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What's behind the shortage of peanut butter on grocery store shelves?

Brooks Johnson, Star Tribune on

Published in Business News

Where did all the peanut butter go?

Sporadic shortages are hitting store shelves following a massive recall of Jif peanut butter, the nation's top-selling brand. The severity of the shortage depends on where and when you're shopping.

The same factors that created the baby formula shortage are playing a role with this one: The leading brand was pulled from shelves over food-safety contamination concerns, which immediately diminished the overall supply. This forced shoppers to buy other brands at a time when the supply chain was already strained by abnormalities in the COVID-era economy.

"In all of these disruptions it is usually a trigger, in this case a recall," said Karen Donohue, a supply-chain expert and professor at the University of Minnesota Carlson School of Business. "What's interesting now is the consumer reaction has been further heightened, because people are on the lookout for potential shortages that would affect them."

Like with toilet paper in the early days of the pandemic, where there's a shortage, there's hoarding.

"It really happens a lot for these stable commodity products that everyone wants — it kind of changes your life if you don't have it," Donohue said. "Now you have this inventory sitting in people's houses that could be servicing other people."

 

J.M. Smucker, which owns Jif, launched a nationwide voluntary recall in May after authorities linked several salmonella cases to peanut butter produced at plants in Kentucky and Tennessee. Jars of Jif are just starting to consistently show up again at retailers.

"With confidence in our food safety processes and the additional measures we have put in place, we are working as efficiently as possible to return our products to store shelves," Smucker spokesman Frank Cirillo said. "We have resumed accepting orders from our retail customers at both our Lexington and Memphis facilities and expect products to be back on shelves shortly."

In June, company executives said the recall could cost them $125 million in lost revenue over the next year.

Jif's biggest competitors, Skippy and Peter Pan, are now owned by Minnesota companies and stand to benefit from the short-term absence of Jif.

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