ORRVILLE, Ohio, Nov. 18, 2021 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced it will invest $1.1 billion to build a new manufacturing facility and distribution center in McCalla, Alabama, dedicated to production of Smucker's® Uncrustables® sandwiches. Construction of the facility is expected to begin no later than January 2022, with production commencing in calendar year 2025. The project demonstrates the Company's commitment to meet increasing demand for this highly successful product and deliver on its strategy to focus on growth brands.
The new facility marks the third manufacturing location dedicated to the Smucker's® Uncrustables® brand, along with existing facilities in Scottsville, Kentucky, and Longmont, Colorado. This new facility, and a completed expansion at the Longmont location, will support the Company's strategy to more than double its current production capacity.
The ongoing demand for the frozen handheld sandwich has driven the brand's growth over time to approximately $500 million in annual net sales, demonstrating double-digit net sales growth annually over the past decade. With increased production capacity, the Company expects to grow the Smucker's® Uncrustables® brand over the next five years to approximately $1 billion in annual net sales.
"Our Smucker's® Uncrustables® brand continues to be one of the fastest growing in our portfolio and in the food sector more broadly. We are proud of the success the brand has achieved, due in no small part to the tremendous efforts of our employees, and we're excited to take advantage of the opportunities and growth our investments will enable," said Mark Smucker, President and Chief Executive Officer. "We appreciate the support we have received from the State of Alabama and Jefferson County officials, and we look forward to being a part of the greater Birmingham community."
Construction of the facility and production will occur in three phases over multiple years, creating up to 750 jobs. Financial investments and job creation will align with each of the three phases and are contingent on the approval of tax and business incentives and the closing of the transaction to purchase the property where the facility will be located.
"Because The J.M. Smucker Co. is one of America's leading consumer packaged goods companies in the food sector, its decision to make a significant investment in Jefferson County represents a powerful endorsement of Alabama's inviting business environment," said Alabama Governor, Kay Ivey. "Not only will the Company's growth project create a large number of jobs in McCalla, but it will also permit us to build a long-standing relationship with a top consumer brand."
"Smucker's is a household name, and we are proud they have selected Jefferson County for their next manufacturing facility," said Commissioner Steve Ammons, Chair of the Jefferson County Economic Development Committee. "It's important for us to recognize the previous Commission and their forethought to add acreage to the Jeffmet Industrial Complex. The McCalla area is hot right now due to useable land availability, interstate access and productive growth potential. We are excited for the continued momentum of job creation for the citizens of Jefferson County and the region as a whole."
The J.M. Smucker Co. Forward-Looking Statements
This press release contains forward-looking statements, which are made on the basis of the Company's views and assumptions as of this time, and the Company undertakes no obligation to update this statement unless required by law. This statement is not a guarantee of future performance, and actual events or results may differ materially from this statement. Investors should consult the Company's filings with the Securities and Exchange Commission (including the information set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the 2021 fiscal year ended April 30, 2021) for information about certain factors that could cause such differences. Copies of these filings may be obtained by visiting the Company's website at jmsmucker.com.
About The J.M. Smucker Co.
Each generation of consumers leaves their mark on culture by establishing new expectations for food and the companies that make it. At The J.M. Smucker Co., it is our privilege to be at the heart of this dynamic with a diverse portfolio that appeals to each generation of people and pets and is found in nearly 90 percent of U.S. homes and countless restaurants. This includes a mix of iconic brands consumers have always loved such as Folgers®, Jif® and Milk-Bone® and new favorites like Café Bustelo®, Smucker's® Uncrustables® and Rachael Ray® Nutrish®. By continuing to immerse ourselves in consumer preferences and acting responsibly, we will continue growing our business and the positive impact we have on society. For more information, please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced herein except for Rachael Ray®, a registered trademark of Ray Marks II LLC, which is used under license.
SOURCE The J.M. Smucker Co.
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