| [X] | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|----------------------------------------------------------------------------------------------------|

| North      Carolina           | 56-0292920                                   |
|-------------------------------|----------------------------------------------|
| (State      of Incorporation) | (I.R.S.      Employer Identification Number) |

| 13024      Ballantyne Corporate Place, Suite 900, Charlotte, North Carolina      28277 |
|----------------------------------------------------------------------------------------|
| (Address      of principal executive offices)                                          |

| Post      Office Box 32395, Charlotte, North Carolina 28232-2395 |
|------------------------------------------------------------------|
| (Mailing      address of principal executiveoffices)             |

| Title      of Each Class              | Name      of Each Exchange on Which Registered |
|---------------------------------------|------------------------------------------------|
| $0.83-1/3      Par Value Common Stock | The      NASDAQ Stock Market LLC               |

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|                                                                                                              |                                                                                                                    | Page   |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|--------|
| PART      1                                                                                                       |                                                                                                                    |   |
|                                                                                                              |                                                                                                                    |   |
|    Item 1                                                                                          | Business                                                                                                                | 1      |
|    Item 1A                                                                                         | Risk Factors                                                                                                            | 3      |
|    Item 1B                                                                                         | Unresolved Staff Comments                                                                                               | 6      |
|    Item 2                                                                                          | Properties                                                                                                              | 6      |
|    Item 3                                                                                          | Legal Proceedings                                                                                                       | 7      |
|    Item 4                                                                                          | Submission of Matters to a Vote of Security Holders                                                                     | 7      |
|    Item X                                                                                          | Executive Officers of the Registrant                                                                                    | 7      |
|                                                                                                              |                                                                                                                    |   |
| PART      II                                                                                                      |                                                                                                                    |   |
|                                                                                                              |                                                                                                                    |   |
|    Item 5                                                                                          | Market for Registrant’s Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 8      |
|    Item 6                                                                                          | Selected Financial Data                                                                                                 | 9      |
|    Item 7                                                                                          | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                        | 10     |
|    Item 7A                                                                                         | Quantitative and Qualitative Disclosures about Market      Risk                                                         | 23     |
|    Item 8                                                                                          | Financial Statements and Supplementary Data                                                                             | 24     |
|                                                                                                              | Schedule II – Valuation and Qualifying Accounts                                                                   | 50     |
|                                                                                                              | Report of Independent Registered Public      Accounting Firm                                                            | 51     |
|                                                                                                              | Management’s Report on Internal Control Over      Financial Reporting                                             | 53     |
|    Item 9                                                                                          | Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure                               | 54     |
|    Item 9A                                                                                         | Disclosure Controls and Procedures                                                                                      | 54     |
|    Item 9B                                                                                         | Other Information                                                                                                       | 54     |
|                                                                                                              |                                                                                                                    |   |
| PART      III                                                                                                     |                                                                                                                    |   |
|                                                                                                              |                                                                                                                    |   |
|    Item 10                                                                                         | Directors, Executive Officers and Corporate Governance                                                                  | 54     |
|    Item 11                                                                                         | Executive Compensation                                                                                                  | 54     |
|    Item 12                                                                                         | Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder Matters                     | 54     |
|    Item 13                                                                                         | Certain Relationships and Related Transactions                                                                          | 54     |
|    Item 14                                                                                         | Principal Accountant Fees and Services                                                                                  | 54     |
|                                                                                                              |                                                                                                                    |   |
| PART      IV                                                                                                      |                                                                                                                    |   |
|                                                                                                              |                                                                                                                    |   |
|    Item 15                                                                                         | Exhibits and Financial Statement Schedules                                                                              | 55     |
|                                                                                                              |                                                                                                                    |   |
|                                                                                                              | Signatures                                                                                                              | 59     |
|                                                                                                              |                                                                                                                    |   |
| Exhibit 12                                                                                                        | Ratio of Earnings to Fixed    Charges                                                                                   |   |
| Exhibit 21                                                                                                        | Subsidiaries of Lance, Inc.                                                                                             |   |
| Exhibit 23                                                                                                        | Consent of Independent Registered Public Accounting      Firm                                                           |   |
| Exhibit 31.1                                                                                                      | Section 302 Certification of the      CEO                                                                               |   |
| Exhibit 31.2                                                                                                      | Section 302 Certification of the      CFO                                                                               |   |
| Exhibit 32                                                                                                        | Section 906 Certification of the CEO and      CFO                                                                       |   |
|                                                                                                              |                                                                                                                    |   |
| Note:  Items      10-14 are incorporated by reference to the Proxy Statement and Item X of      Part I. |

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| Name                      | Age | Information      About Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------------------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| David      V. Singer      | 54  | President      and Chief Executive Officer of Lance, Inc. since 2005; Executive Vice      President and Chief Financial Officer of Coca-Cola Bottling Co.      Consolidated, a beverage manufacturer and distributor, from 2001 to      2005.                                                                                                                                                                                                                                       |
| Rick      D. Puckett      | 56  | Executive      Vice President, Chief Financial Officer and Secretary of Lance, Inc. since      January 2006 and Treasurer of Lance, Inc. since April 2006; Executive Vice      President, Chief Financial Officer and Treasurer of United Natural Foods,      Inc., a wholesale distributor of natural and organic products from 2005 to      January 2006; and Senior Vice President, Chief Financial Officer and      Treasurer of United Natural Foods, Inc. from 2003 to  2005. |
| Glenn      A. Patcha      | 46  | Senior      Vice President – Sales and Marketing of Lance, Inc. since January 2007;      Senior Vice President of Marketing ConAgra Grocery Products Division, a      packaged foods company, 2003 to June 2006.                                                                                                                                                                                                                                                              |
| Blake      W. Thompson    | 54  | Senior      Vice President – Supply Chain of Lance, Inc. since February 2007; Vice      President – Supply Chain of Lance, Inc. from 2005 to 2006; Senior Vice      President, Supply Chain of Tasty Baking, a snack food manufacturer and      distributor, from 2004 to 2005.                                                                                                                                                                                         |
| Kevin      A. Henry       | 42  | Senior      Vice President and Chief Human Resources Officer of Lance, Inc. from      January 2010; Chief Human Resources Officer of Coca Cola Bottling Co.      Consolidated, a beverage manufacturer and distributor, from September 2007      to 2009; and Senior Vice President of Human Resources at Coca Cola      Bottling Co. from February 2001 to 2009.                                                                                                                   |
| Margaret      E. Wicklund | 49  | Vice      President, Corporate Controller, Principal Accounting Officer and      Assistant Secretary of Lance, Inc. since 2007; Corporate Controller,      Principal Accounting Officer and Assistant Secretary of Lance, Inc. from      1999 to 2006.                                                                                                                                                                                                                              |

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| 2009      Interim Periods                    |   | High      Price |   |   | Low      Price |   |   | Dividend      Paid |   |
|--------------------------------------------------------|--------|-----------------|--------|--------|----------------|--------|--------|--------------------|--------|
| First      quarter (13 weeks ended March 28, 2009)     |   | $               | 24.00  |   |           | $      | 18.36  |               |   | $ | 0.16 |   |
| Second      quarter (13 weeks ended June 27, 2009)     |   |            | 24.05  |   |           |   | 19.66  |               |   |   | 0.16 |   |
| Third      quarter (13 weeks ended September 26, 2009) |   |            | 27.00  |   |           |   | 22.53  |               |   |   | 0.16 |   |
| Fourth      quarter (13 weeks ended December 26, 2009) |   |            | 28.26  |   |           |   | 22.83  |               |   |   | 0.16 |   |
|                                                   |   |            |   |   |           |   |   |               |   |   |   |   |
| 2008      Interim Periods                    |   | High      Price |   |   | Low      Price |   |   | Dividend      Paid |   |
| First      quarter (13 weeks ended March 29, 2008)     |   | $               | 20.98  |   |           | $      | 16.39  |               |   | $ | 0.16 |   |
| Second      quarter (13 weeks ended June 28, 2008)     |   |            | 22.42  |   |           |   | 17.48  |               |   |   | 0.16 |   |
| Third      quarter (13 weeks ended September 27, 2008) |   |            | 25.18  |   |           |   | 17.05  |               |   |   | 0.16 |   |
| Fourth      quarter (13 weeks ended December 27, 2008) |   |            | 23.58  |   |           |   | 17.11  |               |   |   | 0.16 |   |

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|                                                                        |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|-----------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| Results      of Operations (in thousands):                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Net sales and other      operating revenue (1) (2)      (3) (4)             |   | $      | 918,163 |   |   | $      | 852,468 |   |   | $      | 762,736 |   |   | $      | 730,116 |   |   | $ | 651,437 |   |
| Income from      continuing operations before income taxes (5) (6)      (7) |   |   | 54,459  |   |   |   | 27,073  |   |   |   | 36,320  |   |   |   | 28,187  |   |   |   | 26,499 |   |
| Net      income from continuing operations                                  |   |   | 35,794  |   |   |   | 17,706  |   |   |   | 23,809  |   |   |   | 18,378  |   |   |   | 17,476 |   |
| Income from      discontinued operations before income taxes (8)            |   |   | -       |   |   |   | -       |   |   |   | 44      |   |   |   | 153     |   |   |   | 1,506 |   |
| Net      income from discontinued operations                                |   |   | -       |   |   |   | -       |   |   |   | 29      |   |   |   | 100     |   |   |   | 994 |   |
| Net      income                                                             |   | $      | 35,794  |   |   | $      | 17,706  |   |   | $      | 23,838  |   |   | $      | 18,478  |   |   | $ | 18,470 |   |
|                                                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Average      Number of Common Shares Outstanding(in      thousands):        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic                                                                       |   |   | 31,565  |   |   |   | 31,202  |   |   |   | 30,961  |   |   |   | 30,467  |   |   |   | 29,807 |   |
| Diluted                                                                     |   |   | 32,384  |   |   |   | 31,803  |   |   |   | 31,373  |   |   |   | 30,844  |   |   |   | 30,099 |   |
|                                                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Per      Share of Common Stock:                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| From      continuing operations – basic                               |   | $      | 1.13    |   |   | $      | 0.57    |   |   | $      | 0.77    |   |   | $      | 0.61    |   |   | $ | 0.59 |   |
| From      discontinued operations – basic                             |   |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | 0.03 |   |
| From      continuing operations – diluted                             |   |   | 1.11    |   |   |   | 0.56    |   |   |   | 0.76    |   |   |   | 0.60    |   |   |   | 0.58 |   |
| From      discontinued operations – diluted                           |   |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | 0.03 |   |
| Cash      dividends declared                                                |   | $      | 0.64    |   |   | $      | 0.64    |   |   | $      | 0.64    |   |   | $      | 0.64    |   |   | $ | 0.64 |   |
|                                                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Financial      Status at Year-end (in thousands):                           |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      assets                                                           |   | $      | 536,291 |   |   | $      | 466,146 |   |   | $      | 413,003 |   |   | $      | 385,452 |   |   | $ | 369,079 |   |
| Long-term      debt, net of current portion                                 |   |   | 113,000 |   |   |   | 91,000  |   |   |   | 50,000  |   |   |   | 50,000  |   |   |   | 10,215 |   |
| Total      debt                                                             |   | $      | 113,000 |   |   | $      | 98,000  |   |   | $      | 50,000  |   |   | $      | 50,000  |   |   | $ | 46,215 |   |

