SupplySide Report
Silver Spring Foods Expands
Silver Spring Foods, the world’s largest horseradish grower and processor based in Eau Claire, WI, has increased its private label capabilities, as a result of a 165,000 square foot plant expansion. State-of-the-art equipment was installed to allow for versatility and flexibility in food manufacturing and quantities produced. The research and development lab was also expanded to serve the niche market of private label specialty mustards, cocktail sauces and horseradish products.
Eric Rygg, marketing manager and a fourth generation member of the family-owned business, said Silver Spring Foods can now produce more efficiently for an extensive variety of products and still maintain excellent quality and taste at affordable prices. Silver Spring Foods can use their own established horseradish and specialty mustard award-winning formulas or customize condiments to the unique specifications of private label customers. Rygg said the plant is producing more organic private label products due to an increase in demand from health and wellness consumers. Silver Spring Foods is the only major manufacturer certified to grow and process organic horseradish on a large scale. They are “certified organic” through the USDA and Oregon Tilth.
Rygg said more consumers are buying horseradish and mustard as a healthier option to replace other condiments, but great taste and convenience are still the most important factors.
“As traceability increases in importance among consumers, manufacturers who buy horseradish roots from China and other countries may run into consumer resistance,” said Rygg. “Silver Spring can guarantee the origin of our horseradish supply because we grow our own horseradish in Wisconsin and Minnesota, which helps us control the quality from field to factory.”
The plant can provide custom labeling, hot fill and cold fill capabilities, shrink pack tray cases, and cardboard boxes for storage and shipping. The ink jet label system means they can include “sell by” and identification dates. Bottles can also include tamper proof heat sealed safety bands. Products can be packaged in pouches, cups, glass, quarts, gallons, drums, totes, and tankers.
“Visiting guests who tour our facility cannot only “Taste the Difference” in product quality, but also see the difference,” Rygg said. “We are noted for high cleanliness standards. All of our products are Kosher certified and our plant meets all stringent specifications for cleanliness and quality. Both cooked and cold processing takes place in our controlled Kosher processing plant.”
“Automation has taken Silver Spring Foods from a small family-run business to a mid-sized corporation. Technology and family values continue to be our driving forces as we increase our quality private label production,” Rygg said. Visit www.silverspringfoods.com for more information.
AHP Wins Awards
Associated Hygienic Products, LLC, was recently honored with distinguished 2009 awards from four major corporations for best-in-class partnerships in the disposable baby diaper category: Outstanding Supplier from Kroger Supermarkets, Partner Award of Excellence from Target Stores, Supplier of the Year for Department 26 from Wal-Mart, Inc. and Product of the Year from Fisher-Price.
AHP is a wholly owned subsidiary of DSG that has been manufacturing, marketing and selling disposable baby diapers and training pants for customers in North America since 1984.
The company is headquartered in Duluth, GA, and has manufacturing and distribution facilities in Delaware, OH and Vancouver, WA and most recently Waco, TX. Both the Ohio and Texas facilities have been newly built to specification during the past few years and provide state-of-the-art manufacturing and distribution operations.
The company’s recent expansion was necessitated by tremendous growth in the baby diaper category making the company the 3rd largest manufacturer of such products in North America. Through solid organic growth and a timely acquisition strategy, we continue to expand in ways that help to serve our customers and corporate vision.
For more information on this award-winning organization, visit www.ahp-dsg.com.
Paramount Turns 75
Paramount Coffee, one of the Midwest’s largest coffee roasters, officially celebrates their 75th Anniversary this August. Since 1935, the company has brought the finest bulk and packaged coffees to supermarkets and grocers throughout the region. Paramount Coffee offers custom blends and roasts, decafs, flavors, fair trades, and organic coffees.
Under the direction of CEO Angelo Oricchio, native of Brazil and coffee artisan, Paramount Coffee uses only hand selected 100% Arabica beans from the finest estates and private growers for their gourmet coffee line, and imports from over 16 countries around the world. Oricchio is Paramount’s resident expert in cupping – the art of evaluating tastes and aromas of brewed coffee – and is considered one of the industry’s top evaluators of raw coffee beans. In 2010, Oricchio was named an Honorary Alumnus from MSU’s College of Agriculture and Natural Resources.
Paramount Coffee proudly roasts, packages, and markets One Thousand Hills Fair Trade Rwanda coffee as part of a continuing commitment to socially and environmentally responsible business practices. Following the 1994 war and genocide in Rwanda, the PEARL Project (Partnership for Enhancing Agriculture in Rwanda through Linkages) was initiated with MSU’s Institute of International Agriculture and the U.S. Agency for International Development to link Rwanda’s depressed coffee farmers with important coffee industry organizations throughout the world. This past year, the proceeds from the program enabled the purchase of 400 goats for farmers in Gashonga, Rwanda – greatly improving the quality of life in the village.
Paramount also markets the Midwest favorite, BIGGBY Coffee. Since their opening in 1995, the Lansing, Michigan based café franchise has created a strong, recognizable brand with over 100 locations. Their successful foundation and aggressive growth plan makes them one of the premier café operations in the business.
