Snyder’s-Lance Begins Performance Transformation Plan
CHARLOTTE, N.C., July 25, 2017 (GLOBE NEWSWIRE) -- Snyder’s-Lance, Inc. (Nasdaq:LNCE) announced today it has launched a broad-based performance transformation plan, intended to substantially streamline the Company’s processes and structure, drive out costs and complexity, and enhance long-term shareholder value.
As part of this transformation plan, the Company has implemented the following initial steps:
- To better respond to the needs of its customers, the Company has announced plans to restructure its sales organization enabling greater alignment of the Company’s people, resources and strategies with those of its Customers. In connection with the restructure, the Company is announcing the appointment of John Maples as Chief Customer Officer, effective immediately. Mr. Maples joined Snyder’s-Lance in 2015 and most recently served as President, Direct Sales Division. Mr. Maples has played a central role in the growth and development of the Company’s Club, Dollar, Food Service, Discount and center-store Grocery channels. Mr. Maples has an extensive consumer background with over 25 years of CPG experience to include executive roles at ConAgra, Primo Water, and PepsiCo. In addition, and as part of the re-organization, Frank Schuster, currently President, DSD Division, has been appointed to President, Sales Execution reporting to Mr. Maples, and will continue to lead the Company’s national distribution network and in-store execution.
- In an effort to optimize the Company’s global manufacturing network, the Company is announcing the closure of its chips plant in Perry, Florida. The plant is expected to close by the end of September 2017. This decision is intended to enable the Company to more effectively utilize the capacity of its remaining chips plants and re-allocate resources to support the Company’s growth objectives.
- An important element of the Company’s transformation plan is to optimize workforce alignment with more streamlined processes and a new organization design that will be implemented across the Company. As a result, the Company will reduce its global workforce by approximately 250 positions. The reductions will occur across the organization and will be effective by the end of this week.
Commenting on the Company’s workforce reduction and plant closure, “This has been a very difficult decision for our organization and we sincerely appreciate how difficult this is for our impacted team members and their families. However, this is a required first step to improve our financial performance, balancing costs and expected levels of profitability in a very competitive environment,” said Brian Driscoll, President and Chief Executive Officer of Snyder’s-Lance. “These actions are in-line with our previously communicated intentions to initiate a broad-based strategic plan to optimize our cost structure. We will provide a comprehensive overview of the multi-year transformation plan when we report our second quarter financial results on August 8th.”
About Snyder’s-Lance, Inc.
Snyder's-Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout the United States and internationally. Snyder's-Lance's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant style crackers, popcorn, nuts and other snacks. Products are sold under the Snyder's of Hanover®, Lance®, Kettle Brand®, KETTLE® Chips, Cape Cod®, Snack Factory® Pretzel Crisps®, Pop Secret®, Emerald®, Late July®, Krunchers! ®, Tom's®, Archway®, Jays®, Stella D'oro®, Eatsmart Snacks™, O-Ke-Doke®, Metcalfe’s skinny®, and other brand names along with a number of third party brands. Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. For more information, visit the Company's corporate web site: www.snyderslance.com. LNCE-E
Cautionary Information about Forward Looking Statements
In this press release, we make statements which may be forward-looking within the meaning of applicable securities laws, which represent our current judgment about possible future events. The statements include projections regarding future revenues, earnings and other results. In making these statements we rely on current expectations, assumptions and analyses based on our experience and perception of historical trends, current conditions and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors, both positive and negative. These factors include among others: changes in general economic conditions; price or availability of raw materials, packaging, energy and labor; food industry competition; changes in top customer relationships; consolidation of the retail environment; decision by British voters to exit the European Union; failure to realize anticipated benefits of acquisitions and divestitures; loss of key personnel; failure to execute strategic initiatives; safety and quality of food products; adulterated or misbranded products; disruption of our supply chain or information technology systems; improper use or misuse of social media; ability to anticipate changes in consumer preferences and trends; distribution through independent operators; protection of trademarks and intellectual property; impairment in the carrying value of goodwill or other intangible assets; new regulations or legislation; interest and foreign currency exchange rate volatility; concentration of capital stock ownership; increasing legal complexity and potential litigation; failure to realize the expected benefits from the acquisition of Diamond Foods; the inability to successfully execute international expansion strategies; additional risks from foreign operations; our substantial debt; and the restrictions and limitations on our business operations in the agreements and instruments governing our debt.
Our most recent report on Form 10-K and our other reports filed with the U.S. Securities and Exchange Commission provide information about these and other factors, which we may revise or supplement in future reports. We caution readers not to place undue reliance on forward-looking statements. We do not undertake to update any forward-looking statements that it may make except as required by applicable law. All subsequent written and forward-looking statements attributed to Snyder’s-Lance or any person acting on its behalf are expressly qualified in their entirety by the factors referenced above.
Investor Contact Kevin Powers, Senior Director, Investor Relations kpowers@snyderslance.com, (704) 557-8279 Media Contact Joey Shevlin, Director, Corporate Communications & Public Affairs JShevlin@snyderslance.com, (704) 557-8850
