The J. M. Smucker Company (SJM): Business Model Canvas [Dec-2025 Updated]

You're looking for the blueprint behind those familiar pantry staples, and honestly, mapping out The J. M. Smucker Company's operating model for Fiscal Year 2025 reveals a fascinating balance of legacy strength and focused growth. With $8.7 billion in Net Sales driven by iconic brands like Jif and Folgers, their core activity is managing a massive North American footprint while aggressively expanding capacity for convenient items like Uncrustables. We see a clear strategy: maintain transactional relationships through mass retail channels while investing heavily in brand building and strategic portfolio moves, all supported by key partnerships from logistics providers to renewable energy sources. Dive into the nine blocks below to see exactly how The J. M. Smucker Company converts trusted products into consistent revenue streams and manages costs like that significant interest expense following the Hostess deal.

The J. M. Smucker Company (SJM) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships The J. M. Smucker Company relies on to move product and secure future supply. These partnerships are essential for market access and sustainability goals, so let's look at the hard numbers behind them.

Retailer and Mass Merchandiser Relationships

The sheer scale of The J. M. Smucker Company means its relationships with major retailers and mass merchandisers are foundational. These partners provide the shelf space that allows the company's brands to reach consumers, with products found in over 80% of US homes. For the full fiscal year 2025, The J. M. Smucker Company reported total net sales of $8.7 billion. Looking at a recent quarter, the third quarter of fiscal year 2025 saw revenue hit $2.33 billion. The reliance on these channels means that maintaining strong terms and favorable placement is a constant focus, especially as the company navigates volume/mix pressures.

Here's a snapshot of how the primary distribution channels relate to the business:

Channel Type	Metric/Context	Latest Available Figure
US Retail Presence	Percentage of US Homes Reached	80%
FY2025 Net Sales	Total Company Net Sales (Fiscal Year 2025)	$8.7 billion
Q3 CY2025 Revenue	Reported Revenue for Q3 CY2025	$2.33 billion
Snacks Channel Share	Mass Merchandisers & Supermarkets Channel Demand Share (2025 Estimate)	52.7%

Co-branding with Dunkin'® for Packaged Coffee

The license agreement for the Dunkin'® brand for packaged coffee sold in retail channels is a key part of the U.S. Retail Coffee segment. This channel includes grocery stores, mass merchandisers, club stores, and e-commerce. In the third quarter of fiscal year 2025, the U.S. coffee retail sales segment grew by 15% year-over-year, reaching $717.2 million. To manage commodity costs, the company planned to raise coffee prices by roughly 25% for the fiscal year, according to CFO Tucker Marshall. Still, volume/mix for the Dunkin'® brand saw a decline in the second quarter of fiscal year 2025.

Logistics and Third-Party Distribution Providers

The J. M. Smucker Company works with a network of logistics and third-party distribution providers to manage its complex supply chain. The company is focused on building operational resilience due to persistent cost and supply chain volatility. This involves leveraging advanced demand forecasting and forming strategic supplier partnerships. While specific 3PL contracts aren't detailed in recent public reports, the operational necessity is clear; maintaining service levels requires robust third-party support for transportation, warehousing, and distribution.

The focus is on maintaining service through:

• Streamlining supply chain operations.
• Leveraging integrated logistics services.
• Ensuring efficient and scalable transportation.

Ørsted for Renewable Energy via Sunflower Wind Farm

The commitment to environmental stewardship involves strategic energy partnerships. The J. M. Smucker Company is involved with the Sunflower Wind Farm in Marion County, Kansas, through Walmart's Gigaton PPA accelerator. This partnership with Ørsted and Schneider Electric provides The J. M. Smucker Company with renewable energy offtake. The company's specific commitment for offtake from this project is 22MW. The total 200 MW Sunflower Wind Farm has the capacity to power more than 70,000 U.S. homes annually.

