For Immediate Release
February 29, 2008

ONTARIO TAKES THE CAKE

McGuinty Government Welcomes B.C. Dessert Manufacturer To London

LONDON - Ontario has helped attract Canada's largest, privately owned dessert company, The Original Cakerie, to the community of London.

Manufacturing companies across North America face challenges from global competition, a high Canadian dollar and slowing economic growth in the United States. Ontario's skilled workforce, rich resources and ideal proximity to markets provide the right environment for businesses to succeed.

The McGuinty government is showcasing Ontario's advantages to companies and business leaders, encouraging them to come here and create the next generation of jobs. It is also investing in projects that promote business growth in urban and rural communities.

The province will provide $2.5 million to The Original Cakerie and its partner, the Ontario Wheat Producers' Marketing Board, for the construction of a new plant in London, expected to be completed by January 2009. Ontario's wheat producers and dairy and egg farmers will benefit from the company's need for local ingredients.

"We pride ourselves in creating delicious, high quality desserts and we're aiming to be an employer of choice. London and the surrounding rural communities have the perfect combination of skilled labour, material resources and a community culture that is aligned with our company's core values," said David Hood, president of The Original Cakerie.

"I am pleased to extend a warm welcome to The Original Cakerie. London has the skilled labour and material resources as well as the infrastructure that an outstanding business like this one needs," said Khalil Ramal, MPP London-Fanshawe.

"This project demonstrates the positive outcomes that can be achieved when everyone works together as a team," said Chris Bentley, MPP London West.

"This new facility will create economic benefits and employment opportunities in our community which will be felt in London and across our province," said Deb Matthews, MPP London North Centre.

Today's investment was made through the Rural Economic Development (RED) Program. Since 2003, the Province and its partners have invested $477.7 million in rural Ontario to build strong rural communities.

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Contacts:
Kelly Synnott
Minister's Office
416-326-6439

Brent Ross
Communications Branch
416-326-9342

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Fact Sheet

ONTARIO INVESTS IN DESSERT MANUFACTURER'S
NEW ONTARIO PLANT

About the Company:

The Original Cakerie Ltd. was established in 1979 as a small industrial bakery producing high quality food service desserts for local restaurants in Victoria, B.C. The company has expanded and grown over the past 25 years and is now the largest privately-owned frozen dessert manufacturer in Canada.

The Original Cakerie produces layer cakes, dessert cakes and dessert bars. The company's new plant will be located in London, Ontario and is expected to create up to 400 new jobs, from positions in manufacturing and trades, to management. The company produces a wide variety of frozen desserts that are sold across North America to restaurants, grocery stores and well established Canadian companies such as M & M Meat Shops, and food service providers such as Sodexho and Aramark.
The new 125,000 square-foot plant will be located on a 22 acre parcel of land in London's Innovation Park. The Original Cakerie anticipates an expenditure of up to $30 million per year in agricultural inputs (flour, eggs, cream, fruit, and sweeteners) from Ontario and this number is expected to grow annually.

Partners in the Investment:

The Ontario Wheat Producers' Marketing Board represents over 16,000 wheat producers in the province of Ontario and the most diverse region of wheat production and utilization in North America. The board uses specialized knowledge, innovation and programs to work towards marketing the Ontario wheat crop in an effective and efficient manner to provide the highest returns to producers.

The Board will provide technical and research and development expertise to the new facility in London, and will contribute $60,000 in eligible in-kind products and/or services towards the project.

The Ontario government is investing $2.5 million for the project, under its Rural Economic Development Program. This funding will help the project's partners to develop a state-of-the-art, frozen dessert manufacturing facility that will source ingredients from local flour mills, egg and dairy farmers located in rural Ontario.

Rural Economic Development Program (RED):

The Rural Economic Development (RED) program is an economic development initiative that helps rural communities remove barriers to development and economic growth. The program assists with the costs of projects that use the power of partnership to create change. The partners might be individuals, businesses, organizations, or municipal governments. They share a common goal: to strengthen rural communities, make more opportunities to develop skills, and improve access to health care.
Through the RED program, the Ontario government and its rural partners are building stronger communities that work better for the people who live in them. Since 2003, the Province and its partners have invested $477.4 million in rural Ontario to build strong rural communities. In June 2004, the program was focused to support three priorities for rural economic development, access to health-care services, community revitalization and skills training and enhancement.

 

Contacts:
Kelly Synnott
Minister's Office
416-326-6439

Brent Ross
Communications Branch
416-326-9342