J & J Snack Foods Corp | research notes

Introducing J&J Snack Foods Corp.: A Global Leader in Snack Foods

Overview

J&J Snack Foods Corp. (JJSF) is a leading global manufacturer and distributor of snack foods. Headquartered in Pennsauken, New Jersey, the company operates in multiple segments, including food service, retail, wholesale, and international.

History and Heritage

JJSF was founded in 1971 by Jerry and Jack Lipper. Initially a regional distributor of potato chips, the company expanded its product line and geographic reach over the years. Today, it has a diverse portfolio spanning various snack categories.

Product Portfolio

JJSF offers a wide range of snack foods, including:

• Pretzels: SUPERPRETZEL, MICROPRETZEL, POM POMS
• Potato Chips: ROLD GOLD, UTZ, PRETZELS
• Cookies and Baked Goods: TIM TAM, PATTERSON'S, LU
• Frozen Products: ICEE, SLUSH PUCCINE, ICEE GELATO
• Other Snacks: FRUIT BARS, RUSSELLE'S

Segments and Distribution

Food Service: JJSF supplies snacks to restaurants, foodservice establishments, and vending machines.

Retail: The company's snacks are available in grocery stores, convenience stores, and other retail outlets.

Wholesale: JJSF distributes its products to wholesalers and distributors for further distribution to businesses and consumers.

International: The company has a significant presence in international markets, with operations in Australia, Canada, Mexico, and the United Kingdom.

Acquisitions and Partnerships

JJSF has actively grown through acquisitions and partnerships. Notable acquisitions include:

• Utz Quality Foods, Inc. (2021)
• TIM TAM Brands (2019)
• LU Biscuit Co. (2015)
• Goldenberg's Peanut Chews (2010)

These acquisitions have expanded JJSF's product portfolio, geographic reach, and manufacturing capabilities.

Financial Performance

JJSF is a publicly-traded company (NASDAQ: JJSF). In 2021, the company reported net sales of $1.2 billion. It has a strong financial track record with consistent revenue growth and profitability.

Sustainability and Social Responsibility

JJSF is committed to sustainability and social responsibility. The company has implemented initiatives to reduce waste, conserve water, and support its employees and communities.

Conclusion

J&J Snack Foods Corp. is a global leader in the snack foods industry. With its diverse product portfolio, strong distribution network, and commitment to innovation and sustainability, the company is well-positioned for continued growth and success.

Business Model of J&J Snack Foods Corp.

J&J Snack Foods Corp. is a leading manufacturer and distributor of branded snack foods and beverages in the United States. The company's primary business segments include:

• Foodservice: Sells snacks to restaurants, schools, hospitals, and other foodservice establishments.
• Retail: Distributes snacks through grocery stores, convenience stores, and other retail outlets.
• International: Markets and sells snacks in numerous international markets.

Advantages over Competitors:

J&J Snack Foods enjoys several competitive advantages over its rivals:

• Extensive Product Portfolio: The company offers a wide range of popular snack food brands, including SuperPretzel, Icee, Dippin' Dots, and Baken-Ets. This diverse portfolio caters to a wide customer base.
• Diversified Sales Channels: J&J distributes its products through multiple channels, including foodservice, retail, and international markets. This minimizes dependence on any single channel and allows the company to reach a broader consumer base.
• Strong Brand Recognition: The company's well-known brands have a loyal customer following and high brand awareness. This enables J&J to charge premium prices and maintain brand equity.
• Efficient Distribution Network: J&J has a robust distribution network that ensures timely delivery of its products to customers. This efficiency reduces delivery costs and maintains customer satisfaction.
• Innovation and Product Development: The company consistently invests in research and development, introducing new and innovative products to meet changing consumer demands. This strategy helps J&J stay ahead of competitors and capture market share.
• Vertical Integration: J&J owns several manufacturing facilities, allowing it to control production costs and ensure quality standards. This vertical integration gives the company a cost advantage over competitors who rely on third-party manufacturers.
• Strong Financial Performance: J&J has a track record of consistent financial performance, with stable revenue growth and profitability. This strong financial position allows the company to invest in new products and expand its operations.

