Anderson Erickson Dairy Co

Dairy Foods, April, 1990 by Alan Levitt

HEADQUARTERS: Des Moines, Iowa PRESIDENT AND CHIEF EXECUTIVE OFFICER: Jim Erickson VICE PRESIDENT, TREASURER: Bob Mahaffey VICE PRESIDENT, PRODUCTION: Frank McDowell ANNUAL SALES: (See below) Don't make the mistake of assuming 60-year-old Anderson Erickson is a stereotypically stodgy, full-line Midwestern dairy just because it operates in the heart of America's heartland.

The company is rolling-out light products aggressively, winning accolades for its creative marketing campaigns, taking a proactive stance in solid waste issues, and expanding its facilities to accommodate double-digit growth.

Last August, AE introduced Lite Fantastic, a nonfat, sugar-free frozen dessert, in four flavors. Miriam Erickson, director of advertising and marketing, notes that while similar products are available this year, Lite Fantastic was the first such product to market. Polydextrose and maltodextrin replace the fat to give Lite Fantastic its icecream-like texture, Erickson says.

The company also introduced Yo Light last year, a nonfat, sugarfree refrigerated yogurt. Advertising for all AE's light products is aimed at 25- to 35-year-olds, because Erickson feels the younger consumers are more accepting of aspartame, and more receptive to new, lighter variations of traditionAll AE's frozen desserts, which are produced by the company's AE Farms Inc. subsidiary, are packaged in recyclable high-density polyethylene (HDPE), the same material used for milk jugs. Beginning this year, the containers will promote their recyclability in a logo on the side panel. "We want to be part of the solution, not the problem," Erickson says.

The company also is at the onset of a long range expansion program. In 1989, AE completed a truck maintenance facility, and now the company is relocating its offices to free up space to expand the production area. Ultimately, AE will build a new ice cream manufacturing operation, too. In addition, last fall AE began building a warehouse and office facility in Kansas City, Mo., which is one of the company's fastest growing markets.

For 1990, AE has a litany of new products slated-all designed to appeal to health-conscious consumers. Gourmet Additions, a line of frozen yogurt in premium flavors, was introduced last month. A 2-percent acidophilus/bifidus milk is due out in May. And the company also plans to introduce lowfat cottage cheese, nonfat chocolate milk and new flavors of Yo Light in the near future.

Last year, AE posted sales in excess of $70 million, says Jim Erickson, president and chief executive officer. Sales increased 12 or 13 percent from the year before, he adds. This year, he expects a gain of about 8 percent. "The industry has changed so much in the last few years it's been tough to make longrange goals," he says. "But we're doing pretty good at meeting the ones we have set." n