CHARLOTTE, NC - Snyder's-Lance is getting a makeover this summer that could involve job cuts and changes in the company's operations. This move comes on the heels of Snyder's-Lance's recent $195 million buyout of Baptista’s Bakery and its “better for you” product line as it moves to refine its focus on the growth of its branded products.
“This is an important step forward for Snyder’s-Lance as we dedicate our attention to our branded portfolio,” said Carl E. Lee, Jr., Snyder's-Lance's President and Chief Executive Officer.
In order to offset the costs remaining after the sale of its Private Brands, Snyder's-Lance is launching its Margin Improvement & Restructuring Plan.
“This is a major initiative for the company to ensure its cost base is managed aggressively,” Snyder's said, according to the Ledger-Enquirer.
Over the past 24 months, Snyder's-Lance has increased its operating margin run rate by 140 basis points. Starting in the year's 3rd fiscal quarter and continuing over the next 12 months, it expects annualized cost reductions from operational initiatives and headcount reductions to be roughly $22-$25 million, reported the Evening Sun.
Taken together the moves are expected to reduce annualized net revenue by approximately $250 million, according to The Evening Sun Business.
Snyder's-Lance's overall strategy is to become a differentiated branded company with a focus on the market trends and demand of consumers. In order to do this, Snyder's felt that they needed to shift resources away from supporting their private brands and direct them towards growth categories such as its newly acquired “better for you” line and its premium snacks.
According to The Evening Sun, Snyder's' brands enjoy the support of one of the largest Direct Store Delivery networks in America complemented by a growing Direct Sales Force which focuses on “high traffic perimeter locations” in retail stores.
Snyder's-Lance has said they will release more information about their plans early this August.
To read more about Snyder's-Lance's acquistion of Baptista's Bakery you can read our earlier story on the subject here.
