When it comes to iconic snacks like Dippin’ Dots, Icee, and SuperPretzel, most people enjoy these treats without knowing much about the company behind them. That company is J&J Snack Foods, a largely unknown yet highly successful player in the snack food industry.
With a wide range of beloved brands and a business model that has thrived even in tough economic times, J&J Snack Foods has quietly become a leader in the world of snacking.
The Humble Beginnings of a Snack Empire
The story of J&J Snack Foods began in 1971 when Gerald Shreiber took a gamble on a struggling soft pretzel business, purchasing it out of bankruptcy for just $72,000. What started as a small pretzel company has since evolved into a major player across the snack food landscape.
Today, the company boasts a diverse portfolio of well-known brands, including Dippin’ Dots, ¡Hola! Churros, and Icee.
Despite its success, the company name itself might not be familiar to most consumers. However, the snacks J&J produces are ubiquitous, available in supermarkets, convenience stores, restaurants, amusement parks, and even movie theaters.
The company’s motto, “Fun served here,” perfectly captures the essence of its brand portfolio, which has been delighting consumers for over five decades.
Building a Billion-Dollar Business
Gerald Shreiber’s vision and leadership helped shape J&J Snack Foods into the business it is today. According to Dan Fachner, the company’s current CEO, Shreiber “built what it is today, and last year we did roughly $1.5 billion in net sales.”
Fachner, who has been with J&J since 1979, has witnessed the company’s growth from a small operation to a giant in the food industry.
Fachner’s journey with J&J began modestly as well. While attending trade school in Arizona, he started by repairing ice cream machines and delivering the flavored syrup used to make Icee drinks.
Over the years, he worked his way up through the company, gaining experience in finance, operations, sales, and marketing. When J&J acquired Icee in 1987, Fachner officially joined the larger organization. After Shreiber retired in 2021, Fachner took over as CEO, becoming only the second person to lead the company in its 50-year history.
Modernizing J&J Snack Foods
One of the key aspects of Fachner’s leadership has been his ability to respect the company’s legacy while also modernizing it for future growth. Unlike Shreiber, who oversaw nearly every aspect of the business himself, Fachner has been more open to change.
He’s brought in fresh perspectives by recruiting executives from outside J&J, including a new CFO from Walmart and a Chief Marketing Officer with 23 years of experience from Coca-Cola. This marked the first time the company had a dedicated executive to oversee marketing efforts across its entire portfolio.
“Like a lot of founder-led organizations, [Shreiber] was kind of the heart and soul of everything that happened, and at some point it has to be bigger than you,” Fachner said. “I found when I got here some opportunities to what I believe will take us to the next level.”
A Unique Collection of Brands
Analysts agree that J&J has done a remarkable job of assembling a “unique collection” of category-leading brands. Todd Brooks, an equity analyst at Benchmark, praised J&J’s executive team for driving innovation, boosting cross-selling among its brands, and improving profit margins since Fachner took over.
He noted, “They’ve really professionalized the business so dramatically over the past four years.”
Brooks believes that J&J’s success has often gone unnoticed due to external challenges like the pandemic and supply chain disruptions. However, the company’s solid portfolio and strong market position have kept it resilient, even in challenging times.
Shaking Up the Status Quo
For much of its existence, J&J was content to run its business in a relatively conservative manner. The company operated three primary segments—sales to stores, food service, and bakeries—that accounted for its $1.6 billion in annual revenue.
These segments were largely managed independently, and the company’s brands operated in silos. While this approach allowed J&J to dominate in its respective categories, it also meant the company missed out on opportunities for growth and efficiency.
J&J Snack Foods was often reluctant to take risks by introducing its products into new markets. A product that performed well in one category was not always considered for another, even though it might have had similar potential. This cautious approach limited the company’s ability to fully leverage the strengths of its brand portfolio.
Embracing Change for Future Growth
Under Fachner’s leadership, J&J has started to break down the silos that once defined its operations. By encouraging more collaboration between its different segments and brands, the company is now better positioned to tap into new growth opportunities.
This includes cross-selling products across its various channels and innovating in ways that weren’t previously explored.
While J&J’s past success was largely built on doing what it already did well, the company is now looking ahead to how it can evolve in a constantly changing consumer landscape. As Connor Rattigan, an analyst at Consumer Edge, put it, “In CPG, the world is constantly evolving.
They’re constantly talking about innovation, and that really kind of didn’t happen for a long time with J&J Snack Foods.”
Conclusion:
With its extensive portfolio of popular snack brands and a new focus on innovation and efficiency, J&J Snack Foods is poised to continue growing in the years ahead. The company’s willingness to modernize its operations, streamline its product offerings, and explore new markets gives it a strong foundation for future success.
Despite its quiet presence in the industry, J&J’s impact on the world of snacks is undeniable. Whether you’re enjoying a soft pretzel at a baseball game or sipping on a refreshing Icee at the movies, chances are you’re enjoying the fruits of J&J Snack Foods’ decades of hard work.
As J&J continues to evolve, its blend of iconic brands, innovation, and fun-focused approach will ensure it remains a major player in the snack food world—whether or not consumers know its name.
READ MORE: Popeyes’ Famous Thanksgiving Turkey Is Back—Here’s How To Claim Yours