Manitoba Pool Elevators’ first foray into further-processed foods has not been without some bumps.
In 1995, the grain company announced it had become 25 percent owner of Gilbert International Inc., a Manitoba food processing company.
Today, it owns 75 percent of the company that makes frozen pot pies and appetizers for U.S. grocery stores.
But in May, Manitoba Pool representatives resigned from the company’s board of directors for undisclosed reasons.
And local shareholders, who bought into the company through the province’s Grow Bond program, are being bailed out by the government because they have not received any interest on their investment.
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However, the company is still in operation, and president Bob Gilbert said he’s optimistic increased sales and some new customers will help his company keep going.
Manitoba Pool first heard about the company from an official on the province’s economic development board.
“It was at a time where we were looking at the whole issue of value-added, and further down the supply chain, as being one that we didn’t have any direct experience in,” said Gordon Miles, the pool’s manager of services and development.
Miles said he could not say why pool representatives resigned, leaving the pool as a “passive investor” in Gilbert.
“The circumstances of the company at that time were such that we felt it was prudent to do that,” he said.
“We’re concerned that the sales levels need to get up to where there is a good return on the money invested.”
Gilbert said the pool has been a great partner, but has “a lot on its plate.
“The company wasn’t progressing: I think they (Manitoba Pool) just made a decision that they’d gone about as far as they wanted.”
John Melymick, director of the Grow Bonds program, said the province is helping Gilbert find new investors.
Although the government repaid Grow Bonds investors, it hasn’t written off the $770,000.
“It’s still debt to us which we owe the government,” Gilbert said.
Faith in investment
Miles said the pool is optimistic its investment will eventually pay off, and so is Gilbert.
“It’s a very tough fight, but as we speak right now, I’m confident we’re going to be able to do it,” he said.
Miles said the pool’s first experience with investments in products higher up on the processing chain than it normally handles hasn’t changed the way it looks at other potential investments.