Company Overview

J&J Snack Foods Corp. is a manufacturer and distributor of branded and private label snack foods in the United States and internationally.

Industry Outlook

The snack food industry is highly competitive, with several major players and a wide range of products. However, the industry is expected to continue growing in the coming years due to factors such as:

• Increasing consumer demand for convenience and portability
• Rising disposable income in emerging markets
• Growing popularity of health-conscious snacks
• Technological advancements in food processing

Company Outlook

J&J Snack Foods Corp. has a strong position in the snack food industry, with a diverse portfolio of products and a broad distribution network. The company's outlook is generally positive, supported by the following factors:

Strengths:

• Diversified product portfolio: J&J Snack Foods offers a wide range of snack foods, including pretzels, popcorn, potato chips, churros, and soft pretzels. This diversity reduces the company's reliance on any single product category.
• Strong brand recognition: The company's brands, such as Pretzel M&M's, Icee, and Superpretzel, are well-known and have a loyal customer base.
• Broad distribution network: J&J Snack Foods distributes its products through a network of wholesalers, retailers, and foodservice operators. This broad reach allows the company to reach a large number of consumers.
• International expansion: The company has a growing international presence, with operations in Mexico, Canada, Australia, and other countries. This expansion provides growth opportunities in new markets.

Weaknesses:

• Commodity price volatility: The company's costs are affected by the prices of commodities such as wheat, corn, and oil. Fluctuations in these prices can impact the company's profitability.
• Competition: The snack food industry is highly competitive, with several major players such as Mondelez International and PepsiCo. Competition can lead to price pressure and market share loss.
• Product recalls: J&J Snack Foods has experienced product recalls in the past, which can damage the company's reputation and lead to financial losses.

Opportunities:

• Growing health-conscious trend: Consumers are increasingly seeking healthy and nutritious snacks. J&J Snack Foods can capitalize on this trend by developing and marketing healthier snack options.
• Expansion in emerging markets: Emerging markets offer significant growth opportunities for J&J Snack Foods. The company can continue to expand its presence in these markets by introducing new products and building partnerships with local distributors.
• Innovation: The snack food industry is constantly evolving, and J&J Snack Foods needs to continue to innovate to meet changing consumer tastes and preferences.

Threats:

• Economic downturn: An economic downturn can lead to reduced consumer spending and demand for snack foods.
• Changing consumer preferences: Consumer tastes and preferences are constantly evolving, and J&J Snack Foods needs to adapt to these changes to remain competitive.
• Regulatory changes: Government regulations on food safety and labeling can impact the company's operations and costs.

Companies Similar to J & J Snack Foods Corp:

1. Mondelēz International

• Homepage: https://www.mondelezinternational.com/
• Products include iconic brands such as Oreo, Cadbury, and Chips Ahoy!
• Similar to J & J in its focus on snack foods and a global presence.

2. The Hershey Company

• Homepage: https://www.thehersheycompany.com/
• Known for its chocolate products, including Hershey's Chocolate Bars and Kisses.
• Shares J & J's emphasis on brand building and consumer loyalty.

3. Mondelez India Foods

• Homepage: https://www.in.mondelezinternational.com/
• A subsidiary of Mondelēz International, offering a wide range of snack brands in India.
• Similar to J & J in its focus on the Indian market and local preferences.

4. Frito-Lay

• Homepage: https://www.fritolay.com/
• A leading producer of salty snacks, known for brands such as Doritos, Cheetos, and Lay's.
• Shares J & J's commitment to innovation and new product development.

5. PepsiCo

• Homepage: https://www.pepsico.com/
• A global food and beverage giant, offering a diverse portfolio that includes salty snacks under the Frito-Lay brand.
• Similar to J & J in its scale, brand portfolio, and international reach.