| (1)   | 2009      revenue included approximately $27 million from both Archway (acquired in      December 2008) and Stella D’oro (acquired in October  2009). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 2008      revenue included approximately $15 million from Brent & Sam’s      (acquired in March 2008).  Also, a significant amount of price      increases were initiated in response to unprecedented ingredient costs      increases, such as flour and vegetableoil. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | 2006      revenue included incremental revenues from Tom’s (acquired in October      2005). |
|-----------------|---------------------------------------------------------------------------------------------------|

| (4)   | 2005      represented a 53-week year, which accounted for $8.1 million in      incremental revenue.  2005 revenue was also impacted by two      months of revenue from the Tom’sacquisition. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | 2008      pre-tax income was significantly impacted by unprecedented ingredient      costs increases, such as flour and vegetable oil, not fully offset by our      selling price increases during theyear. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Compared      to previous years, pre-tax income in 2006 was impacted by $1.3 million of      expenses related to stock options as required by a change in accounting      standard.  Incremental severance and integration costs during      2006 related to the Tom’s acquisition were $2.8  million. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | 2005      pre-tax income was negatively impacted by $3.4 million of Tom’s      integration costs and $2.5 million of severance charges for the prior      CEO. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | During      2006, we committed to a plan to discontinue our vending      operations. |
|-----------------|--------------------------------------------------------------------------------------|

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| 1.   | Enhancing      organizational development and effectiveness in order to align our      organization to achieve our goals,including: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Attracting      highly talented employees to support growth and efficiency      initiatives, |
|----------------|----------------------------------------------------------------------------------------------|

| b.   | Aligning      the organization to support a centralized functional management structure,      and |
|----------------|---------------------------------------------------------------------------------------------------|

| c.   | Implementing      organizational goals and a common vision throughout the      organization. |
|----------------|----------------------------------------------------------------------------------------------|

| 2.   | Enhancing      operational efficiencies in our direct-store-delivery (“DSD”) operations,      supply chain process and information technology systems,      including: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Improving      profitability within our DSD system by increasing weekly route sales      averages while improving pay and reducing  turnover, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Improving      our capability to leverage manufacturing across facilities in order to      produce products at locations closer to our customers, standardizing      processes and continually improving our quality    initiatives, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Developing      a distribution logistic strategy for our DSD and direct shipments and      increasing cubes per mile to reduce distribution costs,  and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Implementing      a common ERP information technology system across all locations to      standardize processes and procedures and more efficiently provide      consistent data fordecision-making. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Achieving      focused growth in core channels and product lines while simplifying our      business and creating new platforms for growth,  including: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Supporting      growth in core products and channels through advertising and improved      sales execution, |
|----------------|-------------------------------------------------------------------------------------------------------------|

| b.   | Leveraging      our distributor relationships to provide increased geographic and product      revenue growth and utilizing small format distributors to transfer      distribution as a result of our DSD transformation      initiatives, |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Increasing      profitable sales growth in our club and discount channels through pricing      initiatives, product offerings and packaging configuration      changes, |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Investing      in product innovation to drive profitable sales growth and support      consumer preferences, and |
|----------------|------------------------------------------------------------------------------------------------------------------|

| e.   | Widening      our product offering in our private brands portfolio by offering value,      mainstream and premium products and providing exceptional customer      service. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | We      completed the integration of Archway, which we acquired in late      2008.  As a result of the acquisition, we were able to      significantly increase revenue, leverage and expand production capacity      for both Archway and our private brand products, and increase our employee      base in Ashland, Ohio. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      October 2009, we acquired the Stella D’oro brand and certain machinery and      equipment, which we moved to our Ashland, Ohio facility, and began      producing Stella D'oro product shortly after the    acquisition. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | During      2009, we launched our first national television campaign and increased our      advertising in order to support our corebrands. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continued to focus our attention on product innovation initiatives and      introduced several new products both in our branded and private brand      portfolio. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      completed our ERP information technology system implementation in all of      our U.S. facilities, which provided consistency and standardization at all      of our U.S. locations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      experienced significant improvements in supply chain efficiencies, which      included lower shipping costs as we centralized warehousing and more      efficiently utilized our transportationfleet. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      completed the majority of our DSD transformation initiative, which      resulted in improvements in weekly average sales per route, reduced route      sales turnover and reduced route costs as a percentage of revenue compared      to 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      moved the production of Brent and Sam’s products from Little Rock,      Arkansas to our Charlotte, North Carolina facility to improve      manufacturing and distributionefficiencies. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      had significant revenue growth in our club and discount channels through      providing additional product offerings and packaging      configurations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Despite      the issues resulting from the peanut butter recall that occurred during      the first quarter of 2009, we experienced both consistent revenue growth      as well as increased market share of sandwich crackers sold through      grocery stores compared to 2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      incurred approximately $0.8 million of pre-tax incremental start-up costs      as a result of the Archway acquisition during the first quarter of      2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      a result of the Stella D’oro acquisition, we incurred approximately $1.1      million in expenses due to legal and professional fees as well as start-up      costs and other costs associated with the de-installation of the equipment      moved to Ashland Ohio. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Advertising      costs to support our core brands increased $6.6 million compared to      2008. |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | Employee-related      costs, such as compensation, incentives and insurance-related expenses      increased approximately 18% compared to 2008, due to acquisitions and      additional employees to support revenue growth and other company      initiatives. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      experienced double-digit revenue declines in our convenience store,      up-and-down the street and food service channels, as a result of lower      consumer spending and our DSD transformation  initiatives. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      a result of the closure of the Brent and Sam’s facility and the subsequent      relocation of the manufacturing equipment to Charlotte, NC, we experienced      operating costs of $0.5 million. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | During      2009, we experienced significant competition in our Cape Cod potato chips      products and achieved only modest revenue  growth. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

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| (In      millions)                                     |   | 2009   |   | 2008   |   | Favorable/ (Unfavorable) |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|-------------------------------|--------|
| Revenue                                                |   | $      | 918.2  |   |   |                          | 100.0  | % |   | $ | 852.4 |   |   |   | 100.0 | % |   | $ | 65.8 |   |   |   | 7.7 | % |
| Cost      of sales                                     |   |   | 548.0  |   |   |                          | 59.7   | % |   |   | 531.5 |   |   |   | 62.4 | % |   |   | (16.5 | ) |   |   | -3.1 | % |
|    Gross      margin                    |   |   | 370.2  |   |   |                          | 40.3   | % |   |   | 320.9 |   |   |   | 37.6 | % |   |   | 49.3 |   |   |   | 15.4 | % |
| Selling,      general and administrative               |   |   | 310.6  |   |   |                          | 33.8   | % |   |   | 291.7 |   |   |   | 34.2 | % |   |   | (18.9 | ) |   |   | -6.5 | % |
| Other      expense (income), net                       |   |   | 1.7    |   |   |                          | 0.2    | % |   |   | (0.9 | ) |   |   | -0.1 | % |   |   | (2.6 | ) |   | nm |   |
|   Earnings      before interest and taxes    |   |   | 57.9   |   |   |                          | 6.3    | % |   |   | 30.1 |   |   |   | 3.5 | % |   |   | 27.8 |   |   |   | 92.4 | % |
| Interest      expense, net                             |   |   | 3.4    |   |   |                          | 0.4    | % |   |   | 3.0 |   |   |   | 0.4 | % |   |   | (0.4 | ) |   |   | -13.3 | % |
| Income      tax expense                                |   |   | 18.7   |   |   |                          | 2.0    | % |   |   | 9.4 |   |   |   | 1.1 | % |   |   | (9.3 | ) |   |   | -98.9 | % |
|   Net      income from continuing operations |   | $      | 35.8   |   |   |                          | 3.9    | % |   | $ | 17.7 |   |   |   | 2.1 | % |   | $ | 18.1 |   |   |   | 102.3 | % |
|                                                   |   |   |   |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| nm      = not meaningful.                              |   |   |   |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                      |   |   | Favorable/(Unfavorable) |
|-----------------------------------------------------------|--------|--------|-------------------------|
| Organic      growth                                       |   |   | 5%                      |
| Acquisitions                                              |   |   | 3%                      |
|    Total      percentage change in revenue |   |   | 8%                      |

|                                 | 2009 |   | 2008 |
|--------------------------------------|------|--------|------|
| Branded      Products                | 58%  |   | 60%  |
| Private      Brand Products          | 32%  |   | 30%  |
| Contract      Manufacturing          | 10%  |   | 10%  |
|    Total      Revenue | 100% |   | 100% |