World Coffee Research for Sustainable Sourcing Initiatives

As a founding member of World Coffee Research (WCR), The J. M. Smucker Company partners to secure the long-term viability of the coffee supply chain. In 2025, WCR member companies renewed their collective pledges, committing over $10 million to the organization through 2027. The J. M. Smucker Company was one of ten member companies making these multi-year commitments. This industry collaboration aims to address the global agricultural R&D funding gap, which WCR has calculated to be $452 million USD each year.

Key WCR partnership metrics include:

• Collective industry pledge through 2027: over $10 million.
• The J. M. Smucker Company commitment: Multi-year, part of the renewed pledge.
• Global annual R&D funding gap identified by WCR: $452 million USD.

Finance: draft Q4 2025 cash flow forecast by next Tuesday.

The J. M. Smucker Company (SJM) - Canvas Business Model: Key Activities

Manufacturing and supply chain optimization

Fiscal Year 2025 Capital Expenditures	Lower than prior year (Q4 FY25 Free Cash Flow: $298.9 million)
Fiscal Year 2026 Projected Capital Expenditures	$325.0 million
Fiscal Year 2025 Free Cash Flow	$816.6 million

Strategic portfolio management (acquisitions/divestitures)

• Divestitures completed in Fiscal Year 2025: Sweet Baked Snacks value brands, Voortman® business, and Canada condiment business.
• Acquisition completed: Hostess Brands, Inc. in November 2023.
• Q4 Fiscal Year 2025 noncash impairment charges: $980 million related to the Sweet Baked Snacks reporting unit and Hostess® brand trademark.

Brand building and mass-market advertising

• Digital advertising spend in the last year: Under $100 million.
• Total marketing expense projected for Fiscal Year 2026: Estimated to be 5.7% of net sales.
• Projected increase in SD&A expenses for Fiscal Year 2026: Approximately 3.0 percent.
• Projected marketing investment increase (FY26 vs FY25): Approximately $40 million (30 basis points of net sales).
• Key Growth Platforms receiving marketing investment: Uncrustables®, Café Bustelo®, Meow Mix®, Milk-Bone®, and Hostess®.

Driving net price realization across core categories

The company realized a 3% increase in net price realization for the fourth quarter of Fiscal Year 2025, primarily from coffee pricing. Net price realization contributed a 3 percentage point increase to comparable net sales in Q4 FY25.

Fiscal Year 2025 Full Year Net Sales	$8.7 billion
Fiscal Year 2025 Full Year Adjusted Earnings Per Share	$10.12
Fourth Quarter Fiscal Year 2025 Net Sales	$2.1 billion
Fourth Quarter Fiscal Year 2025 Adjusted Earnings Per Share	$2.31

Expanding Uncrustables® production capacity

The Uncrustables® brand achieved approximately $920 million in net sales for Fiscal Year 2025, reflecting growth of over $125 million. This marked the brand's 11th consecutive fiscal year of double-digit growth in total Company net sales. Segment profit in Q3 FY25 reflected lower pre-production expenses primarily related to the new Uncrustables® sandwiches manufacturing facility.

The J. M. Smucker Company (SJM) - Canvas Business Model: Key Resources

You're looking at the core assets that keep The J. M. Smucker Company running strong. These aren't just line items; they're the durable advantages that underpin their market position as of late 2025.

Iconic, Leading Brand Portfolio (Jif, Folgers, Hostess)

The J. M. Smucker Company holds a portfolio of brands that reach nearly 90 percent of U.S. households across key categories like coffee, peanut butter, frozen handhelds, and pet food in fiscal year 2025. This reach is a massive resource. You see their leadership in several areas.

• Continued leadership in the at-home coffee category as the number-one manufacturer in volume share.
• Leadership in the frozen handheld, peanut butter, and fruit spreads categories.
• The Uncrustables brand is projected to surpass $900 million in sales for fiscal year 2025.
• The Café Bustelo brand was one of the fastest-growing in the at-home coffee category in fiscal year 2025.
• The Jif brand saw boosted perception scores among Gen Z and millennial consumers from its 'Save the Celery' effort, scoring 1 billion earned media impressions in two weeks (per 2024 report).

