John B. Sanfilippo & Son, Inc. (JBSS): Business Model Canvas [10-2024 Updated]

John B. Sanfilippo & Son, Inc. (JBSS) stands out in the snack food industry with a robust business model that effectively combines quality products and strategic partnerships. This blog post delves into the Business Model Canvas of JBSS, exploring the key components that drive its success, from value propositions and customer relationships to revenue streams and cost structure. Join us as we uncover how this company maintains its competitive edge and meets the diverse needs of its customers.

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Key Partnerships

Collaborations with suppliers for raw materials

John B. Sanfilippo & Son, Inc. (JBSS) maintains strategic partnerships with various suppliers to secure high-quality raw materials essential for its product offerings. In the first quarter of fiscal 2025, the company reported an inventory value of $194.6 million, reflecting an increase of 11.3% compared to the previous year, indicating robust supplier relationships that support operational needs.

Key raw materials include peanuts, tree nuts, and dried fruits, which are critical to JBSS's product lines. The company anticipates significant increases in acquisition costs for walnuts and other major tree nuts in the 2024 crop year. This highlights the importance of solid partnerships to manage fluctuating commodity prices and ensure a consistent supply chain.

Partnerships with retailers for product distribution

JBSS has established strong relationships with major retailers for product distribution, significantly impacting its sales performance. In the first quarter of fiscal 2025, total net sales reached $276.2 million, a notable 18.0% increase from $234.1 million in the same period the previous year. The consumer distribution channel accounted for approximately 83.1% of total net sales, underscoring the effectiveness of these retail partnerships.

The company's Fisher and Orchard Valley Harvest brands, among others, are widely available in grocery chains and mass merchandising retailers. The increase in consumer sales volume by 30.8% was primarily driven by these retail partnerships. JBSS's ability to adapt to retail pricing strategies and promotional activities has further enhanced its market presence.

Alliances in contract manufacturing to expand service offerings

JBSS also leverages alliances in contract manufacturing to broaden its service offerings. For the first quarter of fiscal 2025, net sales from contract manufacturing were $19.9 million, down 8.0% from the previous year. This decrease can be attributed to reduced peanut distribution due to shifts in consumer demand.

Despite this decline, JBSS continues to process granola and other products for significant clients, showcasing the importance of these partnerships in maintaining service diversification and operational flexibility. The company aims to enhance its contract manufacturing capabilities to meet evolving consumer preferences and market demands.

Partnership Type	Key Metrics	Impact on JBSS
Supplier Collaborations	Inventory Value: $194.6 million (up 11.3% YoY)	Secured high-quality raw materials, managed costs
Retail Partnerships	Net Sales: $276.2 million (up 18.0% YoY)	Increased market presence, consumer sales volume up 30.8%
Contract Manufacturing Alliances	Contract Manufacturing Sales: $19.9 million (down 8.0% YoY)	Diversified service offerings, maintained operational flexibility

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Key Activities

Production of snack nuts and related products

John B. Sanfilippo & Son, Inc. (JBSS) is a leading processor and distributor of various nuts, including peanuts, pecans, cashews, walnuts, and almonds. In the first quarter of fiscal 2025, JBSS reported net sales of $276.2 million, an increase of 18.0% from $234.1 million in the first quarter of fiscal 2024. This growth was largely attributed to the Lakeville Acquisition, which contributed approximately $40.5 million to quarterly net sales.

The company’s sales volume increased by 24.5%, driven by the acquisition, which added 17.6 million pounds of product sold. Without this acquisition, sales volume was up by only 0.5%. JBSS’s diverse product offerings include nutrition bars, snack bars, and various snack mixes, which are essential for maintaining its competitive edge in the snack food market.

Brand management and marketing for product visibility

JBSS focuses on brand management and marketing to enhance product visibility. The Fisher brand, which accounted for approximately 57% of branded sales in the first quarter of fiscal 2025, is a significant part of their marketing strategy. The company invests in advertising and promotional activities to drive sales volume growth and maintain brand loyalty. The first quarter saw branded product sales represent about 16% of total consumer sales.

The company is also expanding its presence in e-commerce, which has shown growth across its branded portfolio. This omnichannel approach is designed to capture a wider audience and adapt to changing consumer purchasing behaviors.

Supply chain management to ensure inventory availability

Efficient supply chain management is crucial for JBSS to ensure inventory availability and meet customer demand. The total value of inventories was reported at $194.6 million at the end of the first quarter of fiscal 2025, an increase of 11.3% compared to the previous year. This inventory management is vital for maintaining production levels and fulfilling orders promptly.