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| (In      millions)                                     |   | 2008   |   |   | 2007   |   |   | Favorable/ (Unfavorable) |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------------|--------|
| Revenue                                                |   | $      | 852.4  |   |   |   | 100.0  | %                             |   | $ | 762.7 |   |   |   | 100.0 | % |   | $ | 89.7 |   |   |   | 11.8 | % |
| Cost      of sales                                     |   |   | 531.5  |   |   |   | 62.4   | %                             |   |   | 444.5 |   |   |   | 58.3 | % |   |   | (87.0 | ) |   |   | -19.6 | % |
|    Gross      margin                    |   |   | 320.9  |   |   |   | 37.6   | %                             |   |   | 318.2 |   |   |   | 41.7 | % |   |   | 2.7 |   |   |   | 0.8 | % |
| Selling,      general and administrative               |   |   | 291.7  |   |   |   | 34.2   | %                             |   |   | 277.3 |   |   |   | 36.4 | % |   |   | (14.4 | ) |   |   | -5.2 | % |
| Other      (income)/expense, net                       |   |   | (0.9   | )      |   |   | -0.1   | %                             |   |   | 2.4 |   |   |   | 0.3 | % |   |   | 3.3 |   |   | nm |   |
|   Earnings      before interest and taxes    |   |   | 30.1   |   |   |   | 3.5    | %                             |   |   | 38.5 |   |   |   | 5.0 | % |   |   | (8.4 | ) |   |   | -21.8 | % |
| Interest      expense, net                             |   |   | 3.0    |   |   |   | 0.4    | %                             |   |   | 2.2 |   |   |   | 0.3 | % |   |   | (0.8 | ) |   |   | -36.4 | % |
| Income      tax expense                                |   |   | 9.4    |   |   |   | 1.1    | %                             |   |   | 12.5 |   |   |   | 1.6 | % |   |   | 3.1 |   |   |   | 24.8 | % |
|   Net      income from continuing operations |   | $      | 17.7   |   |   |   | 2.1    | %                             |   | $ | 23.8 |   |   |   | 3.1 | % |   | $ | (6.1 | ) |   |   | -25.6 | % |
|                                                   |   |   |   |   |   |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| nm      = not meaningful.                              |   |   |   |   |   |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                      |   |   | Favorable/(Unfavorable) |
|-----------------------------------------------------------|--------|--------|-------------------------|
| Organic      growth                                       |   |   | 10%                     |
| Acquisitions                                              |   |   | 2%                      |
|    Total      percentage change in revenue |   |   | 12%                     |

|                                 | 2008 |   | 2007 |
|--------------------------------------|------|--------|------|
| Branded      Products                | 60%  |   | 63%  |
| Private      Brand Products          | 30%  |   | 27%  |
| Contract      Manufacturing          | 10%  |   | 10%  |
|    Total      Revenue | 100% |   | 100% |

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|                                      |   | Payments      Due by Period |    |
|-------------------------------------------|--------|-----------------------------|---------|
| (in      thousands)                       |   | Total                       |    |   | <      1 year |   |   | 1-3      years |   |   | 3-5      years |   |   | Thereafter |   |
| Purchase      commitments                 |   | $                           | 88,201  |   |   | $ | 88,201 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Debt,      including interest payable*    |   |                        | 119,112 |   |   |   | 3,334 |   |   |   | 115,778 |   |   |   | - |   |   |   | - |   |
| Operating      lease obligations          |   |                        | 27,297  |   |   |   | 3,290 |   |   |   | 6,609 |   |   |   | 4,808 |   |   |   | 12,590 |   |
| Benefit      obligations                  |   |                        | 1,625   |   |   |   | 107 |   |   |   | 303 |   |   |   | 187 |   |   |   | 1,028 |   |
|        Total contractual obligations |   | $                           | 236,235 |   |   | $ | 94,932 |   |   | $ | 122,690 |   |   | $ | 4,995 |   |   | $ | 13,618 |   |

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|                                                                   |   | 2009   |       |   | 2008   |   |       | 2007   |
|------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Net      revenue                                                       |   | $      | 918,163    |   |   | $      | 852,468    |   |   | $ | 762,736 |
| Cost      of sales                                                     |   |   | 547,991    |   |   |   | 531,528    |   |   |   | 444,487 |
| Gross      margin                                                      |   |   | 370,172    |   |   |   | 320,940    |   |   |   | 318,249 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Selling,      general and administrative                               |   |   | 310,588    |   |   |   | 291,680    |   |   |   | 277,317 |
| Other      expense/(income), net                                       |   |   | 1,774      |   |   |   | (854       | )      |   |   | 2,390 |
| Income      from continuing operations before interest and incometaxes |   |   | 57,810     |   |   |   | 30,114     |   |   |   | 38,542 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Interest      expense, net                                             |   |   | 3,351      |   |   |   | 3,041      |   |   |   | 2,222 |
| Income      before income taxes                                        |   |   | 54,459     |   |   |   | 27,073     |   |   |   | 36,320 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Income      tax expense                                                |   |   | 18,665     |   |   |   | 9,367      |   |   |   | 12,511 |
| Net      income from continuing operations                             |   |   | 35,794     |   |   |   | 17,706     |   |   |   | 23,809 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Income      from discontinued operations, before income taxes          |   |   | -          |   |   |   | -          |   |   |   | 44 |
| Income      tax expense                                                |   |   | -          |   |   |   | -          |   |   |   | 15 |
| Net      income from discontinued operations                           |   |   | -          |   |   |   | -          |   |   |   | 29 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Net      income                                                        |   | $      | 35,794     |   |   | $      | 17,706     |   |   | $ | 23,838 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Basic      earnings per share:                                         |   |   |       |   |   |   |       |   |   |   |   |
| From      continuing operations                                        |   | $      | 1.13       |   |   | $      | 0.57       |   |   | $ | 0.77 |
| From      discontinued operations                                      |   |   | -          |   |   |   | -          |   |   |   | - |
| Basic      earnings per share                                          |   | $      | 1.13       |   |   | $      | 0.57       |   |   | $ | 0.77 |
| Weighted      average shares outstanding – basic                 |   |   | 31,565,000 |   |   |   | 31,202,000 |   |   |   | 30,961,000 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| Diluted      earnings per share:                                       |   |   |       |   |   |   |       |   |   |   |   |
| From      continuing operations                                        |   | $      | 1.11       |   |   | $      | 0.56       |   |   | $ | 0.76 |
| From      discontinued operations                                      |   |   | -          |   |   |   | -          |   |   |   | - |
| Diluted      earnings per share                                        |   | $      | 1.11       |   |   | $      | 0.56       |   |   | $ | 0.76 |
| Weighted      average shares outstanding – diluted               |   |   | 32,384,000 |   |   |   | 31,803,000 |   |   |   | 31,373,000 |
|                                                                   |   |   |       |   |   |   |       |   |   |   |   |
| See      Notes to Consolidated Financial Statements                    |   |   |       |   |   |   |       |   |

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Consolidated

|                                                                                                                                                  |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Assets                                                                                                                                                |   |   |    |   |   |   |
| Current      assets                                                                                                                                   |   |   |    |   |   |   |
| Cash      and cash equivalents                                                                                                                        |   | $      | 5,418   |   |   | $      | 807 |   |
| Accounts      receivable, net of allowances of $972 and $863,    respectively                                                                         |   |   | 87,172  |   |   |   | 74,406 |   |
| Inventories                                                                                                                                           |   |   | 58,037  |   |   |   | 43,112 |   |
| Deferred      income taxes                                                                                                                            |   |   | 9,790   |   |   |   | 9,778 |   |
| Assets      held for sale                                                                                                                             |   |   | 2,769   |   |   |   | 385 |   |
| Prepaid      expenses and other current assets                                                                                                        |   |   | 15,696  |   |   |   | 12,548 |   |
| Total      current assets                                                                                                                             |   |   | 178,882 |   |   |   | 141,036 |   |
| Fixed      assets, net                                                                                                                                |   |   | 225,981 |   |   |   | 216,085 |   |
| Goodwill,      net                                                                                                                                    |   |   | 90,909  |   |   |   | 80,110 |   |
| Other      intangible assets, net                                                                                                                     |   |   | 35,154  |   |   |   | 23,966 |   |
| Other      noncurrent assets                                                                                                                          |   |   | 5,365   |   |   |   | 4,949 |   |
| Total      assets                                                                                                                                     |   | $      | 536,291 |   |   | $      | 466,146 |   |
|                                                                                                                                                  |   |   |    |   |   |   |   |   |
| Liabilities      and Stockholders' Equity                                                                                                             |   |   |    |   |   |   |   |   |
| Current      liabilities                                                                                                                              |   |   |    |   |   |   |   |   |
| Accounts      payable                                                                                                                                 |   | $      | 29,777  |   |   | $      | 25,939 |   |
| Accrued      compensation                                                                                                                             |   |   | 26,604  |   |   |   | 26,312 |   |
| Accrued      profit-sharing retirement plan                                                                                                           |   |   | 6,285   |   |   |   | 5,592 |   |
| Accrual      for casualty insurance claims                                                                                                            |   |   | 4,840   |   |   |   | 5,581 |   |
| Accrued      selling costs                                                                                                                            |   |   | 9,235   |   |   |   | 5,162 |   |
| Other      payables and accrued liabilities                                                                                                           |   |   | 19,625  |   |   |   | 15,983 |   |
| Short-term      debt                                                                                                                                  |   |   | -       |   |   |   | 7,000 |   |
| Total      current liabilities                                                                                                                        |   |   | 96,366  |   |   |   | 91,569 |   |
| Long-term      debt                                                                                                                                   |   |   | 113,000 |   |   |   | 91,000 |   |
| Deferred      income taxes                                                                                                                            |   |   | 35,515  |   |   |   | 31,241 |   |
| Accrual      for casualty insurance claims                                                                                                            |   |   | 8,287   |   |   |   | 8,459 |   |
| Other      noncurrent liabilities                                                                                                                     |   |   | 8,436   |   |   |   | 8,370 |   |
| Total      liabilities                                                                                                                                |   |   | 261,604 |   |   |   | 230,639 |   |
| Commitments      and contingencies                                                                                                                    |   |   | -       |   |   |   | - |   |
| Stockholders’      equity                                                                                                                       |   |   |    |   |   |   |   |   |
| Common      stock, $0.83-1/3 par value.  Authorized 75,000,000 shares;      32,093,193      and 31,522,953 shares outstanding, respectively |   |   | 26,743  |   |   |   | 26,268 |   |
| Preferred      stock, no shares outstanding                                                                                                           |   |   | -       |   |   |   | - |   |
| Additional      paid-in capital                                                                                                                       |   |   | 60,829  |   |   |   | 49,138 |   |
| Retained      earnings                                                                                                                                |   |   | 176,322 |   |   |   | 160,938 |   |
| Accumulated      other comprehensive income/(loss)                                                                                                    |   |   | 10,793  |   |   |   | (837 | ) |
| Total      stockholders' equity                                                                                                                       |   |   | 274,687 |   |   |   | 235,507 |   |
| Total      liabilities and stockholders’ equity                                                                                                 |   | $      | 536,291 |   |   | $      | 466,146 |   |
|                                                                                                                                                  |   |   |    |   |   |   |   |   |
| See      Notes to Consolidated Financial Statements                                                                                                   |   |   |    |   |   |   |   |   |

