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Third, we will be cost competitive on a North American basis. This means a renewed effort to drive out costs in the
supply chain and organizational structure through better-scaled plants, higher asset utilization, new technology,
and increased shared services.
Finally, we are intensifying our consumer orientation and accelerating our investment in product innovation to
increase the value of the fresh meat we process and convert these products into nutritious, appetizing and convenient
meal solutions.
We have already established significant brand and market leadership in the value-added meals category. In early 2007,
we are broadening our penetration of this segment through the launch of a major new product line, Maple Leaf Simply Fresh.
Using modern, new food processing technologies to preserve freshness and nutritional value, we are able to deliver amazing
fresh food taste and texture with "out of the garden" visual appeal, but with product shelf life that makes this freshness
both convenient and economical for consumers. We now offer a complete line of these refrigerated complete-meal entrees and
soups in single serve and family portion sizes.
Working with national retail customers, we are creating home meal solution destinations in visually appealing areas of
grocery stores, building market leadership in a category that is growing annually at double digit rates. We are also
deepening our foodservice customer relationships, where providing them with fully cooked meats and meals saves them time,
labour and equipment costs, and reduces spoilage and food safety issues. We anticipate strong growth in this market,
supported by a major expansion of our fully cooked red meats processing
capacity in 2007.
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