Recently Paramount introduced Single Serve coffee pods – a great cup of coffee, in the convenience of a single serving pod. The pods are compatible with most popular pod brewers, such as Bunn, Phillips Senseo, Cuisinart and Hamilton Beach, and are more environmentally friendly than other cartridge based systems.
Who is Joe? Joe is Paramount’s latest addition to their brand line-up. You can trust when we say, “Joe knows coffee”. Joe gets straight to the point with four bold varieties, from a dark roast, to a decaf. With a “no nonsense” attitude, Joe Coffee is just great coffee, for an “Average Joe” price.
Buying from Paramount Coffee always supports our wonderful State of Michigan, and now you can show off your loyalty by purchasing our exclusive Michigan line, mi coffee. The brand features brilliant Michigan packaging, and makes a great gift for locals and tourists alike.
Paramount Coffee has been a proud partner in helping many companies build and expand their private label coffee programs. Paramount does everything from simple product packaging, to full programs with custom blends, packaging, and displays. This segment continues to enjoy aggressive growth and upside opportunity, not only at Paramount, but also across all categories in all channels. Paramount has a strong product portfolio to help every client meet their customer needs. For more information visit www.paramountcoffee.com.
Cott to Buy Cliffstar
Canadian soft drink maker Cott Corp. is buying private-label juice maker Cliffstar Corp. for $500 million in cash, to expand its portfolio of beverages, according to cnbc.com.
Cliffstar is the largest private-label maker of apple juice, grape juice, cranberry juice and juice-blends in North America. The company has about $654 million in 12-month revenue and operates 11 facilities in the U.S. with about 1,200 total employees.
Cott CEO Jerry Fowden said the deal strengthens Cott’s position in private-label beverages. Cott, which makes discount sodas, has benefited from price-conscious shoppers who are trading down to less-expensive products.
The deal is expected to close in the third quarter and add to earnings on a cash basis in the first year. The companies expect the transaction to save them about $20 million a year, including $14 million in 2011. For more information visit www.cott.com or www.cliffstar.com.
Ralcorp to Acquire AIPC
Ralcorp Holdings, Inc. (Ralcorp) and American Italian Pasta Company (AIPC) have approved a definitive merger agreement under which Ralcorp will acquire all of the outstanding shares of AIPC common stock for $53.00 per share in cash, for a total purchase price of approximately $1.2 billion, net of cash acquired.
Ralcorp produces Post-branded cereals, a variety of value brand and store brand foods sold under the individual labels of various grocery, mass merchandise and drugstore retailers, and frozen bakery products sold to in-store bakeries, restaurants and other foodservice customers. American Italian Pasta Company is a leading producer of dry pasta in North America with four plants and approximately 675 employees located in the United States and Italy.
Under the terms of the agreement, Ralcorp will commence a tender offer to acquire all of the outstanding shares of AIPC common stock for $53.00 per share in cash. The transaction is expected to close during Ralcorp’s fourth fiscal quarter ending September 30, 2010 and is subject to customary closing conditions and regulatory approvals, as well as a majority of the outstanding shares of AIPC common stock being validly tendered and not withdrawn in the tender offer. Upon completion of the transaction, AIPC will become a wholly-owned subsidiary and will operate as an independent division of Ralcorp, reporting to Kevin J. Hunt, co-chief executive officer and president of Ralcorp, who oversees the company’s existing Snacks, Sauces and Spreads and Frozen Bakery Products businesses.
“We are excited about the addition of AIPC to the Ralcorp family,” said Mr. Hunt. “This transaction strengthens our position as a diversified provider of private label and branded food products, and we anticipate that by adding AIPC’s number one position in private label dry pasta, strategically-located production facilities, solid brands and top-tier customer base to Ralcorp’s capabilities, we will be able to better address a broader spectrum of customer and consumer needs.”
Ralcorp hosted a conference call to discuss the transaction and an archive of the webcast will be posted in the investor relations section on Ralcorp’s website at ralcorp.com. For more information about AIPC visit www.aipc.com.
The Taste of Success
The Giovanni Food Company, Syracuse, NY, has named Michael Donahue to be the new national private label account manager. In his new role, Donahue is responsible for all private label customer development in North America. He reports directly to VP Lou DeMent. Donahue brings to Giovanni more than 18 years of expertise in the field of consumer packaged goods with a concentration in shelf-stable grocery.
Donahue comments, “I am very excited to be on-board with such a dynamic and innovative team. I eagerly look forward to furthering Giovanni’s solid reputation as the leading private label manufacturer of tomato-based products.”
The Giovanni Food Company has been in business for over 70 years and with increasing sales, further growth is in their future. They have developed several products from traditional to gourmet, kosher, and even organic. Customers can find Giovanni products in grocery and specialty stores across the United States. Giovanni Food Company has become recognized as a leading private label manufacturer of tomato based products and they are also the largest manufacturer of spaghetti sauce for the USDA Food For Kids Program and the Needy Families Program.
With an average growth of over 21% each year for the past 10 years, clearly something is working. Giovanni Food Company may have started out small, but by listening to the ever-changing customer, they have been able to forge ahead. For more information visit www.giovannifoods.com.
