Herr Foods, Inc.

Summary

Company Advisor

Nottingham, PA

Herr Foods (“Herr” or “Company”) is a leading regional snack food company that manufactures potato chips, pretzels, corn extruded and baked products, covering the East Coast, primarily in the Pennsylvania, Delaware, New Jersey, and Maryland markets.

CMA was retained by Herr Foods to provide a high-level review of the Company’s performance focused primarily on channel, customer, and product profitability. CMA advised on strategic M&A both historically and prospectively.

Key Challenges

Industry Challenges

Bankruptcy Support

§363 Sale

Engagement Highlights

CMA created a profitability and operating trend chart that illustrated the Company’s sales, cost, and profitability per pound, per unit, and gross margin.
Used the CMA chart to evaluate profitability of the Company’s three sales channels, top 16 customers within the Direct Store Delivery channel, and top products within each sales channel.
Evaluated pricing strategy versus competitors in the aspects of initial retail price per bag, weight per bag, and price discounts.
Reviewed market research and IRI data and analyzed the savory snack market trends within the Greater Philadelphia region.
Reviewed the Company’s consolidated financial statements for past five years, focusing on revenue and cost CAGR’s as well as margin trends.
Evaluated the Company’s manufacturing overhead cost allocation as well as the manufacturing plant’s efficiency, specifically the time of production runs and plant configuration.
In summary, CMA identified specific opportunities to improve performance and provided strategic, financial, and operational recommendations to Herr Foods management and Board.

Herr Foods, Inc.

Summary

Company Advisor

Key Challenges

Engagement Highlights

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