News

National Brands Create Loss for Snyder's-Lance

May 17, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

 
 
Charlotte, N.C.-based snack producer Snyder's-Lance, Inc. reported less than 1 percent growth in its private label category in the first quarter of its current fiscal quarter compared with the same period a year ago. The limited growth is a result of pricing resistance and more aggressive promotions from national brands, which executives feel can be offset by introducing new products to the category.
 
The continued languishing of the company's private label brands has caused analysts to doubt whether private label has a future in the Snyder's-Lance portfolio. Snyder's-Lance executives, on the other hand, argue that the private label category “provides a buffer from time to time in terms of sales and helps cover costs,” and is thus an integral part of the company's portfolio.
 
“There has been promotional pressure from different categories, specifically the cookie category, for quite some time,” Dave Singer, CEO of Snyder's-Lance, Inc., said in a prepared statement. Consumer resistance to price increases in legacy products also poses as a challenge to further sales growth within the category.
 
“Our priority is to protect private brand margins, make trade offs as necessary and make trade offs on volume if it comes to that,” says Carl E. Lee, president and COO. The company also plans to address consumer resistance and pricing challenges by continuing innovations and introducing new products into the category. Some of these innovations, says Singer, are already in place.
 
Net earnings for the first quarter of fiscal 2011 elevated to $388 million from $222 million in the first quarter of the prior year. The 75 percent increase in revenues, executives say, was driven by the merger with Snyder's.
 
Sales for the quarter were also up 3.7 percent from the prior year. Private label goods accounted for 20 percent of those sales, bringing in a total of $300 million between fiscal 2010 and fiscal 2011.
 

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

November 2014 New Food Products

This month's new food products are Flours, crepes, lollipops, several candy items, pancakes, dip, fish, raisins, pizza, almond milk, peanut butter, and a breakfast bowl.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB November 2014 cover

November 2014

The November 2014 issue of Private Label Buyer - its last issue - includes articles about the retailer as manufacturer and OTC/healthcare items, as well as category insights on pizza and household goods. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px

PLB Marketplace