ORRVILLE, Ohio — The Jif peanut butter recall is having some lingering effects on parent company J.M. Sucker Co.
On Tuesday, the company released its fourth-quarter results for fiscal year 2022. In the documents, the company said it expects an unfavorable impact of $125 million from the Jif recall over the next year.
The setback is primarily from the estimated impact of manufacturing downtime, customer returns, and unsaleable inventory. However, the actual impact of the recall could differ.
When the recall began, the company reported it set aside $52.3 million to cover unsaleable inventory, customer returns, and refunds. The company expects $49.8 million of these costs will be covered by insurance.
Throughout the fourth quarter, the company reported a loss of 9 percent in gross profit. This included a 7 percent loss they attribute to the recall. The company also reported net sales also decreased by $22.5 million, mostly attributed to the recall.
The source of the recall goes back to an initial recall from J.M. Smucker Company. In response to an outbreak of Salmonella Senftenberg, the company recalled certain Jif brand peanut butter products. All the recalled products were manufactured in Lexington, Kentucky.
On a call with investors, Mark Smucker, CEO of J.M. Smucker Co. said the recall did not impact their Uncrustable or specialty peanut butter brands. They are working with the FDA to reopen the Lexington, Kentucky facility as quickly as possible.