John B. Sanfilippo & Son, Inc. Announces Acquisition of Just the Cheese Brand

Rhea-AI Summary

John B. Sanfilippo & Son (NASDAQ: JBSS) has acquired substantially all assets of the Just the Cheese brand from Specialty Cheese Company, Inc. This strategic move, funded through existing bank credit, aims to expand JBSS's presence in the $100 million baked cheese snack category. Just the Cheese is known for its 100% real cheese snack bars and crisps available in various flavors. Although the acquisition is not expected to significantly impact financial results initially, it presents opportunities for innovation and portfolio diversification.

Positive

• Acquisition expands JBSS's product portfolio into a high-growth snacking category.
• Potential for innovation opportunities due to complementary assets and capabilities.

Negative

• None.

ELGIN, Ill.--(BUSINESS WIRE)-- John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the “Company”) today announced that it has purchased substantially all of the assets of the Just the Cheese brand business from Specialty Cheese Company, Inc. The acquisition was funded through the Company’s existing bank credit facility.

Just the Cheese is one of the nation’s leading baked cheese snacking brands and offers 100% real cheese snack bars and cheese crisps. It primarily competes in the baked cheese snack category, which is currently estimated to be a $100M category. Just the Cheese products can be found online and in a variety of retail outlets in flavors like Aged Cheddar and Grilled Cheese.

“The acquisition of Just the Cheese, which currently will not have a significant impact on our financial results, will provide us a product that expands our portfolio into new snacking categories. Additionally, the assets and capabilities acquired will be complimentary to our existing product portfolio and are expected to lead to exciting innovation opportunities” said Jeffery T. Sanfilippo, Chief Executive Officer.

About John B. Sanfilippo & Son, Inc.

Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit-based products that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ® and Southern Style Nuts ® brand names and under a variety of private brands.

Forward Looking Statements

Some of the statements in this release are forward-looking. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will”, “intends”, “may”, “believes”, “anticipates”, “should” and “expects” and are based on the Company’s current expectations or beliefs concerning future events and involve risks and uncertainties. Consequently, the Company’s actual results could differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where expressly required to do so by law. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the Company’s products, such as a decline in sales to one or more key customers (of branded products, private label products or otherwise), or to customers generally, in some or all channels, a change in product mix to lower price products, a decline in sales of private brand products or changing consumer preferences including a shift from higher margin products to lower margin products; (ii) changes in the availability and costs of raw materials and ingredients and the impact of fixed price commitments with customers; (iii) the ability to pass on price increases to customers if commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (iv) the ability to measure and estimate bulk inventory, fluctuations in the value and quantity of the Company’s nut inventories due to fluctuations in the market prices of nuts and bulk inventory estimation adjustments, respectively; (v) the Company’s ability to appropriately respond to, or lessen the negative impact of, competitive and pricing pressures including competition in the recipe nut category; (vi) losses associated with product recalls, product contamination, food labeling or other food safety issues, or the potential for lost sales or product liability if customers lose confidence in the safety of the Company’s products or in nuts or nut products in general, or are harmed as a result of using the Company’s products; (vii) the ability of the Company to control costs (including inflationary costs) and manage shortages in areas such as inputs, transportation and labor; (viii) uncertainty in economic conditions, including the potential for inflation or economic downturn, particularly in light of COVID-19 or armed hostilities; (ix) the timing and occurrence (or nonoccurrence) of other transactions and events which may be subject to circumstances beyond the Company’s control; (x) the adverse effect of labor unrest or disputes, litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production or processing facilities or employee unavailability due to labor shortages, illness or quarantine; (xii) the ability to implement our Long-Range Plan, including growing our branded and private brand product sales and expanding into alternative sales channels; (xiii) technology disruptions or failures; (xiv) the inability to protect the Company’s brand value, intellectual property or avoid intellectual property disputes; (xv) our ability to manage the impacts of changing weather patterns on raw material availability due to climate change and (xvi) the ability of the Company to respond to or manage the outbreak of COVID-19 or other infectious diseases and the various implications thereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221216005470/en/

Company:

Frank S. Pellegrino

Chief Financial Officer

847-214-4138

Investor Relations:

John Beisler or Steven Hooser

Three Part Advisors, LLC

817-310-8776

Source: John B. Sanfilippo & Son, Inc.

FAQ

What did John B. Sanfilippo & Son acquire from Specialty Cheese Company?

JBSS acquired substantially all assets of the Just the Cheese brand.

How much is the baked cheese snack category worth?

The baked cheese snack category is currently estimated to be a $100 million category.

Will the acquisition of Just the Cheese impact JBSS's financial results?

The acquisition is not expected to have a significant impact on JBSS's financial results initially.

What type of products does Just the Cheese offer?

Just the Cheese offers 100% real cheese snack bars and cheese crisps.

How was the acquisition of Just the Cheese financed?

The acquisition was funded through JBSS's existing bank credit facility.