Customer Reviews:

Why Customers Like Mondelēz:

• "Wide range of delicious and iconic brands that bring back memories."
• "Supports sustainable practices and ethical sourcing."
• "Offers a variety of snack options to satisfy different tastes and preferences."

Why Customers Like Hershey:

• "Exceptional chocolate flavors and smooth texture."
• "Well-established heritage and trustworthy brand."
• "Supports community programs and initiatives."

Why Customers Like Mondelez India Foods:

• "Customized products that cater to Indian taste buds."
• "Affordable and accessible snacks for the local market."
• "Strong distribution network ensures wide availability."

Why Customers Like Frito-Lay:

• "Crispy and flavorful chips that are perfect for snacking or parties."
• "Bold flavors and innovative product offerings."
• "Supports environmental initiatives and employee engagement programs."

Why Customers Like PepsiCo:

• "Convenient and widely available snacks for on-the-go consumption."
• "Strong brand awareness and global presence."
• "Commitment to health and wellness initiatives."

History of J & J Snack Foods Corp.

1971: Founding

• Joseph Kadlec and Gerry Shreiber, two snack food salesmen, founded J & J Snack Foods Corp. in Pennsauken, New Jersey.
• They initially operated a vending machine service and sold popcorn and pretzels.

1970s and 1980s: Expansion and Innovation

• The company expanded its offerings to include other snack foods, such as tortilla chips, frozen pizzas, and pretzel sticks.
• J & J developed innovative products, including the first soft pretzel sold in single-serving packages.

1990s and 2000s: Acquisitions and Growth

• The company acquired several other snack food businesses, including Superpretzel, the leader in soft pretzels; Tieman Industries, a frozen pizza manufacturer; and Fresh Gourmet, a maker of premium snacks.
• J & J expanded its distribution network and increased its market share.

2010-Present: International Reach and Diversification

• The company opened plants in Mexico, Canada, and the United Kingdom.
• J & J diversified its portfolio with the acquisition of Mrs. Freshley's, a bakery operator; and Manischewitz, a kosher food manufacturer.

Key Milestones:

• 1976: Introduced the first soft pretzel sold in single-serving packages.
• 1985: Acquired Superpretzel, the leading manufacturer of soft pretzels.
• 1993: Went public on the NASDAQ stock exchange.
• 2002: Acquired Tieman Industries, a frozen pizza manufacturer.
• 2011: Opened a manufacturing plant in Mexico.
• 2014: Acquired Mrs. Freshley's, a bakery operator.
• 2017: Acquired Manischewitz, a kosher food manufacturer.

Today:

J & J Snack Foods Corp. is one of the leading snack food companies in the United States, with a portfolio of over 100 brands. The company operates over 50 manufacturing facilities and employs over 6,000 people worldwide.

2020

• June: Acquired Simply 7 Snack Co., a leading producer of tortilla chips, popcorn, and other snacks.
• July: Announced the launch of new product lines, including Knott's Berry Farm Mini Donuts and Icee Fruit Bites.
• December: Reported record annual sales and earnings.

2021

• January: Acquired Pretzels Inc., a leading manufacturer of pretzels and other snack products.
• March: Launched a new brand identity and logo.
• July: Announced a joint venture with Conagra Brands to create a new snacking company called PopCorners.
• September: Reported strong quarterly results, driven by growth in its core snack categories.

2022

• March: Announced a definitive agreement to acquire Pretzels, Inc. for $420 million.
• June: Completed the acquisition of Pretzels, Inc.
• July: Reported better-than-expected quarterly results, driven by strong demand for its snacks.
• September: Announced a price increase for its products due to rising costs.
• November: Reported strong third-quarter results, with sales and earnings exceeding expectations.
• December: Announced a new partnership with Walmart to launch a line of exclusive snack products.

J & J Snack Foods Corp: A Culinary Delight for Every Taste Bud

As a discerning snack enthusiast, I was thrilled to discover the delectable offerings of J & J Snack Foods Corp. Their vast portfolio of indulgent treats has left an unforgettable impression on my palate, making them my go-to destination for satisfying cravings.

