FLOWERS FOODS, INC. (NYSE:FLO) Files An 8-K Regulation FD DisclosureItem 7.01.
On June20, 2018, Flowers Foods, Inc. (the “company”) issued the following statement:
The company received from a supplier several shipments of inferior yeast, which reduced product quality and disrupted production and distribution of foodservice and retail bread and buns at a number of the company’s bakeries. While the supplier has confirmed that the inferior yeast used in the baking process is safe for consumption, customers and consumers have reported instances of unsatisfactory product attributes, primarily involving smell and taste.
The company takes the quality of its bakery foods very seriously and has been monitoring the situation closely. The underlying cause of the inferior yeast has been determined, and actions have been taken in order to supply the market with quality product. The company is working with retailers and foodservice customers to replace the products in the market containing the inferior yeast and ensure its customers and consumers receive the freshest- and highest-quality product. The company has arranged for an alternate supplier of yeast and the production and distribution disruptions are expected to be substantially resolved within days. The company does not have an estimate of the potential financial impact of the disruption caused by the inferior yeast at this time.
Forward-Looking Statements
Statements contained in this report that are not historical facts are forward-looking statements. Forward-looking statements relate to current expectations regarding the production and distribution of foodservice and retail bread and buns and the potential impact of the disruption caused by inferior yeast and are often identified by the use of words and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “would,” “is likely to,” “is expected to” or “will continue,” or the negative of these terms or other comparable terminology. 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 report and that may affect the company’s prospects in general include, but are not limited to, (a)general economic and business conditions and the competitive conditions in the baked foods industry, including promotional and price competition, (b)changes in consumer demand for our products, including changes in consumer behavior, trends and preferences, including health and whole grain trends, and the movement toward more inexpensive store-branded 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, (f)energy and raw material costs and availability and hedging and counterparty risk, (g)our ability to fully integrate recent acquisitions into our business, (h)our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value, (i)our ability to successfully implement our business strategies, including those strategies the company has initiated under Project Centennial, which may involve, among other things, the integration of recent acquisitions or the acquisition or disposition of assets at presently targeted values, the deployment of new systems and technology and an enhanced organizational structure, (j)consolidation within the baking industry and related industries, (k)disruptions in our direct-store delivery system, including litigation or an adverse ruling from a court or regulatory or government body that could affect the independent contractor classification of our independent distributors, (l)increasing legal complexity and legal proceedings that we are or may become subject to, (m)product quality issues or other recalls or safety concerns related to our products, as well as any resulting negative effects on the reputation of our brands or relationships with our customers or suppliers, and (n)the failure of our information technology systems to perform adequately, including any interruptions, intrusions or security breaches of such systems. The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. In addition, you should consult other public disclosures made by the company, including the risk factors included in our most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and disclosures made in other filings with the SEC and company press releases, for other factors that may cause actual results to differ materially from those projected by the company. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law.
About FLOWERS FOODS, INC. (NYSE:FLO)
Flowers Foods, Inc. is a producer and marketer of bakery products. The Company operates in two segments: direct-store-delivery segment (DSD Segment) and warehouse delivery segment (Warehouse Segment). The DSD segment’s production plant locations include Birmingham, Alabama; Opelika, Alabama; Tuscaloosa, Alabama; Goldsboro, North Carolina; Jamestown, North Carolina, and Oxford, Pennsylvania. The Warehouse Segment’s production plant locations include Montgomery, Alabama; Texarkana, Arkansas; London, Kentucky; Tucker, Georgia; Cedar Rapids, Iowa (mix plant); Cleveland, Tennessee, and Crossville, Tennessee. The Company’s DSD Segment operates approximately 40 bakeries that market a range of bakery foods, including breads, buns, rolls, tortillas and snack cakes. The Warehouse Segment produces frozen bread and rolls, and snack cakes. The Warehouse Segment’s Company-owned brands include Mrs. Freshley’s, European Bakers and Broad Street Bakery.