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Consolidated

|                                                                                   |   | Shares |       |   | Common      Stock |   |   | Additional      Paid-in Capital |   |   | Retained      Earnings |   |   | Accumulated      Other Comprehensive Income/(Loss) |    |   | Total  |   |
|----------------------------------------------------------------------------------------|--------|--------|------------|--------|-------------------|--------|--------|---------------------------------|--------|--------|------------------------|--------|--------|----------------------------------------------------|---------|--------|--------|--------|
|                                                                                   |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |
| Balance,      December 30, 2006                                                        |   |   | 30,855,891 |   |              | $      | 25,714 |                            |   | $      | 32,129                 |   |   | $                                                  | 159,329 |   |   | $      | 5,228 |   |   | $ | 222,400 |   |
| Comprehensive      income/(loss):                                                      |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |   |   |   |   |   |   |
| Net      income                                                                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | 23,838  |   |   |   |   |   |   |   | 23,838 |   |
| Foreign      currency translation adjustment                                           |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | 11,468 |   |   |   | 11,468 |   |
| Net      unrealized losses on derivatives, net of $179 tax effect                      |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | (254 | ) |   |   | (254 | ) |
| Actuarial      gains recognized in net income, net of $68 tax effect                   |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | (142 | ) |   |   | (142 | ) |
| Total      comprehensive income                                                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |   |   |   |   | 34,910 |   |
| Cash      dividends paid to stockholders                                               |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | (19,872 | )      |   |   |   |   |   |   | (19,872 | ) |
| Cumulative      adjustment from adoption of accounting standard                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | 61      |   |   |   |   |   |   |   | 61 |   |
| Amortization      of nonqualified stock options                                        |   |   |       |   |              |   |   |                            |   |   | 1,658                  |   |   |                                               |    |   |   |   |   |   |   |   | 1,658 |   |
| Equity-based      incentive expense previously recognized under a liability    plan    |   |   |       |   |              |   |   |                            |   |   | 316                    |   |   |                                               |    |   |   |   |   |   |   |   | 316 |   |
| Stock      options exercised, including $1,026 excess tax benefit                      |   |   | 270,852    |   |              |   | 224    |                            |   |   | 4,508                  |   |   |                                               |    |   |   |   |   |   |   |   | 4,732 |   |
| Issuances      and amortization of restricted stock and units, net of      forfeitures |   |   | 88,000     |   |              |   | 73     |                            |   |   | 2,819                  |   |   |                                               |    |   |   |   |   |   |   |   | 2,892 |   |
| Balance,      December 29, 2007                                                        |   |   | 31,214,743 |   |              | $      | 26,011 |                            |   | $      | 41,430                 |   |   | $                                                  | 163,356 |   |   | $      | 16,300 |   |   | $ | 247,097 |   |
| Comprehensive      income/(loss):                                                      |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |   |   |   |   |   |   |
| Net      income                                                                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | 17,706  |   |   |   |   |   |   |   | 17,706 |   |
| Foreign      currency translation adjustment                                           |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | (13,553 | ) |   |   | (13,553 | ) |
| Net      unrealized losses on derivatives, net of $1,923 tax effect                    |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | (3,593 | ) |   |   | (3,593 | ) |
| Actuarial      losses recognized in net income, net of $5 tax effect                   |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | 9 |   |   |   | 9 |   |
| Total      comprehensive income                                                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |   |   |   |   | 569 |   |
| Cash      dividends paid to stockholders                                               |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | (20,124 | )      |   |   |   |   |   |   | (20,124 | ) |
| Amortization      of nonqualified stock options                                        |   |   |       |   |              |   |   |                            |   |   | 1,124                  |   |   |                                               |    |   |   |   |   |   |   |   | 1,124 |   |
| Equity-based      incentive expense previously recognized under a liability    plan    |   |   | 39,250     |   |              |   | 33     |                            |   |   | 876                    |   |   |                                               |    |   |   |   |   |   |   |   | 909 |   |
| Stock      options exercised, including $395 excess tax benefit                        |   |   | 149,825    |   |              |   | 125    |                            |   |   | 2,414                  |   |   |                                               |    |   |   |   |   |   |   |   | 2,539 |   |
| Issuances      and amortization of restricted stock and units, net of      forfeitures |   |   | 119,135    |   |              |   | 99     |                            |   |   | 3,294                  |   |   |                                               |    |   |   |   |   |   |   |   | 3,393 |   |
| Balance,      December 27, 2008                                                        |   |   | 31,522,953 |   |              | $      | 26,268 |                            |   | $      | 49,138                 |   |   | $                                                  | 160,938 |   |   | $      | (837 | ) |   | $ | 235,507 |   |
| Comprehensive      income/(loss):                                                      |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |   |   |   |   |   |   |
| Net      income                                                                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | 35,794  |   |   |   |   |   |   |   | 35,794 |   |
| Foreign      currency translation adjustment                                           |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | 9,241 |   |   |   | 9,241 |   |
| Net      unrealized gains on derivatives, net of $1,175 tax effect                     |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | 2,569 |   |   |   | 2,569 |   |
| Actuarial      gains recognized in net income, net of $104 tax effect                  |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   | (180 | ) |   |   | (180 | ) |
| Total      comprehensive income                                                        |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               |    |   |   |   |   |   |   |   | 47,424 |   |
| Cash      dividends paid to stockholders                                               |   |   |       |   |              |   |   |                            |   |   |                   |   |   |                                               | (20,410 | )      |   |   |   |   |   |   | (20,410 | ) |
| Amortization      of nonqualified stock options                                        |   |   |       |   |              |   |   |                            |   |   | 1,295                  |   |   |                                               |    |   |   |   |   |   |   |   | 1,295 |   |
| Equity-based      incentive expense previously recognized under a liability    plan    |   |   | 73,356     |   |              |   | 61     |                            |   |   | 1,531                  |   |   |                                               |    |   |   |   |   |   |   |   | 1,592 |   |
| Stock      options exercised, including $624 excess tax benefit                        |   |   | 240,191    |   |              |   | 200    |                            |   |   | 4,040                  |   |   |                                               |    |   |   |   |   |   |   |   | 4,240 |   |
| Issuances      and amortization of restricted stock and units, net of      forfeitures |   |   | 263,434    |   |              |   | 220    |                            |   |   | 4,946                  |   |   |                                               |    |   |   |   |   |   |   |   | 5,166 |   |
| Repurchases      of common stock                                                       |   |   | (6,741     | )      |              |   | (6     | )                               |   |   | (121                   | )      |   |                                               |    |   |   |   |   |   |   |   | (127 | ) |
| Balance,      December 26, 2009                                                        |   |   | 32,093,193 |   |              | $      | 26,743 |                            |   | $      | 60,829                 |   |   | $                                                  | 176,322 |   |   | $      | 10,793 |   |   | $ | 274,687 |   |
|                                                                                   |   |
| See      Notes to Consolidated FinancialStatements                                     |

