About Snyder's-Lance, Inc.

If you're familiar with the munchies named Toastchee, Nip Chee, and Captain's Wafers, Snyder's-Lance (formerly Lance) has undoubtedly helped you satisfy a snack attack. The company produces single-serve, multi-pack, and family-sized packages of bakery products and sweet and savory snack foods, including cookies, crackers, nuts, potato chips, and pretzels. Its snacks are sold under the Lance, Cape Cod, Tom's, Archway, and Snyder's brands at food retailers, mass merchants, and convenience and club stores in the US. International brands include Kettle Chips and Metcalfe's popcorn. The company also makes private-label and branded snacks for food makers. Snyder's-Lance agreed to its acquisition by The Campbell Soup company in 2017 in a $4.9 billion deal.

Change in Company Type

In late 2017 Snyder's-Lance agreed to its acquisition by The Campbell Soup Company, which is looking to boost its snack foods division. The deal is expected to close for around $4.9 billion.

Operations

Synder's-Lance manufactures pretzels, sandwich crackers, kettle cooked chips, pretzel crackers, cookies, potato chips, tortilla chips, restaurant style crackers, popcorn, nuts and other salty snacks. It generates around 80% of its sales from its owned branded products, with the remainder coming from third-party branded products and other branded products.

The company has R&D facilities in Hanover, Pennsylvania, and Salem, Oregon.

Geographic Reach

Based in North Carolina, Snyder's-Lance operates manufacturing facilities in the US in California, North Carolina, Oregon, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio, and Wisconsin as well as in the UK.

Sales and Marketing

The snack food giant sells its products to mass merchandisers, club stores, discount stores, convenience stores, foodservice operators, and other retailers the likes of drug stores, the military, schools, and government facilities. Wal-Mart, its largest customer, represents nearly 15% of the company's revenues.

The company distributes snack food products nationwide using a large direct-store-delivery (DSD) network consisting of some 3,000 distribution routes served mostly by Independent Business Owners (IBOs) and others that are company-owned.

Financial Performance

After a few years of sluggish growth, in fiscal 2016 Snyder's-Lance's sales jumped 27% to $2.1 billion thanks to the acquisitions of Diamond Foods in February and Metcalfe in September of that year. The company also grew its core business, particularly its Lance sandwich crackers, Snack Factory pretzel crisps, Cape Cod chips, and the Late July brand.

Net income fell $35.2 million to $14.9 million due to acquisition expenses, higher advertising spend, and impairment charges relating to changes in manufacturing operations.

Cash from operations increased 79% to $261.2 million due to lower income tax as the company used net operating losses acquired in the Diamond Foods transaction to offset taxes payable.

Strategy

Snyder's-Lance seeking revenue growth abroad through acquisitions. In 2016 it acquired Diamond Foods, which does a roaring trade for its Kettle Chips brand in the UK as well as the US; and Metcalfe, which makes the UK's best-selling upmarket ready-to-eat popcorn. The two acquisitions also play into Snyder's-Lance's strategy of growing its "better-for-you" product segment.

Mergers and Acquisitions

In early 2016 the company acquired Diamond Foods, makers of Diamond and Emerald nuts, for about $1.3 billion. The move added snack brands as well as UK and US distribution might to Synder's-Lance. Later in 2016, to maintain focus on its core products, the company sold its Diamond of California culinary nut business to private equity firm Blue Road Capital. Diamond of California had been one of four Diamond Foods brands at the time of Snyder's-Lance's acquisition.

Also in 2016 it acquired all of Metcalfe's Skinny Limited (it previously owned a 26% stake), the maker of the UK's leading upmarket popcorn brand, as well as a range of corn and rice cake products.

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Snyder's-Lance, Inc.

13515 Ballantyne Corporate Pl
Charlotte, NC 28277-2706
Phone: 1 (704) 554-1421
Fax: 1 (704) 556-5638

Stats

  • Employer Type: Public
  • President, CEO, and Director: Brian J. Driscoll
  • Chairman: James W. Johnston
  • EVP and CFO: Alexander W. Pease
  • Employees: 5,900

Major Office Locations

  • Charlotte, NC

Other Locations

  • Hoover, AL
  • Phoenix, AZ
  • Orange, CT
  • Fort Myers, FL
  • Orlando, FL
  • Columbus, GA
  • Skokie, IL
  • Lexington, KY
  • Saint Rose, LA
  • Ashland, OH
  • Grove City, OH
  • Hanover, PA
  • Rostraver Township, PA
  • Columbia, SC
  • Johnson City, TN
  • San Antonio, TX
  • Lorton, VA
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