Lancaster Colony Corporation (NASDAQ:LANC) Q1 2024 Earnings Call Transcript

Todd Brooks: So, with capacity still in Horse Cave, opportunities around, channels that you may have deferred before, club maybe, especially with some of the larger pack sizes, where do we stand on that? And there was some work kind of pre-pandemic on the drug and dollar channels. Don’t know where we are now for kind of reopening and revisiting those opportunities. I think you had really good success in drug with the core Olive Garden SKU, if I remember correctly. So, I was just wondering about distribution expansion as a source of growth.

Dave Ciesinski: Sure. It continues to be an opportunity, but one of the unique features of a licensed partnership is that our partners are able to weigh in and talk about what channels they want their products and in what channels they don’t. So, we don’t always have the same degree of latitude that we might like. What I can point to more recently is Olive Garden has, we’re building distribution in the drug channel, and it’s continuing to perform well. And in dollar as well. Buffalo Wild Wings were taken into club. We’re going to have some rotations going on this fall that we’re excited about. with Costco and some of the others. So this is very much an active and ongoing discussion, but maybe the nuance here, Todd, is that — we have to bring our partners along in these discussions, and each of them has maybe different feelings about which channels they want their brand in.

So, maybe the easiest way to describe it. But this also becomes an area where our sales team and our marketing team works to educate, these are restaurant operators. They’re smart, sophisticated people, but they’re really not in the CPG space. So, part of the idea of the partnership as we work with them to bring them along, can’t push them, but we work with them to bring them along.

Todd Brooks: Perfect, very helpful. Thanks guys.

Dave Ciesinski: Of course.

Operator: Your next question comes from Alton Stump of Loop Capital. Your line is open. Alton, your line is open.

Dave Ciesinski: Alton might be having a technical difficulty. We can certainly bring him back if you’d like to go to the next caller operator.

Operator: Sure. [Operator Instructions] All right. If there are no further questions, we will now turn the call back to Mr. Ciesinski for his concluding comments.

Dave Ciesinski: Thank you and thank you, everybody for joining us this morning. We know it’s a busy time with lots of companies reporting. So, thank you for joining us and we look forward to talking to you in February when we report our second quarter results. Have a great rest of the day.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.