Smucker’s in 2011: Expanding the business lineup
Alyssa Moon (4060921)
The J.M. Smucker Company was founded in 1879 in Ohio. By 1920 it began building a
complete line of jams, jellies, and preserves, leading to national distribution of in 1942.
The company went public in 1959 and from there, began several different acquisitions of
other food companies to diversify itself. Smucker’s has faced continued success due to a
number of reasons, including its corporate strategy. This strategy is composed of three
main components: grow the market share of its existing brands, introduce new products,
and make strategic acquisitions.
Although Smucker’s has been successful by using this strategy it is also evident that there
are a number of strategic issues and problems that management need to address. The three
main problems they need to address include:
1. How to increase market share and boost revenue
2. How to increase shareholders’ value
3. How to become and maintain the number one marketer in the branded food
processed industry
My recommendations for Smucker’s to help expansion are:
1. To reduce acquisition and invest in home production of branded products-
As acquisitions made in branded products are not potentially profitable. This
recommendation will also lead to savings in fixed costs which can be redirected to in
house manufacturing which will enhance economies of scales.