Cuộc họp báo cáo kết quả kinh doanh Quý 4 năm tài chính 2026 của JBSS: Doanh thu tăng khi biên lợi nhuận thu hẹp

Thông tin chính

• Doanh thu thuần năm tài chính 2026 tăng 6,2% lên mức kỷ lục 1,2 tỷ USD. Lợi nhuận thuần tăng lên 61,9 triệu USD, trong khi EPS pha loãng tăng 4,6% lên 5,26 USD.
• Doanh thu thuần quý 4 năm tài chính tăng 4,2% lên 280,4 triệu USD, nhờ giá bán bình quân trung bình trọng số trên mỗi pound tăng 2,8% và sản lượng tăng 1,4%. Điều này đánh dấu lần tăng trưởng sản lượng trên toàn công ty đầu tiên sau 5 quý giảm liên tiếp.
• Lợi nhuận gộp quý 4 giảm 9,5% xuống 44,1 triệu USD, và biên lợi nhuận gộp thu hẹp xuống 15,7% từ mức 18,1%. Áp lực đến từ 2,7 triệu USD chi phí liên quan đến thu hồi sản phẩm, khiếu nại của khách hàng, chi phí nguyên liệu làm bánh ngũ cốc và vận chuyển tăng cao, cùng với tình trạng kém hiệu quả trong sản xuất.
• Lợi nhuận thuần quý 4 giảm xuống 8,4 triệu USD, tương đương 0,71 USD trên mỗi cổ phiếu pha loãng, so với 13,5 triệu USD, tương đương 1,15 USD trên mỗi cổ phiếu ở cùng kỳ năm ngoái.
• Ban lãnh đạo ước tính tiềm năng tăng trưởng hơn 300 triệu USD từ việc khai thác công suất hiện có trên các dây chuyền sản xuất bánh ngũ cốc mới, với lộ trình tăng tốc kéo dài từ 3 đến 5 năm. Các dây chuyền này dự kiến sẽ đi vào hoạt động hoàn toàn vào quý 2 năm tài chính 2027.
• Jeffrey Sanfilippo sẽ từ chức CEO vào tháng 10 và trở thành Chủ tịch Điều hành. COO Jasper Sanfilippo sẽ kế nhiệm ông làm CEO.

Dữ liệu tài chính chính

Hàng tồn kho cuối quý giảm 8,8 triệu USD, tương đương 3,4% so với cùng kỳ năm ngoái. Chi phí bình quân trung bình trọng số trên mỗi pound hàng tồn kho hạt thô và trái cây khô tăng 12,1%, chủ yếu do chi phí thu mua hạt thạch sùng (pecan) và hạnh nhân tăng cao.

Kết quả Kinh doanh và Hoạt động

Sản lượng kênh tiêu dùng tăng 0,8%, dẫn đầu là mức tăng trưởng 2,4% của doanh số bán hàng thương hiệu riêng (private-brand). Các lô hàng đầu tiên giao cho một nhà bán lẻ thực phẩm mới và việc mở rộng phân phối với các nhà bán lẻ hiện tại đã hỗ trợ mảng hạt và hỗn hợp hạt-trái cây khô (trail mix) nhãn hàng riêng. Doanh số bán bánh ngũ cốc cho một nhà bán lẻ thực phẩm giảm và việc mất hợp đồng nhãn hàng riêng tại một nhà bán lẻ trực tuyến đã bù trừ một phần mức tăng này.

Sản lượng gia công sản xuất tăng 12,6%, nhờ doanh số bán hạt ăn vặt cho một khách hàng mới quan trọng, trong khi sản lượng nguyên liệu thương mại giảm 5,4%. Sản lượng kênh dịch vụ thực phẩm gần như đi ngang.

Dữ liệu từ Circana cho thấy sản lượng ngành hàng hạt ăn vặt và hỗn hợp hạt-trái cây khô trong quý 4 giảm 7%, trong khi doanh số tính theo USD giảm 3%. Các lô hàng hạt ăn vặt và hỗn hợp trail mix tiêu dùng nhãn hàng riêng của JBSS tăng 3%, và các lô hàng Fisher tăng 15%. Các lô hàng của Orchard Valley Harvest giảm 26%, trong khi các lô hàng của Southern Style Nuts giảm 27% sau đợt tự nguyện thu hồi liên quan đến một nguyên liệu mua từ bên ngoài.

Ngành hàng hạt chế biến món ăn tăng 6% về sản lượng và 12% về doanh số USD, nhưng các lô hàng hạt chế biến món ăn Fisher lại giảm 12%. Ngành hàng bánh ngũ cốc nói chung tăng 2% về sản lượng và 5% về doanh số USD. Các lô hàng bánh ngũ cốc nhãn hàng riêng của JBSS giảm 3%, nhìn chung tương thích với mức giảm 5% của ngành hàng bánh ngũ cốc nhãn hàng riêng.

JBSS đang ưu tiên các dòng bánh ngũ cốc giàu protein và giàu chất xơ, đồng thời duy trì sự hiện diện ở các sản phẩm hoa quả - ngũ cốc và granola dẻo (chewy) có sản lượng lớn hơn. Ban lãnh đạo cho biết các mẫu sản phẩm đã được gửi đến các khách hàng trọng yếu và nhận được phản hồi tích cực. Công ty đang theo đuổi các cơ hội về nhãn hàng riêng, chuỗi bán sỉ (club), cửa hàng thực phẩm và gia công sản xuất.

Công ty đã tăng cổ tức hàng năm thêm 5,6% lên 0,95 USD cho mỗi cổ phiếu và tuyên bố chia cổ tức đặc biệt 1,05 USD. Cả hai khoản cổ tức này sẽ được chi trả vào ngày 9 tháng 9 năm 2026. Tổng cổ tức được chi trả trong năm dương lịch 2026 sẽ đạt 3,50 USD cho mỗi cổ phiếu.