A Symphony of Flavors

From their crispy SuperPretzel rods to their tantalizing Soft Pretzel Bites, J & J Snack Foods Corp offers a symphony of flavors that cater to every preference. Their tasty Churros are a delightful indulgence, while their bite-sized Sorrento CheeseCakes provide the perfect balance of tanginess and sweetness.

Quality Ingredients, Unbeatable Taste

What sets J & J Snack Foods Corp apart is their unwavering commitment to quality. Their snacks are crafted using only the finest ingredients, ensuring a taste that surpasses expectations. Every bite is a testament to their culinary prowess, leaving me craving for more.

Convenience and Affordability

J & J Snack Foods Corp understands the importance of convenience. Their products are widely available at grocery stores and convenience outlets, making it effortless to satisfy your snacking urges. Moreover, their affordable pricing allows families and individuals to enjoy these delectable treats without breaking the bank.

Caring for Customers

Beyond their exceptional products, J & J Snack Foods Corp goes above and beyond in caring for its customers. Their responsive customer service team is always willing to assist with any inquiries or concerns, ensuring a positive experience for every interaction.

Conclusion

As a dedicated snack connoisseur, I highly recommend J & J Snack Foods Corp to anyone seeking culinary joy and satisfaction. Their wide selection, exceptional quality, and unwavering commitment to customer service make them the undisputed champions of the snacking industry. Whether you're craving a savory pretzel or a decadent cheesecake, J & J Snack Foods Corp has the perfect treat to tantalize your taste buds and leave you smiling with every bite.

Indulge in the World of Culinary Delights: Visit J & J Snack Foods Corp's Enticing Website

Embark on a tantalizing journey through the realm of delectable snacks with J & J Snack Foods Corp's captivating website. As a leading global manufacturer of snack foods, J & J Snack Foods Corp invites you to explore a vast array of irresistible treats that will satisfy your every craving.

Discover a Universe of Snacking Options

Navigate through the website's user-friendly interface to discover a wide selection of iconic brands and products. From the crispy perfection of SuperPretzels to the irresistible crunch of Icee Ice Cream, you're sure to find something to tantalize your taste buds.

Behind the Scenes: Uncover the Snacking Secrets

Dive deeper into the world of snacking with J & J Snack Foods Corp's informative content. Learn about the company's unwavering commitment to innovation, quality, and sustainability. Get exclusive insights into the production process and meet the passionate team behind these mouthwatering creations.

Customize Your Snacking Experience

Personalize your snacking journey by creating a custom snack mix. Choose from an assortment of pretzels, chips, popcorn, and candies to create the perfect blend tailored to your preferences.

Stay Connected, Stay Snacking

Connect with J & J Snack Foods Corp on social media for the latest product announcements, irresistible promotions, and exciting events. Share your snacking experiences and engage with a community of fellow snack enthusiasts.

Visit the Website Now and Experience the Joy of Snacking

Don't wait any longer to embark on this culinary adventure. Visit the official J & J Snack Foods Corp website at www.jjsnack.com today and discover a world of irresistible treats that will make every moment a snackable one.

Indulge in the deliciousness, gratify your cravings, and experience the joy of snacking with J & J Snack Foods Corp.

Main Suppliers (Upstream Service Providers) of J&J Snack Foods Corp.

1. Associated Wholesale Grocers (AWG)

• Website: https://www.awginc.com/
• Type of Services: Grocery distribution, wholesale food distribution, logistics

2. McLane Company, Inc.

• Website: https://www.mclaneco.com/
• Type of Services: Grocery distribution, foodservice distribution, logistics

3. Core-Mark Holding Company, Inc.

• Website: https://www.core-mark.com/
• Type of Services: Grocery distribution, convenience store distribution, foodservice distribution

4. Supervalu Inc.

• Website: https://www.supervalu.com/
• Type of Services: Grocery distribution, retail grocery stores, wholesale food distribution

