leading innovating growing · dear fellow stockholders, it is a privilege to report on...

Corporate Information

Notice of Annual Meeting

The Annual Meeting of Stockholders will be held at 9:00 a.m. local time on May 6, 2014, at The Ballantyne Hotel & Lodge, 10000 Ballantyne Commons Parkway, Charlotte, North Carolina 28277. Notice of the meeting and a form of proxy are being mailed to the stockholders. The Board of Directors would appreciate prompt return of proxies. Proxies may be revoked at any time before they are exercised and will not be used if stockholders attend the meeting and vote in person.

Form 10-K Available

A copy of the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, may be obtained by writing to:

Snyder’s-Lance, Inc. Attn: Secretary P.O. Box 32368 Charlotte, North Carolina 28232

Transfer Agent for Common Stock

Computershare Investor Services, LLC P.O. Box 43078 Providence, RI 02940-3078 Direct Dial: (866) 499-2532 Fax: (781) 575-3605 www.computershare.com

Dividend Reinvestment Service

This service is established for all Snyder’s-Lance, Inc. com-mon stockholders, regardless of the size of their holdings. For further information contact:


For Further Information:

Snyder’s-Lance, Inc. Attn: Investor Relations P.O. Box 32368 Charlotte, North Carolina 28232 Phone: (704) 554-1421 Fax: (704) 557-8205 www.snyderslance.com

This 2013 Annual Report, when delivered to stockholders in connec-

tion with the 2014 Annual Meeting of Stockholders, contains in its

back pocket Snyder’s-Lance, Inc.’s Annual Report on Form 10-K for the

year ended December 28, 2013, filed with the Securities and Exchange

Commission, along with the Notice of Annual Meeting of Stockholders

to be held on May 6, 2014 and related Proxy Statement.

Snyder’s-Lance, Inc.13024 Ballantyne Corporate Place

Suite 900 Charlotte, NC 28277

Phone: 704.554.1421Fax: 704.557.8205

www.snyderslance.com

2013 Annual Report

Leading

Innovating

Growing

Cautionary Information about Forward Looking Statements This report contains statements which may be forward looking within the meaning of applicable securities laws. The statements include projections regarding future revenues, earnings and other results which are based upon the Company’s current expectations and assumptions, which are subject to a number of risks and uncertain-ties. Factors that could cause actual results to differ include general economic condi-tions; volatility in the price or availability of inputs, including raw materials, packag-ing, energy and labor; price competition and industry consolidation; changes in our top retail customer relationships; failure to successfully integrate acquisitions; loss of key personnel; failure to execute and accomplish our strategy; concerns with the safety and quality of certain food products or ingredients; adulterated, misbranded or mislabeled products or product recalls; disruption of our supply chain or information technology systems; improper use of social media; changes in consumer preferences and tastes or inability to innovate or market our products effectively; reliance on dis-tribution through a significant number of independent business owners; protection of our trademarks and other intellectual property rights; impairment in the carrying value of goodwill or other intangible assets; new regulations or legislation; interest and foreign currency exchange rate volatility and the interests of a few individuals who control a significant portion of our outstanding shares of common stock may conflict with those of other stockholders, which have been discussed in greater detail in our most recent Form 10-K and other reports filed with the Securities and Exchange Commission.

The trademarks, trade names, trade dress and other material contained in this Annual Report are the property of Snyder’s-Lance, Inc. and its subsidiaries. Copyright, 2014. All rights reserved.

Dear Fellow Stockholders,

It is a privilege to report on Snyder’s-Lance, Inc.’s operating results for 2013. It was

a solid year for your Company as we grew both revenues and earnings to record levels as

we continued to execute our strategic plan. More importantly, we invested heavily in our

brands, facilities and people, positioning your Company to excel in the highly competitive

snack food market. We are very optimistic about the future as our entire team works

day in and day out to build our brands and capabilities and

improve execution.

Before discussing our outlook, I would like to first

comment on our 2013 results and the progress we continue

to make.

