Snyder's-Lance and Inventure Foods have closed a distribution agreement that will expand the Snyder's-Lance IBO route distribution system in Arizona.
With this agreement,Snyder's-Lance will expand its Direct Store Delivery channel in the Southwestern US 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 over 3,000 routes.However,terms of the agreement have not been disclosed.
According to the agreement,Snyder's-Lance will assume several independent business operator(IBO)routes from Inventure in Arizona,which supports the Snyder's-Lance strategic growth plan of strengthening its national DSD distribution network.Simultaneously,Inventure will get access to the growing Snyder's-Lance distribution network with expanded opportunity as a key partner brand.
Due to this transaction,Inventure Foods will not distribute third party partner brands,which will result in a reduction of about$3m in net revenues.However,this lost revenue will have no impact to Inventure Foods earnings.