Herr Foods, Inc.

Herr's_Logo

Summary

Company Advisor

Nottingham, PA

Herr Foods is a leading regional snack food company specializing in potato chips, pretzels, and other snacks, with a primary market focus on Pennsylvania, Delaware, New Jersey, and Maryland along the East Coast.

Carl Marks Advisors (CMA) was engaged by Herr Foods to assess its performance, focusing on channel, customer, and product profitability. Key activities included analyzing profitability trends, evaluating sales channels and key customers, assessing pricing strategies, reviewing market trends, analyzing financial performance over five years, and evaluating manufacturing efficiency. CMA provided strategic, financial, and operational recommendations to improve Herr Foods’ overall performance.

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.

Sign Up for Our Newsletter

Name(Required)
This field is for validation purposes and should be left unchanged.