• Excellent results were recorded for both revenues and

earnings. Consolidated revenues increased 9% in 2013,

continuing the growth momentum of recent years.

This included 5% organic growth for our “core” brands of Snyder’s of Hanover®,

Lance®, Cape Cod® and Snack Factory® Pretzel Crisps®. This strong revenue perfor-

mance drove an increase of 22% in earnings per share for the year.

• The integration of Snack Factory® was completed in 2013. This acquisition and the

performance of Pretzel Crisps® are meeting our expectations and gives

your Company a solid foothold in the deli section of grocery stores and

other retail outlets.

• We invested in our Direct-Store-Delivery (DSD) system of independent

business owners (IBOs), providing them with better tools and support

to help them build their independent businesses. Our highly effective

DSD network of more than 3,000 sales routes is national in scope

and is at the center of our branded growth strategy.

• Our Snyder’s of Hanover® pretzels and Lance® sandwich

crackers are the market leaders in their respective categories and

Cape Cod® Potato Chips is one of the nation’s leading kettle-

cooked potato chip brands.

Letter to Stockholders

• We continued to invest heavily in product advertising and are excited

with the results we saw in 2013. A large portion of the major markets

in the U.S. were covered by television advertising for Snyder’s of

Hanover® pretzels. We will also be partnering with ESPN’s Mike

and Mike Show as well as the X-Games to expand our advertising

reach in 2014.

• Consumers are increasingly advocating more “better-for-you”

snacks and we are pleased with what we have seen so far from our

gluten-free pretzel line. Our reduced-fat Cape Cod® selections continue to grow. We

also have continued to expand our selection of whole-grain Lance® sandwich

crackers. We are pleased with our ability to lead change and address consumers’

expectations in this area while making sure we take care of our portfolio of

great brands.

• We added talented new associates in our innovation process to ensure the steady

development of great tasting new products. Innovation was further enhanced by the

opening of a new research and development center in Hanover, Pennsylvania.

• Commitment to sustainability and community involvement

remains strong. Our history and values drive a deep engage-

ment with community efforts fighting hunger and supporting

education. We also operate a 3.5 megawatt solar facility which

provides much of the electrical needs of our new R & D center

and other operations in Hanover.

Clearly, 2013 was a very busy year for your Company.

Looking ahead, we will focus the majority of our investment on our

“core” brands. Product innovation will be a key component of our

growth strategy for this group of brands in 2014 as we introduce a

number of exciting and innovative products. These include Sweet & Salty pretzel

pieces, Korn Krunchers™, pretzel Spoonz™ (which are great for dipping), as well as a “Bold”

Our “core” brands lead their respective categories as the number 1 or 2 best selling brands.

Snyder’s-Lance operates a 3.5 megawatt solar energy facility in Hanover PA.

line of spicy sandwich crackers for younger consumers plus

exciting new flavors for our Cape Cod® brand and Snack Factory®

Pretzel Crisps®.

Our branded portfolio also includes a selection of brands that

are more regional in their appeal which we refer to as our “Allied” brands.

These brands occupy an important place in our portfolio and we will

continue making marketing investments to support their growth.

Private Brands is also an important contributor to our success. These products

are an excellent value proposition for many of our top customers and we have excellent

capabilities in this area, providing both customers and consumers with high-quality,

low-cost alternatives to many of the national brands.

We will continue to invest in our facilities so that we drive down costs and lever-

age growth opportunities to maintain the earnings momentum our stockholders expect.

Going forward, I am confident that we will be able to leverage innovation,

leadership and growth to power the success of Snyder’s-Lance for many years to come.

Your Company has a great board of directors, a talented management team, well-known

brands, excellent products and associates dedicated to our success. We have an outstand-

ing team and I would like to extend my thanks for their efforts in 2013. I take great comfort

in the level of commitment our team demonstrates each day and believe together we will

accomplish great things in the coming years.

As always, I would like to thank our customers, consumers, suppliers, associates

and all who contribute to our success for their continuing support.

