Rogers Sugar Income Fund
TSX : RSI.UN

Rogers Sugar Income Fund

February 19, 2009 12:42 ET

Rogers Sugar Income Fund: Announcement

MONTREAL, CANADA--(Marketwire - Feb. 19, 2009) -

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NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Rogers Sugar Income Fund (the "Fund") (TSX:RSI.UN) would like to comment and correct certain information in the market place which negatively impacted our trust units and convertible debentures value over the last two days.

TD Newcrest issued a report on February 17, 2009 which states, among other things, that the Fund had lost, effective February 2009, approximately 25,000 tonnes of retail business in Ontario, combined with additional losses of approximately 23,000 tonnes of other retail business and that the Fund is estimated to have lost over 7% of its recurring volume or about half of its retail channel market share.

This information is not factual. For fiscal 2008, the Fund's consumer segment volume decreased by approximately 8,000 metric tonnes over the previous year. In fiscal 2009, some volume of a major retail account was lost in the Ontario market which would represent approximately 8,000 metric tonnes on an annual basis, or slightly more than 1% of our total volume. As of today, we estimate the overall loss of retail volume for fiscal 2009 to be approximately 12,000 metric tonnes, about 10% of our total retail volume or less than 2% of our total volume.

As we stated in our first quarter 2009 report, due to increased competition in the market place, the Fund experienced some losses in volume and market share. As a consequence, gross margin rate per metric tonne may be negatively impacted in future quarters, as the Fund attempts to re-establish its historical volume and market share in the consumer segment.

In fiscal 2008, the Fund distributed 80% of its distributable cash flow and 71.8% in fiscal 2007. In total, this represents approximately $25.0 million of undistributed cash from these two years, which, at a minimum, is available for marketing activities.

About Rogers Sugar Income Fund

The Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario. The Fund holds all of the common shares of Lantic Inc. Lantic Inc. operates cane sugar refineries in Montreal, Quebec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic Inc.'s sugar products are marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western Canada, and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups.

Contact Information

  • Lantic Inc., Administrator of
    Rogers Sugar Income Fund
    Mr. Daniel L. Lafrance
    Senior Vice-President and
    Chief Financial Officer and Secretary
    514-940-4844