The products of the Company are sold under highly competitive conditions. All food products can be considered competitive with other food products, but the Company considers its principal competitors to include national, regional and local producers and distributors of refrigerated, frozen and snack food products. Several of the Company’s competitors include large companies with substantially greater financial and marketing resources than those of the Company. Existing competitors may broaden their product lines and potential competitors may enter or increase their focus on the Company’s market, resulting in greater competition for the Company. The Company believes that its products compete favorably with those of the Company’s competitors. Such competitors’ products compete against those of the Company for retail shelf space, institutional distribution and customer preference.
Importance of Key Customers
Sales to Wal-Mart® comprised 14.6% of revenues in fiscal year 2007 and 12.4 % of accounts receivable was due from Wal-Mart® at November 2, 2007. Sales to Wal-Mart® comprised 15.0% of revenues in fiscal year 2006 and 13.3% of accounts receivable was due from Wal-Mart® at November 3, 2006. Sales to Wal-Mart® comprised 13.8% of revenues in fiscal year 2005 and 13.6% of accounts receivable was due from Wal-Mart® at October 28, 2005.
The Company has approximately 660 employees, approximately 41% of whose employment relationship is governed by collective bargaining agreements. These agreements currently expire or expired between March 2007 and March 2012. A contract with UFCW Meat Cutters Local 324, covering 58 employees, expired October 3, 2007. As of January, 2008, a new agreement is currently in the process of ratification. A contract with Teamsters Locals 87, 150, 386 and 431, covering 10 employees, expired on March 31, 2007. As of January, 2008, a new agreement is in the process of ratification. The Company believes that its relationship with employees is favorable.
Executive Officers of the Registrant
The names, ages and positions of all the executive officers of the Company as of January 1, 2008 are listed below. Messrs. Hugh Wm. Bridgford and Allan L. Bridgford are brothers. William L. Bridgford is the son of Hugh Wm. Bridgford and the nephew of Allan L. Bridgford. Officers are normally appointed annually by the board of directors at their meeting immediately following the annual meeting of shareholders. All executive officers are full-time employees of the Company, except for Allan L. Bridgford, who works 60% of full-time effective March, 2005.
In addition to the other matters set forth in this Annual Report on Form 10-K, the continuing operations and the price of the Company’s common stock are subject to the following risks, each of which could materially adversely affect the business, financial condition and results of operations. The risks described below are not the only risks faced by the Company.