Schwan's Announces Price Increase

Schwan's Consumer Brands North America Inc. will raise prices approximately five percent across its portfolio of pizza and snack products effective August 26, 2007. According to the company, retail food prices increased in the second quarter over the first quarter of 2007 as a result of increased global market demand for agricultural products and energy, as well as increased raw material prices driven by more agricultural acreage going into the production of ethanol. "This, along with the continued increase in the cost of healthcare and transportation, has led us to this decision," says Greg Flack, president of Schwan's Global Consumer Brands, Inc. "As an industry leader who prides itself on maintaining the quality of our products, we are committed to maintaining our formulations and the size of our products as other companies contemplate the opposite. This price increase is necessary to allow us to continue to provide the highest of quality to our retailer partners and consumers, and also maintain our innovation momentum."