Cracker Barrel Old Country Store (CBRL) and Smithfield Foods (SFD)subsidiary, the John Morrell Food Group announced a multi-year licensing agreement that would make select Cracker Barrel product categories available to consumers in new retail channels.
The agreement is a result of Cracker Barrel's earlier announced strategic decision to extend its powerful brand through a licensing initiative and its online presence.
It is expected that the licensing agreement would bring products consistent with the Cracker Barrel experience such as ham, bacon, assorted lunch meats, glazes, jerky and summer sausage to a wide range of retail outlets including grocery and club stores and mass merchandisers.
Cracker Barrel stated that it does not expect this agreement to have a material effect on its fiscal year 2013 financial results. Along with the potential contribution to profitability in future years, Cracker Barrel expects to benefit from the increased visibility of the brand outside of its own stores.
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