What The J. M. Smucker Company told the SEC could break it.

Green coffee is highly significant to Smucker's coffee business and markets remain volatile; extreme drought in 2025 substantially cut Brazilian green coffee production.

“We expect the green coffee commodity markets to remain challenging due to ongoing and significant price volatility. For example, during 2025, we experienced extreme drought impact, which substantially reduced green coffee production in Brazil.”

Smucker, one of the largest U.S. peanut roasters, sources peanuts, oils and fats (palm, soybean, peanut) mainly from North America; prices are weather- and global-demand-driven.

“We source peanuts, oils, and fats mainly from North America. We are one of the largest roasters of peanuts in the U.S. and frequently enter into long-term purchase contracts for various periods of time to mitigate the risk of a shortage of this commodity. The oils we purchase are mainly palm, soybean, and peanut.”

Substantially all of Smucker's coffee production takes place in New Orleans, Louisiana, exposing a major product line to hurricane and other weather-related events.

“In particular, substantially all of our coffee production takes place in New Orleans, Louisiana and is subject to risks associated with hurricane and other weather-related events, and some of our production facilities are located in places where tornadoes or wildfires can frequently occur, such as Alabama, Kansas, Arkansas, and California.”

Smucker's sales are highly concentrated: Walmart (incl. Sam's Club) was 34% of FY2026 net sales and 29% of trade receivables, and the top 10 customers were ~60% of consolidated net sales.

“During 2026, our top 10 customers, collectively, accounted for approximately 60 percent of consolidated net sales. We expect that a significant portion of our revenues will continue to be derived from a limited number of customers as the traditional retail grocery environment continues to consolidate and as dollar stores, club stores, and e-commerce retailers have experienced growth.”

Smucker has consolidated production into single manufacturing sites for substantially all of its coffee, Milk-Bone dog snacks, and fruit spreads, creating single-site disruption risk for major product lines.

“Certain of our products are produced at single manufacturing sites. We have consolidated our production capacity for certain products into single manufacturing sites, including substantially all of our coffee, Milk-Bone dog snacks, and fruit spreads. We could experience a production disruption at these or any of our manufacturing sites resulting in a reduction or elimination of the availability of some of our products.”

Tariffs were a stated driver of Smucker's 10% FY2026 gross profit decline, alongside commodity cost inflation, and tariff/policy changes could persist into FY2027.

“Gross profit decreased $350.2, or 10 percent, in 2026, primarily driven by higher costs, inclusive of commodity costs and tariffs, unfavorable volume/mix, a net unfavorable impact of derivative gains and losses, an increase in special project costs, and the noncomparable impact of divestitures, partially offset by higher net price realization.”