John B. Sanfilippo & Son (JBSS), a century-old nut processor based in Elgin, Illinois, is allocating $90 million to $100 million toward high-speed bar production lines, marking its largest capital investment to date. The investment will fund equipment capable of producing 2,000 bars per minute, with operations slated to commence in October 2026. Jasper Sanfilippo, currently Chief Operating Officer, will succeed Jeffrey Sanfilippo as CEO on October 1, while the latter transitions to Executive Chairman.
The company, which generated approximately $1.2 billion in annual net revenue and maintained EBITDA above $100 million annually over the past five years, aims to diversify its product mix. Currently, nuts and trail mixes account for 95% of sales, with bars comprising just 5%. Management targets a short-term shift to at least 70% nuts/trail mixes and 30% bars, ultimately aiming for a 50-50 split within four to five years. Protein bars are expected to represent roughly 50% of the bar category, with traditional fruit and cereal bars making up the remainder.
The expansion responds to industry trends, as protein bars are among the fastest-growing segments in the food sector. JBSS cited low private-label penetration in bars—contrasting with its dominant 57% share in nuts and trail mixes—as a key opportunity. The company’s private-label sales in nuts exceed the food industry average of 25%, a model it plans to replicate in the bar segment. Retail acceptance is anticipated by January 4, with full-scale shipments ramping up in the second half of fiscal 2027.
To accommodate the new production lines, JBSS relocated shipping and warehouse operations to a leased facility nearby, freeing 300,000 square feet in its Elgin headquarters for bar manufacturing. The company has invested over $150 million in capital expenditures over the past two years and expects annual CapEx to normalize at $25 million to $30 million starting in fiscal 2028. Management projects incremental growth of $300 million from the bar initiative, while emphasizing a conservative, long-term approach to capital allocation.
JBSS’s stock has delivered a 2.5% compound annual growth rate over the past decade, with return on equity increasing by approximately 35%. The company’s raw materials—primarily peanuts, almonds, and walnuts—account for 80% of its cost of goods sold, aligning with the ingredients used in its bar production.