The portfolio includes brands like Jif, Folgers, Hostess, Uncrustables, Dunkin, Milk-Bone, and Meow Mix, among others. Honestly, that breadth is hard to replicate.

Extensive North American Manufacturing Footprint

The J. M. Smucker Company operates manufacturing facilities and offices across North America to ensure quality production. They've been actively investing to expand capacity, defintely. For instance, they opened a third manufacturing facility dedicated to the Uncrustables brand in McCalla, Alabama, during fiscal year 2025. Also, a significant $120 million investment was made into a facility in Georgia in late 2025, alongside recent expansion in Orrville, Ohio.

Here's a look at some of the key operational locations that support this footprint:

Location Type	Specific City/State Mentioned	Context/Activity
Headquarters	Orrville, Ohio	Corporate HQ; facility expansion mentioned.
Manufacturing	McCalla, Alabama	Third dedicated Uncrustables facility opened.
Manufacturing	Longmont, Colorado	A 430,000-square-foot sandwich factory.
Manufacturing	Scottsville, Kentucky	Previously the sole Uncrustables plant.
Investment	Georgia	$120 million investment in a facility in October 2025.

Intellectual Property and Proprietary Recipes

This resource is less about public numbers and more about the trade secrets behind their market-leading products. Think about the specific formulations for Jif peanut butter or the unique recipes for Hostess snacks. These proprietary recipes and associated intellectual property are critical for maintaining product consistency and differentiation in competitive categories like coffee and spreads. The company's focus on innovation, such as the launch of higher protein PB&Js, relies directly on leveraging this IP base.

Dedicated Employee Base of Approximately 8,000 Individuals

As of 2025, The J. M. Smucker Company employs approximately 8,000 talented and experienced individuals. This workforce supports their operations across their three major business units: consumer foods, pet foods, and coffee. Their dedication helped deliver positive results and shareholder value through dividends in fiscal year 2025, even amid a dynamic operating environment. That scale of human capital is a key engine for execution.

Financial Capital for Debt Reduction and Dividends

The J. M. Smucker Company actively manages its capital structure, using cash flow to strengthen its balance sheet and return value to shareholders. They completed divestitures in fiscal year 2025 to support focused resource allocation. Here are the hard numbers showing that capital deployment:

Financial Metric (Fiscal Year 2025)	Amount
Net Sales	$8.73 billion
Free Cash Flow	$816.6 million
Debt Paid Down	Over $700 million
Total Debt (as of Jan 31, 2025)	$6.386 billion
Cash Returned via Dividends	$455.4 million
Dividend Per Share (Stable)	Around $1.08

The company expects to pay down $500 million of debt annually in each of the next two years following fiscal 2025. Finance: draft 13-week cash view by Friday.

The J. M. Smucker Company (SJM) - Canvas Business Model: Value Propositions

Trusted, quality food and beverage staples form the foundation of The J. M. Smucker Company's offering, with the core business representing approximately 85% of net sales. The company manages its coffee business by balancing the recovery of inflationary input costs while providing consumers options across the value spectrum.

The value proposition is strongly anchored by the convenient, frozen handheld snacks segment, specifically the Uncrustables brand. Sales for Uncrustables leaped 15% year-over-year in fiscal year 2025, reaching $920 million. The company is poised to achieve its goal of exceeding $1 billion in Uncrustables sales in the current fiscal year. To support this demand, The J. M. Smucker Company opened a $1.1 billion manufacturing plant in Alabama last year.

For indulgent, nostalgic sweet baked goods, the value proposition is tied to the Hostess brand, acquired for a total enterprise value of approximately $5.6 billion. However, this segment has faced headwinds; the Sweet Baked Snacks category saw a staggering 26% drop in net sales compared to the previous year in the fourth quarter of fiscal year 2025. By the fourth quarter of fiscal year 2025, the company recorded $1.66 billion in goodwill impairment charges and $321 million in trademark impairments related to the Hostess brand.

