Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 6, 1991 TAG: 9102060065
SECTION: BUSINESS PAGE: B5 EDITION: METRO
SOURCE: Associated Press
DATELINE: PIKEVILLE, KY. LENGTH: Medium
A spokeswoman for the Girl Scouts U.S.A. in New York said Consolidated Biscuit Co. - parent of Pike County's Mountain Top Baking Co. - had to back out of its contract to supply the organization.
"My understanding is they ran into financial and production difficulties and felt unable to complete their agreements this year," said DeborahMason, chief spokeswoman for the 3.4 million-member girls' organization.
But William Miller, vice president for sales and marketing at Consolidated, said the decision to end the Girl Scout contract was not a reflection on the financial health of Mountain Top.
"We don't have a problem," he said. "Mountain Top is there and operating and viable."
Mountain Top began production last October in its $15 million plant, nestled in the hills northeast of Pikeville. Politicians and government officials in the area have touted the plant as an example of how eastern Kentucky can diversify its mainly coal-dependent economy.
Consolidated, in its first contract with the organization, had deals with 13 of the organization's 333 U.S. councils, she said.
Only two other companies supplied cookies this year: Little Brownie Bakers of Louisville - which has been baking the cookies for 17 years and is the organization's largest supplier - and ABC, a division of Famous Foods of Virginia in Richmond.
Mountain Top Baking recently finished an order of 100,000 cases - 1.2 million boxes - of cookies for the Girl Scouts' annual sale, Winner said.
The plant had more orders but had to pass on them. Winner acknowledged that but said the plant's 274 employees are working on other orders.
Winner said the Girl Scout contract was not an easy one to fill - for any company.
"It had its difficulties, because some of the items are very demanding, much more so than the day-in, day-out items the industry produces," he said.
One of the toughest items, he said, was a cookie that requires "enrobing" - putting on the caramel, then topping it with chocolate. Mountain Top normally produces simple wafer- and sandwich-type cookies.
He said the company spent about a week rearranging conveyor systems and machines to accommodate the order.
It might be May or June before Mountain Top has a full evaluation of the contract's benefits - or disadvantages - for the company, he said. And Consolidated would have to see how its cookies are received by the public.
"It's like these people are voting with their money," he said.
But if Mountain Top does not get a contract renewal, Mason said it would not be for a lack of quality.
"The actual cookie tasted very nice," she said.
by CNB