Smuckers Industry Analysis

Smucker's Acquisition of Jif and Crisco

Overview

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.

Analysis

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...

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...ice Smucker's should continue to grow and maintain their name in the markets they are already in. Smucker's acquisition of Jif and Crisco was an excellent move. They have already benefited with more than 80% more revenue and net income in the first six months of acquisition. By continuing to look for new acquisitions, especially in the international market, Smucker's will be able to grow throughout the world and perhaps become a world leader in their food industry.

Bibliography

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Gamble, J. Strickland, A. & Thompson, A. Strategy winning in the marketplace, 2004, McGraw-Hill

Companies Inc, New York. Pg. C352.

Griffin, R. & Pustay, M. International Business, 2003, Pearson Education, Upper Saddle River. Pg. 301

Smucker's website: www.smucker.com June 19 2005.