5. KeHe Distributors, LLC

• Website: https://www.kehe.com/
• Type of Services: Natural and organic food distribution, specialty food distribution, logistics

6. Snyder's-Lance, Inc.

• Website: https://www.snyders-lance.com/
• Type of Services: Snack food manufacturer, wholesale food distribution

7. Kraft Foods Group, Inc.

• Website: https://www.kraftheinzcompany.com/
• Type of Services: Food and beverage manufacturing, wholesale food distribution

8. PepsiCo, Inc.

• Website: https://www.pepsico.com/
• Type of Services: Beverage manufacturing, snack food manufacturing, distribution

9. The Hershey Company

• Website: https://www.thehersheycompany.com/
• Type of Services: Chocolate and confectionery manufacturing, wholesale food distribution

10. Mondelez International, Inc.

• Website: https://www.mondelezinternational.com/
• Type of Services: Snack food manufacturing, wholesale food distribution

Main Customers of J&J Snack Foods Corp.

J&J Snack Foods Corp. primarily serves the convenience store, grocery store, mass merchandiser, drug store, and warehouse club channels through direct store delivery and third-party distribution networks.

Here is a list of some of the company's key customers:

• Walmart (www.walmart.com)
• Kroger (www.kroger.com)
• Albertsons (www.albertsons.com)
• Safeway (www.safeway.com)
• Target (www.target.com)
• CVS Health (www.cvshealth.com)
• Dollar General (www.dollargeneral.com)
• Dollar Tree (www.dollartree.com)
• Family Dollar (www.familydollar.com)
• Sunoco (www.sunoco.com)
• 7-Eleven (www.7-eleven.com)
• Couche-Tard (www.couche-tard.com)
• EG America (www.egas.com)
• Giant Eagle (www.gianteagle.com)
• Meijer (www.meijer.com)
• Hy-Vee (www.hy-vee.com)
• HEB (www.heb.com)
• Sprouts Farmers Market (www.sprouts.com)
• Whole Foods Market (www.wholefoodsmarket.com)
• Dollar Tree Canada (www.dollartree.ca)
• Giant Tiger (www.gianttiger.com)
• Loblaw Companies (www.loblaw.ca)
• Metro (www.metro.ca)
• Sobeys (www.sobeys.com)
• Walmart Canada (www.walmart.ca)

Key Revenue Streams of J & J Snack Foods Corp.

J & J Snack Foods Corp. generates revenue through its three operating segments:

1. Frozen Bakery Goods (approximately 55% of total revenue)

   • Pizza rolls and other frozen snacks under the J&J Snack Foods brand
   • Bagels, croissants, and other breakfast pastries under the Country Home Bakers brand
   • Pretzels and snacks under the Superpretzel and Kims brands

   Estimated annual revenue (2023): $1.1 billion

2. Ice Cream (approximately 33% of total revenue)

   • Ice cream novelties and frozen treats under the Dippin' Dots and Tillamook brands
   • Ice cream toppings and sauces under the Dryers and Blue Bunny brands

   Estimated annual revenue (2023): $660 million

3. Other (approximately 12% of total revenue)

   • Speciality desserts and bakery products under the Mrs. T's Pierogies and Celeste brands
   • Vending and foodservice operations under the Core-Mark brand
   • Sales of equipment and supplies to the bakery industry

   Estimated annual revenue (2023): $240 million

Estimated Total Annual Revenue: $2 billion

*Note: These revenue estimates are based on the company's financial performance in recent years and industry analyst projections. Actual revenue may vary slightly.

Key Partners of J & J Snack Foods Corp.

J & J Snack Foods Corp. has established strategic partnerships with several key players in the food industry to enhance its operations and expand its market reach. These partnerships include:

1. The PepsiCo Company

• Website: https://www.pepsico.com/

PepsiCo is a multinational food and beverage corporation that produces and markets a wide range of products, including snacks, beverages, and breakfast foods. J & J Snack Foods Corp. has a long-standing partnership with PepsiCo, which distributes its products through its vast network of retail and foodservice outlets.

