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Business E-Profile

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  • 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
  • 11. Profit and Profit Margins
  • 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
  • 14. References
    http://www.hoovers.com/company/George_Weston_Limited/crtxif-1.html
    http://www.fpinfomart.ca/fpsn/snap_display.php?key=fp%7Cfpsn%7C3751
    http://www.weston.ca/en/Home.aspx
    http://www.weston.ca/en/Home.aspx
    http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=WN:CN
    http://www.financialpost.com/todays-paper/George+Weston+profit+rises/5182363/story.html
    http://www.westonfoodscanada.ca/
    http://www.qgazette.com/news/2008-01-09/features/032.html