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After the first quarter of 2008, we expect
to reduce the number of hogs we raise to
750,000 compared to 1.5 million in 2006 and
have largely restructured this business.
In 2008, we will complete the second-shift
expansion at the Brandon pork processing
plant, creating one scale facility where
five previously existed, and will have
sold or transitioned our remaining pork
processing operations. We are intensifying
our product innovation focus to identify
new categories where we can add value
to the fresh pork and poultry we process.
2. Driving Growth in Fresh Bakery.
Over the past four years we have realized a
compound annual growth rate in operating
earnings of 24% in the fresh bakery
business. We benefit from a product mix
that is weighted towards higher value
bakery products, such as whole grains,
organics and specialty breads. Our focus
is to manage food inflation through cost
reduction initiatives and responsible pricing, but also to accelerate top line
growth by broadening into new categories.
In particular we are focused on expansion
in fresh sandwiches - a natural for
a company which manufactures meat
and bread products - and the sweet goods
market. We have significantly increased
our expertise, production capabilities, and
market penetration through acquisitions
in both categories. In 2008 we will be
integrating these acquisitions and
concentrating our efforts on product
innovation to add excitement and
consumer appeal to mainstream sandwich
and sweet goods products. In our fresh
pasta and sauce business, we are
continuing our market expansion in the
U.S. and Mexico, adding new products like
NutriWise whole grain pastas under the
strong Olivieri brand.
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