Additionally, JBSS manages raw nut and dried fruit input stocks, which increased by 3.5 million pounds or 11.4% year-over-year. The company anticipates fluctuations in commodity prices, particularly for walnuts and other tree nuts, which will impact future inventory costs and supply chain strategies.

Key Activity	Details	Financial Impact
Production of Snack Nuts	Processing and distribution of peanuts, pecans, cashews, walnuts, and almonds	Net Sales: $276.2 million (Q1 FY2025)
Brand Management	Marketing efforts for Fisher and other brands	Branded sales: 16% of total consumer sales
Supply Chain Management	Inventory management and procurement of raw materials	Inventories: $194.6 million (Q1 FY2025)

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Key Resources

Manufacturing facilities for product production

John B. Sanfilippo & Son, Inc. operates multiple manufacturing facilities that are critical to its product production. The main production sites include the Elgin, Illinois facility and the newly acquired Lakeville, Minnesota facility. The Lakeville facility significantly enhances JBSS’s production capacity and capabilities, contributing to an increase in sales volume by approximately 17.6 million pounds in the first quarter of fiscal 2025 compared to the prior year. The total capital expenditures for equipment and facility upgrades are projected to be approximately $33 million for fiscal 2025.

Facility Location	Square Footage	Annual Production Capacity (Pounds)
Elgin, Illinois	Not specified	Not specified
Lakeville, Minnesota	Not specified	Not specified

Established brand portfolio including Fisher and Orchard Valley Harvest

JBSS boasts a strong brand portfolio, including well-known brands such as Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. In the first quarter of fiscal 2025, branded products accounted for approximately 16% of total consumer sales, with Fisher branded products representing about 57% of total branded sales. The brand equity built over decades plays a crucial role in JBSS's market positioning and customer loyalty.

Brand	Percentage of Total Branded Sales (Q1 FY2025)
Fisher	57%
Orchard Valley Harvest	Approximately 43% (Remaining)

Skilled workforce for operations and management

The workforce at JBSS is a vital resource, characterized by a skilled team dedicated to operations, management, and production processes. The company employs approximately 1,000 employees across its facilities. The expertise of the workforce supports efficiency in production and innovation in product development, essential for maintaining competitive advantage in the food processing industry.

Workforce Category	Number of Employees
Production Staff	Not specified
Management and Administrative Staff	Not specified
Total Employees	Approximately 1,000

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Value Propositions

High-quality nut products and snack options

John B. Sanfilippo & Son, Inc. (JBSS) is recognized for its commitment to high-quality nut products, including peanuts, pecans, cashews, walnuts, and almonds. The company’s diverse product line also encompasses snack options such as trail mixes and nutrition bars. In the first quarter of fiscal 2025, JBSS reported net sales of $276.2 million, an increase of 18.0% compared to $234.1 million in the first quarter of fiscal 2024.

Product Type	Percentage of Total Gross Sales (Q1 FY2025)	Percentage of Total Gross Sales (Q1 FY2024)
Peanuts & Peanut Butter	16.6%	20.1%
Pecans	7.4%	9.2%
Cashews & Mixed Nuts	17.2%	21.0%
Walnuts	4.2%	4.9%
Almonds	6.9%	9.1%
Trail & Snack Mixes	26.8%	28.0%
Snack & Nutrition Bars	14.9%	0.6%
Other	6.0%	7.1%

Diverse offerings catering to both branded and private label markets

JBSS caters to a variety of customer segments through its branded and private label products. The company operates under well-known brands such as Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. In the first quarter of fiscal 2025, sales of branded products accounted for approximately 16% of total consumer sales. The company’s strategy also includes providing private label customers with a full portfolio of snack and nutrition bars, enhancing its market reach and customer base.

Commitment to innovation and product development

JBSS maintains a strong focus on innovation and product development. This commitment is evident in their ongoing efforts to introduce new products and improve existing ones. For example, the company reported an increase in sales volume by 24.5% in the first quarter of fiscal 2025, largely attributed to the Lakeville Acquisition, which added approximately $40.5 million to quarterly net sales. JBSS’s dedication to enhancing its product offerings is reflected in its capital expenditures, which are expected to reach approximately $33 million for fiscal 2025, aimed at new equipment and facility upgrades.

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Customer Relationships

Engagement through promotional activities and trade promotions

In fiscal Q1 2025, John B. Sanfilippo & Son, Inc. (JBSS) reported net sales of $276.2 million, an increase of 18.0% compared to $234.1 million in the prior year. This growth was significantly influenced by promotional activities and trade promotions aimed at enhancing customer engagement. For example, promotional discounts and trade promotions accounted for a portion of the increase in sales volume, which rose by 24.5% during the same period.