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Consolidated

|                                                                                      |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                      |   |   |    |   |   |   |    |   |   |
| Operating      activities                                                                 |   |   |    |   |   |   |    |   |   |
| Net      income                                                                           |   | $      | 35,794  |   |   | $      | 17,706  |   |   | $ | 23,838 |   |
| Adjustments      to reconcile net income to cash from operating activities:               |   |   |    |   |   |   |    |   |   |
| Depreciation      and amortization                                                        |   |   | 35,211  |   |   |   | 32,217  |   |   |   | 29,307 |   |
| Equity-based      compensation expense                                                    |   |   | 7,472   |   |   |   | 5,967   |   |   |   | 3,294 |   |
| Loss/(gain)      on sale of fixed assets                                                  |   |   | 702     |   |   |   | (339    | )      |   |   | 818 |   |
| Deferred      income taxes                                                                |   |   | 3,190   |   |   |   | 5,885   |   |   |   | (54 | ) |
| LIFO      reserve adjustment                                                              |   |   | (1,128  | )      |   |   | 1,715   |   |   |   | 1,412 |   |
| Provisions      for doubtful accounts                                                     |   |   | 936     |   |   |   | 763     |   |   |   | (166 | ) |
| Changes      in operating assets and liabilities:                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Accounts      receivable                                                                  |   |   | (13,109 | )      |   |   | (10,635 | )      |   |   | (1,551 | ) |
| Inventories                                                                               |   |   | (11,460 | )      |   |   | (4,762  | )      |   |   | (2,806 | ) |
| Other      current assets                                                                 |   |   | (3,285  | )      |   |   | (970    | )      |   |   | (1,776 | ) |
| Accounts      payable                                                                     |   |   | 3,600   |   |   |   | 4,724   |   |   |   | 2,620 |   |
| Other      accrued liabilities                                                            |   |   | 10,410  |   |   |   | 2,150   |   |   |   | (2,727 | ) |
| Other      noncurrent assets                                                              |   |   | (415    | )      |   |   | 952     |   |   |   | 828 |   |
| Other      noncurrent liabilities                                                         |   |   | 1,359   |   |   |   | (463    | )      |   |   | (687 | ) |
| Net      cash provided by operating activities                                            |   |   | 69,277  |   |   |   | 54,910  |   |   |   | 52,350 |   |
|                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Investing      activities                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Purchases      of fixed assets                                                            |   |   | (40,737 | )      |   |   | (39,064 | )      |   |   | (39,476 | ) |
| Proceeds      from sale of fixed assets                                                   |   |   | 765     |   |   |   | 2,958   |   |   |   | 7,277 |   |
| Purchase      of investment                                                               |   |   | -       |   |   |   | (190    | )      |   |   | (2,090 | ) |
| Business      acquisitions, net of cash acquired                                          |   |   | (23,911 | )      |   |   | (54,984 | )      |   |   | - |   |
| Net      cash used in investing activities                                                |   |   | (63,883 | )      |   |   | (91,280 | )      |   |   | (34,289 | ) |
|                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Financing      activities                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Dividends      paid                                                                       |   |   | (20,410 | )      |   |   | (20,124 | )      |   |   | (19,872 | ) |
| Issuance      and repurchase of common stock under employee stock plans,    net           |   |   | 4,113   |   |   |   | 2,539   |   |   |   | 4,732 |   |
| Net      proceeds from existing credit facilities                                         |   |   | 15,000  |   |   |   | 48,435  |   |   |   | - |   |
| Repayments      of debt from business acquisition                                         |   |   | -       |   |   |   | (2,239  | )      |   |   | - |   |
| Net      cash (used in)/provided by financing activities                                  |   |   | (1,297  | )      |   |   | 28,611  |   |   |   | (15,140 | ) |
| Effect      of exchange rate changes on cash                                              |   |   | 514     |   |   |   | (81     | )      |   |   | 222 |   |
| Increase/(decrease)      in cash and cash equivalents                                     |   |   | 4,611   |   |   |   | (7,840  | )      |   |   | 3,143 |   |
| Cash      and cash equivalents at beginning of period                                     |   |   | 807     |   |   |   | 8,647   |   |   |   | 5,504 |   |
| Cash      and cash equivalents at end of period                                           |   | $      | 5,418   |   |   | $      | 807     |   |   | $ | 8,647 |   |
|                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Supplemental      information:                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash      paid for income taxes, net of refunds of $159, $209 and $211,      respectively |   | $      | 13,763  |   |   | $      | 2,145   |   |   | $ | 12,594 |   |
| Cash      paid for interest                                                               |   | $      | 3,515   |   |   | $      | 3,231   |   |   | $ | 2,878 |   |
|                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| See      Notes to Consolidated Financial Statements                                       |   |   |    |   |   |   |    |   |   |   |   |   |

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| Level      1 | - quoted      prices in active markets for identical assets and    liabilities.                                                        |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| Level      2 | - observable      inputs other than quoted prices for identical assets and      liabilities                                            |
| Level      3 | - unobservable      inputs in which there is little or no market data available, which      requires us to develop our ownassumptions. |

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|                                           | Useful      Life |
|------------------------------------------------|------------------|
| Buildings      and building improvements       | 10-45      years |
| Land      improvements                         | 10-15      years |
| Machinery,      equipment and computer systems | 3-20      years  |
| Furniture      and fixtures                    | 3-12      years  |
| Trucks,      trailers and automobiles          | 3-10      years  |

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|                                                          |   | 2009           |   |   | 2008           |   |   | 2007           |   |
|---------------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|
| Assumptions      used in Black Scholes pricing model:         |   |           |   |   |           |   |   |           |   |
| Expected      dividend yield                                  |   |           | 2.91   | %      |           |   | 3.79   | %              |   |   | 3.13 | % |
| Risk-free      interest rate                                  |   |           | 2.16   | %      |           |   | 2.71   | %              |   |   | 4.23 | % |
| Weighted      average expected life                           |   | 6.0      years |   |   | 4.8      years |   |   | 5.0      years |   |
| Expected      volatility                                      |   |           | 30.11  | %      |           |   | 26.76  | %              |   |   | 29.47 | % |
| Weighted      average fair value per share of options granted |   | $              | 5.01   |   |           | $      | 3.00   |           |   | $ | 4.56 |   |

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| (in      thousands) |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                |   |   |   |   |   |   |   |   |   |
| Revenue             |   | $      | -      |   |   | $      | -      |   |   | $ | 5,224 |   |
| Pre-tax      income |   | $      | -      |   |   | $      | -      |   |   | $ | 44 |   |

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| (in      thousands)                                     |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                    |   |   |   |   |   |   |
| Finished      goods                                     |   | $      | 33,060 |   |   | $      | 23,227 |   |
| Raw      materials                                      |   |   | 11,732 |   |   |   | 11,556 |   |
| Supplies,      etc.                                     |   |   | 19,081 |   |   |   | 15,293 |   |
| Total      inventories at FIFO cost                     |   |   | 63,873 |   |   |   | 50,076 |   |
| Less:      adjustments to reduce FIFO cost to LIFO cost |   |   | (5,836 | )      |   |   | (6,964 | ) |
| Total      inventories                                  |   | $      | 58,037 |   |   | $      | 43,112 |   |

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| (in      thousands)                            |   | 2009   |     |   | 2008   |   |
|------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                           |   |   |     |   |   |   |
| Land      and land improvements                |   | $      | 15,363   |   |   | $      | 15,209 |   |
| Buildings      and building improvements       |   |   | 89,594   |   |   |   | 87,067 |   |
| Machinery,      equipment and computer systems |   |   | 326,916  |   |   |   | 305,007 |   |
| Trucks      and automobiles                    |   |   | 60,335   |   |   |   | 61,967 |   |
| Furniture      and fixtures                    |   |   | 4,429    |   |   |   | 2,334 |   |
| Construction      in progress                  |   |   | 13,304   |   |   |   | 12,341 |   |
|                                           |   |   | 509,941  |   |   |   | 483,925 |   |
| Accumulated      depreciation                  |   |   | (281,191 | )      |   |   | (267,456 | ) |
|                                           |   |   | 228,750  |   |   |   | 216,469 |   |
| Assets      held for sale                      |   |   | (2,769   | )      |   |   | (384 | ) |
| Fixed      assets, net                         |   | $      | 225,981  |   |   | $      | 216,085 |   |

| (in      thousands)                             |   | Carrying      Amount |   |
|-------------------------------------------------|--------|----------------------|--------|
|                                            |   |                 |   |
| Balance      as of December 27, 2008            |   | $                    | 80,110 |   |
| Business      acquisitions                      |   |                 | 5,745  |   |
| Purchase      price adjustments                 |   |                 | (591   | ) |
| Changes      in foreign currency exchange rates |   |                 | 5,645  |   |
| Balance      as of December 26, 2009            |   | $                    | 90,909 |   |

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| (in      thousands)                     |   | Gross      Carrying Amount |   |   | Accumulated      Amortization |   |   | Net      Carrying Amount |   |
|-----------------------------------------|--------|----------------------------|--------|--------|-------------------------------|--------|--------|--------------------------|--------|
|                                    |   |                       |   |   |                          |   |   |                     |   |
| As      of December 26, 2009:           |   |                       |   |   |                          |   |   |                     |   |
| Customer      relationships - amortized |   | $                          | 6,668  |   |                          | $      | (678   | )                        |   | $ | 5,990 |   |
| Non-compete      agreement - amortized  |   |                       | 500    |   |                          |   | (197   | )                        |   |   | 303 |   |
| Trademarks      - unamortized           |   |                       | 29,387 |   |                          |   | (526   | )                        |   |   | 28,861 |   |
| Balance      as of December 26, 2009    |   | $                          | 36,555 |   |                          | $      | (1,401 | )                        |   | $ | 35,154 |   |
|                                    |   |                       |   |   |                          |   |   |                     |   |   |   |   |
| As      of December 27, 2008:           |   |                       |   |   |                          |   |   |                     |   |   |   |   |
| Customer      relationships - amortized |   | $                          | 4,678  |   |                          | $      | (315   | )                        |   | $ | 4,363 |   |
| Non-compete      agreement - amortized  |   |                       | 500    |   |                          |   | -      |                     |   |   | 500 |   |
| Trademarks      - unamortized           |   |                       | 19,629 |   |                          |   | (526   | )                        |   |   | 19,103 |   |
| Balance      as of December 27, 2008    |   | $                          | 24,807 |   |                          | $      | (841   | )                        |   | $ | 23,966 |   |

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| (in      thousands)                                                                                                                                                                                                                |   | 2009   |    |   | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                                                                                                                               |   |   |    |   |   |   |
| Unsecured      U.S. term loan due October 2011, interest payable based on the 30-day      LIBOR, plus applicable margin of 0.40% (0.63% at December 26, 2009,      including applicable margin)                                    |   | $      | 50,000  |   |   | $      | 50,000 |   |
| Unsecured      U.S. Dollar-denominated revolving credit facility, interest payable based      on the weighted-average 30-day LIBOR, plus applicable margin of 0.32%      (0.78% at December 26, 2009, including applicable margin) |   |   | 63,000  |   |   |   | 48,000 |   |
| Unsecured      Canadian Dollar-denominated revolving credit facility, interest payable      based on Canadian Bankers' Acceptance discount rate or Canadian Prime      rate, plus the applicable margin and an additional 0.13%    |   |   | -       |   |   |   | - |   |
| Total      debt                                                                                                                                                                                                                    |   |   | 113,000 |   |   |   | 98,000 |   |
| Less      current portion of long-term debt                                                                                                                                                                                        |   |   | -       |   |   |   | (7,000 | ) |
| Total      long-term debt                                                                                                                                                                                                          |   | $      | 113,000 |   |   | $      | 91,000 |   |

