Harris Teeter 1997 Annual Report Download - page 4

Letter to Our Shareholders
Ruddick
RUDDICK CORPORATION
2
In keeping with our longstanding
commitment to communication, we
enjoyed visiting this year with a num-
ber of our outside investors. One of
the questions we are most often asked
is why we maintain two separate
operating subsidiaries – Harris Teeter,
a nationally-recognized regional super-
market chain, and American & Efird, a
leading global manufacturer and dis-
tributor of industrial and consumer
sewing thread.
It has long been our philosophy
that the benefits of a consolidated
multi-business structure will, over
time, offer greater risk-adjusted returns
to shareholders, many of whom are our
associates. We believe that product and
geographic diversification can signifi-
cantly reduce overall economic and
business risk. We also believe that the
strength of the larger organization and
combined capital base can provide
each separate company with a number
of advantages, including greater nego-
tiating power and a lower cost of capi-
tal to fund strategic acquisitions, entry
into new markets, capital expenditures
to maintain state-of-the-art facilities
and possible further diversification.
Values
In last year’s annual report, we empha-
sized the fact that both our companies
provide products that are essential to
“everyday” life: high performance
thread for apparel and a multitude of
other specialized applications, and a
wide variety of grocery items and
freshly prepared foods. Both compa-
nies are leaders in their chosen markets
but are expanding their reach – addi-
tional international operations for
A&E and carefully selected locations in
new markets for Harris Teeter. At both
companies, we strive to offer the best
value – the highest quality at competi-
tive prices. One of the keys to our suc-
cess at both companies is innovation,
whether in developing the most effi-
cient and environmentally friendly
thread manufacturing processes or in
the creation of cutting-edge products
for the home meal replacement market.
From the most fundamental strate-
gic perspective, it has always been the
objective of both of Ruddick’s sub-
sidiaries to distinguish themselves in
the marketplace by offering the best
quality, service, value and execution and to
continually look for ways to improve.
By focusing on these critical objectives,
we believe Ruddick can return the
greatest value to its most important
constituents: its shareholders, cus-
tomers and associates.
Focusing on Enhancing Execution at
Harris Teeter
At Harris Teeter, our reputation for
excellence and for offering the most
friendly and helpful customer service
has earned us many loyal customers.
We have also demonstrated our ability
to provide one of the most extensive
selections of perishable and prepared
foods in the industry. At the same
time, our full line of dry groceries
AND SUBSIDIARIES