JBSS 2026 회계연도 4분기 실적 발표 콘퍼런스 콜: 마진 축소 속 매출 증가

핵심 요약

• 2026 회계연도 순매출은 6.2% 증가해 역대 최대치인 12억 달러를 기록했습니다. 순이익은 6,190만 달러로 증가했으며, 희석 EPS는 4.6% 증가한 5.26달러를 기록했습니다.
• 4분기 순매출은 파운드당 가중평균 판매가격의 2.8% 상승과 1.4%의 출하량 증가에 힘입어 4.2% 증가한 2억 8,040만 달러를 기록했습니다. 이는 5분기 연속 감소세를 보인 이후 전사 차원에서 기록한 첫 출하량 증가입니다.
• 4분기 총이익은 4,410만 달러로 9.5% 감소했으며, 총이익률은 18.1%에서 15.7%로 축소되었습니다. 리콜 관련 비용 270만 달러, 고객 클레임, 바 원재료비 및 운반비 상승, 제조 비효율성이 부담으로 작용했습니다.
• 4분기 순이익은 전년 동기 1,350만 달러(주당 1.15달러)에서 840만 달러(희석주당 0.71달러)로 감소했습니다.
• 경영진은 신규 바 생산 라인의 가용 능력을 판매함으로써 3억 달러 이상의 잠재적 성장이 가능할 것으로 추정하고 있으며, 이는 3~5년에 걸쳐 단계적으로 확대될 수 있다고 전망했습니다. 해당 라인들은 2027 회계연도 2분기까지 정상 가동될 것으로 예상됩니다.
• 제프리 산필리포(Jeffrey Sanfilippo) CEO는 10월에 사임하고 이사회 의장(Executive Chairman)에 취임할 예정입니다. 재스퍼 산필리포(Jasper Sanfilippo) COO가 후임 CEO를 맡게 됩니다.

주요 재무 데이터

기말 재고자산은 전년 동기 대비 880만 달러(3.4%) 감소했습니다. 견과류 원물 및 건과일 재고의 파운드당 가중평균 원가는 주로 피칸과 아몬드 매입 비용 증가로 인해 12.1% 상승했습니다.

사업 및 영업 실적

소비자 채널 출하량은 자체 브랜드(PB) 매출의 2.4% 성장세에 힘입어 0.8% 증가했습니다. 신규 식료품 소매업체로의 초기 출하와 기존 소매업체와의 유통망 확대가 PB 견과류 및 트레일 믹스 제품 판매를 뒷받침했습니다. 반면 한 식료품 소매업체 향 바 제품 매출 감소와 온라인 소매업체에서의 PB 사업 상실이 이 같은 상승분을 일부 상쇄했습니다.

주문자 상표 부착 생산(위탁생산) 출하량은 대형 신규 고객사 향 스낵 견과류 판매에 힘입어 12.6% 증가한 반면, 상업용 원료 출하량은 5.4% 감소했습니다. 외식업(Foodservice) 채널 출하량은 보합세를 유지했습니다.

써카나(Circana) 데이터에 따르면 4분기 스낵 견과류 및 트레일 믹스 카테고리의 물량 기준 판매량은 7% 감소하고 금액 기준 매출은 3% 줄었습니다. JBSS의 PB 소비자용 스낵 및 트레일 믹스 출하량은 3% 증가했으며, 피셔(Fisher) 스낵 및 트레일 믹스 출하량은 15% 증가했습니다. 오차드 밸리 하베스트(Orchard Valley Harvest) 출하량은 26% 감소했고, 서던 스타일 너츠(Southern Style Nuts) 출하량은 외부 조달 원재료 관련 자발적 리콜 이후 27% 감소했습니다.

