Opportunity to be Part of a Renaissance

TERRE HAUTE, IN. (October 24, 2006)-Clabber Girl Corporation announced a business expansion earlier this month of an approximately 70,000 sq. ft. new manufacturing facility and the addition of 42 new jobs. The ceremonial ground breaking that took place today will mark the first new construction on the site since the early 1920’s.

The baking powder manufacturer has roots in Terre Haute dating back to 1850. Herman Hulman, the company’s founder, purchased the downtown Terre Haute property at Ninth Street and Wabash Avenue in 1889. Still owned and operated by the Hulman-George family, this property continues to be home to the Clabber Girl manufacturing and other business operations.

The past six years, have brought many changes to the 156-year- old company. Clabber Girl has expanded its product line to include corn starch, baking soda, cookie and brownie mixes, and an all-purpose baking mix. It has diversified distribution channels to include the industrial, food service, export, private label and fundraising markets.

“We love to welcome new companies to our state, but it’s better yet when a longtime Hoosier business thrives and grows. Yet again, we see Terre Haute and west central Indiana out front in contributing to the state’s economic comeback. Congratulations to Clabber Girl and thanks to the Hulman-George family,” said Governor Mitch Daniels.

The state of Indiana through the Indiana Economic Development Corporation (IEDC), Terre Haute Economic Development Corporation and city of Terre Haute provided incentives to assist in the company’s upcoming building expansion. The IEDC offered incentives including up to $120,000 in training grants and approximately $150,000 in tax credits based on the company’s planned capital investment. The city of Terre Haute has offered a ten-year real and personal property tax abatement.

The expanded Clabber Girl operation seems to coincide with a renaissance in food manufacturing in the state of Indiana. “The new manufacturing facility fits into the strategic plan for the Department of Agriculture for increasing food manufacturing in the state of Indiana,” states Dr. Maria Marshall, Assistant Professor for the Department of Agricultural Economics at Purdue University. According to Marshall, food manufacturing has been on the increase. “We have noticed a trend in the last few years of (more) people starting food businesses in Indiana,” Marshall offered.

“Clabber Girl is an important part of our family business,” noted Tony George, chief executive officer of Clabber Girl and other Hulman-George family companies. “Our family started business here 156 years ago, and our heart is here. This investment is statement of confidence in Clabber Girl and in the city.”

The Clabber Girl building expansion will enhance the current manufacturing facility by adding a fully automated production line and incorporating principles of lean manufacturing and “just in time” production. The new machinery is designed to add flexibility to the production line by enabling the lines to be modified quickly and efficiently to move from one product to another with the need for very little down time. The pharmaceutical grade food processing facility will be designed to segregate allergen ingredients, such as gluten, peanuts, tree nuts, and soy giving Clabber Girl the ability to comply with the growing demand for nutrition and ingredient labeling regulated by the FDA. The new building is estimated to be completed in the fall of 2007.

“Much like the construction of our corporate offices here in 1892, our new manufacturing facility gives us the opportunity to be on the cutting edge of the food industry and meet the upcoming trends,” says Gary Morris, president and chief operating officer of Clabber Girl. “We will continue to be responsive (to the food industry) so that our business can continue to grow and thrive in downtown Terre Haute.”

Steps have been taken in an effort to honor the company’s history with the upcoming ceremony and new construction. “We have asked the manufacturing facility’s most senior employee and most recent hire to take part in the (ground breaking) ceremony,” explains Morris.

“While a new building is certainly something to get excited about, it’s the history that we draw from when we look to the future,” notes Marla DeHart, executive director of corporate operations.

Honoring the company’s history has become a key aspect of every Clabber Girl project. Clabber Girl has devoted the first floor of the headquarters office building to celebrating its history. The space houses a renovated museum, bake shop and country store where memorabilia and company relics are on public display.

“In order to make room for the new facility, some non-functional buildings were vacated and demolished,” says DeHart. “Some of these buildings had beautiful wooden beams and hard wood flooring that we have salvaged and will incorporate in our new manufacturing facility. We want to be mindful of where we came from.”

Continuing to bring forward a history too worthy to be left behind, the reclaimed beams and hard wood flooring will be used to enhance the décor of the new manufacturing facility’s lobby. “I want our new building to be as welcoming as our current one,” explains DeHart. “When visitors enter our new facility, I want them to encounter that same feeling of rich history that is uniquely Clabber Girl.”

Along with the continuing exterior restoration of the Hulman and Company building, plans are set for renovation of the interior third floor to house the growing administration staff