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| (in      thousands)                                             |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                            |   |   |   |   |   |   |
| Interest      rate swaps (included in Interest expense, net)    |   | $      | (2,349 | )      |   | $      | (789 | ) |
| Foreign      currency forwards (included in Net revenue)        |   |   | (1,045 | )      |   |   | (592 | ) |
| Foreign      currency forwards (included in Other expense, net) |   |   | (60    | )      |   |   | (4 | ) |
| Total      net pre-tax expense from derivative instruments      |   | $      | (3,454 | )      |   | $      | (1,385 | ) |

| (in      thousands)                                                                      |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                     |   |   |   |   |   |   |
| Interest      rate swaps (included in Other noncurrent liabilities)                      |   | $      | (3,461 | )      |   | $      | (4,272 | ) |
| Foreign      currency forwards (included in Other current assets)                        |   |   | 839    |   |   |   | - |   |
| Foreign      currency forwards (included in Other payables and accrued      liabilities) |   |   | -      |   |   |   | (2,094 | ) |
| Total      fair value of derivative instruments                                          |   | $      | (2,622 | )      |   | $      | (6,366 | ) |

| (in      thousands)                                                                                         |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                        |   |   |   |   |   |   |
| Interest      rate swaps                                                                                    |   | $      | 811    |   |   | $      | (2,994 | ) |
| Foreign      currency forwards                                                                              |   |   | 2,933  |   |   |   | (2,522 | ) |
| Total      change in unrealized pre-tax gains/(losses) from derivative instruments      (effective portion) |   | $      | 3,744  |   |   | $      | (5,516 | ) |

| (in      thousands)           |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current:                      |   |   |   |   |   |   |   |   |   |
| Federal                       |   | $      | 14,457 |   |   | $      | 3,140  |   |   | $ | 11,744 |   |
| State      and other          |   |   | 1,275  |   |   |   | 240    |   |   |   | 888 |   |
| Foreign                       |   |   | (257   | )      |   |   | 102    |   |   |   | (52 | ) |
|                          |   |   | 15,475 |   |   |   | 3,482  |   |   |   | 12,580 |   |
| Deferred:                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                       |   |   | 2,426  |   |   |   | 5,860  |   |   |   | 560 |   |
| State      and other          |   |   | 22     |   |   |   | 720    |   |   |   | 240 |   |
| Foreign                       |   |   | 742    |   |   |   | (695   | )      |   |   | (854 | ) |
|                          |   |   | 3,190  |   |   |   | 5,885  |   |   |   | (54 | ) |
| Total      income tax expense |   | $      | 18,665 |   |   | $      | 9,367  |   |   | $ | 12,526 |   |

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|                                                                                                 | 2009   |   | 2008   |   | 2007   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                                 |   |   |   |   |   |
| Statutory      income tax rate                                                                       | 35.0%  |   | 35.0%  |   | 35.0%  |
| State      and local income taxes,  net of federal income tax      benefit                 | 1.4%   |   | 1.3%   |   | 1.7%   |
| Net      favorable foreign income taxes as a result of tax adjustments and tax rate      differences | -0.4%  |   | -1.0%  |   | -1.3%  |
| Changes      in deferred taxes for effective state rate changes                                      | 0.0%   |   | -0.1%  |   | 0.2%   |
| Miscellaneous      items, net                                                                        | -1.7%  |   | -0.6%  |   | -1.2%  |
| Effective      income tax rate                                                                       | 34.3%  |   | 34.6%  |   | 34.4%  |

| (in      thousands)                                                                                                                  |   | 2009   |    |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred      tax assets:                                                                                                            |   |   |    |   |   |   |
| Reserves      for employee compensation, deductible when paid for income tax purposes,      accrued for financial reporting purposes |   | $      | 9,183   |   |   | $      | 7,739 |   |
| Reserves      for insurance claims, deductible when paid for income tax purposes,      accrued for financial reporting purposes      |   |   | 4,274   |   |   |   | 4,620 |   |
| Other      reserves, deductible when paid for income tax purposes, accrued for      financial reporting purposes                     |   |   | 2,691   |   |   |   | 1,884 |   |
| Inventories,      principally due to additional costs capitalized for income tax      purposes                                       |   |   | 1,468   |   |   |   | 1,523 |   |
| Unrealized      losses, deductible when realized for income tax purposes, included in      other comprehensive income           |   |   | 1,070   |   |   |   | 2,244 |   |
| Net      state and foreign operating loss and tax credit    carryforwards                                                            |   |   | 274     |   |   |   | 702 |   |
| Total      gross deferred tax assets                                                                                                 |   |   | 18,960  |   |   |   | 18,712 |   |
| Less      valuation allowance                                                                                                        |   |   | (193    | )      |   |   | (199 | ) |
| Net      deferred tax assets                                                                                                         |   |   | 18,767  |   |   |   | 18,513 |   |
|                                                                                                                                 |   |   |    |   |   |   |   |   |
| Deferred      tax liabilities:                                                                                                       |   |   |    |   |   |   |   |   |
| Fixed      assets, principally due to differences in depreciation, net of impairment      reserves                                   |   |   | (38,173 | )      |   |   | (35,155 | ) |
| Trademark      amortization                                                                                                          |   |   | (4,423  | )      |   |   | (2,887 | ) |
| Unrealized      gains includible when realized for income tax purposes, included in      other comprehensive income             |   |   | -       |   |   |   | (104 | ) |
| Prepaid      expenses and other costs deductible for tax, amortized for financial      statement purposes                            |   |   | (1,896  | )      |   |   | (1,830 | ) |
| Total      gross deferred tax liabilities                                                                                            |   |   | (44,492 | )      |   |   | (39,976 | ) |
| Total      net deferred tax liabilities                                                                                              |   | $      | (25,725 | )      |   | $      | (21,463 | ) |

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| Jurisdiction            | Open      Years       |
|-------------------------|-----------------------|
| US      federal         | 2006      and forward |
| Canada      federal     | 2005      and forward |
| Ontario      provincial | 2003      and forward |
| Massachusetts           | 2001      and forward |
| North      Carolina     | 2006      and forward |
| Iowa                    | 2006      and forward |

| (in      thousands)                                                  |   | 2009   |   |
|----------------------------------------------------------------------|--------|--------|--------|
| Balance      at December 27, 2008                                    |   | $      | 1,052  |   |
| Additions      for tax positions taken during the current period     |   |   | 112    |   |
| Reductions      resulting from a lapse of the statute of limitations |   |   | (309   | ) |
| Balance      at December 26, 2009                                    |   | $      | 855    |   |

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|                                   |   | Options      Outstanding |      |   | Weighted      Average Exercise Price |   |   | Options      Exercisable |              |
|----------------------------------------|--------|--------------------------|-----------|--------|--------------------------------------|--------|--------|--------------------------|-------------------|
|                                   |   |                     |      |   |                                 |   |   |                     |              |
| Balance      as of December 27, 2008   |   |                     | 1,527,570 |   |                                 | $      | 17.01  |                     |              |   | 1,197,627 |   |
| Granted                                |   |                     | 267,463   |   |                                 |   | 22.00  |                     |              |   |   |   |
| Exercised                              |   |                     | (220,191  | )      |                                 |   | 15.22  |                     |              |   |   |   |
| Expired      / Forfeited               |   |                     | (48,925   | )      |                                 |   | 19.19  |                     |              |   |   |   |
| Balance      as of December 26, 2009   |   |                     | 1,525,917 |   |                                 | $      | 18.05  |                     |              |   | 909,496 |   |
|                                   |   |                     |      |   |                                 |   |   |                     |              |   |   |   |
| Weighted      average contractual term |   | 5.0      years           |      |   |                                 |   |   |                     | 4.1      years    |   |
|                                   |   |                     |      |   |                                 |   |   |                     |              |   |   |   |
| Aggregate      intrinsic value         |   | $12.8      million       |      |   |                                 |   |   |                     | $8.7      million |   |

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|                                   |   |   | Restricted      Stock and Restricted Unit Awards Outstanding                                                   | Weighted      Average Grant Date Fair Value |
|----------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|                                   |   |   |                                                                                                           |                                        |   |
| Balance      as of December 27, 2008   |   |   |                  785,951  |                                        |  $                 17.53 |
| Granted                                |   |   |                  359,810  |                                        |                     20.98 |
| Vested                                 |   |   |                (140,343)            |                                        |                     19.76 |
| Expired      / Forfeited / Repurchased |   |   |                  (39,244) |                                        |                     17.31 |
| Balance      as of December 26, 2009   |   |   |                966,174              |                                        |  $                18.50 |

|                                 |   | Options      Outstanding |    |   | Weighted      Average Exercise Price |   |   | Options      Exercisable |   |
|--------------------------------------|--------|--------------------------|---------|--------|--------------------------------------|--------|--------|--------------------------|--------|
|                                 |   |                     |    |   |                                 |   |   |                     |   |
| Balance      as of December 27, 2008 |   |                     | 64,000  |   |                                 | $      | 12.98  |                     |   |   | 64,000 |   |
| Granted                              |   |                     | -       |   |                                 |   | -      |                     |   |   |   |   |
| Exercised                            |   |                     | (20,000 | )      |                                 |   | 13.20  |                     |   |   |   |   |
| Expired      / Forfeited             |   |                     | -       |   |                                 |   | -      |                     |   |   |   |   |
| Balance      as of December 26, 2009 |   |                     | 44,000  |   |                                 | $      | 12.87  |                     |   |   | 44,000 |   |

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| (in      thousands)                    |   | Amount |   |
|----------------------------------------|--------|--------|--------|
| 2010                                   |   | $      | 3,290  |   |
| 2011                                   |   |   | 3,615  |   |
| 2012                                   |   |   | 2,994  |   |
| 2013                                   |   |   | 2,424  |   |
| 2014                                   |   |   | 2,384  |   |
| Thereafter                             |   |   | 12,590 |   |
| Total      operating lease commitments |   | $      | 27,297 |   |

| (in      thousands)                                                      |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                     |   |   |   |   |   |   |
| Foreign      currency translation adjustment                             |   | $      | 12,345 |   |   | $      | 3,023 |   |
| Net      unrealized losses on derivative instruments, net of tax         |   |   | (1,552 | )      |   |   | (4,040 | ) |
| Postretirement      actuarial gains recognized in net income, net of tax |   |   | -      |   |   |   | 180 |   |
| Total      accumulated other comprehensive income/(loss)                 |   | $      | 10,793 |   |   | $      | (837 | ) |

