Smucker's Company Analysis

576 Words2 Pages
Smucker's Summary While the J.M. Smucker Company has long been a stalwart of the U.S. marketplace as the leading producer and marketer of jellies, jams, and preserves, it has not maintained nearly as strong of a presence on the global food market. Even though Smucker's has raised its revenue from $651 million in 2001 to $4.6 billion in 2010, this still pales in comparison to international giants like Nestle, a company with revenues near $100 billion. This puts Smucker's at a decided disadvantage when attempting to bargain with large stores for price increases and better product placement in stores. To combat this, Smucker's has embarked upon a strategy of acquiring smaller businesses to give it better center-of-store presence, but it is still far smaller than its main global rivals. Analysis Smucker's has clearly tried to position itself as a rival to its larger competitors by acquiring brands that can directly compete for center of store shelf space. These acquisitions along with its own brands have enabled Smucker's to become the industry leader in 11 different food categories as of 2010, including peanut butter, cooking oil, roasted and ground coffee, and fruit spreads and dessert toppings. This positioning and growth is extremely important in the competitive industry as retail grocery chains continue to consolidate and gain more bargaining power with food producers, most notably Walmart, which is currently the largest U.S. retail grocery store. Smucker's has done

More about Smucker's Company Analysis

Open Document