THOMASVILLE, Ga., March 10 /PRNewswire-FirstCall/ -- At a meeting in New
York today, executives of Flowers Foods (NYSE: FLO) outlined the company's
growth strategies and reiterated previous guidance for fiscal 2004 of an
estimated $1.45 billion to $1.5 billion in sales and income of 3.75% to 4% of
sales.
George E. Deese, president and chief executive officer, said the company
expects to grow organically and through acquisition. New products and
expansion of the territory served by the company's direct-store-delivery
routes (DSD) were cited as part of the plan for internal growth.
Organic Growth
"We expect to extend our DSD territory by 100 to 150 miles over the next
three to five years, giving us access to an additional 48 million to 50
million in population. We'll need to build a new strategically located bakery
about every 18 months as we extend our market reach. The first of these
bakeries, already underway in Denton, Texas, is expected to begin production
this summer. In 2003, we entered new markets that gave us access through our
fresh DSD routes to an additional three million in population. This year, we
expect to add new markets that will let us reach an additional two million in
population."
Potential Acquisitions
While acquisitions of all sizes will be considered, the company is
targeting fresh bakery companies with sales ranging from $10 million to $100
million as well as frozen bread and roll and snack cake companies with sales
of $10 million to $35 million as part of its growth plan. "We are constantly
reviewing potential acquisitions," Deese said. "We look for both an
operational and financial fit that will enhance our ability to build
shareholder value over time."
New Products
Introduced in February 2003, Nature's Own Wheat 'n Fiber bread for carb-
conscious consumers, was the first product of its kind available from a
commercial baker and is the most successful new product introduction in
Flowers' history.
This year, the company expects to introduce additional new products for
individuals seeking reduced carbohydrate foods. At the meeting, the company
announced it will introduce Nature's Own Wheat 'n Soy in late March as part of
Nature's Own Healthline, a product line developed for specific health and
dietary needs of consumers. Other new Healthline products are planned for
later in the year.
Operating Strategies
Deese and his executive team outlined Flowers' long-term strategies that
have resulted in competitive advantages for the company. Those strategies
include investing in bakeries, technology, distribution systems, and people;
developing brands and products that meet consumers' needs; focusing on meeting
customers' needs and providing the very best service; innovating to further
improve products, bakeries, information systems, and the company's business
model; growing organically as well as through acquisitions; and developing an
atmosphere that builds teamwork and esprit de corps within the company.
"Our executive management team has a combined 200 years experience with
Flowers," Deese said, "and the top 84 positions in our company are held by
individuals who have an average of 25 years with the company and are an
average age of 48. We know the business, we understand the industry, we've
been involved in developing and implementing our operating strategies. Going
forward, our team will continue to refine these strategies as the marketplace
changes."
Deese said the company is guided by the principles of integrity, quality,
service, commitment, and innovation.
"Our business model and our operating strategies have helped Flowers Foods
build value for shareholders in the past and we will work to continue building
value in the future," Deese continued.
Company Information
Headquartered in Thomasville, Ga., Flowers Foods is one of the nation's
leading producers and marketers of packaged bakery foods for retail and
foodservice customers. Flowers operates 33 bakeries that produce a wide range
of bakery products marketed through the Sun Belt states via an extensive
direct-store-delivery network and nationwide through other delivery systems.
Among the company's top brands are Nature's Own, Cobblestone Mill, Mrs.
Freshley's, and European Bakers. Today's meeting was video webcast over the
Internet. This webcast will be archived on Flowers Foods' website
at www.flowersfoods.com .
Statements contained in this press release that are not historical facts
are forward-looking statements. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ from those
projected. Other factors that may cause actual results to differ from the
forward-looking statements contained in this release and that may affect the
company's prospects in general include, but are not limited to, (a)
competitive conditions in the baked foods industry, including promotional and
price competition, (b) changes in consumer demand for our products, (c) the
success of productivity improvements and new product introductions, (d) a
significant reduction in business with any of our major customers including a
reduction from adverse developments in any of our customer's business, (e)
fluctuations in commodity pricing and (f) our ability to achieve cash flow
from capital expenditures and acquisitions and the availability of new
acquisitions that build shareholder value. In addition, our results may also
be affected by general factors such as economic and business conditions
(including the baked foods markets), interest and inflation rates and such
other factors as are described in the company's filings with the Securities
and Exchange Commission.
SOURCE Flowers Foods
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