Snyder's-Lance Converts to New DSD Model

Snyder's-Lance Inc. announces a plan to convert its company-owned Direct Store Delivery (DSD) routes to an independent operator (IO) structure over the next 12 to 18 months. The transition will occur on a market-by-market basis and will create an integrated coast-to-coast distribution network that is better positioned to serve customers with industry leading products such as Snyder's of Hanover brand pretzels, Lance brand sandwich crackers, and Cape Cod brand potato chips among many others. Currently, approximately 45 percent of the routes are company owned routes and 55 percent are independent operator based routes in the Snyder's-Lance network.

 

David Singer, chief executive officer, says, "Migrating to a single model of distribution is a critical component of our merger integration. After much diligence, we have concluded that an independent operator-based system is the most practical and efficient sales distribution system for Snyder's-Lance. This approach positions us to strengthen our sales relationships with our customers which will result in accelerated growth. Consolidating our distribution networks and migrating to an independent operator system is expected to also drive improved returns, as the IO approach is less capital intensive than a company owned system."