Maple Leaf Foods

• Headquarter locationed in Toronto, Maple Leaf Foods is a leader in the manufacture of packaged food

• Operations in Canada, U.S., Mexico, Asia and the U.K.

http://www.google.ca/imgres?imgurl=http://jtc1986.com/images/MapleLeaf.jpg&imgrefurl=http://jtc1986.com/sponsors.html&h=300&w=300&sz=15&tbnid=oxVRmSJtSxma-M:&tbnh=93&tbnw=93&prev=/search%3Fq%3DMaple%2BLeaf%2Bfoods%2Bimages%26tbm%3Disch%26tbo%3Du&zoom=1&q=Maple+Leaf+foods+images&docid=OIudOrlpzP_RJM&hl=en&sa=X&ei=lPhaTuDCJrHKiALW-IiRCQ&ved=0CCgQ9QEwAQ&dur=2312

Beginnings

• Maple Leaf Foods Inc. is an amalgamation of companies with roots dating back over 100 years– Companies involved in Maple Leaf• Maple Leaf Mills created from Purity Flour Mills Limited

and Toronto Elevators Limited, built in 1836.• Canada Packers was created from Harris Abbatoir

Company, Gunns Limited and William Davies Company (circa 1860’s)

http://www.mapleleaf.ca/en/corporate/company-info/our-rich-history/

Growth

• 1991 merger between Maple Leaf Mills Limited and Canada Packers created Maple Leaf Foods Inc.

• Maple Leaf owns 90% of Canada Bread, a major bread and bakery goods firm

• Business benefits from economies of scale

Leadership

• Currently controlled by McCain Capital Corporation and Ontario Teachers Pension Plan Board

• Maple Leaf Foods Key Management Members– Purdy Crawford, Chairman– Michael H. McCain , President and CEO– Link to detailed list

• http://www.mapleleaf.ca/en/corporate/company-info/management-team/

• Company employs over 21,000 people

Products

• Maple Leaf Foods Inc. is divided into 3 distinct sections, together coordinating and complementing each other– Meat Products Group– Bakery Products Group– Agribusiness Products Group

Meat Products Group

• Producer of value-added meat products–Brands include:

–Maple Leaf–Schneider's–Shopsey’s

Bakery Products Group

• Leader in fresh and frozen bakery goods and pasta products–Brands include

–Olafson’s–Wholesome Harvest–New York Bakery–Olivieri

Agribusiness Products Group

• Operations include hog production, rendering and biodiesel processing

• Montreal biodiesel facility first in Canada dedicated to commercial biodiesel production

• Agribusiness supports Maple leafs other processing facilities

Marketing

• Company has large Canadian market share in protein and bakery products

• Excellent brand recognition• Incorporates a wide range of media

advertising in national marketing campaign • Community involvement and charity initiatives

The Supply and Demand of Meat

• Meat products including poultry, beef and pork have an elastic demand in that there are many substitutions for any one product

• Record supply of meat between 2000 -2008• Overall quantity of meat produced has

decreased since 2008 resulting in higher prices

Pricing

• Maple Leaf is a price setter in the Market. Prices are mainly set according to current meat prices.– Beef • $4.11/Pound

– Pork• $3.03/Pound

– Poultry• $1.79/Pound

http://en.allexperts.com/q/Collectibles-General-Antiques-682/2008/3/butcher-scale.htm

Significant Fixed and Variable Costs

• Fixed Costs:– Rent– Labour– Equipment

• Variable Costs:– Materials

• Animal Feed• Beef• Pork• Poultry

Sales Summary by SegmentSecond Quarter Year-to-date

($ thousands) 2011 2010 2011 2010

Meat Products Group

$762,212 $815,735 $1,480,453 $1,583,915

Agribusiness Group

70,918 54,057 128,211 95,865

Protein Group $833,130 $869,792 $1,608,664 $1,679,780

Bakery Products Group

405,071 401,574 777,479 783,093

Sales $1,238,201 $1,271,366 $2,386,143 $2,462,873

Competition

• Maple Leaf’s strongest competitors –Darling International Inc–Griffin Industries, Inc–George Weston Limited–Premium Brands–Tyson Foods

Competitive Advantage

• Maple Leaf enjoys the benefits of economies of scale

"Maple Leaf Foods delivered outstanding results and our ninth consecutive quarter of earnings growth," said Michael H. McCain, President and CEO. "We are successfully managing the impact of rising costs through price increases and cost reduction initiatives, and our value creation plan is on track and contributing to earnings. We are making steady progress in increasing our profitability and delivering on our commitments.“

http://www.mapleleaf.ca/en/corporate/company-info

Summary

• Maple Leaf Foods, an expanding and diversified company, is a leader in manufactured foods– Efficiency and improved standards are priorities for

this company• The company is still recovering from negative press

regarding food tainting• Maple Leaf is an iconic company continually

innovating the industry. Armed with a rich Canadian Heritage they have a solid roadmap going forward

References

• http://www.mapleleaf.ca/en/corporate/company-info/

• http://www.fundinguniverse.com/company-histories/Maple-Leaf-Foods-Inc-Company-History.html

• http://www.hoovers.com/company/Maple_Leaf_Foods_Inc/hcryri-1.html

• http://en.wikipedia.org/wiki/Maple_Leaf_Foods

• http://www.americancattlemen.com/cattle-industry-news/meat-prices-reflect-supply-and-demand