal, October 11, 2001, p. B1.

Phalon, Richard, Closely Guarded Honey Pot, Forbes, November 25, 1991, pp. 4850.

Pledger, Marcia, J. M. Smucker Simply Opens Its 1st Retail Store in Orrville, Cleveland Plain Dealer, May 6, 1999, p. 1C.

, Work Force Helped Mold New Smucker, Cleveland Plain Dealer, May 23, 1999, p. 1H.

Quality Image Gains Sales for Top Jam Maker, New York Times, September 13, 1980, pp. L27, L30.

Recipe for Success at J. M. Smucker Accents Quality As Key Ingredient, Barrons, May 1, 1967, p. 22.

Russell, John, Down-Home Empire: Orrvilles J. M. Smucker Co. Enjoys Small-Town Image While Dominating Industry and Preparing to Spread, Akron (Ohio) Beacon Journal, April 11, 2004, p. D1.

, Smucker Pinches Doughboy, Akron (Ohio) Beacon Journal, March 9, 2004, p. A1.

The Savvy Saleslady of Strawberry Lane, Sales Management, September 1, 1971, p. 21.

Smucker, Donovan E., Jerome M. Smucker: Pioneer Ohio Mennonite Entrepreneur, Lima, Ohio: Fairway Press, 1995, 60 p.

Smucker Spreads Out Beyond Jam and Jelly, Business Week, November 13, 1965, pp. 19495.

Spethmann, Betsy, So Long, Smucker! Brandweek, July 10, 1995, p. 24.

Thomas, Emory, Jr., and Matt Murray, Flowers to Buy Mrs. Smiths Unit from J. M. Smucker, Wall Street Journal, May 2, 1996, p. B8.

Weber, Joseph, Keeping Out of a Jam, Business Week, October 4, 2004, pp. 104, 106.

Wells, Melanie, The Perfect Combo: The Quiet Family-Run Smucker Is Taking on New Brandsand the Big Time, Forbes, April 15, 2002, p. 226.

Wilson, Paul, $248 Million Buy: Smucker Acquires Eagle Brands, Columbus (Ohio) Dispatch, April 3, 2007, p. 1C.

Zawacki, Michael, Family Values, Inside Business, October 2004, pp. 98100.