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While we are creating innovative products and services to move us toward
becoming a world-class consumer packaged goods company, we are also
streamlining and adopting global best practices in our operations and
business processes to achieve a cost structure that is highly competitive with
large global food manufacturers. This involves investing capital to increase
scale or upgrade technology, closing inefficient plants and driving costs out
to gain as much value as possible, and attracting global talent to our company.
Building scale operations
By concentrating our operations in regions and plants that make the most business sense, we
can achieve scale in our operations, allowing us to add volume, maximize our operating efficiency
and grow more cost-effectively - all important factors for developing a world-class supply chain.
The excellent progress we have made in the following areas is an example of how we can build
- and benefit from - scale operations:
- Consolidated three primary pork processing plants into a single world-class facility in Brandon,
Manitoba that operates a full double shift and is focused on producing high quality products.
- Constructed a new state-of-the-art distribution warehouse in Saskatoon and expanded our
warehouse in Coquitlam to serve our entire meat distribution in Western Canada, eliminating
a number of third party warehouse contracts and consolidating all business into two
warehouses.
- Restructured and reduced our hog production operations across Canada, consolidating
into a vertically integrated operation in Manitoba that has lower production costs.
- Increasing capacity utilization in our bakery businesses through closing three plants and
investing in others, and relocating production closer to our customers.
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