Sincerely,

Carl E. Lee, Jr.

President and Chief Executive Officer

Financial data in thousands, except per share amounts and percentages 2013 2012 2011

Operations For The Year:

Net revenue $ 1,761,049 $ 1,618,634 $ 1,635,036

Income before interest and income taxes 138,967 109,140 70,405

Net Income attributable to Snyder’s-Lance, Inc. 78,720 59,085 38,258

Net cash provided by operating activities 140,736 92,768 111,528

Depreciation and amortization 59,631 53,764 55,337

Capital expenditures 74,579 80,304 57,726

Return on equity 8.6% 6.8% 4.6%

Debt to equity 54.2% 61.3% 30.8%

Per Share of Common Stock:

Net income (per diluted shares outstanding) $ 1.12 $ 0.85 $ 0.56

Cash dividends 0.64 0.64 0.64

Shares used in computing diluted

earnings per share amounts (in millions) 70.2 69.2 68.5

2011 results were impacted by costs related to the merger of equals between Lance, Inc. and Snyder’s of Hanover, Inc.

Financial Highlights

$100

$155

$210

$265

100

155

210

265

Snyder’s-Lance Russell 2000 Peer Group

12/2008 12/2009 12/2010 12/2011 12/2012 12/2013

The peer group consists of Campbell Soup Co., ConAgra Foods, Inc., Flowers Foods, Inc. General

Mills, Inc., Golden Enterprises, Inc., J & J Snack Foods Corp., Kellogg Co., Mondelez International,

Inc., The Hillshire Brands Company, The Hain Celestial Group, Inc. and the J.M Smucker Company.

12/2008 12/2009 12/2010 12/2011 12/2012 12/2013

Snyder’s-Lance 100.0 123.32 133.62 132.07 142.82 178.26

Russell 2000 100.0 135.01 168.97 161.92 184.62 261.01

Peer Group 100.0 120.99 134.69 155.72 162.20 210.67

Stockholder PerformanceThis graph and table compare the yearly percentage change in the cumulative total stockholder return on the

Company’s common stock against the cumulative total stockholder return of the Russell 2000 Index and a group of the

Company’s peers for the five-year period commencing on the last trading day of the Company’s fiscal year 2008 and

ending on the Company’s last trading day of 2013. The graph and table assume $100 was invested in the Company’s

common stock on December 27, 2008, in the Russell 2000 Index and in a portfolio of companies in the peer group. The

value in each consecutive year includes share price appreciation and assumes that dividends paid were reinvested.