Triển vọng của Ban lãnh đạo

Ban lãnh đạo đã xác định ba ưu tiên cho năm tài chính 2027: phục hồi sản lượng hạt ăn vặt và hỗn hợp hạt-trái cây khô, mở rộng danh mục bánh ngũ cốc và khai thác công suất sản xuất mới tại Elgin, đồng thời quản lý biến động chi phí thông qua các sáng kiến nâng cao năng suất.

Công ty dự kiến dây chuyền bánh granola dẻo sẽ đi vào hoạt động vào cuối tháng 10, ngay sau đó là dây chuyền hoa quả - ngũ cốc. Ban lãnh đạo kỳ vọng cả hai dây chuyền tốc độ cao này sẽ hoạt động hoàn toàn vào quý 2 năm tài chính 2027. Một số sản phẩm bánh protein dự kiến sẽ ra thị trường vào đầu quý 3 năm tài chính.

Ban lãnh đạo ước tính tiềm năng tăng trưởng hơn 300 triệu USD khi công suất mới được tiêu thụ hết, nhưng lưu ý rằng việc đạt được cơ hội đó có thể mất từ 3 đến 5 năm. Công ty không công bố tên các khách hàng đã ký hợp đồng và cho biết vẫn đang đàm phán tích cực với các nhà bán lẻ lớn và các đối tác gia công tiềm năng.

JBSS cũng đang thực hiện các biện pháp điều chỉnh giá chọn lọc để bù đắp chi phí vận chuyển, nhiên liệu và bao bì tăng cao. Ban lãnh đạo cho biết tác động của các biện pháp này sẽ bắt đầu xuất hiện trong quý 2 năm tài chính, phụ thuộc vào quá trình xem xét giá của khách hàng.

Rủi ro và Các yếu tố cần theo dõi

Khả năng sinh lời trong quý 4 bị ảnh hưởng bởi 2,7 triệu USD chi phí liên quan đến thu hồi sản phẩm do bột sữa khô được cung cấp bởi bên thứ ba. Quý này cũng ghi nhận các khoản khiếu nại của khách hàng, chi phí nguyên liệu làm bánh ăn vặt, chi phí vận chuyển tăng cao và tình trạng kém hiệu quả sản xuất liên quan đến việc triển khai một khách hàng gia công sản xuất lớn.

Một khách hàng lớn đã thực hiện các khoản khấu trừ bất ngờ trong quý 4. Ban lãnh đạo đang đàm phán để thu hồi một phần các khoản phí đó, nhưng không nêu rõ số tiền hoặc thời gian dự kiến.

Công ty tiếp tục đối mặt với sự không chắc chắn từ thuế quan, lạm phát, giá hàng hóa, bao bì, năng lượng, vận tải và lao động. Ban lãnh đạo cũng lưu ý rằng người tiêu dùng vẫn rất nhạy cảm về giá trị sau nhiều năm giá đồ ăn vặt duy trì ở mức cao.

Các rủi ro về triển khai bao gồm việc đưa các dây chuyền bánh ngũ cốc mới vào vận hành, đảm bảo đủ nhu cầu của khách hàng để lấp đầy công suất và cải thiện hiệu quả sản xuất. Ban lãnh đạo cho biết nhìn chung vụ mùa hạt tại California có vẻ ở tình trạng tốt, mặc dù các dấu hiệu ban đầu đối với hạnh nhân ít khả quan hơn.

Tóm tắt Phiên Hỏi & Đáp với Chuyên viên Phân tích

• Khoản khấu trừ từ khách hàng: Ban lãnh đạo cho biết các khoản khấu trừ bất ngờ từ một khách hàng lớn đã xảy ra trong quý 4 và JBSS đang tích cực đàm phán để thu hồi một phần số tiền này.
• Chuyển giao chi phí vào giá bán: Chi phí vận chuyển, nhiên liệu và bao bì liên quan đến nhựa tăng cao tổng cộng khoảng vài triệu USD trong quý. JBSS đang tìm cách tăng giá bán tương ứng với khách hàng và kỳ vọng sẽ có tác động bắt đầu từ quý 2 năm tài chính.
• Vận hành dây chuyền bánh ngũ cốc: Công ty đang thử nghiệm quy trình chế biến và đóng gói bánh granola dẻo. Ban lãnh đạo cho biết việc lắp đặt vẫn đúng tiến độ, với hai dây chuyền dự kiến sẽ đi vào hoạt động trong quý 2 và quý 3 năm tài chính.
• Chiến lược bánh protein: JBSS đã thương mại hóa các sản phẩm bánh sung ngọt và bánh protein trong quý 4 và đang tiến hành thêm các thử nghiệm đối với bánh protein. Chiến lược của công ty kết hợp các giải pháp nhãn hàng riêng thay thế cho các sản phẩm có thương hiệu thành công cùng các cơ hội gia công sản xuất.
• Cơ hội từ công suất: Ban lãnh đạo mô tả cơ hội tăng trưởng ước tính hơn 300 triệu USD là một lộ trình tăng tốc kéo dài từ 3 đến 5 năm chứ không phải là mục tiêu trong một năm. Các khách hàng tiềm năng bao gồm các nhà bán lẻ chuỗi bán sỉ và thực phẩm cũng như các đối tác gia công sản xuất có thương hiệu.
• Kích thước đóng gói và định giá: JBSS đang đánh giá các sản phẩm, kích thước đóng gói, mức giá và các chương trình khuyến mại chọn lọc nhằm đáp ứng nhu cầu chú trọng đến giá trị đối với hạt và hỗn hợp hạt-trái cây khô.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

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.

Phần hỏi đáp

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.