Lance Inc.: to Purchase Stella D’Oro Brand

Charlotte / NC. (li) Lance Inc. announced that it has entered into an agreement with Stella D´Oro Biscuit Company Inc. to purchase the Stella D´Oro brand as well as certain manufacturing equipment and inventory. Lance will manufacture the Stella D´Oro products in its Ashland bakery (Ohio, U.S.). The Company plans to close on the purchase early in the fourth quarter.

Established in 1932, Stella D´Oro is a leading brand in the specialty cookie segment with a rich heritage and strong brand equity. Stella D´Oro products include shelf stable cookies, breakfast treats, breadsticks and biscotti that are sold in grocery stores and mass merchants throughout the United States, with a high concentration in the Northeast and Southeast regions of the country.

«We are excited about the opportunity to add the Stella D´Oro brand to our growing portfolio of niche snack food brands. We believe that the additional resources that can be provided under the Lance umbrella will help this iconic brand achieve renewed growth», said David V. Singer, President and Chief Executive Officer. «The Stella D´Oro brand will make us a more valuable partner with our customers and leverage our existing capabilities to support our trend of profitable growth».

Founded by an Italian immigrant in New York, Stella D´Oro was sold in 1992 to Nabisco and then to Kraft Foods. Brynwood Partners, a private equity firm based in Greenwich (Connecticut, U.S.), bought the Bronx-based bakery in 2006 – local newspapers report. In 2007/2008 workers spent ten months on strike after owners said they wanted to reduce wages and benefits to make the factory profitable. A federal judge found the company had improperly refused to bargain with the union and ordered the workers back. In July, about two weeks after inviting workers back, the company announced it would close the factory in October. The upshot is now that 135 unionized workers in New York loose their jobs.