Jackson’s Expands Muskego Plant to Meet Demand for Healthier Snacks

Marino:
Thank you, Andy. We at Jackson’s just completed a big expansion — our third and by far our largest to date.

We started building a new factory in 2020 that was completed in late 2021. That gave us a 50,000-square-foot production facility, four kettle chip lines, two high-speed bagging lines, with seasoners and scales, etc. That setup allowed us to relaunch a previous brand, known as Jackson’s Honest — now simply Jackson’s Food Company — with zero revenue in early January 2022.

About 15 months later, we realized we were nearly out of capacity. So we did a Phase 2 expansion, adding two more big lines that were twice the size of our initial four, effectively doubling capacity. At that point, we were running 24/5 operations focused exclusively on sweet potato kettle chips made in avocado oil.

We’re the only plant in the U.S. built specifically to make sweet potato chips. Sweet potatoes have always been popular in the French fry space, but not many companies were doing them as kettle chips. Our theory was that the demand was there — that consumers understood the value proposition of sweet potatoes — and of course, avocado oil has been a mega trend. That proved to be true.

Then we did another smaller expansion — what we called Phase 2.5 — which we completed at the end of 2024. From there, we rolled right into this current project, our biggest yet: a $27 million expansion.

This brings us to 130,000 square feet from our original 50,000. The new space is dedicated solely to production, and we’re also building an off-site warehouse to store finished products.

This expansion will be our last major construction project at this facility. Ultimately, it will house 10 fry lines. The first part includes three large kettle fryers for sweet potato and classic kettle chips, as well as a pellet fryer that lets us enter the extruded product category — that’s how we launched our Super Veggie Straws.

We’ve also added a new bagging platform with five additional baggers and seasoners, giving us the flexibility to produce both large- and small-bag products across three snacking platforms: sweet potato kettle chips, classic kettle chips and veggie straws.

Hanacek:
Would you say that flexibility in product mix drove this expansion, or was it primarily capacity-driven?

Marino:
It was ultimately driven by capacity, but having that flexibility to produce multiple snack platforms — and bring new innovations like our Super Veggie Straws — was a big part of the design.

Hanacek:
It sounds like Jackson’s feels optimistic about the future — otherwise, you wouldn’t take on an expansion of this size. What trends are driving snacks right now that make you feel confident?

Marino:
The biggest trend, without question, is crusade against seed oils and preference for avocado oil.

This ties directly back to our founders, Megan and Scott Reamer. Whether they realized it or not at the time, they were early crusaders against seed oils back in 2012. Their son, Jackson, had a rare autoimmune disorder, and they discovered that many traditional snack foods triggered inflammation.

They began making sweet potato kettle chips in their home kitchen using non-seed oils — literally using what constituted a mini kettle fryer. Friends loved them and encouraged the couple to commercialize the idea because snacks like that just didn’t exist on the market.

Fast forward to today — that seed oil awareness has exploded. Google searches for avocado oil have surged, and in the snack category, products made without seed oils are the ones growing. Those made with traditional seed oils are, generally speaking, in decline.

Hanacek:
That’s a good point — the “better-for-you” category covers a lot of ground. How do you think consumers define “better-for-you”?

Marino:
There are several segments. The two biggest are protein-based snacks, that deliver more protein, conversely at the expense of maybe having a lower carb count. There’s also a healthy fats segment, which is where Jackson’s fits, as well as a pure ingredients, real foods segment.

Younger consumers are snacking more, but they’re also much more mindful and educated about what they eat. Older consumers, meanwhile, are being influenced by GLP-1 drugs — they’re snacking less, but when they do, they’re eating more mindfully as well.

At the end of the day, both groups are looking for real ingredients and better fats — exactly what Jackson’s delivers: real food ingredients cooked in premium oils.

Hanacek:
Do you have to do much consumer education to explain why your products are better-for-you,” or are people already pretty aware?

Marino:
Surprisingly, we haven’t had to do much education at all. Snack foods are a high-impulse category, so just having “sweet potatoes cooked in avocado oil” on our packaging drove a lot of initial impulse trial.

From there, the quality of the product has spoken for itself — our repeat purchases are strong. I’ve been pleasantly surprised that consumers have not needed to be educated on our product to the degree that they have had to be on other trends.

Hanacek:
Consumer trends can seem contradictory — on one hand, people are snacking more and replacing meals; on the other hand, GLP-1 drugs are changing eating habits. How are you approaching that juxtaposition?

Marino:
We’ve been fortunate to have the right product at the right time. Mindful eating and better ingredients have always been part of who we are — we didn’t have to innovate to get here, other than to find adjacent categories where we can bring our core philosophies.

Our philosophy is simple: real food ingredients cooked in premium oils. Consumers appreciate that combination, and what we’ve found is that real food actually tastes better than heavily processed alternatives. You’re not sacrificing taste for health — you’re gaining both.

Hanacek:
What’s the next big challenge for Jackson’s to keep growing? You’ve just completed a major expansion, but what comes next?

Marino:
Our biggest challenge has been staying ahead of demand. Since launching in 2022, our sales have tripled year-over-year — 2023 was three times 2022, and 2024 was three times 2023. Eventually that will level off as we gain distribution, but for now, staying ahead on capacity is key.

Lead times for equipment and construction are much longer post-COVID, so we’ve had to make decisions earlier. Fortunately, our leadership team and board have been very proactive.

Now that we’ve established shelf space, our focus is on deepening relationships with existing retailers and expanding distribution. And, of course, continuing innovation — adding new flavors, SKUs and snack formats.

Earlier this year, we launched classic kettle chips and our Super Veggie Straws, which hit the market around July 1. Both have a lot of runway ahead.

Hanacek:
Is there still room for disruption in the salty snacks world — and are these new products part of that effort?

Marino:
There certainly is. We’re careful not to spread ourselves too thin across too many snack platforms, but we see plenty of opportunities in adjacent categories.

Classic kettle chips are a massive, competitive category — but an easy extension for us since our facility was already built for sweet potato processing.

Beyond that, we’re looking at where avocado oil and non-seed-oil products are still hard to find — crackers, pita chips and other adjacent spaces. There’s no shortage of possibilities. The key is staying focused, making sure we have the right capabilities, capital and space before we move into each new area.

Editor's Note: This summarized transcript was compiled using an AI program, then proofed and edited by a human staff member.