Cracker Barrel going retail
Posted: Tuesday, February 12, 2013 12:00 am
LEBANON (AP) — Cracker Barrel plans to begin selling some of its products in grocery stores.
The Lebanon-based restaurant chain already sells items like pancake and corn muffin mixes, cobbler filling and syrup in the stores attached to its restaurants and online.
But The Tennessean reports (http://tnne.ws/XJUP35) that the chain has signed a multiyear licensing agreement with John Morrell Food Group, a Smithfield Foods subsidiary, that will make those products available at grocery stores, mass merchandisers and other retail outlets.
Stephen Anderson, an analyst with Miller Tabak, said that using a licensing agreement is smart because it puts most of the risk on John Morrell if the venture fails. John Morrell also has a large presence in Western states where Cracker Barrel currently has little or no footprint.
Cracker Barrel has not yet said when its products will hit store shelves or how much revenue the company expects the strategy to generate. The company said in a statement that it hopes the move will greatly increase awareness of the Cracker Barrel brand, which is part of a strategic plan the company adopted in 2012 under pressure from its largest shareholder.
Retail currently accounts for just 20 percent of the company’s annual revenues.