Our fiscal year begins on July 1 and ends on June 30. Unless otherwise noted,
references to "year" pertain to our fiscal year; for example, 2020 refers to
fiscal 2020, which is the period from July 1, 2019 to June 30, 2020.
The following discussion should be read in conjunction with our condensed
consolidated financial statements and the notes thereto, all included elsewhere
in this report, and our 2019 Annual Report on Form 10-K. The forward-looking
statements in this section and other parts of this report involve risks,
uncertainties and other factors, including statements regarding our plans,
objectives, goals, strategies, and financial performance. Our actual results
could differ materially from the results anticipated in these forward-looking
statements due to these factors. For more information, see the section below
entitled "Forward-Looking Statements."
OVERVIEW
Business Overview
Lancaster Colony Corporation is a manufacturer and marketer of specialty food
products for the retail and foodservice channels.
Our financial results are presented as two reportable segments: Retail and
Foodservice. Costs that are directly attributable to either Retail or
Foodservice are charged directly to the appropriate segment. Costs that are
deemed to be indirect, excluding corporate expenses and other unusual
significant transactions, are allocated to the two reportable segments using a
reasonable methodology that is consistently applied.
Over 95% of our products are sold in the United States. Foreign operations and
export sales have not been significant in the past and are not expected to be
significant in the future based upon existing operations. We do not have any
fixed assets located outside of the United States.
Our business has the potential to achieve future growth in sales and
profitability due to attributes such as:
•         leading Retail market positions in several product categories with a

high-quality perception;

• recognized innovation in Retail products;

• a broad customer base in both Retail and Foodservice accounts;

• well-regarded culinary expertise among Foodservice customers;

• recognized leadership in Foodservice product development;

• experience in integrating complementary business acquisitions; and

• historically strong cash flow generation that supports growth opportunities.

Our goal is to grow both Retail and Foodservice segment sales over time by: • introducing new products and expanding distribution;




•         leveraging the strength of our Retail brands to increase current
          product sales;

• expanding Retail growth through strategic licensing agreements;




•         continuing to rely upon the strength of our reputation in Foodservice
          product development and quality; and

• acquiring complementary businesses.

With respect to long-term growth, we continually evaluate the future opportunities and needs for our business specific to our plant infrastructure, IT platforms and other initiatives to support and strengthen our operations. Recent examples of resulting investments include a significant capacity expansion project for our Sister Schubert's frozen dinner roll facility in Horse Cave, Kentucky that was completed in January 2020; a new R&D center that was completed near the end of 2019; and the establishment of a Transformation Program Office in 2019 that will serve to coordinate our various capital and integration efforts, including our enterprise resource planning system ("ERP") that is now underway. We also continue to review potential acquisitions that we believe will complement our existing product lines, enhance our profitability and/or offer good expansion opportunities in a manner that fits our overall strategic goals. Consistent with this acquisition strategy, on November 16, 2018, we acquired, using available cash on hand, substantially all of the assets of Omni Baking Company LLC ("Omni"), a long-time supplier of products to our frozen garlic bread operations. On October 19, 2018, we acquired, using available cash on hand, all the assets of Bantam Bagels, LLC ("Bantam"), a producer and marketer of frozen mini stuffed bagels and other frozen bread products sold to both the retail and foodservice channels. See further discussion of these acquisitions in Note 2 to the condensed consolidated financial statements.



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