Portfolio evolution demonstrates a commitment to adapting to consumer preference shifts. The J. M. Smucker Company announced its commitment to remove FD&C colors from all consumer food products by the end of calendar year 2027. This follows previous evolutions, such as removing high-fructose corn syrup from its Uncrustables sandwiches and introducing fruit spreads with all-natural sources. The company returned $455.4 million to shareholders through dividends in fiscal year 2025.

The overall financial structure supports the delivery of these propositions, with management reiterating a full-year Adjusted EPS guidance of $9 at the midpoint for fiscal year 2025. The company's Q3 CY2025 revenue was $2.33 billion.

Here's a quick look at some key figures underpinning these value drivers:

• Uncrustables net sales target for FY2026: more than $1 billion.
• Hostess acquisition goodwill and trademark impairments by Q4 2025: $1.981 billion total.
• Commitment deadline for FD&C color removal: end of calendar year 2027.
• FY2025 dividend payout to shareholders: $455.4 million.

The following table summarizes select financial and product performance data relevant to the value proposition:

Metric	Value/Amount	Fiscal Period/Context
Uncrustables Net Sales	$920 million	Fiscal Year 2025
Hostess Acquisition Enterprise Value	Approximately $5.6 billion	Transaction Value
Sweet Baked Snacks Net Sales Change	-26% decrease	Q4 Fiscal Year 2025 vs prior year
Core Business Net Sales Contribution	Approximately 85%	Of total net sales
FY2025 Full-Year Adjusted EPS Guidance (Midpoint)	$9.70 to $10.10 range	Updated Guidance
Q3 CY2025 Reported Revenue	$2.33 billion	Third Quarter CY2025

The J. M. Smucker Company (SJM) - Canvas Business Model: Customer Relationships

You're looking at how The J. M. Smucker Company keeps its customer base engaged, from the grocery aisle to the brokerage account. It's a mix of deep-rooted trust and modern digital tactics.

Transactional relationship via retail shelf space

The relationship here is fundamentally transactional, relying on prime real estate in mass merchandisers and supermarkets, which commanded an estimated 52.7% share of the snacks market demand in 2025. Securing and maintaining this shelf space is crucial, as The J. M. Smucker Company has faced challenges where SKU rationalization in the Sweet Baked Snacks division led to shelf rearrangements. In this environment, a product shifting just 10 inches left or right on the shelf can become invisible for a few weeks, directly denting repeat sales across multiple chains. The company counters this by focusing on high-growth platforms like Uncrustables, which is well on pace to achieve its goal of \$1 billion in annual net sales by the end of fiscal year 2026, supported by expanded distribution, including into away-from-home channels.

Mass-market brand loyalty built over decades

Decades of presence have built a deep, almost automatic loyalty for core brands. This is evident in the company's commitment to its dividend, a key signal to long-term holders. The J. M. Smucker Company pays a quarterly dividend of \$1.10 per share, resulting in an annual dividend of \$4.40 per share as of late 2025, with a payout ratio just under 49%. This consistency is a hallmark, as the company has increased its dividends for 28 consecutive years, signaling financial stability to this segment of the customer base. The company is proud to lead in categories like coffee, peanut butter, and fruit spreads, offering brands consumers trust for themselves and their families each day.

Digital engagement and targeted advertising

Digital efforts focus on cultural relevance to drive reach and perception. For instance, the Jif brand's "Save the Celery" campaign successfully scored 1 billion earned media impressions in just two weeks, boosting brand perception scores among Gen Z and millennial consumers. The strategy involves a diversified channel mix, investing where consumers spend their time, with each new platform needing to add incremental reach. This digital push supports category expansion, such as the Café Bustelo brand, which is moving into the refrigerated aisle with its Espresso Style Iced Coffee, targeting a cold coffee category forecast to top \$3 billion by 2030. Café Bustelo alone is expected to top \$300 million in net sales in its 2025 fiscal year.

Investor relations and consistent dividend payouts

Investor relations centers on delivering consistent shareholder returns, which is a direct relationship with the financial customer. While the total annual payout figure of \$455 million was a target, the actual commitment is reflected in the per-share metrics. The company has a strong track record, having increased its quarterly dividend for 28 years in a row. The latest quarterly declaration was \$1.10 per share, yielding approximately 4.4% annually. The company's disciplined approach to capital allocation is also shown by its Free Cash Flow expectation for fiscal year 2025, which was guided to hit \$925 million, supporting this commitment while paying down debt, which stood at \$6.386 billion as of January 31, 2025.