Product Type	Percentage of Total Gross Sales (Q1 2025)	Percentage of Total Gross Sales (Q1 2024)
Peanuts & Peanut Butter	16.6%	20.1%
Pecans	7.4%	9.2%
Cashews & Mixed Nuts	17.2%	21.0%
Walnuts	4.2%	4.9%
Almonds	6.9%	9.1%
Trail & Snack Mixes	26.8%	28.0%
Snack & Nutrition Bars	14.9%	0.6%
Other	6.0%	7.1%

Customer support and feedback mechanisms for product improvement

JBSS emphasizes customer support through active feedback mechanisms that facilitate product improvement. In the first quarter of fiscal 2025, the company maintained a gross profit margin of 16.9%, reflecting its commitment to quality and responsiveness to customer feedback. The company’s focus on customer service is evident in its efforts to decrease selling expenses by 9.8%, amounting to $19.8 million, which was achieved through reduced advertising and consumer insight research expenses, thereby reallocating resources toward enhancing customer interactions.

Building loyalty through quality and brand trust

Brand trust remains a critical element of JBSS’s customer relationships strategy. The company reported that Fisher branded products constituted approximately 57% of its branded sales in Q1 2025, underscoring the strength of its brand portfolio. The net income for the first quarter was $11.7 million, or $1.00 per share, which reflects the company's ability to leverage brand loyalty to drive sales and maintain customer trust in a competitive market.

Financial Metrics	Q1 2025	Q1 2024
Net Sales	$276.2 million	$234.1 million
Gross Profit	$46.5 million	$57.0 million
Gross Profit Margin	16.9%	24.4%
Net Income	$11.7 million	$17.6 million
Net Income per Share	$1.00	$1.52

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Channels

Direct sales through retail partners

For the first quarter of fiscal 2025, JBSS generated net sales of $229.4 million through consumer distribution, representing 83.1% of total sales. This is an increase of $45.1 million, or 24.4%, compared to the same period in fiscal 2024. The sales volume for this channel increased by 30.8% during the same period, primarily attributed to the Lakeville Acquisition, which expanded their retail reach and capabilities.

E-commerce platforms for online sales

JBSS has been focusing on e-commerce as a growing channel for sales. The company has seen significant growth in online sales, particularly through established platforms. The e-commerce segment is increasingly pivotal as consumer preferences shift towards online shopping, with sales volume growth anticipated to continue.

Distribution through wholesalers and food service operators

In the first quarter of fiscal 2025, sales through the commercial ingredients distribution channel totaled $26.9 million, accounting for 9.7% of total sales. This reflects a decrease of $1.2 million or 4.4% year-over-year. The contract manufacturing channel contributed $19.9 million, or 7.2% of total sales, marking a decrease of $1.7 million or 8.0% compared to the previous year.

Distribution Channel	Net Sales (in $ thousands)	Percentage of Total Sales	Year-over-Year Change (in $ thousands)	Year-over-Year Percentage Change
Consumer	$229,384	83.1%	$45,050	24.4%
Commercial Ingredients	$26,900	9.7%	($1,235)	(4.4%)
Contract Manufacturing	$19,912	7.2%	($1,724)	(8.0%)
Total	$276,196	100.0%	$42,091	18.0%

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Customer Segments

Retail consumers purchasing snack products

In the first quarter of fiscal 2025, net sales to retail consumers amounted to approximately $229.4 million, representing 83.1% of total sales, an increase of 24.4% compared to the prior year. Sales volume increased by 30.8%, primarily driven by the Lakeville Acquisition, which contributed an additional $40.5 million to net sales.

Product Type	Percentage of Total Gross Sales
Peanuts & Peanut Butter	16.6%
Pecans	7.4%
Cashews & Mixed Nuts	17.2%
Walnuts	4.2%
Almonds	6.9%
Trail & Snack Mixes	26.8%
Snack & Nutrition Bars	14.9%
Other	6.0%

Commercial clients seeking bulk nut supplies

Net sales in the commercial ingredients distribution channel totaled $26.9 million, accounting for 9.7% of total sales for the first quarter of fiscal 2025. This represents a decrease of 4.4% compared to the prior year, despite a 1.2% increase in sales volume.

Private label brands looking for contract manufacturing

Sales in the contract manufacturing segment reached $19.9 million, making up 7.2% of total sales for the first quarter of fiscal 2025. This figure reflects a decrease of 8.0% compared to the same period in the previous year. The sales volume for contract manufacturing increased by 13.3%, largely due to an increase in granola processing for a major customer.

