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Looking back before the meteoric rise
in the Canadian dollar, we had built
a business that was well positioned
to deliver strong earnings. However
the world changed - a 46% rise in the
Canadian dollar since 2002 has resulted
in an annualized loss of competitiveness
of approximately $135 million. In last
year's annual report, we wrote about
our new vision for the future and how
we are making radical changes in our
protein business to reposition it for
success. We also elaborated on value
creation strategies to drive increased
top-line growth in our fresh and frozen
bakery businesses.
The progress we made in 2007 attests
to our collective skill at managing complex
organizational change. We are well down
the path to achieve this transformation,
a journey we call Destination 2010.
The focus of these activities is to:
- Restructure our protein operations
to secure a low cost supply of high
quality meat for our value-added
meat and meals businesses and
significantly reduce our currency
and commodity exposure.
- Drive sales and margin growth
in value-added bakery and protein
markets through product and packaging
innovation and expansion into new
categories and geographies.
- Increase capital investment to
improve manufacturing and distribution efficiencies and create a cost structure that is competitive with large U.S. food manufacturers.
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