Direct consumer feedback for product innovation

The J. M. Smucker Company puts the consumer at the center of its innovation process, using data and insights to address real, unmet needs. This consumer-led innovation drives growth across the portfolio. You can see this in specific product launches:

• Jif® launched its biggest flavor innovation in nearly a decade: Jif Peanut Butter & Chocolate Flavored Spread.
• The Milk-Bone® brand is being refreshed with new offerings like PB Bites and seasonal varieties.
• Café Bustelo® introduced its first-ever multi-serve product crafted solely to be enjoyed cold: Espresso Style Iced Coffee.
• The company is advancing SKU rationalization within the Hostess portfolio, prioritizing high-return sub-brands.

The success of brand extensions leveraging existing equity, which typically cost less to promote than starting a new brand from scratch, is also a result of this disciplined approach to consumer acceptance.

Relationship Metric	Data Point	Context/Brand
Quarterly Dividend Per Share (Late 2025)	\$1.10	Investor Relations
Consecutive Years of Dividend Growth	28	Investor Relations
Annual Earned Media Impressions (2 Weeks)	1 Billion	Jif "Save the Celery" Campaign
Projected Uncrustables Annual Sales	Over \$900 million	Frozen Handheld Platform
Café Bustelo FY2025 Net Sales	\$300 million	Coffee Category Expansion
Retail Shelf Space Channel Share (Snacks 2025)	52.7%	Mass Merchandisers & Supermarkets

The J. M. Smucker Company (SJM) - Canvas Business Model: Channels

You're looking at how The J. M. Smucker Company moves its products to the end user, which is a complex mix given its portfolio evolution, including the Hostess Brands acquisition and several divestitures. The distribution structure relies heavily on established retail partnerships, but growth is being funneled toward specific, high-potential brands like Uncrustables, Meow Mix, Milk-Bone, and Café Bustelo.

Traditional Grocery and Supermarkets

This channel represents the core shelf space for many of The J. M. Smucker Company's legacy and growth brands. The U.S. Retail segments are the primary delivery mechanism here. For instance, the U.S. Retail Coffee segment, which includes Folgers and Café Bustelo, showed strong performance in Q2 of fiscal year 2025, with net sales jumping 21% to $848.9 million in that quarter alone. That growth was mainly from higher net pricing. The Uncrustables brand, a key focus, grew its total company net sales by over $125 million in fiscal year 2025, reaching approximately $920 million in net sales, driven by distribution gains and merchandising investments, which heavily target supermarket placement.

The Frozen Handheld and Spreads division also relies on this channel. In Q2 of fiscal year 2025, this segment saw net sales increase by 5%, helped by gains in the Jif peanut butter brand.

Here's a look at the segment performance that feeds into the grocery channel, based on Q2 Fiscal Year 2025 results:

Segment	Net Sales (Q2 FY2025)	Year-over-Year Net Sales Change (Q2 FY2025)
U.S. Retail Coffee	$848.9 million	Increased 21%
U.S. Retail Frozen Handheld and Spreads	Not explicitly stated, but net sales increased 5%	Increased 5%
U.S. Retail Pet Foods	Not explicitly stated, but net sales decreased 4%	Decreased 4%

Mass Merchandisers and Club Stores (e.g., Walmart, Costco)

While The J. M. Smucker Company doesn't publicly break out sales specifically by retailer like Walmart or Costco, these mass channels are integral to the performance of the U.S. Retail segments. Club stores, in particular, are important for larger-format items and pet food. The overall comparable net sales increase for the total company in Q2 FY2025 was 2%, reflecting the mixed performance across all major retail outlets.

The Milk-Bone brand, a key growth driver, gained from double-digit sales growth in soft and chewy snacks, which are often stocked heavily in these large-format stores.

