Snyder’s-Lance to restructure as it completes $430m private brand divesture
![Snyder's-Lance hopes to make annual cost savings of between $22-25m through its new plan](/var/wrbm_gb_food_pharma/storage/images/_aliases/wrbm_small/publications/food-beverage-nutrition/bakeryandsnacks.com/article/2014/07/01/snyder-s-lance-restructuring-plan-after-430m-private-brand-divesture/3381203-2-eng-GB/Snyder-s-Lance-restructuring-plan-after-430m-private-brand-divesture.png)
The snack giant sold off its private brands business along with two manufacturing plants in the US and Canada in a $430m deal, initially announced on May 7, 2014. At the same time, the company also purchased Wisconsin-based Baptista’s Bakery – a co-manufacturing specialist that already made some Snyder’s-Lance products including its fast-growing Snack Factory Pretzel Crisps brand.
Snyder’s-Lance said its margin improvement and restructuring program should offset costs created by the sale of its private brands – totting up annual cost reductions of between $22-25m.
It was estimated the total impact of its private business sell-off and Baptista’s buy would cause an annualized reduction in net revenue of around $250m.
“The plan is designed to scale the company’s operations appropriately with focus on branded products as well as the DSD and direct sales networks… Savings are expected to come from a combination of operational initiatives and headcount reductions,” the company said.
“…This is a major initiative for the company to ensure its cost base is managed aggressively.”
Snyder’s-Lance would announce more details in its Q2 2014 earnings call in August, it said.