Smucker’s Invests In China

JM Smucker, the company behind Flogers coffee, Jif peanut butter and (obviously) Smucker jam has invested $35 million in a Chinese food company named Guilin Seamild Biologic Technology Development Co. Click through to read more about Smucker’s investment and find out why China is increasingly important to the consumer goods industry.Seamild’s main products are oat-based and they have become household staples throughout China. To meet increasing demand Seamild has opened a new manufacturing facility, bringing their current count up to three.

Smucker plans on developing a deep, organic brand presence in China over the next several years. Although their investment won’t impact the company’s performance until at least one year out, Smucker sees it as an investment in the future of their industry.

China’s vast consumer population is attractive to consumer goods companies. Rivals like ConAgra and Kraft already have strong presences in at least one developing market; Smucker is hoping to catch up to its rivals with this investment. Although it has distribution into more than 65 countries, the majority of Smucker’s profits currently come from the US and Canada.

There will be challenges ahead for the brand as it attempts to create products that resonate with the Chinese consumer. Hopefully, partnering with a company that already has a successful formula will give the venture a greater chance for success.