EXHIBIT 99.1
(PFG LOGO)
12500 West Creek Parkway
Richmond, VA 23238
Phone (804) 484-7700
FAX (804) 484-7701
NEWS RELEASE
- --------------------------------------------------------------------------------
FOR MORE INFORMATION:
INVESTOR CONTACT:
MEDIA CONTACT: KEVIN COLLIER
CHERYL MOORE DIRECTOR, INVESTOR RELATIONS
DIRECTOR, CORPORATE COMMUNICATIONS (804) 287-8109
(804) 484-6273
PERFORMANCE FOOD GROUP TO EXPLORE FRESH-CUT DIVISION
STRATEGIC ALTERNATIVES
RICHMOND, VA. (SEPT. 16, 2004) - Performance Food Group (Nasdaq/NM:PFGC)
announced today it has begun the process of exploring strategic alternatives for
its fresh-cut produce business. The Company has retained the services of
Goldman, Sachs & Co. to assist in its review.
With annual sales of $933 million in 2003, Performance Food Group's fresh-cut
division is the largest produce processor in the United States. The Company's
Fresh Express(R) brand is the market share leader in the packaged salad category
at retail. The division purchases, processes, packages and distributes a variety
of ready-to-eat salads and other fresh-cut produce offerings to food retailers,
foodservice distributors, operators and quick-service restaurants nationwide.
Bob Sledd, Chairman and CEO commented, "Since our company's inception, we have
committed significant effort toward building our fresh-cut business to its
current leadership position in the industry. As we assess the future of
Performance Food Group and consider the changing balance in our business between
foodservice distribution and fresh produce processing, we believe that it is the
appropriate time to evaluate strategic alternatives to continue the growth of
the fresh-cut segment while considering the best interests of our shareholders,
customers and our associates."
The Company has made no predetermination as to any particular strategic
alternative. The alternatives to be evaluated include, but are not limited to,
the possible sale of the division as an ongoing business; the creation of a
stand-alone company operating the fresh-cut business; or keeping the fresh-cut
division as part of the Company. The Company expects that it will broadly
disseminate an update to this process when it reaches a conclusion.
Performance Food Group markets and distributes more than 64,000 national and
private label food and food-related products to approximately 48,000
restaurants, hotels, cafeterias, schools, healthcare facilities and other
institutions. The Fresh Express(R) line is the industry leader and pioneer of
fresh packaged salads. For more information on Performance Food Group, visit
www.pfgc.com.
Certain statements made herein are forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These statements involve risks
and uncertainties and are based on current expectations and management's
estimates; actual results may differ materially. The risks and uncertainties
which could impact these statements include, but are not limited to, general
economic conditions; the relatively low margins and economic sensitivity of the
foodservice business; the Company's reliance on major customers; the level of
demand for the company's fresh-cut products; the outcome of the Company's
exploration of strategic alternatives for its fresh-cut business; the ability to
identify and successfully complete acquisitions of other foodservice
distributors; the Company's ability to successfully develop, produce and market
new products and management of the Company's planned growth, including the
Company's ability to successfully manage the transition of its sales mix and
related production costs, all as detailed from time to time in the reports filed
by the Company with the Securities and Exchange Commission.