Cracker Barrel and John Morrell Food Group Announce Multi-Year Licensing Agreement

Tue Nov 13, 2012 7:30am EST

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Cracker Barrel and John Morrell Food Group Announce Multi-Year Licensing Agreement

Initiative will bring select Cracker Barrel products to consumers in new retail channels

In a move that will extend the Cracker Barrel Old Country Store® brand beyond its physical stores, Cracker Barrel (Nasdaq: CBRL) and the John Morrell Food Group, a subsidiary of Smithfield Foods (NYSE: SFD), today announced a multi-year licensing agreement that will make select Cracker Barrel product categories available to consumers in new retail channels. This agreement is a result of Cracker Barrel’s previously announced strategic decision to extend its powerful brand through a licensing initiative and its online presence.

The agreement will 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. These will be high-quality, delicious products that consumers will be able to purchase as part of their regular shopping experiences and enjoy in their own homes.

“We are pleased to partner with the John Morrell Food Group, a leader in consumer meat products with an outstanding reputation for quality and service,” said Sandra B. Cochran, President and Chief Executive Officer of Cracker Barrel. “We welcome this opportunity to extend our brand beyond our physical stores, which is one component of our strategic plan which also includes enhancing our operating core, and expanding our footprint by adding additional stores.”

“We are thrilled to join forces with Cracker Barrel Old Country Store and bring an outstanding brand with a loyal consumer following into the retail channel,” said John Pauley, John Morrell Food Group Executive Vice President of Sales and Marketing. “Our strength in producing and marketing the highest quality meat products complements Cracker Barrel Old Country Store’s expertise and leadership in the restaurant industry. This will be a win for Cracker Barrel guests, retail shoppers and our retail trading partners.”

Cracker Barrel does not expect this agreement to have a material effect on its financial results in fiscal year 2013. 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.

About Cracker Barrel

Cracker Barrel Old Country Store provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that’s surprisingly unique, genuinely fun and reminiscent of America’s country heritage…all at a fair price. The restaurant serves up delicious, home-style country food such as meatloaf and homemade chicken n’ dumplins as well as its made from scratch biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences.

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969 in Lebanon, Tenn. and operates 621 company-owned locations in 42 states. Every Cracker Barrel unit is open seven days a week with hours Sunday through Thursday, 6 a.m. - 10 p.m., and Friday and Saturday, 6 a.m. - 11 p.m. For more information, visit crackerbarrel.com.

Important Additional Information

Cracker Barrel Old Country Store, Inc. (the “Company”) urges caution in considering current trends and earnings guidance disclosed in this press release. Except for historical information, matters discussed in this press release may be forward looking statements that involve risks, uncertainties and other factors that may cause actual results and performance of the Company to differ materially from those expressed or implied in this release. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. Any forward-looking statement made by us herein speaks only as of the date on which made. We expressly disclaim any intent or obligation to update or revise any forward-looking statement contained herein.

More detailed information on risks, uncertainties, and other factors is provided in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), press releases and other communications.

About John Morrell Food Group

With over a century and a half of experience, John Morrell Food Group brands have become respected and well known for providing premium-quality meat products to families across the United States. With products ranging from lunchmeat and franks to smoked sausage, bacon and pepperoni, the John Morrell Food Group is an important part of consumers' mealtimes. The John Morrell Food Group offers several national and regional brands including Armour®, Eckrich®, John Morrell®, Curly's®, Patrick Cudahy®, Carando®, Healthy Ones®, Margherita® Kretschmar® and LunchMakers®.

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Investors:
For Cracker Barrel
Lawrence E. Hyatt, 615-235-4432
Senior Vice President and Chief Financial Officer
lhyatt@crackerbarrel.com
or
For John Morrell Food Group
Smithfield Foods, Inc.
Keira Lombardo, 757-365-3050
Vice President of Investor Relations and Corporate Communications
keiralombardo@smithfieldfoods.com
or
Media:
For Cracker Barrel
Julie Davis, 615-443-9115
Senior Director, Corporate Communications
jdavis@crackerbarrel.com
or
For John Morrell Food Group
Jeff Dennison, 704-766-9061
Director, Media and Communications
jdennison@breakinglimits.net