요리용 견과류(recipe nut) 카테고리는 물량 기준 6%, 금액 기준 12% 성장했으나 피셔 요리용 견과류 출하량은 12% 감소했습니다. 광범위한 바 카테고리는 물량 기준 2%, 금액 기준 5% 증가했습니다. JBSS의 PB 바 출하량은 3% 감소하여 PB 바 카테고리의 5% 감소세와 전반적으로 일치했습니다.

JBSS는 판매량이 많은 과일·곡물 바 및 츄이 그래놀라 제품 라인업을 유지하면서 고단백·고식이섬유 바에 우선순위를 두고 있습니다. 경영진은 주요 고객사에 샘플을 전달했으며 긍정적인 반응을 얻었다고 밝혔습니다. 회사는 PB, 창고형 할인점(club), 식료품점 및 위탁생산 기회를 모색하고 있습니다.

회사는 연간 배당금을 주당 0.95달러로 5.6% 인상하고 주당 1.05달러의 특별 배당을 선언했습니다. 두 배당금 모두 2026년 9월 9일에 지급될 예정입니다. 2026년 한 해 동안 지급되는 총 배당금은 주당 3.50달러에 달하게 됩니다.

경영진 전망

경영진은 2027 회계연도의 3대 우선 과제로 스낵 견과류 및 트레일 믹스 출하량 회복, 바 포트폴리오 확장 및 엘진(Elgin) 신규 생산 능력 활용, 생산성 향상 이니셔티브를 통한 비용 변동성 관리를 꼽았습니다.

회사는 츄이 바 생산 라인이 10월 말까지 가동될 것으로 예상하며, 과일·곡물 라인도 그 직후 가동될 것으로 보고 있습니다. 경영진은 두 초고속 라인 모두 2027 회계연도 2분기까지 정상 가동될 것으로 전망합니다. 일부 단백질 바 제품은 회계연도 3분기 초에 시장에 출시될 것으로 예상됩니다.

경영진은 신규 생산 능력이 매출로 연결됨에 따라 3억 달러 이상의 잠재적 성장이 가능할 것으로 추정했으나, 이러한 기회를 실현하는 데 3~5년이 걸릴 수 있다고 언급했습니다. 회사는 계약이 체결된 고객사를 밝히지 않았으며 대형 소매업체 및 위탁생산 잠재 고객사들과 활발한 협상을 진행 중이라고 말했습니다.

JBSS는 또한 높은 운반비, 연료비 및 포장재 비용을 상쇄하기 위해 선별적인 가격 인상을 추진하고 있습니다. 경영진은 고객사와의 가격 검토 결과에 따라 해당 조치의 효과가 회계연도 2분기부터 나타나기 시작할 것이라고 말했습니다.

리스크 및 관전 포인트

4분기 수익성은 제3자가 공급한 탈지분유와 관련된 270만 달러의 리콜 관련 비용으로 인해 영향을 받았습니다. 또한 이번 분기에는 대형 위탁생산 고객사 확보와 관련된 고객 클레임 증가, 스낵바 원재료비 및 운반비 상승, 제조 비효율성이 포함되었습니다.

한 주요 고객사가 4분기 중 예상치 못한 금액 차감을 실시했습니다. 경영진은 해당 금액의 일부를 회수하기 위해 협상 중이지만 구체적인 금액이나 예상 시기는 밝히지 않았습니다.

회사는 관세, 인플레이션, 원자재 가격, 포장재, 에너지, 운송 및 노무비 등과 관련된 불확실성에 계속 직면해 있습니다. 경영진은 또한 수년간의 스낵 가격 상승 이후 소비자들이 여전히 가성비를 크게 의식하고 있다고 지적했습니다.

실행 리스크로는 신규 바 생산 라인 시운전, 생산 능력을 활용하기 위한 충분한 고객 수요 확보, 제조 효율성 개선 등이 있습니다. 경영진은 캘리포니아 견과류 수확 상태가 전반적으로 양호해 보이지만 아몬드의 초기 조짐은 다소 부정적이라고 전했습니다.

