Uncrustables are more than a bite size of J.M. Smuckers' business.
The pre-made frozen sandwiches, which come in a variety of options from peanut butter and jelly to ham and cheddar roll-ups, are set to be a $1 billion brand for the consumer goods giant.
"We had set a half a billion dollar target for that brand. We've already achieved half a billion dollars in sales a year in advance of our original projections and we anticipate that brand over the next five years will become a one billion dollar brand," CEO Mark Smucker told Yahoo Finance Live.
In the fiscal 2023 first-quarter results, Uncrustable sales increased 30%, exceeding $160 million dollars. To keep up with demand, the company is expanding its Denver, Colo., plant and building a new one in McCalla, Ala. That's in addition to its plant in Scottsville, Ky.
"We continue to make as many Uncrustables as we can, about 4 million a day at this point," Smucker said.
J.M. Smuckers' portfolio includes 'resilient' categories: CEO
The Uncrustables brand wasn't the only segment performing well for J.M. Smucker (SJM) this recent quarter, despite rising prices in the food away from home category, up 13.1% in July.
Best known for its jams and jellies, other major brands under the company's umbrella include coffee names Café Bustelo, Dunkin' brand, Folgers and K-Cups and pet food brands like Meow Mix, Milk-Bone and Nutrish.
Smucker, who recently succeeded Richard Smucker as board chair, says the company is "playing in very resilient categories that have been generally less price sensitive than other parts of the store, so that has helped outlook."
The company's coffee sales grew 10% despite increasing prices in the first-quarter. "Coffee did experience some significant cost pressures, which we have been able to pass along, and we expected a little bit of elasticity there. It is in line with our expectations and we are seeing, we are the leader, we are seeing our competitors follow the pricing so we should see price gaps narrow as we go forward."
Consumers aren't compromising too much when it comes to their pooches and feline friends either. Smucker said consumers treat their pets "exceptionally well, often times as well as kids." However, the company is seeing a "bit of that trade down in dog food" as a result of inflation. U.S. retail pet foods sales increased 13% compared to 2021.
Overall, the company is optimistic about the road ahead. This quarter, it increased its full-year expectations to include net sales growth of 4% to 5% versus the prior year, adjusted earnings per share in the range of $8.20 to $8.60 and free cash flow of $550 million.
Compared to a year ago, shares are up more than 8 percent.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
