J M Smucker acquires ancient grain company Enray in US

American food company J M Smucker has completed the acquisition of Enray, a California-based manufacturer and marketer of organic, gluten-free ancient grain products, for an undisclosed amount.

Enray generated net revenues of more than $45m in its latest 12-month period.

The company’s gluten-free line of products includes sprouted and non-sprouted grains, pasta and cookies, which are primarily sold under its flagship brand, truRoots.

These products will join Smucker’s existing portfolio of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and health and natural foods.

The acquisition includes a leased manufacturing facility in Livermore, California.

J M Smucker CEO Richard Smucker said that the acquisition strengthens and expands the company’s natural foods business, extending it beyond the leadership position it currently holds in the natural and organic beverages category.

"The addition of the truRoots® brand and its organic quinoa and other ancient grain products provides an on-trend, compelling product platform across the rapidly growing gluten-free market," Smucker added.

Meanwhile, the company announced that its net earnings for the first quarter of 2014 increased 14% to $126.6m, compared with $110.9m in 2012, helped by lower coffee and peanut costs.

Commenting on the results, Smucker stated that the earnings in this period were the company’s strongest ever first quarter earnings.

"As we look ahead, we expect to continue this momentum through the year as we further invest in our brands, our infrastructure, and our people."

Net sales decreased 1% to $1.35bn, compared with $1.36bn for the same period a year ago.

For the full-year, the company expects net sales to decrease by approximately 1% compared with 2013 and non-GAAP income per diluted share is expected to be in the range of $5.72 to $5.82 over the earlier anticipated range of $5.65 to $5.75.