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| (in      thousands) |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                |   |   |    |   |   |   |    |   |   |
| Country:            |   |   |    |   |   |   |    |   |   |
| United      States  |   | $      | 871,964 |   |   | $      | 804,366 |   |   | $ | 716,013 |   |
| Canada              |   |   | 46,199  |   |   |   | 48,102  |   |   |   | 46,723 |   |
| Net      revenue    |   | $      | 918,163 |   |   | $      | 852,468 |   |   | $ | 762,736 |   |

| (in      thousands)          |   | 2009   |    |   | 2008   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|
|                         |   |   |    |   |   |   |
| Country:                     |   |   |    |   |   |   |
| United      States           |   | $      | 298,419 |   |   | $      | 273,188 |   |
| Canada                       |   |   | 58,990  |   |   |   | 51,922 |   |
| Total      long-lived assets |   | $      | 357,409 |   |   | $      | 325,110 |   |

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|                                                                   |   | 2009      Interim Period Ended |    |
|------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                   |   | March      28                  |    |   | June      27 |   |   | September      26 |   |   | December      26 |   |
|                                                                   |   | (13      Weeks)                |    |   | (13      Weeks) |   |   | (13      Weeks) |   |   | (13      Weeks) |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |
| Net      revenue                                                       |   | $                              | 215,809 |   |   | $ | 236,355 |   |   | $ | 234,902 |   |   | $ | 231,097 |   |
| Cost      of sales                                                     |   |                           | 131,413 |   |   |   | 139,630 |   |   |   | 140,129 |   |   |   | 136,819 |   |
| Gross      margin                                                      |   |                           | 84,396  |   |   |   | 96,725 |   |   |   | 94,773 |   |   |   | 94,278 |   |
| Selling,      general and administrative                               |   |                           | 73,505  |   |   |   | 80,473 |   |   |   | 80,019 |   |   |   | 76,592 |   |
| Other      (income)/expense, net                                       |   |                           | 61      |   |   |   | 547 |   |   |   | 644 |   |   |   | 521 |   |
| Income      from continuing operations before interest and incometaxes |   |                           | 10,830  |   |   |   | 15,705 |   |   |   | 14,110 |   |   |   | 17,165 |   |
| Interest      expense, net                                             |   |                           | 812     |   |   |   | 910 |   |   |   | 796 |   |   |   | 834 |   |
| Income      from continuing operations before income taxes             |   |                           | 10,018  |   |   |   | 14,795 |   |   |   | 13,314 |   |   |   | 16,331 |   |
| Income      tax expense                                                |   |                           | 3,566   |   |   |   | 5,267 |   |   |   | 4,511 |   |   |   | 5,320 |   |
| Net      income from continuing operations                             |   |                           | 6,452   |   |   |   | 9,528 |   |   |   | 8,803 |   |   |   | 11,011 |   |
| Net      income                                                        |   | $                              | 6,452   |   |   | $ | 9,528 |   |   | $ | 8,803 |   |   | $ | 11,011 |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From      continuing operations:                                       |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      income per common share – basic             |   | $                              | 0.21    |   |   | $ | 0.30 |   |   | $ | 0.28 |   |   | $ | 0.35 |   |
|   Net      income per common share – diluted           |   |                           | 0.20    |   |   |   | 0.30 |   |   |   | 0.27 |   |   |   | 0.34 |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared per common share                               |   | $                              | 0.16    |   |   | $ | 0.16 |   |   | $ | 0.16 |   |   | $ | 0.16 |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   | 2008      Interim Period Ended |
|                                                                   |   | March      29                  |    |   | June      28 |   |   | September      27 |   |   | December      27 |   |
|                                                                   |   | (13      Weeks)                |    |   | (13      Weeks) |   |   | (13      Weeks) |   |   | (13      Weeks) |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      revenue                                                       |   | $                              | 197,968 |   |   | $ | 213,614 |   |   | $ | 225,587 |   |   | $ | 215,298 |   |
| Cost      of sales                                                     |   |                           | 123,460 |   |   |   | 133,691 |   |   |   | 143,040 |   |   |   | 131,336 |   |
| Gross      margin                                                      |   |                           | 74,508  |   |   |   | 79,923 |   |   |   | 82,547 |   |   |   | 83,962 |   |
| Selling,      general and administrative                               |   |                           | 72,857  |   |   |   | 74,568 |   |   |   | 72,337 |   |   |   | 71,918 |   |
| Other      (income)/expense, net                                       |   |                           | (4      | ) |   |   | 161 |   |   |   | (536 | ) |   |   | (476 | ) |
| Income      from continuing operations before interest and incometaxes |   |                           | 1,655   |   |   |   | 5,194 |   |   |   | 10,746 |   |   |   | 12,520 |   |
| Interest      expense, net                                             |   |                           | 606     |   |   |   | 860 |   |   |   | 708 |   |   |   | 867 |   |
| Income      from continuing operations before income taxes             |   |                           | 1,049   |   |   |   | 4,334 |   |   |   | 10,038 |   |   |   | 11,653 |   |
| Income      tax expense                                                |   |                           | 404     |   |   |   | 1,626 |   |   |   | 3,229 |   |   |   | 4,109 |   |
| Net      income from continuing operations                             |   |                           | 645     |   |   |   | 2,708 |   |   |   | 6,809 |   |   |   | 7,544 |   |
| Net      income                                                        |   | $                              | 645     |   |   | $ | 2,708 |   |   | $ | 6,809 |   |   | $ | 7,544 |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From      continuing operations:                                       |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      income per common share – basic             |   | $                              | 0.02    |   |   | $ | 0.09 |   |   | $ | 0.22 |   |   | $ | 0.24 |   |
|   Net      income per common share – diluted           |   |                           | 0.02    |   |   |   | 0.09 |   |   |   | 0.21 |   |   |   | 0.24 |   |
|                                                                   |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared per common share                               |   | $                              | 0.16    |   |   | $ | 0.16 |   |   | $ | 0.16 |   |   | $ | 0.16 |   |

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SCHEDULE 

|                                                                      |   | Beginning      Balance |   |   | Additions      / (Reductions) to Expense |   |   | Deductions |   |   | Ending      Balance |   |
|---------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------------------------|--------|--------|------------|--------|--------|---------------------|--------|
|                                                                      |   |                   |   |   |                                     |   |   |       |   |   |                |   |
| Fiscal      year ended December 26, 2009:                                 |   |                   |   |   |                                     |   |   |       |   |   |                |   |
|      Allowance      for doubtful accounts        |   | $                      | 863    |   |                                     | $      | 936    |       |   | $      | (827                | )      |   | $ | 972 |   |
|      LIFO      inventory reserves                |   |                   | 6,964  |   |                                     |   | (1,128 | )          |   |   | -                   |   |   |   | 5,836 |   |
|      Deferred      tax asset valuation allowance |   |                   | 199    |   |                                     |   | (6     | )          |   |   | -                   |   |   |   | 193 |   |
|                                                                      |   |                   |   |   |                                     |   |   |       |   |   |                |   |   |   |   |   |
| Fiscal      year ended December 27, 2008:                                 |   |                   |   |   |                                     |   |   |       |   |   |                |   |   |   |   |   |
|      Allowance      for doubtful accounts        |   |                   | 506    |   |                                     |   | 763    |       |   |   | (406                | )      |   |   | 863 |   |
|      LIFO      inventory reserves                |   |                   | 5,249  |   |                                     |   | 1,715  |       |   |   | -                   |   |   |   | 6,964 |   |
|      Deferred      tax asset valuation allowance |   |                   | 224    |   |                                     |   | (25    | )          |   |   | -                   |   |   |   | 199 |   |
|                                                                      |   |                   |   |   |                                     |   |   |       |   |   |                |   |   |   |   |   |
| Fiscal      year ended December 29, 2007:                                 |   |                   |   |   |                                     |   |   |       |   |   |                |   |   |   |   |   |
|      Allowance      for doubtful accounts        |   |                   | 994    |   |                                     |   | (165   | )          |   |   | (323                | )      |   |   | 506 |   |
|      LIFO      inventory reserves                |   |                   | 3,837  |   |                                     |   | 1,412  |       |   |   | -                   |   |   |   | 5,249 |   |
|      Deferred      tax asset valuation allowance |   |                   | 417    |   |                                     |   | (193   | )          |   |   | -                   |   |   |   | 224 |   |

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REPORT 

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Table of Contents

MANAGEMENT’S

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Item 

Item

Item

Items

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Item 

|          (a) 1.    Financial      Statements                                                                                                 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                            |   |
| The      following financial statements are filed as part of this      report:                                                                                                  |   |
|                                                                                                                                                                            | Page   |
| Consolidated Statements of Income for the Fiscal Years Ended      December 26, 2009, December 27, 2008, and December 29,      2007                                              | 24     |
| Consolidated Balance Sheets as of December 26, 2009      and December 27, 2008                                                                                                  | 25     |
| Consolidated Statements of Stockholders’ Equity and      Comprehensive Income for the Fiscal Years Ended December 26, 2009,      December 27, 2008, and December 29, 2007 | 26     |
| Consolidated      Statements of Cash Flows for the Fiscal Years Ended December 26, 2009,      December      27, 2008, and December 29, 2007                                     | 27     |
| Notes to Consolidated Financial    Statements                                                                                                                                   | 28     |

|   |
|--------|

| (a)      2.          Financial      Schedules.                                                                                                                                                                                                                                                                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| Schedules      have been omitted because of the absence of conditions under which they      are required or because information required is included in financial      statements or the notes thereto.                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| (a)      3.          Exhibit      Index.                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.1                   Restated      Articles of Incorporation of Lance, Inc. as amended through April 17,      1998, incorporated herein by reference to Exhibit 3 to the Registrant’s      Quarterly Report on Form 10-Q for the twelve weeks ended June 13, 1998      (File No. 0-398).            |
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.2                   Bylaws      of Lance, Inc., as amended through November 1, 2007, incorporated herein      by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K      filed on November 7, 2007 (File No. 0-398).                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1                   See      3.1 and 3.2 above.                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.1                   Lance,      Inc. 1995 Nonqualified Stock Option Plan for Non-Employee Directors, as      amended, incorporated herein by reference to Exhibit 10.1 to the      Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended      June 25, 2005 (File No. 0-398). |
|                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.2                   Lance,      Inc. 1997 Incentive Equity Plan, as amended, incorporated herein by      reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form      10-Q for the quarterly period ended March 31, 2007 (File No.      0-398).                                    |