Segment	Net Sales (in millions)	Percentage of Total Sales	Change from Prior Year
Retail Consumers	$229.4	83.1%	+24.4%
Commercial Clients	$26.9	9.7%	-4.4%
Private Label Brands	$19.9	7.2%	-8.0%

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Cost Structure

Costs related to raw material procurement and production

The cost structure of John B. Sanfilippo & Son, Inc. (JBSS) heavily relies on raw material procurement, particularly for nuts. For the first quarter of fiscal 2025, the total cost of sales was $229.7 million, which includes the costs associated with raw materials like peanuts, pecans, cashews, walnuts, and almonds. The company has noted increased acquisition costs for peanuts and tree nuts, impacting their overall profitability.

Specifically, the weighted average cost per pound of raw nut input stocks increased by 0.2% compared to the previous year, reflecting inflationary pressures in the commodity markets. Additionally, total inventories were valued at $194.6 million as of September 26, 2024, which was an increase of 11.3% from the previous year, largely due to the Lakeville Acquisition.

Operating expenses including labor and facility maintenance

Operating expenses for JBSS totaled $29.5 million in the first quarter of fiscal 2025, a decrease of 9.0% compared to $32.4 million in the first quarter of fiscal 2024. Operating expenses represented 10.7% of net sales for the quarter, down from 13.9% in the prior year. Within this, selling expenses were $19.8 million, a decline driven by reduced advertising costs and lower incentive compensation.

Administrative expenses also saw a decrease, amounting to $9.7 million compared to $10.5 million in the previous year. This reduction was primarily due to decreases in incentive compensation, although there were increases in personnel costs.

Marketing and promotional expenditures to drive sales

Marketing expenses have been a significant aspect of JBSS's strategy to drive sales growth. In the first quarter of fiscal 2025, advertising and consumer insight research expenses decreased by $3.8 million, contributing to the overall decline in selling expenses. The company spent approximately $19.8 million on selling expenses, which included marketing efforts aimed at boosting brand visibility and sales across various distribution channels.

To detail the expenditures, the following table summarizes key elements of JBSS's cost structure related to marketing and promotional activities:

Expense Type	Amount (in millions)
Advertising and Consumer Insight Research	$3.8
Incentive Compensation	$0.9
Freight Expense	$0.9
Outside Distribution Expense	$0.5
Total Selling Expenses	$19.8

This table illustrates the key components of JBSS's marketing expenditures and their implications for overall operating costs.

John B. Sanfilippo & Son, Inc. (JBSS) - Business Model: Revenue Streams

Sales revenue from branded and private label products

In the first quarter of fiscal 2025, net sales reached $276.2 million, marking an increase of 18.0% compared to $234.1 million in the first quarter of fiscal 2024. This growth was significantly influenced by the recent Lakeville Acquisition, which contributed approximately $40.5 million to net sales.

The breakdown of sales by distribution channel indicates that sales from consumer products accounted for $229.4 million, which is 83.1% of total sales, up from $184.3 million or 78.8% in the prior year. The sales volume for branded products represented about 16% of total consumer sales, with the Fisher brand constituting approximately 57% of branded sales.

Income from contract manufacturing agreements

Contract manufacturing revenues in the first quarter of fiscal 2025 were approximately $19.9 million, representing 7.2% of total net sales. This figure reflects a decrease of 8.0% from $21.6 million in the same quarter of fiscal 2024. The decline was attributed to reduced peanut distribution to a major customer due to lower consumer demand.

Despite the decrease in revenue, sales volume for contract manufacturing increased by 13.3%, driven by higher granola production at the Lakeville facility.

Revenue from e-commerce sales and retail partnerships

Sales through e-commerce and retail partnerships have also seen notable growth. The increase in consumer sales volume by 30.8% in the first quarter of fiscal 2025, primarily due to the Lakeville Acquisition, has enhanced JBSS's presence in online and retail markets. The company is actively expanding its digital sales channels, which have become increasingly important in reaching consumers directly.

The following table summarizes the revenue contributions from various channels:

Distribution Channel	Q1 Fiscal 2025 Sales ($ millions)	Percentage of Total Sales	Q1 Fiscal 2024 Sales ($ millions)	Percentage Change
Consumer	229.4	83.1%	184.3	24.4%
Commercial Ingredients	26.9	9.7%	28.1	-4.4%
Contract Manufacturing	19.9	7.2%	21.6	-8.0%
Total	276.2	100%	234.1	18.0%

The company's strategic focus on enhancing its e-commerce capabilities and maintaining strong retail partnerships is expected to continue driving revenue growth in the coming quarters.

Article updated on 8 Nov 2024

Resources:

1. John B. Sanfilippo & Son, Inc. (JBSS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of John B. Sanfilippo & Son, Inc. (JBSS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View John B. Sanfilippo & Son, Inc. (JBSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.