ORRVILLE, OHIO — The opening and later expansion of the J.M. Smucker’s Co.’s Uncrustables plant in Longmont, Colo., accelerated the brand’s growth in 2022 and 2023. The momentum continued into the third quarter of fiscal 2024 following the introduction of Uncrustables in Canada and in the away-from-home category.

“This time last year, we completed the expansion of our second Uncrustables sandwiches plant in Longmont, Colo., which enabled us to increase distribution, improve in-stock levels and come off allocation for the first time in years,” said Mark T. Smucker, chairman, president and chief executive officer, during a Feb. 27 conference call to discuss third-quarter results. “Total company net sales for Uncrustables sandwiches grew 6%, driven by over 30% growth in the Away From Home business. Our launch in Canada also continues to exceed our expectations. We continue to expect total company net sales of approximately $800 million for the full fiscal year.”

Adding to management’s optimism are the results of the brand’s first advertising campaign that launched this fall and supported double-digit sales growth in the most recent 13-week period, according to the company. Additionally, another Uncrustables plant being built in McCalla, Ala., remains on track to begin production in calendar 2024.

“I think notably, if you look at consumer takeaway in the quarter, the consumer takeaway remains very strong, which again, helps to support our confidence in the double-digit growth and the reacceleration of the brand as we move forward into the next several quarters,” Mark Smucker said.

The performance of Uncrustables helped underpin a positive quarter for the company. Net income for the third quarter ended Jan. 31 was $120.4 million, equal to $1.14 per share on the common stock, down 42% from the same period of the previous year when the company earned $208.5 million, equal to $1.96 per share.

Items affecting comparability included costs associated with the company’s acquisition of Hostess Brands, Inc. in the fall of 2023.

Quarterly sales rose 1% to $2.23 billion from $2.22 billion the year before.

“Comparable net sales increased 6%, excluding the prior year’s sales related to the divested businesses, current year sales for the Hostess acquisition and foreign exchange,” said Tucker H. Marshall, chief financial officer.

In US Retail Coffee, Smucker’s largest business unit, sales fell 1% to $727.5 million and segment profit rose 2% to $207.8 million.

Net price realization reduced net sales by 4%, primarily driven by list price decreases, partially offset by reduced trade spend, according to the company. Volume/mix increased net sales by 3%, primarily driven by the Café Bustelo and Dunkin' brands.

“Café Bustelo net sales grew double digits in the quarter, driven by volume growth,” Mark Smucker said. “The brand has now experienced double-digit net sales growth for 10 consecutive quarters. It remains one of the fastest growing brands in the mainstream, one cup and instant categories. And amongst leading brands, Café Bustelo was No. 1 in both dollar and volume growth, with 2.5x the volume growth rate of the next leading brand.”

The company’s US Retail Frozen Handheld and Spreads business unit saw quarterly sales rise 1% to $436.8 million and segment profit rise 11% to $104.1 million.  

Higher net price realization increased business unit net sales by 5%, primarily reflecting a favorable impact of lapping costs associated with a Jif peanut butter product recall in the prior year and a list price increase for Jif peanut butter, the company said. Volume/mix decreased net sales by 2%, primarily driven by decreases for Jif peanut butter and Smucker's toppings and syrups.

In US Retail Pet Foods, sales fell 39% to $465.2 million following the divestment of some pet food brands. The unit’s profit was flat at $109.5 million.

The Sweet Baked Snacks unit contributed $300.3 million in sales during the quarter and $68 million in segment profit.

In the International and Away From Home segment, sales rose 4% to $299.4 million and segment profit rose 34% to $50.4 million. Net price realization contributed a 4% increase to net sales, primarily driven by list price increases across most of the portfolio and partially offset by increased trade spend.

The quarterly results prompted management to adjust the company’s full-year guidance.

“Our net sales guidance reflects total sales of approximately $8.22 billion,” Marshall said. “Net sales are anticipated to decline approximately 3.6% compared to the prior year, reflecting lost sales from the prior year from the Pet Food, Sahale Snacks and Canadian condiment business divestitures and a $650 million increase in sales from the Hostess acquisition. Excluding the divestitures and acquisition, comparable net sales are anticipated to grow approximately 8.75%.