John B. Sanfilippo & Son, Inc. operates as a processor and distributor of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States, and it also manufacture and distribute complete portfolio of snack and nutrition bars (‘bars’). These nuts are primarily sold under a variety of private brand names, as well as under its Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts brand names.
The company markets and distributes, and in most cases, manufacture or p...
John B. Sanfilippo & Son, Inc. operates as a processor and distributor of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States, and it also manufacture and distribute complete portfolio of snack and nutrition bars (‘bars’). These nuts are primarily sold under a variety of private brand names, as well as under its Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts brand names.
The company markets and distributes, and in most cases, manufacture or process, a diverse product line of food and snack products, including bars, peanut butter, almond butter, cashew butter, candy and confections, snack and trail mixes, granola, sunflower kernels, dried fruit, corn snacks, sesame sticks, other sesame snack products and baked cheese snack products under its brand names, including Just the Cheese , and under private brands. The company’s products are sold through three primary distribution channels, including food retailers in the consumer channel, commercial ingredient users, and contract manufacturing customers.
The company operates under single reporting unit and operating segment that consists of selling various nut and nut related products and bars through three distribution channels with a similar distribution model.
Products
The company’s principal products are raw and processed nuts and bars. Including trail and snack mixes, these products accounted for approximately 92% of its gross sales for the last three fiscal years. The nut product line includes almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts, and filberts. The company’s nut products are sold in numerous package styles and sizes, and it offer its nut products in a variety of different styles and seasonings. The bar product line includes chewy granola, fruit and grain, sweet and salty, dipped chewy granola, crunchy, energy, fiber and nut bars. The company sell its products domestically to retailers and wholesalers, as well as to commercial ingredient and contract manufacturing customers.
Furthermore, the company manufacture and market peanut butter in several sizes and varieties. It also market and distribute, and in many cases process and manufacture, a wide assortment of other food and snack products. These other products include salad toppings, dried fruit and chocolate, and yogurt coated products sold to retailers and wholesalers. Recipe ingredients are sold to retailers, wholesalers, and commercial ingredient customers. Additionally, bulk food products are sold to commercial ingredient users. Moreover, an assortment of sunflower kernels, pepitas, snack mixes, almond butter, cashew butter, candy and confections, corn snacks, sesame sticks, and other sesame snack products are sold to retail supermarkets, mass merchandisers and commercial ingredient users with a wide variety of toppings for ice cream and yogurt sold to commercial ingredient users.
Customers and Channels
The company sell its products to approximately 210 customers through the consumer, commercial ingredient and contract manufacturing distribution channels. The consumer channel is its largest channel by sales and supplies nut-based and bar products, including consumer-packaged products, to retailers in the United States, including supermarket chains, wholesalers, supercenters, internet retailers, and other retail outlets.
Sales and Distribution
The company market its products through its own sales department and through a network of approximately 55 independent brokers, independent distributors and suppliers, including group purchasing organizations.
It distributes products from each of its principal facilities. The majority of the company’s products are shipped from its facilities by contract and common carriers. It also operate a retail store at its Elgin headquarters.
Competitors
The company’s nuts, bars, and other snack food products compete against products manufactured and sold by numerous other companies offering branded and private brand products in the snack food industry. In the nut industry, it competes with, among others, Hormel Foods Corp. (Planters brand), Diamond brand, and numerous regional snack food processors. In the bar industry, it competes with, among others, General Mills (Nature Valley brand), PepsiCo, Inc. (Quaker brand), Mondelez (CLIF brand), Kellanova (Nutrigrain brand), Mars (KIND brand), as well as regional bar manufacturers.
Trademarks and Patents
The company market its products primarily under name brands, including the Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts and Just the Cheese brand names. Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts and Just the Cheese are registered as trademarks with the U.S. Patent and Trademark Office, as well as in various other foreign jurisdictions. The company also own several patents of various durations.
Seasonality
The company’s business is seasonal. Demand for peanut and tree nut products is highest during the last four months of the calendar year. Peanuts, pecans and walnuts, three of its principal raw materials, are primarily purchased between September and February and are processed throughout the year until the following harvest. Demand for bars is the highest during its first fiscal quarter. As a result of this seasonality, the company’s personnel requirements rise during the first half of its fiscal year. The company’s working capital requirements generally peak during the third quarter of its fiscal year.
Regulations
The company is subject to extensive regulation by the FDA, the USDA, the United States Environmental Protection Agency (‘EPA’) and other state, local and foreign authorities in jurisdictions where its products are manufactured, processed or sold. It is also subject to California’s Proposition 65, which requires that clear and reasonable warnings be given to consumers who are exposed to certain chemicals deemed by the state of California to be dangerous. Among other things, these regulations govern the manufacturing, importation, processing, packaging, storage, distribution, advertising, and labeling of its products. The company’s manufacturing and processing facilities and products are subject to periodic compliance inspections by federal, state, local, and foreign authorities. The company is also subject to environmental regulations governing the discharge of air emissions, water and food waste, the usage and storage of pesticides, and the generation, handling, storage, transportation, treatment, and disposal of waste materials.
History
John B. Sanfilippo & Son, Inc. was founded in 1922. The company was incorporated as a corporation under the laws of the state of Delaware in 1979.