애널리스트 Q&A 하이라이트

• 고객사 금액 차감: 경영진은 4분기 중 주요 고객사로부터 예상치 못한 금액 차감이 발생했으며 JBSS가 이 금액의 일부를 회수하기 위해 적극적으로 협상 중이라고 밝혔습니다.
• 비용 전가: 이번 분기 동안 상승한 운반비, 연료비 및 수지 관련 포장재 비용은 수백만 달러에 달했습니다. JBSS는 고객사에게 관련 가격 인상을 요청하고 있으며 2027 회계연도 2분기부터 효과가 나타날 것으로 예상하고 있습니다.
• 바 라인 시운전: 회사는 츄이 바 조리 및 포장 프로세스를 테스트하고 있습니다. 경영진은 설비 설치가 일정대로 진행되고 있으며 두 라인이 회계연도 2분기와 3분기에 걸쳐 가동될 것으로 예상된다고 밝혔습니다.
• 단백질 바 전략: JBSS는 4분기 동안 무화과 및 단백질 바 제품을 상업화했으며 추가적인 단백질 바 시제품 테스트를 진행하고 있습니다. 회사의 전략은 성공적인 브랜드 제품 대안으로서의 PB 제품 개발과 위탁생산 기회를 결합하는 것입니다.
• 생산 능력 확장 기회: 경영진은 3억 달러 이상의 추정 성장 기회가 1년 목표라기보다는 3~5년에 걸친 단계적 성장 과정이라고 설명했습니다. 잠재 고객사로는 창고형 할인점 및 식료품 소매업체, 브랜드 위탁생산 파트너 등이 있습니다.
• 포장 크기 및 가격 정책: JBSS는 견과류 및 트레일 믹스 시장에서 가성비를 중시하는 수요에 대응하기 위해 제품, 포장 크기, 가격대 및 선별적 프로모션을 검토하고 있습니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Thank you. Good day and welcome to the John B. Sanfilippo & Sons, Inc. Fourth Quarter and Full Year 2026 Operating Results Conference Call. [Operator Instructions] Please note this call may be recorded. I would like to turn the call over to Jeffrey Sanfilippo, Chief Executive Officer. Please go ahead.

Jeffrey Sanfilippo

Thank you, Michelle. Good morning, everyone, and welcome to our fiscal 2026 fourth quarter earnings conference call. Thank you for joining us. On the call with me today is Frank Pellegrino, our CFO, and Jasper Sanfilippo, our COO. We may make some forward-looking statements today. These statements are based on our current expectations and they involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made, including Forms 10-K and 10-Q. We encourage you to refer to the filings to learn more about these risks and uncertainties that are inherent in our business.

I'll turn to results. I'm pleased to report on a strong fiscal 2026 with net sales reaching a record $1.2 billion and diluted earnings per share increasing 4.6% for the full year. Achieving record net sales and earnings growth in a challenging consumer and cost environment is a testament to the strength of our business, the dedication of our team, and the depth of our customer relationships.

In addition, we remain committed to returning capital to our shareholders. During the 2026 calendar year, we increased our annual dividend by 5.6% to $0.95 per share and declared a special dividend of $1.05 per share, representing a 75% increase. Both dividends will be paid on September 9, 2026, bringing total dividends paid during the 2026 calendar year to $3.50 per share. This year marks our 15th consecutive year of returning capital to shareholders through dividends and the 9th consecutive year of increasing our annual dividend, reflecting the strength of our balance sheet, our consistent cash generation, and our ongoing commitment to creating long-term shareholder value.

While our bottom line results for the most recent fourth quarter did not match last year's results, we were encouraged to see a return to growth in our company-wide sales volume after 5 consecutive quarters of decline. We believe this is a positive signal for our entire portfolio. Fourth quarter profitability was impacted by several challenges, including higher-than-anticipated input and transportation costs, manufacturing inefficiencies associated with the continued onboarding of a large contract manufacturing customer, and certain customer-related charges. We are actively responding to these increased costs, executing mitigation plans to manage unexpected customer charges, and improving operational efficiencies as we move into fiscal 2027.

