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Weston foods
1. Weston Foods A leader in the manufacture of fresh and frozen bakery products. Focus on food retailing and general merchandising http://www.weston.ca/en/pdf_en/03gwl_ar_en.pdf
2. Beginnings Company founded in 1882 by George Weston Based in Toronto, Canada Weston, a baker’s apprentice, bought a bread route from his employer G.H. Bowen Bought Bowens Sullivan St. Bakery 2 years later Upgraded bakery and used more modern equipment Eventually renamed bakery Westons Bread Factory http://www.weston.ca/en/Our-History.aspx
3. Growth By 1901 factories output was 10,000 loaves daily Sold to over 100 communities in Ontario Expanded operations into cakes and pastry Company has achieved long term stable growth since its inception Went public in 1924 Expanded domestically and internationally during Depression Further diversification in 1966 with non bakery products George Weston Limited now employs more than 145,000 people internationally Weston Foods Canada employs 4,000 people
4. Leadership W. Galen Weston, Chairman, grandson of founder, owns 63% of the company Allan Leighton, Deputy Chairman Pavitar Binning, President Ralph A. Robinson, President Weston Foods Canada
5. Production George Weston Limited has 3 operating segments Weston Foods Food Distribution (Loblaws) Fisheries Weston Foods Canada Operations include: Weston Bakeries Ready Bake Foods Ace Bakery Colonial Cookies
6. The Supply and Demand of Bread Bread prices have recently been steadily increasing Increased demand for ethanol,an alternative fuel is decreasing wheat supply Elastic demand of bread will result in fewer customers if prices continue to rise
7. Marketing Weston’s Foods Canada has a large Canadian market share They have a multitude of brands distributed among numerous channels Involved in multimedia advertising campaigns showcasing innovative products
8. Stages of Production Weston Foods 35 Facilities across Canada including: Manufacturing Facilities Distribution Centres Corporate Sells branded and control label products Distributers include: Regional supermarkets Wholesale and club stores Convenience stores Food service distributers North American Retailing Market
9. Pricing Weston is a price setter in the market Prices for Weston Foods consumer products will increase by 5% in early 2011 as a result of high commodity costs
10. Fixed and Variable Costs Fixed Costs: Labour Rent Equipment Variable Costs: Some Commodities have doubled in last year Flour Sugar Yeast Eggs Dairy Products
12. Competition Canada Weston Foods compete in Oligopolistic Market Their strongest competitors Canada Bread (Maple Leaf Foods) Bridgford Foods Corporation Flowers Foods, Inc Their competitive advantage Effective merchandising Competitive Pricing
13. Summary Weston Foods Canada continues to reap the benefits of economies of scale Constant expansion even during recessions provides consistent returns Company is on the forefront of technology with regular introduction of new products The company’s diminishing U.S. Market share is a concern Efficiency, consistency and technology are the key ingredients for Weston Foods Canada success