prices ®producing a rapid return to lower dairy costs. We are keeping our focus on
the core elements of our own strategy ®the four strategic initiatives that will drive
profit growth:
1. Expanding our share in the premium segment;
2. Building our superpremium business;
3. Expanding into new channels; and
4. Reducing our total delivered cost.
Many of the costs in our DSS system are largely fixed, and incremental volume
combined with tight cost control can produce substantial leverage and margin gains.
Our new products, especially in superpremium, generally have higher margins than
our existing portfolio. Development of new channels, such as convenience stores and
restaurants, not only increases sales, but it also leverages our existing cost structure.
With this in mind, we chose our four strategic initiatives to drive our sales momentum
and at the same time, to build our profit margins.
We took some blows to profitability in 2001, but we kept our focus on the four
core strategies. Our team of over 4,700 people across the country ®a team that is
recognized as unsurpassed in our industry ®kept its focus on continuing to change
the game and distance ourselves from the competition. All of this paid off, as we
drove a great sales rebound in the second half of the year. We are better positioned
than ever before ®with our brands, with our sales strength and systems, and above
all with the skill, experience and dedication of our people. Our goal remains the
same®preeminence in the ice cream category ®and we believe we are moving
toward this goal more rapidly than ever.
T. Gary Rogers
Chairman of the Board
and Chief Executive Officer
William F. Cronk, III
President
Forward