Smucker

What is your evaluation of Smucker’s business lineup and its acquisitions since

2002? How attractive is the processed foods industry? How strongly positioned

are the company’s brands in each segment of the industry? What does a 9-cell

industry attractiveness/business strength matrix displaying J. M. Smucker’s

business units look like?

Since 2002, Smucker’s business lineup evolved to include a variety of products including fruit-spreads, peanut butter, snacks, ice cream toppings, beverages and specialty items. Their strategy was to acquire successful brands with potential rather than to build new brands. These acquisitions proved successful as the company not only increased sales, but they were also able to execute their “center of the store” model. The industry is fairly attractive after suffering in the 90’s and early 2000’s with an increase in single parent homes, less females staying at home and household meals per year declining. However, with the recession and a need to budget, many families are beginning to once again prepare meals at home as opposed to eating out. With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be...