E-commerce and direct-to-consumer platforms

Specific revenue figures for pure e-commerce or direct-to-consumer (DTC) are not detailed in the latest reports, but digital shelf presence is critical for brand visibility. The company is focused on driving growth through distribution expansion and product innovation across its portfolio, which inherently includes optimizing placement on major online retailers' platforms.

The overall strategy involves leveraging key growth platforms, and digital presence is a non-negotiable part of modern distribution, even if the dollar contribution isn't isolated from the broader U.S. Retail figures.

Away-From-Home (AFH) and Foodservice channels

The International and Away From Home (IAFH) business is a distinct channel, serving restaurants, offices, and other non-retail locations. This area has shown some volatility but also specific strengths.

In the fourth quarter of fiscal year 2025, comparable net sales for IAFH grew 4%, driven by strong results in the Away From Home business leveraging national brands. However, for the second quarter of fiscal year 2025, the segment's total net sales actually fell by 1% year-over-year. This suggests channel-specific fluctuations, but management remains focused on delivering growth here.

Convenience stores for immediate consumption snacks

This channel is most relevant to the Sweet Baked Snacks segment, which now includes the acquired Hostess Brands. Performance here has faced headwinds. In the latest 13-week period reported (around Q4 FY2025), dollar sales for the Hostess brand specifically declined 7%. The entire Sweet Baked Snacks segment contributed net sales of $315.5 million in Q2 FY2025, but comparable net sales for this segment decreased 14% in Q4 FY2025, with weak demand for snack cakes and donuts cited as a factor across all channels, defintely including convenience stores.

The company is taking decisive actions to grow the Hostess brand, indicating this channel is a current focus area for stabilization and future growth.

• Sweet Baked Snacks Segment Q2 FY2025 Net Sales: $315.5 million.
• Hostess Brand Dollar Sales Decline (latest 13-week period): 7%.

The J. M. Smucker Company (SJM) - Canvas Business Model: Customer Segments

Mainstream US Households seeking pantry staples

• The J. M. Smucker Company's total net sales for the fiscal year 2025 were $8.7 billion.
• This segment, along with others like Frozen Handheld and Spreads, represents the core consumer base purchasing pantry staples.
• Q3 Fiscal Year 2025 saw the Uncrustables brand achieve 15% sales growth, indicating strong demand in the convenient/portable meal space for families and students.
• Q4 Fiscal Year 2025 net sales for the U.S. Retail Frozen Handheld and Spreads segment totaled $449.8 million.

Pet Owners (dog and cat food/treats)

• The U.S. Retail Pet Foods segment generated net sales of $1,663.6 million for the full fiscal year 2025, down from $1,822.8 million in FY24.
• This segment represented 19% of The J. M. Smucker Company's total fiscal year 2025 net sales.
• The product mix within this segment for FY2025 was heavily weighted: Dog snacks accounted for 54% of the segment's sales, while Cat food and snacks made up 44%.
• Net sales for this segment in Q4 FY2025 were $395.5 million, a decrease of 13% year-over-year for the quarter.

Coffee Enthusiasts (Folgers, Café Bustelo consumers)

• The U.S. Retail Coffee segment posted Q4 Fiscal Year 2025 net sales of $738.6 million.
• For the full Fiscal Year 2025, the U.S. Retail Coffee segment net sales increased by $102.2 million.
• Net price realization was a key driver, contributing 10 percentage points to Q4 FY25 net sales increases, primarily from higher net pricing for the Folgers® and Café Bustelo® brands.
• In the first quarter of Fiscal Year 2026, net price realization continued to be strong, increasing net sales by 18 percentage points, though volume/mix decreased net sales by 2 percentage points due to decreases for the Folgers® and Dunkin'® brands.

Families and students needing convenient, portable meals

• This group is served by products like Uncrustables® sandwiches, which saw 15% sales growth in Q3 Fiscal Year 2025.
• The segment encompassing these items, U.S. Retail Frozen Handheld and Spreads, recorded net sales of $449.8 million in Q4 FY2025.
• For Q3 FY2025, segment profit for this area increased by $8.1 million, reflecting higher net price realization and lower pre-production expenses related to the new manufacturing facility.

