The J.M. Smucker Co. has closed on its divestment of the Voortman cookie business to Second Nature Brands. The $305 million transaction reflects the company’s continued commitment to optimizing its portfolio and reallocating resources to its core growth brands, J.M. Smucker said in a Dec. 2 news release.
J.M. Smucker’s Chair of the Board, President and CEO Mark Smucker also gave an update on the snack company’s Hostess and Uncrustables sandwich brands—including how the convenience channel is playing a role in their performance.
The Voortman transaction, first announced in October, includes all Voortman trademarks and the company’s leased manufacturing facility in Ontario, Canada. About 300 employees will transition with the business, J.M. Smucker said.
Second Nature Brands, Madison Heights, Michigan, is a U.S.-based creator of premium snacks and treats controlled by CapVest Partners LLP.
J.M. Smucker updated its full-year fiscal 2025 net sales guidance to reflect the impact of the divested business. Net sales are expected to increase 7.5% to 8.5% compared to the prior year. The updated net sales guidance reflects the removal of about $65 million of divested net sales in fiscal 2025, with the estimated net sales impact evenly distributed throughout the remainder of the fiscal year, J.M. Smucker said.
“Over the last several years, we have strategically transformed our business to more effectively meet the evolving needs of the consumer while consistently delivering against our long-term financial algorithm,” said Smucker at the company’s 2024 Investor Day on Tuesday. “We are delivering growth across our portfolio through our world-class marketing, commercial and manufacturing capabilities, and are focusing our resources on our most significant growth opportunities. We are highly confident in our ability to deliver our long-term algorithm, including our goal of over $1 billion in free cash flow annually.”
Orrville, Ohio-based Smucker's offer consumer products in the coffee, consumer foods, dog snacks and cat food categories under brands including Folgers, Dunkin’, Café Bustelo, Jif, Smucker’s Uncrustables, Smucker’s, Milk-Bone and Meow Mix.
Hostess, Uncrustables in the Convenience Channel
J.M. Smucker Co. acquired Hostess in November 2023. In J.M. Smucker Co.’s fiscal year 2025 second-quarter earnings remarks, Smucker said he was not satisfied with the results of the Hostess brand and the company was taking actions to return the brand to growth. Net sales were below expectations because consumers are selective in their spending and because Smucker’s is not performing with excellence from a distribution, merchandising and competitive standpoint, he said.
Inflationary pressures and diminished discretionary income are causing the sweet baked goods category to recover “slower than we have anticipated,” Smucker said.
“These trends are causing a reduction in all channels, inclusive of convenience,” he said.
Smucker also said the company was expanding Uncrustables sandwiches into the c-store channel, “representing a large whitespace opportunity for the company.”
Uncrustables Reduced Sugar was a packaged foodservice winner in CSP’s 2023 Best New Products Contest. Hostess Twinkies Flavored Cereal Straws were a finalist in the candy category for the 2024 BNPC awards.
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