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[December 20, 2012]
Specialty Foods Group Inc. announces termination of relationship with Nathan's Famous Inc.
HAMPTON, VA, Dec. 20, 2012, 2012 (Canada NewsWire via COMTEX) -- Specialty Foods Group, Inc. ("SFG or the "Company") announced today that it has been notified by Nathan's Famous, Inc. ("Nathan's) that Nathan's will not be renewing its license agreement with SFG. The current agreement expires on March 1, 2014.
SFG has been, and will continue to, pursue new opportunities in order to replace the portion of the business currently dedicated to Nathan's branded products. However, absent SFG being able to replace the Nathan's business (which currently represents approximately 45% of SFG's annual revenues), the loss of the Nathan's license agreement would have a material adverse effect on the Company which could include significant costs associated with the restructuring of SFG's facilities and personnel, the extent of which are currently unknown.
SFG is also continuing its efforts to collect on a court ordered judgment requiring Nathan's to pay $4.9 million in damages, plus interest, to SFG stemming from the improper pricing of certain spices used in Nathan's products. That judgment has been appealed by Nathan's.
The results of such appeal are not yet known.
About the Company The Company is an independent U.S. producer and marketer of premium branded and private-label processed meat products. SFG sells a wide variety of products such as franks, hams, bacon, luncheon meats, and delicatessen meats. These products are sold to a diverse customer base in the retail (e.g., supermarkets) and foodservice (e.g., restaurants) sectors. SFG sells products under a number of leading national and regional brands, such as Nathan's, Field, Fischer's, Mickelberry's, Kentucky Legend and Scott Petersen as well as on a private-label basis.
This release contains, and remarks made by representatives of the Company in connection with this release, may contain forward-looking statements.
This news release contains certain forward-looking statements and information, which reflect the current view of SFG with respect to future events and financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. Any such forward-looking statements are based on SFG's current expectations, estimates, projections and assumptions made in light of its experience and perception of historical trends.
Any such forward-looking statements are subject to risks and uncertainties and SFG's actual results of operations could differ materially from historical results or current expectations. The risks that could cause actual results to differ from current expectations include: stability in the U.S. economy; stability in prevailing exchange rates; stability in the availability and pricing of raw materials, energy and supplies; the ability to implement price increases successfully; stability in the competitive environment; no future product recalls; the continued ability of the Company to access cost effective capital when needed; and no unexpected or unforeseen events occurring that would materially alter the Company's current plans. All of these assumptions have been derived from information currently available to the Company including information obtained by the Company from third-party sources. These assumptions may prove to be incorrect in whole or in part. In addition, actual results may differ materially from those expressed, implied or forecasted in such forward-looking statements, which reflect the Company's expectations only as of the date hereof.
Factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted by the forward-looking statements include risks associated with implementing and executing complex projects and plans; risks posed by food contamination, pandemics and product recalls; risks associated with the price of commodities and the inability of the Company to control commodity prices; risks associated with exchange rate fluctuations; risks associated with changing consumer tastes, preferences and buying patterns; and risks posed by competition.
Some of the forward-looking statements may be considered to be financial outlooks for purposes of securities legislation including, but not limited to, statements concerning future margins and capital expenditures. These financial outlooks are presented in order to provide measurable targets that the Company aims to achieve and for which the Company can use to benchmark its results. These financial outlooks may not be appropriate for other purposes and readers should not assume they will be achieved.
The Company does not intend to, and the Company disclaims any obligation to, update any forward-looking statements (including any financial outlooks), whether written or oral, or whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: Specialty Foods Group Inc.
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SOURCE: Specialty Foods Group Inc.
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