Smucker - Competitors

Smucker Competition

Now Viewing Smucker's competition in: Seasoning and Dressing Manufacturing (primary)

Recent Developments

Financial Crisis may Curb Exports - Seasoning and dressing manufacturers relying on exports for a significant portion of their sales may be negatively impacted as problems in the US banking and finance industry spread across the globe. Many experts say that a worldwide recession is increasingly likely because the financial systems of most countries are now interlinked. About 40 percent of 2007 sales at McCormick, a leading manufacturer of seasonings and spices, were from international operations.

Packaged Salad Sales Recovering - Sales of packaged salad, a driver of demand for seasonings and dressings, are recovering from declines caused by the E. coli outbreaks of 2006. Sales of packaged salad rose 4.7 percent in value and 2 percent in volume during the 52 weeks ending June 15, 2008, according to Supermarket News. June 2008 sales were at their highest level since 2005.

Grain Price Increase may be Permanent - The increase in grain prices caused by ethanol production is likely to be permanent, according to the University of Illinois. Dressing manufacturers will likely pay more for key ingredients such as high fructose corn syrup as a result. Corn may average $4.60 a bushel in Illinois, nearly double the $2.42 average from 1973 to 2006. Price swings caused by weather or other market values could cause wheat to rise as high as $6.70 per bushel. Although the forecasts are based on Illinois grain prices, increases will likely be similar on a percentage basis in other grain-producing states.

Competitive Landscape

Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by manufacturing exotic sauces, sourcing and selling rare herbs, or formulating custom spice blends, extracts, and mixes. Average annual revenue per employee is $425,000.

Full Industry Overview For Seasoning and Dressing Manufacturing

Seasoning and Dressing Manufacturing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US other food manufacturing, snacks, coffee, condiments, and nuts, which includes seasonings and dressings, is forecast to grow at an annual compounded rate of 4.1 percent between 2007 and 2012.

Seasoning and Dressing Production Growth Steady

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.