Agricore ditches Sunny Boy cereal facility

Reading Time: < 1 minute

Published: August 17, 2000

Agricore is selling Prairie Sun Grain, the business that made Sunny Boy cereal.

“It never turned into a profitable enterprise,” said Ed Rodenberg, general manager of Agricore’s agribusiness division.

The brands and products sold under the Prairie Sun Grain and Sunny Boy label were sold to Pat Maloney, a Calgary-based food broker who marketed the cereal for Agricore. The deal should be completed within two weeks.

Maloney did not want the Camrose-based manufacturing plant and it will be sold separately. A buyer has not yet been found for the 20-tonne-a-day mill.

Read Also

 clubroot

Going beyond “Resistant” on crop seed labels

Variety resistance is getting more specific on crop disease pathogens, but that information must be conveyed in a way that actually helps producers make rotation decisions.

“It’s very small in today’s world,” said Rodenberg.

The certified organic mill was too small to manufacture flour and cereal in large enough quantities to make money, he said.

Aug. 11 was Agricore’s last day of operating the plant. There were eight full-time and several part-time staff.

Maloney will continue to use the plant on a limited basis until a new owner is found.

The Sunny Boy label was the key value in the business, said Rodenberg. People from across the Prairies grew up eating the cereal for breakfast.

“It’s a well known brand and that’s the value Maloney saw in that,” Rodenberg said.

“It’s an excellent brand in terms of recognition.”

Agricore gave Prairie Sun Grain a chance to become successful since it bought the cereal in 1991, he said, but the company has an obligation to look after its core businesses.

explore

Stories from our other publications