2. Keurig Dr Pepper

• Website: https://www.keurigdrpepper.com/

Keurig Dr Pepper is a leading beverage company that produces and distributes a variety of hot and cold beverages, including coffee, tea, and soda. J & J Snack Foods Corp. has partnered with Keurig Dr Pepper to distribute its products through its single-serve Keurig K-Cup system.

3. Mondelez International

• Website: https://www.mondelezinternational.com/

Mondelez International is a global snack company that produces and markets well-known brands such as Oreo cookies, Cadbury chocolate, and Trident gum. J & J Snack Foods Corp. has a partnership with Mondelez International to co-manufacture and distribute certain products for the company.

4. Utz Quality Foods

• Website: https://www.utzsnacks.com/

Utz Quality Foods is a leading manufacturer of potato chips, pretzels, and other snack foods. J & J Snack Foods Corp. has a partnership with Utz Quality Foods to distribute its products in certain regions, leveraging Utz's extensive distribution network.

5. Shearer's Foods

• Website: https://www.shearersfoods.com/

Shearer's Foods is a family-owned company that manufactures and markets a variety of snack foods, including pretzels, popcorn, and cookies. J & J Snack Foods Corp. has a partnership with Shearer's Foods to co-manufacture and distribute certain products for both companies.

6. B&G Foods

• Website: https://www.bgfoods.com/

B&G Foods is a leading manufacturer and marketer of shelf-stable foods, including sauces, condiments, snacks, and baking products. J & J Snack Foods Corp. has a partnership with B&G Foods to distribute its products through B&G's established retail and foodservice channels.

These key partnerships provide J & J Snack Foods Corp. with access to a vast distribution network, increased manufacturing capacity, and access to new markets. In turn, these partners benefit from J & J Snack Foods Corp.'s strong brand portfolio and innovative product offerings, contributing to mutual growth and success.

Cost of Goods Sold ("COGS")

• Raw materials and packaging: The costs of ingredients, including potatoes, corn, wheat, and other commodities, as well as the costs of packaging materials such as plastic bags, cardboard boxes, and aluminum cans.
• Manufacturing: The costs of operating manufacturing facilities, including labor, utilities, equipment maintenance, and depreciation.
• Logistics and distribution: The costs of transporting and distributing products from manufacturing facilities to customers, including transportation, warehousing, and order fulfillment expenses.

Selling and Marketing Expenses

• Advertising and promotion: The costs of advertising campaigns, promotions, and other marketing initiatives aimed at increasing brand awareness and driving sales.
• Sales force: The costs of maintaining a sales force, including salaries, commissions, benefits, and training.
• Customer service: The costs of providing customer service, including phone support, email support, and online chat.

General and Administrative Expenses

• Salaries and benefits: The costs of salaries and benefits for employees in non-manufacturing functions, such as executive management, finance, human resources, and information technology.
• Rent and utilities: The costs of office space, utilities, and other related expenses.
• Research and development: The costs of developing new products and processes, including laboratory expenses and staff salaries.

Estimated Annual Cost Structure

J&J Snack Foods Corp does not publicly disclose its detailed cost structure. However, based on the company's financial statements and industry benchmarks, the estimated annual cost structure as a percentage of revenue is as follows:

• Cost of Goods Sold: 55-60%
• Selling and Marketing Expenses: 15-20%
• General and Administrative Expenses: 10-15%

Key Cost Drivers

The key cost drivers for J&J Snack Foods Corp include:

• Commodity prices: The prices of key commodities, such as potatoes, corn, and wheat, can have a significant impact on COGS.
• Manufacturing efficiency: The efficiency of manufacturing operations can affect the costs of production.
• Sales volume: Higher sales volume can result in economies of scale and reduced unit costs.
• Marketing investments: Investments in advertising and promotion can drive sales but also increase marketing expenses.
• Input costs: The costs of labor, utilities, and other inputs can impact GA expenses.

