About JM Smucker Co-The

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. The company’s operations outside the U.S. are principally in Canada, although products are exported to other countries as well. The company’s branded food and beverage products include a strong portfolio of trusted, iconic, market-leading brands that are sold to consumers through retail outlets in North America. Segments The company operates through three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The U.S. Retail Pet Foods segment primarily includes the domestic sales of Meow Mix, Milk-Bone, Pup-Peroni, and Canine Carry Outs branded products. The U.S. Retail Coffee segment primarily includes the domestic sales of Folgers, Dunkin’, and Café Bustelo branded coffee. The U.S. Retail Consumer Foods segment primarily includes the domestic sales of Smucker’s and Jif branded products. International and Away From Home includes the sale of products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., health care operators, restaurants, lodging, hospitality, offices, K-12, colleges and universities, and convenience stores). Principal Products In 2023, the company’s principal products were coffee, cat food, pet snacks, dog food, frozen handheld products, peanut butter, fruit spreads, portion control products, as well as baking mixes and ingredients. In the U.S. retail market segments, the company’s products are primarily sold through a combination of direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, drug stores, military commissaries, mass merchandisers, and natural foods stores and distributors. In International and Away From Home, the company’s products are distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., health care operators, restaurants, lodging, hospitality, offices, K-12, colleges and universities, and convenience stores). Trademarks and Patents Dunkin’ is a trademark of DD IP Holder LLC used under three licenses (the Dunkin’ Licenses) for packaged coffee products, including K-Cup pods, sold in retail channels, such as grocery stores, mass merchandisers, club stores, e-commerce, and drug stores, as well as in certain away from home channels. The Dunkin’ Licenses do not pertain to coffee or other products for sale in Dunkin’ restaurants. The terms of the Dunkin’ Licenses include the payment of royalties to an affiliate of DD IP Holder, LLC and other financial commitments by the company. The Dunkin’ Licenses are in effect until January 1, 2039. Keurig and K-Cup are trademarks of Keurig Green Mountain, Inc. (Keurig), used with permission. Slogans or designs considered to be important trademarks include, without limitation, With A Name Like Smucker’s, It Has To Be Good, The Best Part of Wakin’ Up Is Folgers In Your Cup, Choosy Moms Choose Jif, That Jif’ing Good, The Only One Cats Ask For By Name, the Smucker’s banner, the Crock Jar shape, the Gingham design, the Jif Color Banner design, the Cafe Bustelo Angelina design, and the Milk-Bone and Meow Mix logos. The company owns many patents worldwide in addition to utilizing proprietary trade secrets, technology, know-how processes, and other intellectual property rights that are not registered. The company considers all of its owned and licensed intellectual property, taken as a whole, to be essential to its business. Customers: Sales to Walmart Inc. and subsidiaries amounted to 34 percent of net sales in 2023. These sales are primarily included in the company’s the U.S. retail market segments. Competition U.S. Retail Pet Foods: The company’s competitors include Nestle Purina PetCare Company; Mars, Incorporated; and General Mills, Inc. U.S. Retail Coffee: The company’s competitors include The Kraft Heinz Company; Keurig Dr. Pepper; F. Gaviña & Sons, Inc.; Nestle S.A.; JDE Peet’s N.V.; Tata Global Beverages Limited; and Community Coffee Company. U.S. Retail Consumer Foods: The company’s competitors include Hormel Foods Corporation; Ferrero SpA; Post Holdings, Inc.; Welch Foods Inc.; Andros Foods USA, Inc.; Nestle S.A.; General Mills, Inc.; and Ruiz Foods. International and Away from Home: The company’s competitors include Nestle S.A.; Societe des Produits Nestle S.A.; The Kraft Heinz Company; Integrated Food Service; Classic Delight Inc.; and Restaurant Brands International Inc. Research and Development (R&D) The company’s R&D expense was $47.3 for the year ended April 30, 2023. Government Regulations The company’s operations are subject to various regulations and laws administered by federal, state, and local government agencies in the U.S., including the U.S. Food and Drug Administration (the FDA), U.S. Federal Trade Commission, U.S. Departments of Agriculture, Commerce, and Labor, and U.S. Environmental Protection Agency. Additionally, the company is subject to regulations and laws administered by government agencies in Canada and other countries in which it has operations and its products are sold. In particular, the manufacturing, marketing, transportation, storage, distribution, and sale of food products are each subject to governmental regulation that is increasingly extensive. Governmental regulation encompasses such matters as ingredients (including whether a product contains bioengineered ingredients), packaging, labeling, pricing, advertising, relations with distributors and retailers, health, safety, data privacy and security, and anti-corruption, as well as an increased focus regarding environmental policies relating to climate change, regulating greenhouse gas emissions, energy policies, and sustainability, including single-use plastics. Dispositions On April 28, 2023, the company sold certain pet food brands to Post Holdings, Inc. (Post). The transaction included the Rachael Ray Nutrish, 9Lives, Kibbles ’n Bits, Nature’s Recipe, and Gravy Train brands, as well as its private label pet food business, inclusive of certain trademarks and licensing agreements, manufacturing and distribution facilities in Bloomsburg, Pennsylvania, manufacturing facilities in Meadville, Pennsylvania and Lawrence, Kansas. On January 31, 2022, the company sold the natural beverage and grains businesses to Nexus Capital Management LP (Nexus). The transaction included products sold under the R.W. Knudsen and TruRoots brands, inclusive of certain trademarks, a licensing agreement for Santa Cruz Organic beverages, dedicated manufacturing and distribution facilities in Chico, California and Havre de Grace, Maryland. History The J. M. Smucker Company was founded in 1897. The company was incorporated in Ohio in 1921.