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|                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.3                   Lance,      Inc. 2003 Key Employee Stock Plan, as amended, incorporated herein by      reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form      10-Q for the quarterly period ended March 31, 2007 (File No.      0-398).                   |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.4                   Lance,      Inc. 2003 Director Stock Plan, incorporated herein by reference to Exhibit      4 to the Registrant’s Registration Statement on Form S-8 filed on May 2,      2003 (File No. 333-104961).                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.5                   Lance,      Inc. 2007 Key Employee Incentive Plan, incorporated herein by reference to      Exhibit 10.1 to the Registrant’s Current Report on Form 8-K      filed on May 2, 2007 (File No. 0-398).                                             |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.6                   Lance,      Inc. 2008 Director Stock Plan, incorporated herein by reference to Exhibit      4.8 to the Registrant’s Registration Statement on Form S-8 filed on May      15, 2008 (File No. 333-150931).                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.7*                 Lance,      Inc. Compensation Deferral and Benefit Restoration Plan, as amended,      incorporated herein by reference to Exhibit 10.5 to the Registrant’s      Annual Report on Form 10-K for the fiscal year ended December 30, 2006      (File No. 0-398).             |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.8*                 Lance,      Inc. 2006 Five-Year Performance Equity Plan for Officers and Senior      Managers, incorporated herein by reference to Exhibit 10.1 to the      Registrant’s Current Report on Form 8-K filed on March 22, 2006 (File      No. 0-398).              |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.9*                 Lance,      Inc. 2007 Three-Year Performance Incentive Plan for Officers, incorporated      herein by reference to Exhibit 10.3 to the Registrant’s Quarterly      Report on Form 10-Q for the thirteen weeks ended March 31, 2007 (File      No. 0-398).  |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.10*               Lance,      Inc. 2007 Stock Option Plan for Officers and Key Managers, incorporated      herein by reference to Exhibit 10.1 to the Registrant’s Current      Report on Form 8-K filed on March 14, 2007 (File      No. 0-398).                                       |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.11*               Lance,      Inc. 2008 Annual Performance Incentive Plan for Officers, incorporated      herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report      on Form 10-Q for the thirteen weeks ended March 29, 2008 (File No.      0-398).                                |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.12*               Lance,      Inc. 2008 Three-Year Performance Incentive Plan for Officers and Key      Managers, as amended, incorporated herein by reference to Exhibit 10.15 to      the Registrant’s Annual Report on Form 10-K for the fiscal year ended      December 27, 2008 (File No. 0-398). |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.13*               Lance,      Inc. 2009 Annual Performance Incentive Plan for Officers, incorporated      herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report      on Form 10-Q for the quarterly period ended March 28, 2009 (File No.      0-398).                              |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.14*               Lance,      Inc. 2009 Three-Year Performance Incentive Plan for Officers and Key      Managers, incorporated herein by reference to Exhibit 10.2 to the      Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended      March 28, 2009 (File No. 0-398).         |
|                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.15*               Lance,      Inc. 2005 Employee Stock Purchase Plan, as amended and restated,      incorporated herein by reference to Exhibit 10.14 to the Registrant’s      Annual Report on Form 10-K for the fiscal year ended December 30, 2006      (File No. 0-398).                           |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.16*               Executive      Employment Agreement dated May 11, 2005 between the Registrant and David      V. Singer, incorporated herein by reference to Exhibit 10.1 to the      Registrant’s Current Report on Form 8-K filed on May 16, 2005 (File No.      0-398).                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.17*               Executive      Employment Agreement Amendment dated April 24, 2008 between the Registrant      and David V. Singer, incorporated herein by reference to Exhibit 10.2 to      the Registrant’s Quarterly Report on Form 10-Q for the thirteen weeks      ended June 28, 2008 (File No. 0-398).                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.18*               Amended      and Restated Compensation and Benefits Assurance Agreement dated April 24,      2008 between the Registrant and David V. Singer, incorporated herein by      reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form      10-Q for the thirteen weeks ended June 28, 2008 (File No.      0-398).                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.19*               Restricted      Stock Unit Award Agreement dated May 11, 2005 between the Registrant and      David V. Singer, incorporated herein by reference to Exhibit 10.3 to the      Registrant’s Current Report on Form 8-K filed on May 16, 2005 (File No.      0-398).                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.20*               Restricted      Stock Unit Award Agreement Amendment dated April 27, 2006 between the      Registrant and David V. Singer, incorporated herein by reference to      Exhibit 10.3 to the Registrant’s Current Report on Form 8-K      filed on May 3, 2006 (File No. 0-398).                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.21*               Restricted      Stock Unit Award Agreement Amendment Number Two dated April 24, 2008      between the Registrant and David V. Singer, incorporated herein by      reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form      10-Q for the thirteen weeks ended June 28, 2008 (File No.      0-398).                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.22*               Form      of Amended and Restated Compensation and Benefits Assurance Agreement      between the Registrant and each of Rick D. Puckett, Glenn A. Patcha, Blake      W. Thompson, and Earl D. Leake, incorporated herein by reference to      Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q      for the thirteen weeks ended June 28, 2008 (File      No. 0-398). |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.23*               Amended      and Restated Executive Severance Agreement dated April 24, 2008 between      the Registrant and Earl D. Leake, incorporated herein by reference to      Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the      thirteen weeks ended June 28, 2008 (File No. 0-398).                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.24*               Form      of Executive Severance Agreement between the Registrant and each of Glenn      A. Patcha, Rick D. Puckett, Blake W. Thompson and Margaret E. Wicklund,      incorporated herein by reference to Exhibit 10.17 to the Registrant’s      Annual Report on Form 10-K for the fiscal year ended December 27, 1997      (File No. 0-398).                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.25                 Credit      Agreement, dated as of October 20, 2006, among the Registrant, Tamming      Foods, Ltd., Bank of America, National Association, Wachovia Capital      Markets, LLC and the other lenders named therein, incorporated herein by      reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K      filed on October 26, 2006 (File No.0-398).                |

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|                                                                                                                                                                                                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12         Computation      of Ratio of Earnings to Fixed Charges, filed herewith.                                                                                                               |
|                                                                                                                                                                                                                                          |
| 21         List      of the Subsidiaries of the Registrant, filed herewith.                                                                                                                      |
|                                                                                                                                                                                                                                          |
| 23         Consent      of KPMG LLP, filed herewith.                                                                                                                                             |
|                                                                                                                                                                                                                                          |
| 31.1       Certification      of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a),      filed herewith.                                                                                |
|                                                                                                                                                                                                                                          |
| 31.2       Certification      of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a),      filed herewith.                                                                                |
|                                                                                                                                                                                                                                          |
| 32         Certification      pursuant to Rule 13a-14(b), as required by 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed      herewith. |

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SIGNATURES

| Dated:  February      22, 2010 | By:    |        /s/ David V. Singer            |
|------------------------------------------|--------|--------------------------------------------|
|                                     |   | David      V. Singer                       |
|                                     |   | President      and Chief Executive Officer |
|                                     |   |                                       |

| Signature                            |   | Capacity                                                        |   | Date                   |
|--------------------------------------|--------|-----------------------------------------------------------------|--------|------------------------|
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|        /s/ David V. Singer      |   | President      and Chief Executive Officer (Principal Executive |   | February      22, 2010 |
| David      V. Singer                 |   | Officer)                                                        |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|        /s/ Rick D. Puckett      |   | Executive      Vice President, Chief Financial Officer,         |   | February      22, 2010 |
| Rick      D. Puckett                 |   | Treasurer      and Secretary (Principal Financial Officer)      |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|        /s/ Margaret E. Wicklund |   | Vice      President, Corporate Controller and Assistant         |   | February      22, 2010 |
| Margaret      E. Wicklund            |   | Secretary      (Principal Accounting Officer)                   |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|        /s/ W.J. Prezzano        |   | Chairman      of the Board of Directors                         |   | February      22, 2010 |
| W.      J. Prezzano                  |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|        /s/ Jeffrey A. Atkins    |   | Director                                                        |   | February      22, 2010 |
| Jeffrey      A. Atkins               |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|                                 |   |                                                            |   |                   |
|        /s/ J.P. Bolduc          |   | Director                                                        |   | February      22, 2010 |
| J.P.      Bolduc                     |   |                                                            |   |                   |

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|                               |   |     |   |                   |
|------------------------------------|--------|----------|--------|------------------------|
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|        /s/ William R. Holland |   | Director |   | February      22, 2010 |
| William      R. Holland            |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|        /s/ James W. Johnston  |   | Director |   | February      22, 2010 |
| James      W. Johnston             |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|        /s/ Dan C. Swander     |   | Director |   | February      22, 2010 |
| Dan      C. Swander                |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|        /s/ Isaiah Tidwell     |   | Director |   | February      22, 2010 |
| Isaiah      Tidwell                |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|                               |   |     |   |                   |
|        /s/ S. Lance Van Every |   | Director |   | February      22, 2010 |
| S.      Lance Van Every            |   |     |   |                   |

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