Value-seeking consumers who defintely prioritize price

• Evidence of price sensitivity is seen in net price realization impacts across segments.
• In Q4 FY2025, lower net price realization decreased Pet segment net sales by 2 percentage points, driven by lower net pricing for dog snacks and cat food.
• For the full fiscal year 2025, The J. M. Smucker Company delivered Adjusted Earnings Per Share of $10.12, an increase of 2% over the prior year.
• The company's overall net sales for the full fiscal year 2025 increased by 7% to $8.7 billion.

A look at the major revenue-contributing segments for The J. M. Smucker Company in Fiscal Year 2025:

Segment	Net Sales (Year Ended April 30, 2025)	Percentage of Total FY25 Net Sales
U.S. Retail Coffee	Not explicitly stated as a total, but Q4 FY25 was $738.6 million	Implied significant portion
U.S. Retail Pet Foods	$1,663.6 million	19%
U.S. Retail Frozen Handheld and Spreads	Q4 FY25 was $449.8 million	Implied significant portion
Total Company Net Sales	$8,700 million (or $8.7 billion)	100%

The J. M. Smucker Company (SJM) - Canvas Business Model: Cost Structure

You're looking at the major outflows for The J. M. Smucker Company, the costs that eat into the revenue from brands like Jif, Smucker's, and Hostess. It's a mix of ingredients, moving product, and paying down the debt from that big acquisition. Here's the quick math based on the latest guidance available as of late 2025.

Raw material costs (coffee beans, peanuts, sugar)

The cost of goods sold is heavily influenced by commodity markets, which is why you see the company managing this risk through derivatives and pricing actions. The full-year fiscal 2025 guidance, updated in June 2025, assumed an adjusted gross profit margin of approximately 35.5 to 36.0 percent. This compares to an earlier projection of approximately 38.0 percent given in February 2025, showing margin pressure from input costs during the year. For instance, in the U.S. Retail Coffee segment for Q3 FY2025, segment profit was negatively impacted by higher commodity costs, inclusive of the net unfavorable impact of derivative gains and losses.

Selling, Distribution, and Administrative (SD&A) expenses

SD&A expenses cover everything from sales force salaries to getting the product onto the shelf. The most recent full-year fiscal 2025 outlook, provided in June 2025, projected an increase of SD&A expenses of approximately 3.0 percent compared to the prior year. This was a tightening of the earlier guidance from February 2025, which had projected an 8.0 percent increase. For context on quarterly fluctuations, Selling, distribution, and administrative expenses for the first quarter of fiscal 2025 were $390.1 million. Also, in the Pet Snacks segment for Q1 FY2025, segment profit increased due to lower distribution expense, but this was offset by increased marketing investments in that specific segment.

Interest expense on debt, notably from the Hostess acquisition

Servicing the debt load, especially that taken on for the Hostess Brands acquisition, is a significant fixed cost. The guidance for fiscal 2025 interest expense, as of the June 2025 update, was set at approximately $380.0 million. This is slightly lower than the $390.0 million projected in February 2025, and it is expected to remain around $380.0 million for the initial fiscal 2026 outlook as well. The prior year saw a significant increase in net interest expense, primarily due to interest on the Senior Notes issued to help finance the Hostess Brands acquisition.

Capital expenditures, projected at $400.0 million for FY2025

The company plans its investment in property, plant, and equipment to support operations and growth, like the new Uncrustables manufacturing facility. The initial projection for capital expenditures for the full fiscal year 2025 was $400.0 million, as stated in February 2025 guidance. However, the latest full-year guidance, released in June 2025, revised this down to $325.0 million. This revised figure aligns with the Q4 FY2025 actual free cash flow report, which noted a decrease in capital expenditures compared to the prior year. Historically, capital expenditures for FY2025 were reported by one source as $393.8 million, which is close to the initial projection.

