FOOD & BEVERAGE

The Food & Beverage Division's 2003 sales and earnings rose modestly thanks to key corporate account gains, successful new product offerings and a new market-specific approach to merchandising Ecolab's value to customers, all of which helped offset weakened conditions in the dairy industry.

HIGHLIGHTS

> Gained a considerable number of significant corporate accounts, particularly in the meat/poultry processing market, in which the division has been competing exceptionally well against national and regional competitors.

> Successfully launched Exxelerate CIP, a premium liquid detergent for use in fluid milk processing facilities. It is formulated with a unique surfactant that allows the product to remove tough soils and rinse faster than traditional detergents.

> Introduced Lubodrive FP, a conveyor lubricant specially formulated for use on high-speed PET packaging lines, and Cosa CIP 1000, a low-foaming, free-rinsing detergent designed to remove typical pharmaceutical and cosmetic processing soils.

> Began merchandising its food safety and brand protection expertise via EcoShield, a comprehensive, cross-divisional marketing program through which individualized product and service messages are tailored to each of the division's specific markets.

OUTLOOK

Food & Beverage is well positioned for continued growth in 2004. It expects to build on its corporate account gains of 2003 by leveraging the strengths of its new product offerings and the EcoShield program. Further, with wholesale milk prices making a good recovery after hitting a 30-year low early in 2003, the division looks forward to improved agribusiness results during 2004.