Attached files
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8-K - FORM 8-K - SNYDER'S-LANCE, INC. | g26233e8vk.htm |
EX-99.3 - EX-99.3 - SNYDER'S-LANCE, INC. | g26233exv99w3.htm |
EX-99.2 - EX-99.2 - SNYDER'S-LANCE, INC. | g26233exv99w2.htm |
EX-99.1 - EX-99.1 - SNYDER'S-LANCE, INC. | g26233exv99w1.htm |
Exhibit 99.4
CONTACTS:
Mark Carter, VP Strategic Initiatives and Investor Relations (704) 557-8386
Joe Calabrese, Financial Relations Board (212) 827-3772
Mark Carter, VP Strategic Initiatives and Investor Relations (704) 557-8386
Joe Calabrese, Financial Relations Board (212) 827-3772
IMMEDIATE RELEASE
February 17, 2011
February 17, 2011
Snyders-Lance, Inc. Announces Conversion To
Independent Operator Direct Store Delivery (DSD) Network
Independent Operator Direct Store Delivery (DSD) Network
Charlotte, NC, February 17, 2011 Snyders-Lance, Inc. (Nasdaq-GS: LNCE) today announced a
plan to convert its company owned Direct Store Delivery (DSD) routes to an independent operator
(IO) structure over the next 12 to 18 months. The transition will occur on a market-by-market
basis and will create an integrated coast-to-coast distribution network that is better positioned
to serve customers with industry leading products such as Snyders of Hanover brand pretzels, Lance
brand sandwich crackers, and Cape Cod brand potato chips among many others. Currently,
approximately 45% of the routes are company owned routes and 55% are independent operator based
routes in the Snyders-Lance network.
David Singer, Chief Executive Officer, said, Migrating to a single model of distribution is a
critical component of our merger integration. After much diligence, we have concluded that an
independent operator based system is the most practical and efficient sales distribution system for
Snyders-Lance. This approach positions us to strengthen our sales relationships with our
customers which will result in accelerated growth. Consolidating our distribution networks and
migrating to an independent operator system is expected to also drive improved returns, as the IO
approach is less capital intensive than a company owned system. Carl E. Lee, Jr., President and
Chief Operating Officer, said, We are confident we will engineer a very successful transition over
the next 12 to 18 months based on the success we have had over the past several years with similar
conversions. While this is a significant conversion, it has been well received by our route
employees and we expect that it will be a positive for our customers as well. The new system is
expected to support even better service levels for customers and provide greater opportunities for
the independent route operators through larger drop sizes given the combined volume resulting from
the merger.
About Snyders-Lance, Inc.
Snyders-Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods
throughout the United States and internationally. The companys products include pretzels, sandwich
crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks.
Snyders-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana,
Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario, Canada. Products are sold under
the Snyders of Hanover, Lance, Krunchers!, Cape Cod, Jays, Grande, Toms, Archway, O-Ke-Doke, and
Stella Doro brand names along with a number of private label and third party brands. Products are
distributed widely through grocery and mass merchandisers, convenience stores, club stores, food
service outlets and other channels.
This news release contains statements which may be forward looking within the meaning of applicable
securities laws. The statements may include projections regarding future earnings and results
which are based upon the companys current expectations and assumptions, which are subject to a
number of risks and uncertainties. Factors that could cause actual results to differ include risks
and business disruption from merger integration and the conversion of our distribution to
independent operators, general economic conditions, increases in cost or availability of
ingredients, packaging, energy and employees, price competition and industry consolidation, risks
from large customers, ability to execute strategic initiatives, product recalls or safety concerns,
disruptions of our supply chain or information technology systems, changes in consumer preferences,
food industry and regulatory factors, and interest rate and foreign exchange rate risks, as well
as those that have been discussed in our most recent Form 10-K and subsequent Forms 10-Q and other reports filed with the Securities and Exchange
Commission.