Sun Valley Fruit Snacks
You are the Controller of Sun Valley Fruit Snacks, a family-owned company based in
British Columbia that was started in 1950 by Norman Beauchamp. His granddaughter,
Christine Beauchamp, is the current CEO; under her leadership the company has grown to $100 million dollars in sales across North America. She is proud of her company’s ability to develop innovative products that meet changing consumer tastes. Christine and her three siblings are equal shareholders in Sun Valley.
Sun Valley’s mission statement reads as follows:
At Sun Valley Fruit Snacks we strive to produce, sell and distribute healthy, top-quality products for our North American customers.
Sun Valley produces a range of fruit-based snacks, including bars, twists and shapes, that are under both the Sun Valley brand and private-label brands such as Loblaws’
President’s Choice. Currently there are two rented manufacturing facilities, one based in
Penticton, B.C., and the other in Riverside, Washington. Both facilities are located in prime apple-growing regions—apples are the main ingredient in most products. The
Penticton and Riverside facilities have capacities of 70M and 140M units respectively.
The Penticton facility was the original plant started by Norman in 1950 and currently operates at 70% capacity. It employs 50 local residents, many with more than 20 years of service, and contributes to the community through sponsorship of local youth sports teams. Although the equipment is old, the line is well maintained by the on-site maintenance team. Shipments are rarely late and contain few errors, mitigating the risks of penalties imposed by private-label customers. There is currently a rumour circulating around the company that it may close down this facility and move all production to
Riverside. This has caused some issues with employee morale.
Riverside, in contrast, has had numerous quality and shipping issues. The facility was