Question-and-Answer Session
Operator
(Operator Instruction) Your first question comes from Mitch Pinheiro - Janney Montgomery.
Mitchell Pinheiro - Janney Montgomery Scott Llc
I am hearing from some other snack food competitors that key star businesses traffics down but yet you guys can still drive single serve. Why is that do you think?
Charles Pizzi
Mitch, I think innovation is first. We introduced a lot of new products on a single serve side. I think merchandising is the second reason. I think we have been executing some new merchandising within the channel. I also think the expansion in some of specific customers within that channel has been very positive in expanding our volumes within certain change. Certainly, our marketing has focused on radio and for single serve. So, it is wide array of initiatives that we have taken and I also think finally that we brought more focus to the single serve this year as part of our overall plan for '08.
Mitchell Pinheiro - Janney Montgomery Scott Llc
So, did you quantify the single serve volume?
Paul Ridder
We did not, Mitch. We intentionally do not break that apart for competitive reasons. Obviously we have said there is some disparity to what we are achieving at some of our competitors so we are sensitive to that. As Charlie said, we really hit it with a multi-pronged approach that will be very successful this year.
Mitchell Pinheiro - Janney Montgomery Scott Llc
So, with your price increases up 8% but obviously the overall volume as single serve price increase, I presume there was some volume decline in single serve, is that there?
Paul Ridder
We actually said on the call that the single serve volumes were up.
Mitchell Pinheiro - Janney Montgomery Scott Llc
Oh, they were, okay.
Paul Ridder
It is quite the fact that we raised prices, Mitch.
Mitchell Pinheiro - Janney Montgomery Scott Llc
That leads then to the family pack. Obviously it seems more sensitive to pricing and promotion than the impulse category so volumes were obviously down there. Have you been successful in raising your promoted prices in the family pack or have you backed away from that a little bit being sensitive to what is happening in the broader market?
Paul Ridder
I think the way to answer that Mitch is I mean when you look at the impact that we had from pricing, we were successful in putting to the price increases that we attempted to. One of the thing that we have said is we are proactive and also reacting to market challenges and we look at what that requires both from commodities, risk management, price and cost containment so I would not say that we will either move forward back and away from that. We are making sure we are evaluating the situations with respect to pricing very carefully and taking those actions that benefit values in the company.
- To read the full transcript on Seeking Alpha, click here »
