J.M Smucker Decoupling Supply Chain Organization
J.M Smucker is restructuring its business, decoupling its supply chain and manufacturing organizations to improve oversight and execution.
As part of this effort, the company has named Bryan Hutson to the expanded role of senior vice president of information services and supply chain. Randy Day will continue to oversee manufacturing as the company’s SVP of operations.
In his current role, Hutson oversees information services, the transformation office, and portfolio operations. He has been with the company since 2000, working across a variety of roles in logistics, strategy and corporate development, enterprise architecture, IT audit and compliance, and cybersecurity, according to LinkedIn.
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This isn’t the first time J.M. has undergone a restructuring with Hutson playing a key role. In 2023, J.M. Smucker expanded Hutson’s role to oversee all of the company’s technology strategy and include greater oversight of companywide productivity initiatives.
Q3 Earnings Take Hit Due to Supply Chain Challenges
The company’s shift comes as J.M. Smucker reported approximately $30 million in supply chain disruptions in its third quarter earnings, primarily impacting the U.S. retail pet foods segment, which includes the Milk-Bone and Meow Mix brands.
During a recent call with investors, president and CEO Mark Smucker said he expects full production and full distribution within the segment to return in the fourth quarter.
U.S. Retail Pet Foods Leader to Tackle Hostess Growth
In addition to these changes, the company is looking to Judd Freitag to lead growth in the sweet baked snacks segment, with particular emphasis on the Hostess brand, leaning on his experience leading the turnaround of the U.S. retail pet foods business.
As a result, Freitag (current VP, general manager and marketing for U.S. retail pet foods) has been promoted to SVP and general manager of both pet and sweet back snacks starting March 7. He will be tasked with growing the Hostess brand, expanding distribution, driving innovation, establishing revenue synergies, and overseeing portfolio evolution.
Due to these changes, Dan O'Leary, SVP and general manager of sweet baked snacks and pet is exiting the company.
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For Hostess, results continue to be impacted by two primary factors, said Smucker during the call. “First, consumers continue to be selective in their spending, largely driven by inflationary pressures and diminished discretionary income, causing the sweet baked goods category to recover slower than we anticipated,” he said.
“Second, we are not performing with excellence from a distribution, merchandising, and competitive standpoint. This has caused us to underperform in the channels where the consumer is shopping,” Smucker added.
The company purchased Hostess, which includes the Twinkies, Ding Dongs, and Ho Hos brands, in 2023 as it looked to bolster its standing in the rapidly expanding snacks market, now valued at approximately $53.33 billion, per Statista.
