Harris Teeter 1999 Annual Report Download - page 15

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11
1999 Annual Report
Hunter Dairy contributes to Harris Teeter’s profitability as it produces our own
private label milk, ice cream and juice and also supplies a number of outside super-
market and food service providers. Recent equipment upgrades and reengineering
have allowed Hunter Dairy to make significant improvements in quality and efficiency,
as well as to respond to industry changes and customer feedback. A redesign of our
traditional square ice cream carton in fiscal 1999, taking into account the benefits of
round packaging, resulted in our new, more user-friendly containers. New equipment
purchased to fill the new ice cream packaging also enhanced the product flow and
quality of the finished product.
New products and geographic expansion
are two key elements of A&E’s growth plan. At
1999 fiscal year end, we had completed many
successful trials with our new embroidery
thread. We believe that these trials clearly
demonstrated that we have a superior-
performing and better-looking product with
which to enter this market, and we are now
beginning a rollout with targeted customers.
While foreign sales grew and accounted
for 30% of A&E’s total sales in fiscal 1999,
A&E still has tremendous opportunities for
growth in overseas markets. Not only do we
continue to fortify our operations in Mexico,
Central America and the Caribbean Basin coun-
tries where sales growth has been strong in the
last several years, but we are focusing more on
expansion outside of the Western Hemisphere,
to Asia, Europe and India.
Harris Teeter: Infrastructure Upgrades Boost Quality and Efficiency
American & Efird: New Products and Foreign Sales are Keys to Growth
Oddie Clinton, a 30-year veteran
company employee, monitors
milk processing at Harris Teeter’s
Hunter Dairy.
A&E has 12 manufacturing facilities in North
Carolina and 15 distribution centers in the U.S.
and Puerto Rico. Outside the U.S., it has eight
manufacturing facilities in seven countries and 15
distribution facilities in an additional seven.
Hunter Dairy’s new line of Homemade ice
creams is packaged in Harris Teeter’s new
“sqround” cartons, redesigned based on
customer feedback.
Manufacturing
Manufacturing/Distribution
Distribution Centers