Saputo President Camillo Lisio Resigns Post

Dairy Foods, May, 2001

MONTREAL--In an apparent surprise move, Camillo Lisio stepped down last month from his position as president of Saputo Inc.

Lisio, who also served as chief operating officer, did not say what he would do after he left or why he was leaving.

Lisio said he would "reflect in-depth on my future and on my desire to take on new challenges and explore other alternatives that may be presented to me."

Chairman Lino Saputo said he would take on Lisio's responsibilities.

"After 18 years with Saputo, the last three as President and Chief Operating Officer, I had the privilege to participate in the development of a company that has be come a leading participant in the Canadian agribusiness. The solid foundation on which the Company is built, as well as the seasoned professional team that manages it, have given me the necessary latitude to reflect in-depth on my future and on my desire to take on new challenges and explore other alternatives that may be presented to me." Lisio said. Saputo, long the mozzarella leader in Canada, has through recent acquisitions, become Canada's largest dairy and a formidable force in North America. In December the company announced it would purchase Dairy World Foods from Agrifoods International Cooperative Ltd.

The deal came with a purchase price of $268 million (U.S.) and gave Saputo a more diversified cheese portfolio and a serious milk presence in Canada.

"It is with regret that I have accepted Mr. Lisio's resignation," said Lino Saputo, Chairman/CEO. "Following Mr. Lisio's departure, I will take on the responsibility of the company's activities. With the support of the management team already in place, and strengthened by our human resource, we will pursue our growth objectives with success."

Saputo employs over 8,450 people. In its Dairy Products Sector, the company operates 15 plants in the United States, as well as 35 plants in Canada.

Saputo Reaches for the Top

Canadian Cheese processor Saputo Inc. leapfrogged to the top ranks of the dairy industry in December when it agreed to purchase the fluid-milk and cheese operations of Agrifoods International Cooperative Ltd.

The mozzarella leader of Canada, Saputo spent $268 million(U.S.) to purchase the holdings, also known as Dairyworld Foods. The purchase, approved by both companies' boards of directors in January, makes Saputo Canada's largest dairy company. It has annual sales of more than $2.2 billion (U.S.), 8,450 employees and 55 plants in Canada and the United States. Saputo is now a serious North American player in all dairy sectors except ice cream. The move diversified Saputo's cheese interests by giving it a major share of the Canadian Cheddar market. It also gave Saputo an instant major presence in fluid milk.

There was talk in February of possible further acquisitions. It's beginning to look like Saputo is on its way to becoming the Suiza of the North.

But hold on, because last month, Lino Saputo announced that he is resuming control of the day-to-day operations with the sudden departure of President and CEO Camillo Lisio, who had been with the company 18 years.