Rapid Expansion Presents Challenges
Ralcorp, through internal growth and strategic acquisitions, has evolved from the industry leader for private label food to the premier mid-cap food company offering a balanced product portfolio. Known for its popular ready-to-eat cereals (e.g., Honey Bunches of Oats®, Grape- Nuts®, and Post Shredded Wheat) and frozen griddle products (Krusteaz), Ralcorp has experienced rapid growth in its store brand foods, fueled by consumers’ growing acceptance of store brands.
Centralized Command & Control
Recent acquisitions resulted in manufacturing sites operating totally independent of each other. Ralcorp believed that synergy could be realized by centralizing operations at corporate headquarters and leveraging corporate buying power, gaining visibility to all operations, and achieving savings from the economies-of-scale.
Acquisition was an ongoing process; Centralization of Transportation’s Command and Control would make integration of newly acquired companies easier and quicker.