Graeter’s Moves 100 Percent of Ice Cream Production to New Plant Facility

Consolidation will bring increased production efficiency for growing wholesale distribution

CINCINNATI, OHIO (August 12, 2011) – Graeter’s Manufacturing Company today announced the consolidation of ice cream production to its plant on Regina Graeter Way in Cincinnati. The consolidation was planned as part of the development of the 28,000 square foot facility, which opened in June 2010. The company’s facilities at Reading Road in Cincinnati and Bethel Road in Columbus will remain open but will cease the production of ice cream.

“The Regina Graeter Way facility is fully up to speed, operating two 40-hour shifts per week, and it’s time to consolidate production as originally planned,” said Richard Graeter, President and CEO. “The facility is ready to support our growing wholesale distribution to 4,000 grocery stores in 41 states.”

The consolidation means the elimination of approximately 20 full-time jobs between the two facilities. Graeter's will offer a severance package to affected employees who have more than one year of service and will refer all affected employees to a staffing agency.

“We are grateful for the service of all our employees and it is unfortunate that we will lose some of our valued employees,” said Graeter. “However, we can no longer continue to operate the two older plants, one of which is more than 100 years old, when our new plant is designed with enough capacity to supply our current needs as well as projected growth. The consolidation will help guarantee that Graeter’s Manufacturing Company remains in a strong position to continue our business expansion and provide jobs for generations to come.”

The Reading Road facility will continue to produce ice cream cakes, pies, bakery items, candy and sorbets, and will continue to serve as a retail storefront, distribution facility and administrative office for Cincinnati retail store operations. The Bethel Road facility will continue to produce ice cream cakes, pies and toppings, and will continue to serve as a retail storefront, distribution facility and administrative office for Columbus operations. The Regina Graeter Way facility is solely devoted to ice cream production and serves as corporate headquarters.

About Graeter’s: Graeter’s ice cream is a renowned brand made in Cincinnati, OH, with national prestige that still faithfully uses century-old recipes and methods of production. Graeter’s has perfected the traditional French Pot process, making the world’s finest ice cream just two gallons at a time. The secret recipe of fresh cream and egg custard spun in a French Pot freezer creates an extremely dense and creamy consistency. Liquid bittersweet chocolate is poured in just as the ice cream is finishing, creating Graeter’s signature chocolate chips. Graeter’s has 31 corporately owned stores and generates $4 million annually in online mail order sales. Graeter’s can also be found in more than 4,000 grocery stores in 41 states. Visit www.graeters.com for more information.