Marketing and promotional spending for key brands

Marketing spend is variable and targeted, often impacting segment profit directly. You can see the effect of these decisions quarter-by-quarter. For example, in the U.S. Retail Coffee segment during Q3 FY2025, segment profit increased due to lower marketing spend. Conversely, in the Pet Snacks segment for Q1 FY2025, segment profit was pressured by increased marketing investments for brands like Jerky Treats and Meow Mix. Promotional spending is also a factor; in the Pet Snacks segment for Q1 FY2025, lower net price realization was partly due to higher trade spend for those brands.

Here's a look at the key forward-looking cost structure elements for FY2025 based on the latest available guidance:

Cost Component	Latest FY2025 Guidance (as of June 2025)	Previous FY2025 Guidance (as of Feb 2025)
Adjusted Gross Profit Margin	35.5 to 36.0 percent	Approximately 38.0 percent
SD&A Expenses Change vs. Prior Year	Increase of approximately 3.0 percent	Increase of approximately 8.0 percent
Interest Expense	Approximately $380.0 million	$390.0 million
Capital Expenditures	$325.0 million	$400.0 million

The company is managing these costs, especially by adjusting CapEx downwards from the initial plan. Finance: review the variance between the initial $400.0 million CapEx projection and the final $325.0 million guidance by next Tuesday.

The J. M. Smucker Company (SJM) - Canvas Business Model: Revenue Streams

Net Sales from Branded Products: The J. M. Smucker Company recorded total net sales of $8.7 billion in Fiscal Year 2025. This represented a 7 percent increase in net sales for the full fiscal year 2025 compared to the prior year.

The legacy business, which excludes the impact of recent acquisitions and divestitures, accounted for approximately 85 percent of the total Company net sales for the fiscal year.

Retail Channel Sales (majority of total revenue): Revenue generation is heavily weighted toward the retail channel, segmented across several key areas. For the fourth quarter of fiscal year 2025, total net sales were $2.14 billion. The breakdown of net sales by segment for the fourth quarter of fiscal year 2025 illustrates the primary revenue drivers:

Revenue Stream Category	FY2025 Q4 Net Sales (Millions USD)	Year-over-Year Change
U.S. Retail Coffee	$738.6	11 percent increase
U.S. Retail Frozen Handheld and Spreads	$449.8	Flat
U.S. Retail Pet Foods	$395.5	13 percent decline
Sweet Baked Snacks	$251.0	26 percent decline

Revenue from net price realization (key growth driver): Net price realization was a critical component supporting top-line growth across the portfolio, particularly in coffee. In the International and Away From Home segment for the fourth quarter of fiscal year 2025, net price realization contributed a 6 percentage point increase to net sales. Specifically within the U.S. Retail Coffee segment during the same quarter, net price realization increased net sales by 10 percentage points.

For the first quarter of fiscal year 2025, net price realization contributed a 5 percentage point increase to net sales overall. Conversely, lower net price realization decreased net sales by 2 percentage points in the U.S. Retail Pet Foods segment for the fourth quarter of fiscal year 2025.

Away-From-Home and Foodservice sales: These sales are captured within the International and Away From Home division. For the fourth quarter of fiscal year 2025, this division generated net sales of $308.9 million, marking a 3 percent increase year-over-year. Segment profit for this division increased by 13 percent in the fourth quarter, reflecting higher net price realization.

Licensing revenue (e.g., Dunkin' brand): Revenue streams are supported by brand licensing, though specific licensing revenue amounts aren't explicitly detailed as a separate line item. The Dunkin' brand is noted as a component within the U.S. Retail Coffee segment, where volume/mix saw a decline in the third quarter of fiscal year 2025.

The Company returned $455.4 million to shareholders through dividends for the full fiscal year 2025.

• Full Fiscal Year 2025 Adjusted Earnings Per Share (EPS): $10.12, an increase of 2 percent.
• Fiscal Year 2026 Net Sales Guidance: Expected to increase between 2.0 percent and 4.0 percent from the fiscal 2025 base of $8.73 billion.
• Fiscal Year 2026 Adjusted EPS Guidance Range: $8.50 to $9.50.