There are 3 key priorities for JBSS in the coming year. First, we are focused on restoring volume in the snack nut and trail mix categories. Consumer trends indicate that shoppers remain highly value-conscious after several years of elevated prices across the snacking segment. To address this, we're working with an external partner on a consumer study to better understand how we can re-engage [ paid shoppers ] and drive volume growth without sacrificing margin. Insights will help guide our approach to optimizing value propositions, pack price architecture, promotional effectiveness, and selective price adjustments. There continue to be positive tailwinds in the nut category as strong health and wellness trends are having a significant impact on consumer food purchases.

Our priority is to expand our bar portfolio and sell through the significant new manufacturing capacity we have added at our Elgin facility. Our engineering team has done an outstanding job bringing the new high-speed bar lines we purchased online, and we expect them to be fully operational by the second quarter of fiscal 2027. In parallel, our R&D, sales, marketing, procurement, and technical services teams have worked hard together to build a robust pipeline of new products that have been presented to customers. Consumer trends are strong for higher protein and higher fiber products, and our bar portfolio is positioned perfectly to meet this growing demand. We are very optimistic about securing new distribution in the near future, and we estimate over $300 million in potential new growth for JBSS as we sell the capacity on these lines.

Our third priority is to manage cost volatility with a relentless focus on productivity. Like many food manufacturers, we continue to face uncertainty across commodities, packaging, energy, transportation, labor, and tariffs. Teams across our organization are focused on reducing costs where possible while improving productivity and efficiency. Key areas of focus include AI-enabled process enhancements, plant efficiency, SKU rationalization, trade spend effectiveness, procurement savings, and supply chain optimization.

I'll turn the call over to Frank to discuss our financial performance.

Frank Pellegrino

Thanks, Jeffrey. Starting with the income statement, net sales for the fourth quarter of fiscal 2026 increased by 4.2% to $280.4 million compared to net sales of $269.1 million for the fourth quarter of fiscal 2025. The increase in net sales was due to a 2.8% increase in the weighted average sales price per pound and a 1.4% increase in sales volume per pound sold to customers. The increase in the weighted average selling price primarily reflected pricing actions taken in response to higher commodity acquisition costs for peanuts and all major tree nuts except walnuts, which was partially offset by a shift in product mix towards lower-priced items in the current quarter.

Sales volume in the consumer distribution channel slightly increased by 0.8% due to a 2.4% increase in private brand sales, with higher volume in private label nuts and trail mix. This was partially offset by decreased bar volume due to our strategic decision to reduce sales to a grocery store retailer. The increase in private label nuts and trail mix volume was positively impacted by initial shipments to a new grocery retailer and expanded distribution to existing grocery retailers, which was partially offset by lost private business at an online retailer. In addition, our branded sales were negatively impacted by decreased Fisher recipe nut sales due to the timing of the Easter holiday and related promotional activity, as well as lower sales of Southern Style Nuts Hunter Mix, which was temporarily withdrawn from the market following a product recall of an externally sourced ingredient contained in that snack mix.

Sales volume decreased 5.4% in the commercial ingredients channel, mainly driven by timing of peanut crushing stock sales, as sales volumes were elevated in the preceding quarter. Food service sales volume remained relatively flat in the quarterly comparison. Sales volume in the contract manufacturing channel increased 12.6% due to increased snack nut sales to a significant new customer that we added during the [ second quarter of the ] year. This increase was partially offset by decreased granola sales volume.

Gross profit decreased by $4.6 million or 9.5% to $44.1 million compared to the fourth quarter of last year, driven by $2.7 million of recall-related costs associated with the dry milk powder supplied by a third-party manufacturer incorporated in our Southern Style Nuts products. Gross profit was also negatively affected by higher customer claims, higher snack bar ingredient costs, manufacturing inefficiencies, and higher freight expense. Gross profit margin decreased to 15.7% of net sales compared to 18.1% for the fourth quarter of fiscal 2025 due to the reasons previously mentioned and partially offset by a higher net sales base.

