Milling & Baking News Corporate Profiles - November 2013 - (Page 124)

Company Overview Snyder's-Lance, Inc. Company continues to realize benefits from merger S nyder's-Lance, Inc., Charlotte, N.C., successfully integrated the Snack Factory Pretzel Crisps business into its corporate family in the latest year and launched an aggressive marketing campaign that has led to increased market share for its other key branded products. Carl E. Lee Jr., who succeeded David V. Singer as the company's chief executive officer in May 2013, pointed to the economies of scale that resulted from the merger of Snyder's of Hanover, Hanover, Pa., and Lance, Inc., Charlotte, in 2010 for making possible the strategic acquisition of Snack Factory and the enhanced marketing efforts. Snyder's-Lance acquired Snack Factory in October 2012. Snack Factory's Pretzel Crisps are thin, flat pretzel crackers that may be eaten alone as a snack or used as a base for dips, spreads and other toppings. Pretzel Crisps won broad consumer acceptance and achieved strong growth while expanding the pretzel category. This attracted the attention of Snyder's-Lance, which saw the acquisition of Pretzel Crisps as a strategic addition to its product line. Mr. Lee said Snyder's-Lance was pleased with the acquisition. He said attention now was on promoting the company's current brands and new products that extend those brands. "Having said that, we're always open to considering a very strategic new opportunity, and one that would bring some of the same benefits that we saw with Snack Factory," Mr. Lee said. But he said Snyder's-Lance would be very careful in considering further acquisitions. "The appetite is there, but we're going to very cautious and careful as to what Mr. Lee pointed out Snyder's-Lance has increased its investment in marketing and advertising to build brand awareness and drive sales. The company increased its advertising spending to launch a new television advertising campaign for Snyder's of Hanover pretzels and also increased social media promotional activities for the 100-year anniversary of the Lance brand. "We've got some great brands, but we have never been able to invest at the levels we're investing at right now," Mr. Lee said. "One of the benefits of bringing these two great companies (Lance and Snyder's of Hanover) together is we have the scale to be able to continue to build our very strong core brands." In commenting on the company's second-quarter and first-half fiscal 2013 results (the quarter and half ended June Chief executive officer - Top brands - 2012 net revenue - Carl Lee Jr. 124 \ November 2013 30), Mr. Lee said, "Our plan of emphasizing our core brands of Snyder's of Hanover, Lance, Cape Cod and Snack Factory Pretzel Crisps, is proving to be a solid path forward for creating shareholder value. And we're finding more and more ways to connect with the needs of our consumers with our traditional snacks. Our gluten-free pretzels, our reducedfat Cape Cod, our whole grain sandwich crackers are just a few examples, and they all are performing quite well." Mr. Lee said during the first half of fiscal 2013, Snyder's-Lance combined production from two Canadian private brand plants into one plant and upgraded its kettle potato chip operation to expand capacity and enhance quality. The company also opened a new research-and-development center in Hanover. Net income during the first half of 2013 was $32,822,000, equal to 47c per share on the common stock, down from $33,539,000, or 49c per share, in the same period a year ago. Excluding special items, net income for the first six months of fiscal 2013 was $36,746,000, which compared with $26,440,000 in the same period a year ago. Net revenues for the first half of fiscal 2013 totaled $857,623,000, up 8% from $792,243,000 in January-June 2013. CP $1.6 billion Snyder's of Hanover Lance Cape Cod Tom's Archway Jay's Stella D'oro Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013