Are SJM's Bold Portfolio Moves Paying Off in Core Segments?

The J. M. Smucker Company SJM has been on a strategic mission to reshape its brand portfolio, and recent developments suggest the company is doubling down on high-growth core categories like pet food, snacking and coffee. Through a series of calculated acquisitions and divestitures, The J. M. Smucker is aiming to streamline operations and focus on segments with strong consumer demand and higher margins.

In March 2025, The J. M. Smucker divested its Cloverhill and Big Texas brands, along with select private-label products, to JTM Foods. The divestiture underscores its ongoing focus on portfolio optimization and strategic resource allocation to support the growth of the Hostess brand. This move aligns with the company’s commitment to strengthening its leadership in the high-growth sweet baked goods category.

This followed several other non-core exits, including the Voortman business (December 2024), Canadian condiments (January 2024), Sahale Snacks (November 2023) and various pet food lines. These moves free up resources and sharpen SJM’s focus on long-term growth drivers.

Notably, the acquisition of Hostess Brands in November 2023 marks a major expansion in the snacking category, aligning perfectly with evolving consumer preferences for convenient, indulgent treats. Coupled with prior acquisitions such as Ainsworth and Big Heart Pet Brands, The J. M. Smucker has built a strong presence in the premium pet food market — a segment seeing consistent growth. On the coffee front, the company continues to strengthen its partnerships with several brands to solidify its position in the single-serve and premium coffee segments.

Overall, The J. M. Smucker’s portfolio overhaul appears to be yielding results, positioning the company to capitalize on shifting consumer trends while improving operational efficiency. Investors will be watching closely to see how these bold bets play out in the coming quarters.

Portfolio Reshaping Efforts by Mondelez & Post Holdings

Mondelez International, Inc. MDLZ continues to strategically reshape its portfolio through targeted acquisitions and divestitures aimed at strengthening its global snacking leadership. In 2024, Mondelez acquired a majority stake in Evirth, expanding its footprint in China’s growing cakes and pastries market. The company also partnered with Lotus Bakeries to co-develop products and expand in India, reinforcing its emerging market strategy. Simultaneously, Mondelez divested its developed market gum business to streamline operations and fund core brand investments.

Post Holdings, Inc. POST is also actively optimizing its portfolio through high-impact acquisitions. In second-quarter fiscal 2025, the company reported $2.3 million in acquisition-related net sales. Recently, Post Holdings announced the successful completion of its previously disclosed acquisition of 8th Avenue Food & Provisions, Inc., effective July 1, 2025. This strategic move strengthens Post Holdings’ portfolio and supports its long-term growth objectives.

SJM’s Price Performance, Valuation & Estimates

Shares of SJM have dropped 4% in the past year compared with the industry’s decline of 6.2%.

From a valuation standpoint, SJM trades at a forward price-to-earnings ratio of 11.14X, below the industry’s average of 15.98X.

The Zacks Consensus Estimate for SJM’s current fiscal year’s earnings implies a year-over-year decline of 8.3%, whereas its next fiscal year’s earnings estimate suggests a year-over-year uptick of 7.7%.

SJM stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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