Total operating expenses increased by $3.1 million compared to the prior year fourth quarter, driven by higher incentive compensation, freight, and marketing insights expenses, which was partially offset by estimated insurance recovery associated with the dry milk powder recall. Total operating expenses as a percentage of net sales for the fourth quarter of fiscal 2026 increased to 11.3% from 10.6% compared to the prior year comparable quarter. Interest expense was $400,000 for the fourth quarter of fiscal 2026, compared to $1.2 million for the fourth quarter of fiscal 2025, due to higher average line of credit levels. Net income for the fourth quarter of fiscal 2026 was $8.4 million, or $0.71 per diluted share, compared to $13.5 million, or $1.15 per diluted share, for the fourth quarter of fiscal 2025.

Now, take a look at inventory. The total value of inventories on hand at the end of the current fourth quarter decreased $8.8 million or 3.4% compared to the prior year comparable quarter. The decrease was driven by lower finished goods inventories for bars, lower walnut acquisition costs, and lower on-hand quantities of pecans and walnuts, which were partially offset by higher pecan and almond acquisition costs. The weighted average cost per pound of raw nut and dried fruit input stock on hand increased 12.1% due to higher pecan and almond acquisition costs, partially offset by lower walnut acquisition costs.

Moving on to year-to-date results. Net sales for fiscal 2026 increased 6.2% to $1.2 billion compared to fiscal 2025. The increase in net sales was primarily attributable to an 8.9% increase in the weighted average selling price per pound, which was partially offset by a 2.5% decrease in sales volume. The sales volume decrease was due to lower sales volume in the consumer channel, partially offset by sales volume increases in the commercial ingredients and contract manufacturing channels. Gross profit margin decreased to 18% of net sales compared to 18.4% in the prior fiscal year, attributable to the factors noted earlier in the quarterly comparison and lower inventory valuation adjustments, which were partially offset by aligning our pricing more closely with our commodity acquisition costs and the absence of a one-time pricing concession recognized in the prior year.

Total operating expenses increased $3.2 million in fiscal 2026 compared to fiscal 2025, primarily due to higher incentive compensation expense. This increase was partially offset by the estimated insurance recovery related to the dry milk powder recall, lower compensation expense, a net gain on disposal of non-core equipment compared to a net loss in the prior year, and reduced marketing and insights spending and lower third-party warehouse costs. Interest expense was $2.4 million for fiscal 2026 compared to $3.6 million for fiscal 2025. Net income for fiscal 2026 was $61.9 million, or $5.26 per diluted share, compared to $58.9 million, or $5.03 per diluted share for fiscal 2025. Please refer to our 10-K for additional details regarding our financial performance for fiscal 2026.

Now I'll turn the call over to Jeffrey to provide additional comments.

Jeffrey Sanfilippo

Thanks, Frank, for the financial updates. Now let's shift to consumption activity and category updates. All the market information I'll be referring to is Circana panel data, and for today it is for the period ending June 28, 2026. To refer to Q4, I'm referring to the 13 weeks of the quarter ending June 28, 2026. References to changes in volume are versus the corresponding period 1 year ago. For pricing commentary, we are using Circana MULO scan data, and we're referring to average price per pound. We are using the nut, trail mix, and bar syndicated views of the category as defined by Circana.

In the fourth quarter, we continued to see modest growth in the broader snack aisle, as defined by Circana. Volume and dollars were up 0.7% and 3% respectively, driven by price increases. This is consistent with the performance we saw in Q3. In Q4, the snack nut and trail mix category was down 7% in volume and 3% in dollars, which is a continued acceleration of the volume softness we saw last quarter. Snack nut prices rose 5%, with increases across nearly all nut types. Prices rose 7% for trail mixes.