Sales Channels

J&J Snack Foods Corp.'s diverse sales channels reach a wide audience across various markets. The company's primary sales channels include:

• Distribution: J&J Snack Foods distributes its products through a network of foodservice distributors, convenience stores, and grocery retailers. This channel accounts for a significant portion of the company's sales.

• Foodservice: J&J Snack Foods supplies its products to restaurants, schools, stadiums, and other foodservice establishments. This channel offers higher margins and provides the company with exposure to a wider customer base.

• Retail: J&J Snack Foods sells its products through grocery stores, mass merchandisers, and drug stores. This channel targets consumers seeking convenient and affordable snack options.

• Direct-to-Consumer: The company operates an online store where customers can purchase its products directly. This channel allows J&J Snack Foods to reach consumers who may not have access to its products through traditional channels.

• Export: J&J Snack Foods exports its products to over 50 countries worldwide. This channel provides the company with additional revenue streams and geographic diversification.

Estimated Annual Sales

J&J Snack Foods Corp. does not publicly disclose its sales figures for individual channels. However, the company's annual sales are estimated to be in the region of $1.5 billion. This figure is based on the company's financial statements, industry reports, and analyst estimates.

Additional Insights

In addition to the sales channels mentioned above, J&J Snack Foods Corp. also utilizes co-packing agreements with other companies. This allows the company to expand its product reach and leverage the capabilities of its manufacturing partners.

The company's sales channels have been instrumental in its success and have contributed to its position as a leading snack food manufacturer.

Customer Segments of J&J Snack Foods Corp.

J&J Snack Foods Corp. targets a wide range of customer segments through its diverse product portfolio. The company's primary customer segments include:

1. Foodservice (Estimated Annual Sales: $900 million)

• Restaurants and quick-service food chains
• Schools and universities
• Hospitals and healthcare facilities
• Vending machines and convenience stores

2. Retail (Estimated Annual Sales: $800 million)

• Grocery stores and supermarkets
• Mass merchandisers (e.g., Walmart, Target)
• Convenience stores and gas stations
• Drugstores and pharmacies

3. International (Estimated Annual Sales: $300 million)

• Canada, Mexico, Europe, and Asia-Pacific
• Distribution through distributors and direct-to-store

4. Industrial (Estimated Annual Sales: $200 million)

• Food manufacturers and processors
• Ingredient suppliers

5. Private Label (Estimated Annual Sales: $100 million)

• Production of snacks and food products for other brands

Estimated Annual Sales by Segment (2022):

• Foodservice: $900 million
• Retail: $800 million
• International: $300 million
• Industrial: $200 million
• Private Label: $100 million

Key Factors Driving Customer Segments:

• Product Portfolio: J&J Snack Foods offers a wide variety of snacks, including frozen and refrigerated products, baked goods, and confections. This allows the company to cater to different tastes and preferences across various channels.
• Market Presence: The company has a strong presence in both the foodservice and retail sectors, with established distribution networks and partnerships with major chains.
• Innovation and New Products: J&J Snack Foods continuously develops new products and flavors to meet changing consumer trends and market demands.
• Positioning: The company positions its products as convenient, affordable, and high-quality options for various occasions and customer segments.
• Customer Service: J&J Snack Foods provides excellent customer support, including technical assistance, order processing, and logistics.

Value Proposition of J & J Snack Foods Corp.

Core Values:

• Passion for Snacking: J&J Snack Foods Corp. believes that snacks are an integral part of life and aims to provide consumers with high-quality and innovative snacking options.
• Commitment to Excellence: The company is dedicated to producing products that meet and exceed customer expectations, using only the finest ingredients and manufacturing processes.
• Customer Focus: J&J Snack Foods recognizes the importance of understanding customer needs and strives to deliver products and services that align with their preferences.
• Culture of Innovation: The company fosters a culture of innovation, encouraging employees to explore new ideas and develop creative solutions to enhance the snacking experience.

