Snyder's-Lance to Acquire Inventure's DSD IBO Operation in Arizona

Will expand network in S.W. U.S., increase route volumes with new partner brands

CHARLOTTE, N.C. & PHOENIX, Ariz. -- Snyder's-Lance Inc. and Inventure Foods Inc. have announced completion of a strategic distribution agreement that will expand the Snyder's-Lance independent business owner (IBO) route distribution system in Arizona and offer increased access by Inventure to the growing Snyder's-Lance national distribution network for its brands.

The strategic agreement provides an opportunity for both Snyder's-Lance and Inventure. In recent years, Snyder's-Lance has developed its direct-store delivery (DSD) network through a blend of selective acquisitions and organic growth. By entering into this agreement, Snyder's-Lance will expand its DSD network in the southwestern United States and increase route volumes with new partner brands while Inventure's specialty food brands will benefit from wider distribution of a national DSD network of more than 3,000 routes.

Terms of the agreement were not disclosed.

The agreement provides that Snyder's-Lance will ensure a number of IBO routes from Inventure in the Arizona area, which supports the Snyder's-Lance strategic plan to continue growing and strengthening its national DSD distribution network.

At the same time, Inventure will receive access to the growing Snyder's-Lance distribution network with expanded opportunity as a key partner brand.

"We're excited to continue the development of our DSD network through this distribution agreement with Inventure," said Carl E. Lee Jr, president and COO of Snyder's-Lance.

"These routes are in a strategically important location for our company and will help us to provide excellent service for key customers."

He added, "Moreover, Inventure product lines such as Boulder Canyon and Poore Brothers provide an opportunity for Snyder's-Lance to increase the scale and reach of our network, helping to grow route volumes across all brands while bringing the benefits of our DSD distribution system to both Inventure and our retail partners. Snyder's-Lance and Inventure have partnered together for approximately 15 years, distributing each company's products in their respective DSD networks. This new arrangement expands on an already successful relationship."

Terry McDaniel, president and CEO of Inventure Foods, said, "We look forward to the support that this strategic agreement will provide our growing and important Boulder Canyon brand throughout the country. This is a very important partnership for Inventure Foods, which further underscores our commitment to deliver our premium products to leading retailers, while leveraging the growing Snyder's-Lance DSD network of store level execution."

As a result of this transaction, Inventure Foods will no longer distribute third-party partner brands resulting in a reduction of approximate $3 million in net revenues. This lost revenue will have no impact to Inventure Foods earnings.

Phoenix, Ariz.-based Inventure is a marketer and manufacturer of specialty brands in better-for-you and indulgent categories under a variety of company-owned and licensed brand names, including Boulder Canyon Natural Foods, Jamba, Rader Farms, T.G.I. Friday's, Nathan's Famous, Poore Brothers, Tato Skins and Bob's Texas Style.

Snyder's-Lance, Charlotte, N.C., manufactures and markets snack foods throughout the United States and internationally. The company's products include pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. It sells products under the Snyder's of Hanover, Lance, Cape Cod, Krunchers!, Tom's, Archway, Jays, Stella D'oro, O-Ke-Doke and Grande brand names along with a number of private-label and third-party brands. It distributes products nationally through grocery and mass merchandisers, convenience stores, club stores, foodservice outlets and other channels.