Our private label consumer snack and trail shipments performed substantially better than the category, with pound shipments up 3% versus last year. This positive momentum was driven by new distribution across several grocery retailers. Fisher snack and trail mix performed better than the category with pound shipments up 15%. Fisher's performance was due to an expanded assortment at a specialty retailer and strength within the e-commerce channel. Our Orchard Valley Harvest brand, which primarily plays in trail mix, was down 26% in pound shipments during Q4. General category softness paired with lapping rotations at a club retailer drove the decline. Our Southern Style Nuts brand experienced a 27% decrease in pound shipments driven by a voluntary recall within the Southern Style portfolio, which Frank already mentioned.

Now let me turn to the recipe nut category. In Q4, the recipe nut category was up 6% in pounds and up 12% in dollars, driven by growth in private label as a discount retailer expanded store counts. The recipe category experienced a 7% price increase driven by pecans. Our Fisher recipe pound shipments were down 12% in Q4 due to slower velocities among grocery retailers.

Now we'll switch to the bar category. In Q4, the bars category grew by 2% in pounds and 5% in dollars, which is consistent with last quarter. Bar category momentum continued to be driven by a branded player's growth in the protein segment of the bar category. Private label was down 5% in pounds and down 4% in dollars as consumer preferences shift to protein bars, which is comprised primarily of branded offerings. Our private label bar shipments were down 3% versus a year ago, which is consistent with private label category trends.

In closing, as we enter fiscal 2027, we have strong momentum and optimism as we continue to execute our strategic plan. We are actively pursuing additional opportunities to grow sales volume across all 3 of our distribution channels, and we are encouraged by early signs of success. At the same time, we remain focused on disciplined cost management and driving further operational efficiencies. That said, we recognize that significant external uncertainties remain, including tariffs, inflation, unpredictable commodity costs, and broader macroeconomic challenges. These factors will require us to stay agile and responsive as the year progresses. We are committed to taking actions to deliver long-term sustainable growth, enhance margins, and continue to create value for our customers, consumers, and shareholders.

As I mentioned last month, I will be stepping down as Chief Executive Officer in October to assume the role of Executive Chairman. My brother Jasper will succeed me as CEO. Over the last several years, we have made significant investments in our people, our capabilities, and our infrastructure that we believe will support long-term sustainable growth. These investments, combined with a disciplined growth strategy focused on continuous improvement, innovation, customer partnership, and operational excellence, should position the company for continued success. Under Jasper's leadership, I'm confident JBSS will continue to execute its strategic plan, strengthen its market position, and capitalize on future growth opportunities.

As I reflect on the past 20 years, I want to sincerely thank our current and former employees for their hard work, dedication, and commitment. Together, we have transformed JBSS into a stronger, more diversified, and more profitable organization while preserving the entrepreneurial and family-oriented culture that has always defined our company. Our ability to remain nimble, adapt to changing market conditions, and work collaboratively to serve our customers has been a key driver of our success and is a big part of our culture. It has been an honor to lead this remarkable organization as CEO, and I'm deeply grateful to our employees, customers, suppliers, and shareholders for their trust, support, and partnership throughout this journey. We appreciate your participation in the call and I thank you for your interest in our company.

Operator

I'll now open the call to questions. Michelle, you can open up the lines. [Operator Instructions] Our first question comes from Hamed Khorsand with BWS Financial.

질의응답

Hamed Khorsand

Could you just expand upon the comment that I heard you say about litigation expense and customer charges and what's going on there?

Jeffrey Sanfilippo

Yes, so this is Jeffrey. So we had some unexpected deductions from a major customer that we are still negotiating with that customer to regain some of those deductions. So something out of our control that occurred in Q4, but we are working actively to try to get some of that money back.

Hamed Khorsand

Okay. And my other question was, any update as far as the new equipment being installed and acceptance with any new potential customers?