Value Proposition:

J&J Snack Foods Corp. offers a compelling value proposition to its customers:

1. Extensive Product Portfolio:

• The company offers a wide range of snacking products, including:
  • Pretzels
  • Potato chips
  • Popcorn
  • Churros
  • Soft pretzels
  • Baked goods
• Each category includes a variety of flavors, sizes, and packaging options to cater to diverse consumer tastes and preferences.

2. Consistent High Quality:

• J&J Snack Foods Corp. maintains rigorous quality control standards throughout its production process, ensuring that all products meet the highest standards of safety and freshness.
• The company uses only the best ingredients and employs advanced manufacturing technologies to produce snacks that are consistently delicious and satisfying.

3. Innovation and Market Leadership:

• J&J Snack Foods Corp. is known for its innovative approach to snacking, continually introducing new products and flavors to meet evolving consumer demands.
• The company has a proven track record of successfully launching new brands and expanding its product offerings, positioning itself as a market leader in the snacking industry.

4. Customer Service and Support:

• J&J Snack Foods Corp. values customer feedback and is committed to providing exceptional customer service.
• The company has a dedicated team of professionals ready to assist customers with inquiries, orders, or any other needs.

5. Value for Money:

• Despite its commitment to quality and innovation, J&J Snack Foods Corp. offers its products at competitive prices, ensuring that customers receive exceptional value for their money.
• The company believes that everyone should have access to high-quality snacks without breaking the bank.

Target Market:

J&J Snack Foods Corp. targets a wide range of consumers who enjoy snacking, including:

• Families
• Individuals
• Convenience store shoppers
• Restaurants
• Schools
• Other snack food distributors

Benefits for Customers:

• Access to a broad selection of high-quality snacks
• Enjoyment of innovative and delicious flavors
• Confidence in the safety and freshness of products
• Excellent customer service and support
• Value for money

J&J Snack Foods Corp. Company Risk Assessment

Financial Risks

• High Debt: J&J Snack Foods has a high level of debt, which increases its financial risk. The company's debt-to-equity ratio is over 2.0, which is considered to be high.
• Fluctuating Input Costs: The company's input costs, such as food, packaging, and transportation, can fluctuate significantly. This volatility can impact the company's profitability and cash flow.
• Reliance on a Single Product: J&J Snack Foods relies heavily on its SOFT PRETZEL product, which accounts for a large portion of its sales. This concentration can increase the company's risk if the demand for SOFT PRETZEL declines.

Operational Risks

• Production Capacity: The company's production capacity could be disrupted by factors such as natural disasters, equipment failures, or labor strikes. This could lead to lost sales and earnings.
• Food Safety Concerns: Food safety concerns can have a significant impact on the company's reputation and sales. The company has faced food safety recalls in the past, which could recur in the future.
• Supply Chain Disruptions: The company's supply chain could be disrupted by factors such as weather, transportation delays, or supplier issues. This could lead to shortages of raw materials or finished goods.

Regulatory Risks

• FDA Regulations: The company's products are subject to regulations by the FDA. Changes in these regulations could impact the company's ability to sell its products.
• Environmental Regulations: The company's operations could be impacted by environmental regulations. For example, the company could be fined or forced to make changes to its operations if it violates environmental laws.
• Labor Laws: The company's operations could be impacted by labor laws. For example, the company could be fined or forced to make changes to its operations if it violates labor laws.

Market Risks

• Competition: The company faces competition from other snack food companies. This competition could lead to lower prices, reduced sales, and lower earnings.
• Changing Consumer Preferences: Consumer preferences for snack foods can change over time. If the company is unable to adapt to these changes, it could lose market share and sales.
• Economic Downturn: An economic downturn could reduce demand for snack foods, which could lead to lower sales and earnings for the company.

Other Risks

• Management Risk: The company's management team is responsible for making decisions that could impact the company's financial performance and risk profile.
• Litigation Risk: The company could be involved in litigation that could result in financial losses or damage to its reputation.
• Cybersecurity Risk: The company's operations could be disrupted by a cybersecurity attack. This could lead to financial losses or damage to the company's reputation.