Performance

0.0

0.5

1.0

1.5

2.01,761

1,6181,635

$1,761$1,619$1,635

2011 2012* 2013

Net Revenue$ Millions

0

30

60

90

120

150

$139

$109

$70

2011 2012 2013

Earnings Before Interest and Income Taxes

$ Millions

0

50

100

150

200

$199

$163

$126

2011 2012 2013

Earnings Before Interest, Income Taxes, Deprecia-tion and Amortization

$ Millions

0

10

20

30

40

50

60

70

80

$79

$59

$38

2011 2012 2013

Net Income$ Millions

0.0

0.2

0.4

0.6

0.8

1.0

1.2

$1.12

$0.85

$0.56

2011 2012 2013

Diluted Earnings Per Share

0

30

60

90

120

150

$141

$93

$112

2011 2012 2013

Cash Provided by Operating Activities

$ Millions

0

2

4

6

8

10

8.6%

6.8%

4.6%

2011 2012 2013

Return on EquityIn Percent

0

10

20

30

40

50

60

70

80

54%

61%

31%

2011 2012* 2013

Debt to EquityIn Percent

*IBO Conversion

*Snack Factory Acquisition

Company Profile

$1.8BTotal Revenues

Sandwich cracker and pretzel brands in the nation

3,000+

100 The Snyder’s of Hanover® and Lance® brands have been providing great-tasting snacks for over 100 years

We go to market through DSD and direct distribution

Hyannis, MA

Guelph, ON

Ashland, OH

Jeffersonville, IN

Burlington, IA

Charlotte, NC

Columbus, GA

Perry, FL

Goodyear, AZ

Manufacturing Centers

Hanover, PA

Core Brands

Allied Brands

Snyder’s-Lance operates 10 manufacturing centers

IBO Sales RoutesNo. 1

Associates dedicated to our success

10

5,700

Product innovation is central

to the Snyder’s-Lance growth

strategy. We recently opened a

new research and development

center in Hanover, PA where

we are developing great new

products for the future. Look

for these and other exciting

new snacks in stores near you

in 2014 as we work to reinvent

your snack experience.

Reinventing Your Snack Experience!

D i r e c t o r s

Michael A Warehime, 73, Chairman of the Board of Directors of the Company since December, 2010; former Chairman of the Board of Snyder’s of Hanover, Inc. (salty snack manu-facturer and distributor)

Wilbur J. Prezzano, 73, Lead Independent Director of the Company; former Chairman of the Board of Lance, Inc.; retired Vice Chairman of the Board of Eastman Kodak, Inc. (imaging)

Jeffrey A. Atkins, 65, Director of the Company; retired Executive Vice President and Chief Financial Officer, ACH Food Companies, Inc. (food manufacturer, distributor and marketer)

Peter P. Brubaker, 67, Director of the Company; President of Hammer Creek Enterprises, LLC, (private investments and financial advisory firm)

C. Peter Carlucci, Jr., 70, Director of the Company; Member of Eckert Seamans Cherin & Mellott, LLC (law firm)

John E. Denton, 70, Director of the Company; former Chief Executive Officer of Snyder’s of Hanover, Inc. (salty snack manufacturer and distributor); former Chief Executive Officer of New World Pasta, Inc. (pasta manufacturer)

James W. Johnston, 68, Director of the Company; President and Chief Executive Officer of Stonemarker Enterprises, Inc., (consulting and investment company) Carl E. Lee, Jr., 54, Director of the Company; President and Chief Executive Officer of the Company; former Chief Executive Officer of Snyder’s of Hanover, Inc.

Dan C. Swander, 70, Director of the Company; Operating Partner of Swander Pace Capital (equity investment firm)

Isaiah Tidwell, 69, Director of the Company; private investor; retired Georgia Wealth Management Director and Executive Vice President of Wachovia Bank, N.A.

Patricia A. Warehime, 59, Director of the Company; member of Board of Directors of Capital Blue Cross (insurance company)

E x e c u t i v e O f f i c e r s

Carl E. Lee, Jr., President and Chief Executive Officer

Rick D. Puckett, Executive Vice President, Chief Financial Officer and Treasurer

Kevin A. Henry, Senior Vice President and Chief Human Resources Officer

Charles E. Good, President, S-L Distribution Co., Inc. and Senior Vice President of Snyder’s-Lance, Inc.

Margaret E. Wicklund, Vice President, Corporate Controller, Principal Accounting Officer and Assistant Secretary

O f f i c e r s

Patrick S. McInerney, Senior Vice President, Supply Chain

Daniel J. Morgan, Senior Vice President, Sales East

Claude B. O’Connor, Senior Vice President, Direct Sales

Rodrigo F. Troni Pena, Senior Vice President, Chief Marketing Officer

Nikhil R. Sawant, Senior Vice President, Chief Information Officer

Frank B. Schuster, Senior Vice President, Sales West

A. Zachary Smith III, Chief General Counsel, Secretary

Officers and Directors




Form 10-K Available



















Form 10-K Available
















Snyder’s-Lance, Inc.13024 Ballantyne Corporate Place

Suite 900 Charlotte, NC 28277

Phone: 704.554.1421Fax: 704.557.8205

www.snyderslance.com

2013 Annual Report

Leading

Innovating

Growing

leading innovating growing · dear fellow stockholders, it is a privilege to report on...

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