Jasper Sanfilippo

Sure, Hamed. This is Jasper. We're currently on track for both the high-speed fruit and grain and the chewy bar line. We're expecting the chewy bar line to be up and operational by the end of October, and then the fruit and grain bar shortly thereafter.

Hamed Khorsand

And any sampling going on right now or are you still waiting to bring it completely online?

Jeffrey Sanfilippo

No, we are actively pursuing new customer business. We've created a lot of samples that have gone out to all our key customers. A very positive response from them. But yes, the operation will be up and running, hoping in October to actually produce products. So as soon as we get a new customer online, we will start shipping in the...

Hamed Khorsand

...the third quarter?

Jasper Sanfilippo

Yes, actually this week we're testing the functionality of the chewy bar kitchen and then we'll follow that with actually making the bars to run it through packaging. So we are on time and looking in good shape for both lines.

Hamed Khorsand

Okay, great. My last topic was, as far as nuts and trail mix is concerned, are you changing production to go towards more small packages in any way, maybe to lower the price to the consumer? Are you seeing that kind of demand right now?

Jeffrey Sanfilippo

Yes, that's a combination. We're looking at innovation obviously. Protein and fiber is a very important product line that we've recently launched in our Orchard Valley Harvest. That's Go-Go Protein Peanut, and we are launching a Go-Go Protein Almond. So we're really looking at consumer trends. Protein is high, fiber is extremely important. So we're looking not only at the product, also the pack sizes and the price points. So making really selective promotional price points that we feel will help us drive growth in the category.

Operator

Thank you. Our next question comes from [ Nick Otten ] with National Bank Financial.

Unknown Analyst

I just had some stuff on the charges and everything. So the higher input costs and transportation, like do you expect that you can pass this on eventually or is this continue going to be something that you're going to have to eat going forward?

Jeffrey Sanfilippo

No, we will do our best to pass out those costs along. Again, if they keep increasing it becomes more difficult, but those are incurred during the quarter. That was along during our next pricing review.

Unknown Analyst

How much of that was that in the quarter? Is it like a small amount? Is it a couple million dollars?

Jeffrey Sanfilippo

It was a couple million dollars. It was a couple million dollars, and we are working hard to get those price increases for freight with our customers today.

Frank Pellegrino

We should expect to see that in Q2. Nick, it's mainly freight and fuel-related, like surcharges, and also the resin market is up with packaging, which is kind of related to fuel also. So all those things have kind of escalated during the quarter that are kind of out of...

Unknown Analyst

And then on the bar lines, you were just talking about chewy granola, but I thought you guys were also doing some protein going on there, so I was wondering when that's going to get started up because it is one of the bigger markets there.

Jasper Sanfilippo

Correct. Yes, we through Q4 did commercialize both some fig bar offerings as well as some protein bar offerings, and continue to do so. We are running trials currently for other protein bars. We believe that some of those bars will be in the market sometime early Q3. We do continue to add capabilities to our current protein bar line to keep up with the growing brand that Jeff referred to with some of the branded players.

Unknown Analyst

And then how long, like you're talking about this $300 million opportunity, is this like you can achieve it in a year, 2, 3? Like what is the timeline that your expectation for this to really start ramping?

Jasper Sanfilippo

I had a guess somewhere between 3 to 5 years.

Unknown Analyst

And then are there any customers signed up at all? Like is Costco a customer or what's going on just to underwrite these investments overall?

Jasper Sanfilippo

We're actively working with both large retailers as well as some opportunities we've come across in the co-man channel.

Jeffrey Sanfilippo

Yes, so we're looking at everything from club channel, obviously Sam's and Costco, to grocery, alternative channel, there's opportunities. And as Jasper mentioned, co-man, some of the big brands could be potential customers as well for us. You're right, that fastest growing segment is that protein forward. So you look at Barebells, Built Puff, David's, they're all doing extremely well in the category and retailers see that growth and are looking for private brand options.

Unknown Analyst

And then Frank, we talked about in the past, like are we just finally seeing this like nut price squeeze these smaller players that had stolen share, but you're now, they're coming back your way and everything?

Frank Pellegrino

Indirect, yes, we're seeing them because the prices are all available more competitive out there.

Unknown Analyst

And then if like we're having an El Nino year, so are we going to go through this cycle again where nuts are going to get all this rain? We're going to see lower pricing and then more competition or what are your expectations going for next year?

Jasper Sanfilippo

We haven't seen any effects from El Nino yet, but the crops look pretty decent out in California with maybe the exception of the early indications of the almond crop, but all the other crops look like they're in pretty good shape.

Unknown Analyst

Okay, thanks. That's it for my questions for me.

Operator

[Operator Instructions] Our next question comes from [ Ron Miturko ] with MCM.

Unknown Analyst

Jeff, thank you so much for your stewardship of the company. And we appreciate your candor and your working so hard for us. I just had a question. I think a lot of my questions were answered by the previous two guys. But just to summarize the bar business, like you are going to be targeting the higher end and the protein and fiber content things but doing it in a private label way so it's not too because the market is it seemingly is growing away from just the real high-priced branded contingent. Is that correct? And you intend to do anything, you know, proprietary in your own branding at some point down the road?

Jasper Sanfilippo

Yes, right now we're focused on just getting the successful brands emulated and give private label offerings in the retail market. I think the co-pack or the co-manufacturing opportunity for some of these brands does allow us to get into other channels where private label wouldn't work. For example, sports stores, gyms, and things of that nature. But yes, at some point we will work with our customers to develop proprietary formulas for them.

Jeffrey Sanfilippo

I would just add to that. So if you look at the category you've got, the biggest volume would be something like fruit and grain, the chewy granola bars. These high-speed lines will make us more competitive in those categories, but then the bigger focus is on research and development innovation in the forward protein bars, as I mentioned. And that's where the biggest growth is coming from, is those high protein bars in the category. So we have a combination of the volume items with chewy granola and fruit and grain, but then the high margin, high growth in the protein forward bars.

Unknown Analyst

Okay, and from the acquisition, it sounds like you're putting in the new lines are going to be in Elgin, where you guys live, and would that be, like, new technology that you've had to adopt from, like, the bar business that you bought? I know you guys have been in the bar business for a long time, so could you just talk a little bit about that?

Jasper Sanfilippo

Sure, this is Jasper. The 2 high-speed lines are really balancing out our manufacturing capability. Obviously, there are certain SKUs that are high volume, which we will be moving to the high-volume bar lines, but there are a lot of other SKUs that we have, both at large retailers and smaller retailers, that would not warrant running on a very high-speed bar line. And so much like we did for snack nut and trail, we developed our manufacturing capabilities to run low volumes very efficiently as well as high volumes very efficiently. And that's really what this investment represents, is just balancing out our manufacturing capabilities to better fit our customer demands.

Unknown Analyst

Okay, and those lines will be up and running by the end of October.

Jasper Sanfilippo

Q2 and Q3.

Unknown Analyst

Okay. Good, thank you very much.

Jeffrey Sanfilippo

Thank you. Thanks for your questions.

Operator

I'm showing no further questions at this time. I'd like to turn the call back over to Jeffrey Sanfilippo for closing remarks.

Jeffrey Sanfilippo

Thanks, Michelle. So we appreciate your participation in the call and thank you for interest in our company. I would like to mention that upcoming events, the company will be presenting at the BWS Financial Growth and Value Summer Investor Series Conference in New York City this coming Tuesday, August 25th, and the Midwest IDEAS Conference in Chicago on August 27th. Investors that would like to schedule a meeting with management should contact Three Part Advisors at the phone number below.

Operator

Thank you for your interest. Have a great day. Thank you for your participation. You may now disconnect.